Paradigm Capital launches coverage of HEALWELL AI with a “Buy” rating

Paradigm Capital analyst Daniel Rosenberg initiated coverage of HealWELL AI (HealWELL Stock Quote, Chart, News, Analysts, Financials TSXV:AIDX) with a “Buy” rating and a $3.00 price target, citing its strong position in AI-driven preventative healthcare.

HealWELL is a healthcare AI company focused on improving preventative care and early disease detection. Its AI tools help providers identify high-risk patients and improve outcomes by using clinical data and partnerships. The company was formed from the restructuring of MCI Onehealth Technologies, which operated tech-enabled clinics across Canada. Co-founded by current president Dr. Alexander Dobranowski, MCI had invested in clinics, telemedicine, and healthcare tech before going public in January 2021, raising $30-million.

“A recent transformational acquisition of Orion Health provides the company with global reach along with a much stronger financial profile,” Rosenberg said in a June 16 note. “Combined with its strategic partnership with WELL Health, HealWELL is uniquely positioned with a growing set of patient data, award-winning AI and technology that integrates across siloed areas of the healthcare system. With ambitions to become a global medical AI company, we believe the foundations are set for rapid expansion.”

Rosenberg said HealWELL AI has grown quickly through acquisitions, boosting revenue from $7.3-million in 2023 to over $38-million in 2024, with the Orion Health deal adding another $100-million and moving the company toward profitability. Supported by WELL Health, HealWELL is expanding its AI tools across a network of more than 4,300 providers and 150 million patients. Its AI segment is expected to more than double this year, backed by strong medical validation, including major industry awards and peer-reviewed studies.

“We value HealWELL AI using a sum-of-the-parts valuation,” Rosenberg said. “We apply a 2.2x 2026 estimated sales multiple to Clinical Research and Patient Services, 6.0x to AI and Data Sciences and 6.0x to Healthcare Software. These multiples are in line with the peer group average and reflect HealWELL’s long runway of growth.”

HealWELL generated $39-million in revenue in 2024, up from $7.3-million in 2023, mainly due to the acquisitions of Intrahealth, VeroSource, and BioPharma, which added about $28-million. With the Orion Health deal, HealWELL’s pro forma revenue run rate now exceeds $150-million. Gross profit rose to $17.3-million, or a 44.4% margin, compared to $1.3-million and 17.2% in 2023. The company posted a $16-million Adjusted EBITDA loss in 2024, mainly due to restructuring costs, but expects to turn positive with Orion contributing about $20-million annually. The net loss per share improved to $0.19 from $0.55.

“We expect 2025 revenue of $136.1-million, representing ~249% year-over-year growth driven by the addition of Orion, which adds ~$100-million in annual revenue beginning in Q2/25,” Rosenberg said. “We expect 2025 gross margins of 50.1%, an increase of 2.7% compared to the year prior. We expect 2025 Adjusted EBITDA of $2.2-million, improving from a loss of $15-million in 2024. For 2026, we expect revenue of $200.6-million (+47.4% year-over-year), driven by both rapid organic growth in AI and Data Sciences and Software as well as M&A growth. We expect profitability to continue to ramp up in 2026 as the company gains scale. We estimate gross margins improving to 52.1%. We are looking for Adjusted EBITDA of $20.7-million in 2026, representing a margin of 10.4%.”

Disclosure: Nick Waddell owns shares of AIDX.