WELL Health Technologies Corp. (TSE:WELL) closed at C$4.31 on Friday, up 3.1%, outperforming the S&P/TSX Composite Index (INDEXTSI:OSPTX), which added 0.88%. The stock has risen 4.36% over the past five days and is up 8.02% year-to-date, though it remains 29% below its 52-week high.
Acquisition Details
In June, WELL acquired Ontario Imaging Diagnostics and UnionMD for an initial payment of approximately C$115 million, with a total potential cost of C$160 million. The two clinics generated combined adjusted EBITDA of roughly C$22 million in 2025, putting the initial price at about 5.2 times that figure and the maximum price at about 7.3 times. Both multiples are lower than WELL's public enterprise value-to-2026 adjusted EBITDA multiple of roughly 8.2 times at the high end.
Valuation Context
As of Friday, Google Finance reported WELL's market capitalization at approximately C$1.10 billion, with 255.40 million shares outstanding. MarketScreener listed the enterprise value at C$1.51 billion and the 2026 EV/sales ratio at 0.96. The company's Canada run-rate EBITDA now represents about 54% of its previous 2026 adjusted EBITDA guidance range of C$175 million to C$185 million.
Financial Performance
WELL's first-quarter results showed revenue climbing 25% to C$368.3 million and adjusted EBITDA jumping 56% to C$43.1 million. Canadian Patient Services revenue rose 30% to C$130.3 million, while USA Patient and Provider Services grew only 2% to C$178.1 million. WELLSTAR posted a 27% gain to C$21.8 million.
Cash Flow and Outlook
Operating adjusted free cash flow to shareholders fell to C$1.6 million in Q1 from C$11.8 million a year earlier, due to clinical portfolio spending, higher cash taxes, Circle Medical deferrals, and increased interest on a larger credit line. CFO Eva Fong indicated Q2 should be the last quarter where Circle Medical deferrals weigh on results.
Market Context
Toronto stocks traded Friday, with the TSX Composite Index closing at its best level since June 16, lifted by resource stocks. Nine of ten major sectors advanced. “Lower rate expectations weaken the U.S. dollar, boost gold and benefit Canadian resource stocks,” said Matt Manara, executive vice president and portfolio manager at Avenue Investment Management.
