08:00 AM EDT, 05/13/2025 (MT Newswires) -- HEALWELL AI Inc. (AIDX.TO), a healthcare artificial intelligence company focused on preventative care, said its net loss on continuing operation more than doubled in the first quarter, even as it

achieved big revenue growth, while it expects the Orion buy to "positively contribute" to financial results starting in Q2 2025

For Q1, HEALWELL. which saw its shares rise 3.4% yesterday on the TSX, reported net loss for the period on continuing operation of $14.055 million compared to a loss of $6.275)

But the company achieved quarterly revenue from continuing operations of $14.1 million, an increase of 208% compared to revenue of $4.6 million generated in Q1-2024. It said revenue growth was driven by acquisitions in the past year and record growth of 224% in the company's AI and Data Science business.

Among other highlights, during Q1, HEALWELL reported an Adjusted EBITDA loss of $3.3 million, compared to an Adjusted EBITDA loss of $2.5 million in Q1 2024. It achieved a Gross Margin percentage of 46%, compared to 44%.

As of March 31, 2025, HEALWELL had $18.4 million in cash, compared to $9.4 million as of December 31, 2024. The company also had $86.6 million cash that was advanced for its acquisition of Orion, which was completed on April 1, 2025.

Dr. Alexander Dobranowski, HEALWELL's CEO, said, "Our primary focus in Q1 was on securing the financing for and implementing our transformational acquisition of Orion Health, which closed on April 1, 2025. With the addition of Orion Health, we are entering a new phase for HEALWELL."

Dobranowski added, "Our Q1 results reflect the strength and diversification of HEALWELL's business, even before the addition of Orion Health, as we continue to scale a category defining AI-powered healthcare platform. The momentum in our AI and Data Science division is especially exciting -- Khure Health has seen rapid adoption from key healthcare stakeholders, while Pentavere is gaining traction with new enterprise relationships. These technologies are fundamentally reshaping how at-risk patients are compliantly identified, understood, and treated across the healthcare ecosystem."

Meanwhile, Anthony Lam, Chief Financial Officer of HEALWELL, said, "Our Q1 financial results exceeded expectations. Our targeted cost optimization efforts, including a workforce reduction, are expected to generate $3 million in annualized savings, further strengthening our financial position moving forward. Additionally, we secured over $100 million in total financing to support the acquisition of Orion Health, comprising a $50 million credit facility led by Scotiabank and RBC, and the proceeds of a $55.5 million bought deal financing, which consisted of $30 million in convertible debentures and $25.5 million in equity. We anticipate that Orion Health will positively contribute to our financial results starting in Q2 2025, adding approximately $25 million in top-line revenue in the quarter. With the benefit of the Orion acquisition, we expect to be Adjusted EBITDA positive for the full year in 2025."