WELL Health’s stock declined 1.9% following the quarter, reflecting moderate investor caution as the overall results showed strong top-line growth but persistent headwinds from the Circle Medical segment and ongoing revenue deferrals that cloud comparability and near-term outlook.

• Revenue rose 25% year-over-year to $368.3 million, driven by strong growth in Canadian clinics and inclusion of higher-margin Healwell revenue.
• Adjusted EBITDA increased 56% to $43.1 million, with Canadian clinics’ adjusted EBITDA up 28%, signaling margin improvement.
• Adjusted gross margin expanded 440 basis points to 44.3%, reflecting favorable business mix and operational leverage.
• System-wide patient visits increased 17%, but organic growth moderated to 6%, weighed down by declines at Circle Medical amid compliance focus.
• Approximately $12.8 million of previously deferred revenue from Circle Medical impacted comparability; management expects this drag to largely resolve in Q2.