Regulatory Inquiry Prompts Clarification from Healwell AI

The Ontario Securities Commission (OSC), Canada's securities regulator, has sought clarification from Healwell AI Inc. following certain statements contained within a November press release concerning the company's financial trajectory. This week, the artificial intelligence firm provided the requested explanations, concurrently reaffirming its core financial metrics.

This regulatory engagement coincides with the completion of Healwell's strategic transformation into a pure-play software and AI provider. By the close of 2025, the company divested its capital-intensive clinical locations and peripheral operations. This move enables a full focus on high-margin technology solutions tailored for healthcare systems and large enterprises.

Financially, Healwell reports an annualized revenue run-rate of approximately $120 million USD. This projection is derived from its Q3 2025 performance, during which the company generated $30.4 million in revenue from its continuing operations. This figure represents a staggering year-over-year increase of 354%.

Profitability metrics also showed positive movement. The third quarter recorded a positive Adjusted EBITDA of $0.7 million, marking the second consecutive quarter of operational profit. However, Healwell still posted a net loss of $16 million for the period, highlighting a continuing divergence between operational cash generation and the bottom-line accounting result.

Should investors sell immediately? Or is it worth buying Healwell AI?

Acquisition-Driven Growth and Forward Outlook

The dramatic revenue expansion is largely attributable to the acquisition of Orion Health. This deal granted Healwell access to a global customer base and significantly bolstered its capabilities in data interoperability and clinical decision support systems.

Management's forward-looking statements are predicated on three key assumptions: the stability of existing client relationships, growing demand for its AI-powered software tools, and the successful integration of recent acquisitions, foremost among them being Orion Health.

For investors, the pivotal question now centers on whether Healwell can sustain the projected $120 million annual revenue throughout the full 2026 fiscal year. The OSC's intervention underscores the heightened scrutiny and communication care required from rapidly scaling AI companies when discussing future expectations. The answer to the sustainability question will become clearer with the release of Q4 figures, which should indicate if the company's growth momentum can endure independent of acquisition-related effects.