Q1 2025 WELL Health Technologies Corp Earnings Call

Operator: Good afternoon, ladies and gentlemen, and welcome to the WELL Health Technologies Corp.

Good afternoon, ladies and gentlemen, and welcome to the World Health Technologies Corp. First quarter 2025 earnings release Conference call. At this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session. If at any time. During this call you need assistance. Please press star zero for operator.

Operator: first quarter 2025 earnings At This Time All Lines Are Nilliston Following the presentation, we will conduct a question and answer session. If at any time during this call you need assistance, please call 1-866-433-4332. Please press star zero for the operator.

Operator: Call is being recorded on Wednesday, May 14th, 2025.

Speaker Change: Call is being recorded on Wednesday may 14th 2025, I would now like to turn the conference over to tell about that Investor Relations manager. Please go ahead.

Tyler Baba: I would now like to turn the conference over to Tyler Baba, Investor Relations Manager. Please go ahead. Thank you, Operator, and welcome everyone to WELL Health's fiscal first quarter financial results conference call for the three months ended March 31st, 2025. Joining me on the call today are Hamed Shahbazi, Chairman and CEO, and Eva Fong, the company's CFO. I trust that everyone has received a copy of our financial results press release that was issued earlier today.

Speaker Change: Thank you operator, and welcome everyone to well how fiscal first quarter financial results conference call for the three months ended March 31, 2025, joining me on the call today are how much about the chairman and CEO and Eva Fox The company's CFO I Trust that everyone has received a copy of our of our financial results press release that was issued earlier today.

Tyler Baba: Portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable securities laws, including future-oriented financial information and financial outlook information. These forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors, many of which are outside of WELL's control, that may cause the actual results, performance, or achievements of WELL to differ materially from the anticipated results, performance, or achievements implied by such forward-looking statements. These factors are further outlined in today's press release and in our management discussion and analysis. We provide forward-looking statements solely for the purpose of providing information about management's current expectations and plans relating to the future.

Speaker Change: Portions of today's call other than historical performance include statements of forward looking information within the meaning of applicable securities laws, including future oriented financial information and financial outlook information. These forward looking statements involve known and unknown risks uncertainties assumptions and other factors many of which.

Speaker Change: Or outside of loss control that may cause the actual results performance or achievements of well to differ materially from the anticipated results performance or achievements implied by such forward looking statements.

Speaker Change: These factors are further outlined in today's press release and in our management discussion and analysis.

Speaker Change: We provide forward looking statements solely for the purpose of providing information about management's current expectations and plans relating to the future we do.

Tyler Baba: We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions, assumptions, or circumstances on which any such statement is based, except if it is required by law.

Speaker Change: Do not undertake or accept any obligation or undertaking through at least publicly any updates or revisions to any forward looking statements to reflect any change in our expectations or any change in events conditions assumptions or circumstances on which any such statement is based except if it is required by law.

Tyler Baba: We may use the terms such as Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Shareholder EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow on this conference call, all of which are non-GAAP and non-IFRS measures. For more information on how we define these terms, please refer to the definitions set out in today's press release and in our management's discussion and analysis. The company believes that adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the company can use to fund working capital requirements, service future interest and principal debt repayments, and fund future growth initiatives.

Speaker Change: They use of terms such as adjusted gross profit adjusted gross margin adjusted EBITDA shareholder EBITDA adjusted net income and adjusted free cash flow on this conference call all of which are non-GAAP non <unk> measures for March makes sense on how we define these terms. Please refer to the definitions that out in today's press release and in our <unk>.

Speaker Change: <unk> discussion and analysis the cut.

Speaker Change: He believes that adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations, which the company can use to fund working capital requirements service featured interest and principal debt repayments and fund future growth initiatives.

Tyler Baba: Adjusted EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS.

Speaker Change: Adjusted EBITDA should not be construed as an alternative to net income or loss as determined in accordance with IRS.

Hamed Shahbazi: And with that, let me turn the call over to Mr. Hamed Shahbazi, Chairman and CEO. Thank you, Tyler, and good day, everyone. We appreciate everyone for joining us today as we discuss our Q1 2025 financial results.

Speaker Change: And with that let me turn the call over to Mr. How much about the chairman and CEO.

Speaker Change: Thank you Tyler and good day, everyone. We appreciate everyone for joining us today as we discuss our Q1 2025 financial results.

Hamed Shahbazi: I'd like to do something a bit different on today's call. Instead of starting with our financials, I'd like to talk a little bit about our overall vision for WELL Health and where we're headed in the next few years and create clarity around markets we will be serving in the future. This diagram shows the current state of the WELL family, which includes all our operating divisions. We've previously provided clarity on the fact that we are in the process of divesting of both Circle Medical and WISP. And I will speak more later on the call about that, but I'd like to provide some additional clarity on this call that in the next one to two years, it is now our expectation that we will no longer be operating any care delivery businesses in the United States, inclusive of CRH and provider staffing.

