Amwell Health, a Boston-based telehealth company, recently received notice from the New York Stock Exchange (NYSE) that it did not meet the minimum stock price requirement. The NYSE requires a company’s stock price to be over $1 for 30 consecutive days, but Amwell was trading at $0.74 per share at the time of the announcement. To address this issue, Amwell plans to gain compliance with a reverse stock split pending board and stockholder approval at its annual meeting. The date for the next annual meeting has not yet been set, according to a spokesperson for the company.
Despite reporting 65% revenue growth with $60.4 million in Q4 of 2020, Amwell Health faced challenges in Q1 of 2021. The release of its Converge platform, aimed at helping providers transition to hybrid care, did not meet revenue expectations. Additionally, significant losses were reported by the company in 2023 due to an increase in costs and a decline in revenue compared to 2022. The company projects an adjusted EBITDA loss in 2024 but anticipates revenue growth and improved EBITDA in 2025 and aims to reach breakeven adjusted EBITDA in 2026.
Amwell has also made strategic partnerships such as teaming up with DarioHealth to offer chronic condition management programs to its patients. However, these partnerships have not been enough to overcome challenges faced by the company in recent years. In September 2020, Amwell Health went public with a $742 million IPO but has since faced declining share prices leading up to this latest notice from the NYSE. As a result, Amwell is now exploring options for improving its financial performance and regaining compliance with NYSE requirements.
