Freedom Broker: Upside potential for medical company WELL shares rises to 80%

Freedom Broker analysts maintained their “Buy” rating on WELL Health Technologies Corp. (WELL) shares and a target price of C$7.50 ($5.39) per share. At the current price of C$4.19 ($3.01), this implies upside potential of about 79%. According to experts, the main source of WELL’s growth is its Canadian business: organic expansion, new M&A deals, and improved clinic efficiency allow the company to both accelerate revenue and enhance profitability.

WELL is building an ecosystem of healthcare services

WELL Health Technologies is a Canadian company developing a network of medical clinics and digital solutions for healthcare. The core of the business consists of medical services in Canada and the U.S., as well as technology products for physicians and patients.

Analysts consider the Canadian segment the highest-quality and most predictable part of WELL’s investment case. Here, organic growth is combined with the acquisition of new clinics, and improved operating efficiency enables the company to capture increasing benefits from scale.

Revenue rose 12%, Canadian segment up 32%

In Q2 2026, WELL reported record quarterly revenue of C$400.4 million ($287.7 million), 12% higher than C$356.7 million ($256.3 million) a year earlier. The main driver was the Canadian business: revenue of the Canadian Patient Services division increased 32% to C$151.6 million ($108.9 million).

According to Freedom Broker analysts, organic growth in the Canadian segment remained in the high single-digit to low double-digit range. At the same time, the number of patient visits rose 28%, and the number of billing medical professionals increased 26%.

Additional momentum came from M&A deals. In Q2, WELL closed the acquisitions of the OID Group clinic network and the UnionMD medical platform and expanded its network to 275 clinics. As a result, the annualized adjusted EBITDA run-rate of the Canadian business exceeded C$100 million ($71.8 million)—three quarters ahead of the original plan.

The U.S. remains the weak link for now

WELL’s U.S. assets are showing more uneven performance, although analysts note early signs of stabilization. Revenue at anesthesia procurement business CRH Medical rose 6.4% y/y, mainly due to the full impact of 2025 acquisitions. The Provider Staffing segment (a service in which a third-party company hires staff and provides them to another organization) returned to growth after a decline in Q1, but the volume of paid hours worked by medical professionals remains 10% below last year’s level.

Revenue of the Circle Medical telemedicine platform declined 13.3% y/y. The Wisp telemedicine service focused on reproductive health also showed early signs of recovery: after a 1.4% decline in Q1, its revenue in Q2 increased 4.8% y/y.

Profitability came in better than expected

Adjusted gross profit in Q2 increased 12% to C$178.4 million ($128.2 million) versus C$158.7 million a year earlier. Adjusted gross margin was 44.6%. Adjusted EBITDA reached C$48.1 million ($34.6 million) versus C$49.7 million ($35.7 million) a year earlier. The 3% decline is primarily due to a high base last year: recognition of deferred revenue at Circle Medical then added about C$9.7 million to EBITDA.

At the same time, Canadian Patient Services (which includes primary and specialized care and diagnostic testing) showed stronger momentum: its adjusted EBITDA rose 22% to C$22.3 million ($16.0 million).

The Canadian business is showing margin resilience amid efficiency gains at Canadian clinics, Freedom Broker analysts note. In their view, operating leverage at Canadian clinics, the impact of M&A, and recovering profitability at certain U.S. assets will support EBITDA in the second half of the year.

Company raised its 2026 guidance

WELL improved its financial outlook: the lower end of the annual revenue guidance was raised from C$1.55 billion ($1.11 billion) to C$1.58 billion ($1.13 billion), while the upper end was kept at C$1.65 billion ($1.19 billion). Adjusted EBITDA guidance was increased by C$10 million—from a range of C$175–185 million to C$185–195 million ($132.9–140.1 million).

Freedom Broker sees the guidance raise as an important signal: EBITDA is growing faster than revenue, indicating an improved business mix and stronger operating leverage. The main contribution to the revised expectations comes from Canadian clinics, recent acquisitions, and efficiency gains.

First-quarter results

In May, WELL Health Technologies (WELL) reported mixed results for Q1 2026. At that time, Freedom Broker analysts maintained their “Buy” recommendation and a target price of C$7.5, which was more than 2.5 times the stock’s market price at the time. WELL Health Technologies develops a network of medical clinics and digital healthcare services in Canada and the U.S.

Freedom Broker noted that the Canadian segment remained the highest-quality and most predictable source of the company’s growth. In Q1, revenue of the Canadian Patient Services division rose 30% y/y, with about 8 percentage points of growth driven organically. Analysts expected high organic growth rates to persist at least through the end of 2026.

Not an individual investment recommendation.