WELL Health Technologies Corp.

Good afternoon, ladies and gentlemen, and welcome to the Well Health Technologies Corp. second quarter 2026 conference call. At this time, our lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Thursday, August 6, 2026. I would now like to turn the conference over to Pardeep Sangha. Please go ahead.

Thank you, operator, and welcome everyone to Well Health's fiscal second quarter financial results conference call for the period ended June 30th, 2026. Joining me on the call today are Hamed Shahbazi, chairman and CEO, and Eva Fong, the company's CFO. I trust that everyone has received a copy of our financial results press release that was issued earlier today. A portion of today's call, other than historical performance, includes statements of forward-looking information within the meaning of applicable securities laws, These four looking statements involve known and unknown risks, uncertainties, assumptions, and other factors, many of which are outside of wealth control, that may cause the actual results, performance, or achievements of wealth to differ materially from the anticipated results, performance, or achievements implied by such four looking statements. These factors are further outlined in today's press release and in our management discussion and analysis. We provide forward-looking statements solely for the purpose of providing information about managers' current expectations and plans relating to the future. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in advanced conditions, assumptions, or circumstances on which any such statement is based, except if it is required by law. We may use terms such as adjusted gross profit, adjusted gross margin, adjusted EBITDA, Adjusted EBITDA Margin, Sharehold EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow on this conference call, all of which are non-GAAP and non-IFRS measures. For more information on how we define these terms, please refer to the definitions set out in today's press release and in our management discussion and analysis. The company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations, which the company can use to fund working capital requirements. Service Future Interest and Principal Debt Repayment and Fund Future Growth Initiative. Adjusted EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS. And with that, let me turn the call over to Mr. Hamed Shahbazi, Chairman and CEO.

Thank you, Pardeep, and good day, everyone. We appreciate everyone for joining us. Before we get into the quarter, I'd like to step back and highlight what WELL has accomplished over the past several months. This quarter wasn't defined by a single financial result. It was defined by Execution across every key pillar of our strategy. Expanding our Canadian Clinics platform through acquisitions and organic growth, reaching a major profitability milestone ahead of schedule, strengthening our balance sheet, and unlocking additional growth capital for Wellstar to accelerate its next phase of growth. Specific highlights are as follows. We reached our $100 million adjusted EBITDA run rate milestone for Well Canada three quarters ahead of schedule and at margins meaningfully ahead of our original expectations. Two, we successfully completed our inaugural $150 million senior unsecured bond offering, strengthening our balance sheet by extending our debt maturity profile to 2031. Three, last week WellStart completed a $50 million financing, which included both primary and secondary components in conjunction with its planned standalone public listing in September, attracting high quality institutional investors while positioning the business for its best phase of growth. And four, we completed two highly strategic acquisitions, Ontario Imaging Diagnostics and UnionMD. which expand our leadership in Canadian outpatient healthcare while adding approximately $22 million of annual EBITDA. Taken together, these milestones demonstrate that our strategy is working. We're building a larger, higher quality, better capitalized healthcare platform. One that is delivering stronger profitability today while creating multiple avenues for future growth. That execution is why we're increasing our 2026 guidance today. Our new 2026 guidance is revenue of $1.58 billion to $1.65 billion compared to previous guidance of $1.55 billion to $1.65 billion. We have raised the bottom end of our guidance and narrowed the range to the upside. For adjusted EBITDA, our new guidance is $185 million to $195 million, up a full $10 million from $175 million to $185 million. As you can tell, the EBITDA guidance range has been significantly improved versus the revenue guidance range, which speaks to our execution and focus on higher margin growth opportunities. And now to the quarter itself. Revenue in Q2 was approximately $400 million, up 12% year over year. Adjusted EBITDA was $48.1 million, down 3%. And adjusted EBITDA attributable to well shareholders was $35 million, down about 6%. On a normalized basis, meaning once accounting for the circle medical deferred revenues, revenue grew 14% to $395.6 million, and adjusted EBITDA grew 8% to $43.3 million, and adjusted shareholder EBITDA grew 4% to $32 million. In terms of the gap between reported and normalized matters, This quarter, again, we had $9.7 million of deferred revenue in Q2 2025 versus $4.8 million this quarter. That swing, combined with roughly $8.7 million of one-time retro reimbursement revenue in the Canadian patient services business in the prior year period dampened our reporting growth rate, even though the underlying business grew much faster. With that context in mind, let's turn to the rest of the financial highlights. Adjusted gross profit was $178.4 million, up 12% year-over-year, with adjusted gross margin improving 10 basis points to 44.6%. Once normalized for deferred revenues, adjusted gross profit was $173.6 million, up 17%, with margin expanding 90 basis points to 43.9%. Our margin expansion continues to be driven by the shift in revenue mix towards higher margin WellSTAR, diagnostics, and executive and longevity health revenue. Adjusted net income was $11.6 million in Q2, 2026. On a normalized basis, adjusted net income was $9.2 million. I'll let Eva walk through the detailed bridge behind these numbers later on the call. First, I want to spend a moment on June specifically because the shape of the quarter matters as much as the total. We exited Q2 materially stronger than we entered it. June revenue was up 24% year over year or up 28% normalized for deferred revenues. June adjusted EBITDA was up 12% reported and up 43% normalized. June adjusted shareholder EBITDA was up 28% reported and up and a strong month within the quarter and that strength flowed through to our margins as well. The positive results in June were also driven by recent acquisitions of OID and Union as well as improvements in WISP's business, again in June. That is the exit rate underpinning today's guidance increase and is the clear signal indicator we have of where the Canadian business is heading in the second half. These results reflect a business that continues to compound. Now turning to our operational metrics. Well's clinic network now includes over 5,000 providers, including more than 1,500 physicians in Canada. Beyond our own clinics, more than 45,000 unique providers are supported by WellSTAR's technology. Remember, there are only just over 100,000 physicians in the entire country. System-wide, inclusive of Canada and the US and excluding HealWell AI, patient visits grew 19% year-over-year to 2 million with 5% organic growth. In Canada, patient visits reached 1.4 million up 28% year-over-year or 5.6 million visits on an annualized run rate basis. Total care interactions which we define as patient visits plus technology interactions exceeded 3.1 million in the quarter up 21% with 11% organic growth. Care interactions are growing faster organically than patient visits. And that tells you that our technology layer is increasingly doing more of the work alongside our clinical platform. Moving on, strong financial and operational results are the output of something more important. The real world positive impact our platform is delivering for patients and providers every single day. Here are three new and updated examples of how we are making an impact to Canadian healthcare. First one, well cardiologists are seeing patients in approximately two weeks against the 15.3 week industry average reported by the Fraser Institute. Second, technology enablement at well clinics has driven an 80% reduction in no-shows, which means more efficient use of provider time and shorter effective wait lists for everyone else. and in partnership with HealWell, we have collected now over 85,000 well trust consents as of June 30th, giving patients a consent-first way to participate in research and data-driven care. These are not theoretical efficiencies. They are measured, repeatable improvements at scale and they are why patients and providers continue to keep choosing well.