Speaker Change: To do something a bit different on today's call instead of starting with our financials I'd like to talk a little bit about our overall vision for well health and where we're headed in the next few years and create clarity around markets, we will be serving in the future.

Speaker Change: This diagram shows the current state of the wealth family, which includes all of our operating divisions.

Speaker Change: We've previously provided clarity on the fact that we are in the process of divesting of both circled medical and west.

Speaker Change: And that will speak of war.

Speaker Change: Later on the call about that but I'd like to provide some additional clarity.

Speaker Change: On this call that in the next one to two years. They just now our expectation that we will no longer be operating any care delivery businesses in the United States inclusive of CRH and provider staffing.

Hamed Shahbazi: While we're very proud of the progress we've made in the United States with these businesses, and we've been very fortunate to work with some great teams and leaders and build significant value, we believe the time is right to unlock the value of these assets and use the freed up capital to accelerate the compounding story we have activated in Canada, particularly in our WELL Clinics enterprise. We also believe that this will further streamline and simplify not only our own overall operation, but also simplify our investor story. We will still be very much involved in providing or selling software and data protection services to the U.S.

Speaker Change: While we're very proud of the progress we've made in the United States with these businesses and we've been very fortunate to work with some great teams of leaders and build significant value. We believe the time is right to unlock the value of these assets and use the freed up capital to accelerate the compounding story, we have activated in Canada.

Speaker Change:

Speaker Change: Particularly in our well clinics enterprise.

Speaker Change: We also believe that this will further streamline and simplify not only our own overall operation, but also simplify our investor story.

Speaker Change: We will still be very much involved in providing or selling software and data protection services to the U S market through subsidiaries, such as cyber well heal well and of course.

Hamed Shahbazi: market through subsidiaries such as CyberWell, HealWell, and of course, the business Orion Health has in the United States, and likely WellStar in the future. But we believe that it is the right decision for us to consolidate our care delivery business into Canada, where we are seeing better returns on capital than the U.S., with less risk. We also want to build on our leadership position as the largest owned and operated clinic network in Canada, the largest physician network in Canada and the most distributed technology platform supporting health care providers in Canada, with WELLSTAR touching well north of 40 percent of all health care providers in the country.

Speaker Change: The business Orion health has in the United States, It states and likely will start in the future, but we believe that it is the right decision for us.

Speaker Change: Consolidated our care delivery business into Canada, wherever youre seeing better returns on capital than the U S with less risk.

Speaker Change: We also want to build on our leadership position as the largest owned and operated clinic network in Canada, The largest physician network in Canada and the most distributed technology platform supporting health care providers in Canada, with well start touching well north of 40% of all health care providers in the country.

Hamed Shahbazi: Simply put, we have tremendous network effects in Canada that we do not enjoy in the United States. As far as timing of these events, I want to be clear that we will not be in a rush to do this. And this applies particularly to CRH as it is a significant source of revenue and free cash flow for the company. But when we find the right opportunity, we will engage in a strategic transaction that allows us to redirect significant amounts of capital back into Canada to grow our network.

Speaker Change: Simply put we have tremendous network effects in Canada that we do not enjoy in the United States.

Speaker Change: As far as timing of these events I want to be clear that we will not be in a rush to do this and this applies particularly to CRH edits. It is it is a significant source of revenue and free cash flow for the company, but when we find the right opportunity we will engage in a strategic transaction that allows us to redirect significant amounts of cap.

Speaker Change: It'll back into Canada to grow our network.

Hamed Shahbazi: Now let's zoom in on what the WELL family will look like in the future once the U.S. assets are divested of and our key areas of focus. We'll have four areas which are growth engines of the company. These are one, our Canadian Clinics Network, which provides tech enabled health care. Delivery, and is the largest pan-Canadian health care provider in the country, spanning multiple disciplines and specialties. We have 100% ownership of the WELL Clinics business. Second, WELLSTAR, which is focused on providing technology solutions to health care providers. Our ownership of WELLSTAR is approximately at 85%. Third, HealWell, which is focused on AI and data science for health systems around the globe.

Speaker Change: Now, let's zoom in on what the wealth family will look like in the future once the U S assets or divest it up in our key areas of focus.

Speaker Change: We will have for your areas, which are growth engines of the company. These are one our Canadian clinics network, which provides tech enabled health care.

Speaker Change: Delivery and as the largest pan Canadian health care provider in the country spanning multiple disciplines, especially specialties, we have 100% ownership of the world clinics business second well start which is focused on providing technology solutions to health care providers, our ownership of well started approximately at 85%.

Speaker Change: Third T O L, which is focused on AI and data science for health systems around the globe. Our current ownership of T. O. L is approximately 30% economic ownership on a fully diluted basis and 69% ownership of the company's voting stock.

