Buy WELL Health ahead of Q2 results, this analyst says

Beacon Securities analyst Gabriel Leung says WELL Health Technologies’ (WELL Health Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WELL) Q2 results should bring an updated outlook and more detail on capital allocation.

In an Aug. 5 preview, Leung maintained his “Buy” rating and $8.00 target on WELL. His target is based on a sum-of-parts analysis.

WELL is scheduled to report Q2 results after market close on Aug. 6, with a conference call at 5:30 p.m. ET.

Leung forecasts Q2 revenue of $385-million, operating Adjusted EBITDA of $41.2-million and shareholder Adjusted EBITDA of $29.2-million. Consensus is calling for revenue of $386-million and Adjusted EBITDA of $44-million.

Leung said the first item to watch is updated 2026 guidance following WELL’s acquisitions of OID Group and UnionMD. When the UnionMD deal was announced June 2, WELL said it expected to exceed the high end of its previous 2026 Adjusted EBITDA guidance range of $175-million to $185-million and would provide a formal update with Q2 results.

Previous 2026 guidance called for revenue of $1.55-billion to $1.65-billion and Adjusted EBITDA of $175-million to $185-million.

Leung also expects an update on capital allocation after WELL’s recent financing activity, including a $150-million senior unsecured note offering due 2031 with a 6.875% coupon and a $36.2-million treasury offering from WELLSTAR. He expects the proceeds to be used mainly for potential acquisitions.

The third item to watch is WELL’s U.S. asset divestiture initiative, which Leung said remains a potential catalyst because it would simplify and streamline the investment story.

Leung expects WELL to generate operating Adjusted EBITDA of $186.0-million and shareholder Adjusted EBITDA of $131.9-million on revenue of $1.59-billion in fiscal 2026.

For fiscal 2027, the analyst forecasts operating Adjusted EBITDA of $197.9-million and shareholder Adjusted EBITDA of $140.5-million on revenue of $1.66-billion.

Disclosure: WELL Health is an annual sponsor of Cantech and Nick Waddell owns shares of the company

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