TORONTO, July 3, 2026, 17:04 EDT
- WELL Health Technologies Corp. (TSE:WELL) finished the session at C$4.31, up 3.1%. The S&P/TSX Composite Index (INDEXTSI:OSPTX) added 0.88%.
- The stock added 4.36% in the last five days and is up 8.02% since Jan. 1. Shares are still 29% under the 52-week high.
- WELL bought clinics in June at a price near 5.2x acquired 2025 adjusted EBITDA at close, which is lower than WELL’s public EV/prior 2026 EBITDA guidance.
- Cash conversion is the next hurdle after Q1 free cash flow dropped, even with higher adjusted EBITDA.
WELL Health Technologies Corp. (TSE:WELL) finished Friday up 3.1% at C$4.31, ahead of the S&P/TSX Composite Index (INDEXTSI:OSPTX), which rose 0.88%. Shares ended just under the C$4.32 session high, with 996,280 trading hands versus the 1.40 million average.
Toronto stocks traded Friday. The TSX calendar showed the Canadian holiday as Canada Day on July 1. U.S. markets will be closed July 3, with different settlement for securities in U.S. dollars.
| Friday market data | WELL Health | S&P/TSX Composite |
|---|---|---|
| Close | C$4.31 | 35,274.84 |
| One-day move | up 3.11% | added 0.88% |
| Intraday high | C$4.32 | 35,352.05 |
| Intraday low | C$4.17 | 35,082.35 |
| Five-day move | rose 4.36% this week | up 0.8% for the week |
TSX got a lift from resources, ending at its best close since June 16. Nine of ten major sectors moved up. “Lower rate expectations weaken the U.S. dollar, boost gold and benefit Canadian resource stocks,” Matt Manara, executive vice president and portfolio manager at Avenue Investment Management, told Reuters. Reuters
WELL’s valuation jumps out. As of Friday, Google Finance put the company’s market cap near C$1.10 billion, with 255.40 million shares out. MarketScreener listed the enterprise value at C$1.51 billion and pegged the 2026 EV/sales at 0.96.
| Valuation check | Figure | Read-through |
|---|---|---|
| Market cap to 2026 revenue midpoint | ~0.69x | Figure comes from C$1.10 bln market cap and C$1.60 bln midpoint revenue |
| EV to prior 2026 adjusted EBITDA top end | ~8.2x | Based on C$1.51 bln enterprise value and previous top end C$185 mln EBITDA |
| Canada run-rate EBITDA vs old 2026 EBITDA guide top end | ~54% | Canada EBITDA now makes up more than half of the former group guide |
| Friday’s volume vs average | ~71% | Stock gained on lower-than-normal volume |
That’s relevant as WELL said June 2 it now sees its 2026 adjusted EBITDA going above the high end of its earlier forecast range of C$175 million to C$185 million. The company also announced WELL Canada topped C$100 million in annualized adjusted EBITDA run-rate with about C$700 million in revenue, rather than its earlier plan for hitting that EBITDA mark at around C$800 million in revenue.
WELL paid roughly C$115 million up front for Ontario Imaging Diagnostics and UnionMD. Total cost could end up at C$160 million. The two brought in around C$22 million in 2025 adjusted EBITDA combined, so the initial price is about 5.2x that EBITDA, and the max price is around 7.3x. Both are lower than WELL’s public EV-to-2026 EBITDA multiple at the high end, which is about 8.2x.
| Canada clinic deal math | Company figure | Multiple from stated figures |
|---|---|---|
| Closing price | C$115 mln | 5.2x acquired 2025 adjusted EBITDA |
| Possible total price | C$160 mln | 7.3x acquired 2025 adjusted EBITDA |
| Acquired 2025 adjusted EBITDA | C$22 mln | — |
| Canada run-rate margin | C$100 mln / C$700 mln | ~14.3% |
WELL’s first quarter numbers show why investors are divided. Revenue climbed 25% to C$368.3 million and adjusted EBITDA jumped 56% to C$43.1 million. Canadian Patient Services was up 30% at C$130.3 million, but USA Patient and Provider Services added just 2% to reach C$178.1 million. WELLSTAR posted a 27% gain to C$21.8 million.
WELL chairman and CEO Hamed Shahbazi said in the Q1 report that revenue was running close to the “$1.5 billion per year mark.” After Canada posted an update on June 2, Shahbazi said, “Our model is working,” and management would now focus on “integration and operational execution.” WELL Health Technologies
Circle Medical is still included in the discount. WELL said June 12 its U.S. unit settled a previously flagged issue with the U.S. Attorney’s Office for the Northern District of California, dealing with old billing and supervision issues. The company made no admission of wrongdoing, and the payment came to US$3.3 million, as guided. Circle also said the number of commercially insured patients it can serve on its platform has more than tripled in the last year. CEO Georgia Psarras said compliance spending gives it a better shot at “scaling responsibly.” TMX Newsfile
Cash flow came in soft. Q1 operating adjusted free cash flow to shareholders was C$1.6 million, way down from C$11.8 million last year. WELL pointed to clinical portfolio spend, higher cash taxes, Circle Medical deferrals and more interest on a bigger credit line. CFO Eva Fong said Q2 should be the last time Circle Medical deferrals weigh on results.