Hamed Shahbazi: Our current ownership of HealWell is approximately 30% economic ownership on a fully diluted basis and 69% ownership of the company's voting stock. And lastly, CyberWell, our data protection arm, which provides cybersecurity for critical infrastructure. Our current ownership of CyberWell is also in the 85% range. I'm proud to recognize that all four of these entities are growth businesses that are self-funded and cash flow positive. Both Wellstar and HealWell will continue to work very closely with WELL in our clinical footprint in Canada, but they will also operate as independent companies that will have their own shareholders, capital allocation strategies, fundraising plans, and acquisition opportunities.

Speaker Change: Lastly, cyber well, our data protection, which provide cyber security for critical infrastructure.

Speaker Change: Current ownership of cyber well is also in the 85% range.

I'm proud to recognize that all four of these entities are growth businesses that are self funded and cash flow positive.

Speaker Change: Oh, well start and feel well, we'll continue to work very closely with well in our clinical footprint in Canada, but they will also operate as independent companies that will have their own shareholders capital allocation strategies fundraising plans and acquisition opportunities. For example, just last December well start recently raised $50 million in equity for Mark.

Hamed Shahbazi: For example, just last December, Wellstar recently raised $50 million in equity for Marquis Investors to power its pre-IPO growth plan. And HealWell also raised $100 million, which was comprised of $50 million in equity and $50 million in debt to support its acquisition of Orion Health. These companies have access to capital and can activate this without causing a drain on WELL's resources. Our goal is to achieve over $1 billion in enterprise value for each of WellSTAR and HealWell in the next two to three years. Shareholders of the parent company WELL Health will benefit from the consolidated financial statements and enterprise value created.

Speaker Change: Key investors.

Speaker Change: Sure.

Speaker Change: Pre IPO gross claim and heal well also raised $100 million, which was comprised of $50 million in equity and $50 million in debt to support its acquisition of Orion health.

Speaker Change: These companies have access to capital and can activate this without causing a drain on wells resources.

Speaker Change: Our goal is to achieve over 1 billion in enterprise value for each of well starting to you well in the next two to three years.

Speaker Change: Shareholders of the parent company, well health will benefit from the consolidated financial statements and enterprise value created.

Hamed Shahbazi: We also note to investors that any capital raised by WELLSTAR and HealWell will not be diluted to WELL shareholders. This structure is very capital efficient for WELL shareholders who benefit from WELL's ownership in these entities. The emphasis is to drive returns and value to shareholders over the medium to long term.

Speaker Change: Also note to investors that any capital raised by well starting T O L will not be dilutive to well shareholders. This structure is very capital efficient for well shareholders benefit from wells ownership in these entities.

Speaker Change: The emphasis is to drive returns and value to shareholders over the medium to long term.

Hamed Shahbazi: Moving forward our central goal at WELL and for our capital allocation program will be the Canadian Clinics Network which will continue to grow organically and inorganically to broaden scale, activate new levels of network effects. as we look and feel a lot more like a pure play in this area in the next one to two years. To state the obvious, we are very bullish on Canada. not only due to our own strengths but we also see significant tailwinds emerging in the Canadian market and we don't want distractions to deal with our important role in this market.

Speaker Change: Moving forward, our central goal well and for our capital allocation program will be the Canadian clinics network, which will continue to grow organically and inorganically to broaden scale activate new levels of network effects.

As we look and feel a lot more like a pure pure play in this area in the next one to two years.

To state the obvious we are very bullish on Canada.

Speaker Change: Not only due to our own strengths, but we also see significant tailwind emerging in the Canadian market, we don't want distractions to deal with our important role in this market.

Hamed Shahbazi: With over 220 clinics, as the market share leader, we currently own approximately 1% of total clinics in Canada, and our goal is to reach 10% market share, which would be equivalent to a larger than $5 billion per annum business just in Canada, as we are now essentially at a half a billion dollar revenue run rate just in Canada. As for our plan moving forward, we intend on focusing on our growing market leadership in Canada with a laser-like focus on improving cash flow. We will grow cash flow, and if we feel our stock is undervalued, we will buy it with impunity and force a smaller denominator in the cash flow per share equation, driving improved shareholder value, which we believe will force investors to take notice over time.

Speaker Change: Over 220 clinics as the market share leader, we currently own approximately 1% of total clinics in Canada, and our goal is to reach 10% market share, which we would.

Speaker Change: Would be equivalent to a larger than $5 billion per annum business just in Canada. As we are now essentially at a half a billion dollar revenue run rate just in Canada.

Speaker Change: That's that's where our plan moving forward, we intend on focusing on our growing market leadership in Canada with a laser like focus on improving cash flow.

Speaker Change: We will grow cash flow.

And if we feel our stock is undervalued, we will buy it with impunity and forced a smaller denominator in the cash flow per share equation driving improved shareholder value, which will be we believe were forced investors should take notice overtime.

Hamed Shahbazi: If we believe our value is properly reflected, we will eventually create distributions that allow shareholders to share in the value of their business. All the while, we will continue to create a business that drives immense positive societal value by creating more accessibility to care and supporting care providers such that they can deliver the best health outcomes possible. With continued cash flow compounding, we can achieve superior returns for our shareholders.

Speaker Change: If we believe our values properly reflected we will eventually create distributions that allows shareholders to share in the value of their business. All the while we will continue to create a business that drive immense positive societal value by creating more accessibility to cure it supporting care providers such that they can deliver the best health outcome.

Speaker Change: Possible.

Speaker Change: With continued cash flow compounding, we can achieve superior returns for our shareholders as such I'm pleased to announce that we intend on resuming our stock buyback program. Shortly after reporting this quarter's results.

Hamed Shahbazi: As such, I am pleased to announce that we intend on resuming our stock buyback program shortly after reporting this quarter's results.

Hamed Shahbazi: Now this slide speaks to some of our key quarterly financial highlights for Q1 2025. WELL achieved record quarterly revenues of $294.1 million in Q1, an increase of 32% year-over-year, which was driven by organic growth and acquisition. Excluding the impact of the Circle Medical Deferred Revenue, quarterly revenue would have been $300.7 million, exceeding a $1.2 billion revenue run rate. WELL achieved adjusted EBITDA of $27.6 million in Q1, an increase of 36% as compared to the restated Circle Medical adjusted EBITDA of Q1 2024. Adjusted EBITDA was negatively impacted by a net of $6.5 million of deferred revenue adjustment from Circle Medical.

Now this slide speaks to some of our key quarterly financial highlights for Q1 2025.

Speaker Change: Well achieved record quarterly revenues of $294 $1 million in Q1, an increase of 32% year over year, which was driven by organic growth and acquisitions.

Speaker Change: Excluding the impact of the circle medical deferred revenue quarterly revenue would have been $307 million exceeding a $1.2 billion revenue run rate.

Speaker Change: Well achieved adjusted EBITDA of $27 6 million in Q1, an increase of 36% as compared to the restated circle medical adjusted EBITDA of Q1 2024.

Speaker Change: Adjusted EBITDA was negatively impacted by a net of $6 $5 million of deferred revenue adjustment for circle medical excluding the impact of the circle medical deferred revenue adjust quarterly adjusted EBITDA would have been $34 $1 billion.

Hamed Shahbazi: Excluding the impact of the Circle Medical deferred revenue, quarterly adjusted EBITDA would have been $34.1 million.

Hamed Shahbazi: Our Canadian business continues its strong momentum with 32% year-over-year revenue growth to $120.6 million and 13.4% year-over-year organic growth. Our adjusted EBITDA in Canada grew 29% year-over-year to $18.7 million for the quarter.

Speaker Change: Our Canadian business continues its strong momentum with 32% year over year revenue growth to $120 6 million and 13, 4% year over year organic growth our.

Speaker Change: Our adjusted EBITDA in Canada grew 29% year over year to $18 $7 million for the quarter.

Hamed Shahbazi: I'll now share with you some of the operational highlights for Q1 2025. As at the end of Q1 2025, WELL had over 4,300 providers and clinicians living care across our entire network of physical and virtual clinics. Of that number, I'm proud to announce that we now have over 1,000 physicians in Canada working within the WELL network, which is just over 1% of all physicians practicing in the country. We have a tremendous runway to continue to expand our footprint across Canada. In addition, there are more than 42,000 providers benefiting from our SaaS and technology services, most of which are physicians.

Speaker Change: I will now share with you some of the operational highlights for Q1 2025.

Speaker Change: It was at the end of Q1, 2025, wellhead over 4300 providers and clinicians to live in care across our entire network of physical and virtual clinics over that number I'm proud to announce that we now have over 1000 physicians in Canada working within the World Network, which is just over 1% of all physicians practicing in the country.

Speaker Change: We have a tremendous runway to continue to expand our footprint across Canada.

Speaker Change: In addition, there are more than 42000 providers benefiting from our SaaS and technology services.

Speaker Change: Most of which are physicians, we estimate that well over 40% of all physicians at Canada touch are well start technology platform in some way.

Hamed Shahbazi: We estimate that well over 40 percent of all physicians in Canada touch our WellSTAR technology platform in some way. As we enhance our digital offerings and provide leading AI products and services, we believe these figures will continue to rise and within the short term we can see over 50 percent of all providers in the country coming into contact with WellSTAR's platform. One can see the increasing importance, relevance, and role that WELL is playing in the country's healthcare ecosystem, and we are determined to continue to make a positive impact. Looking at our patient visits, our revenues are generally underpinned by patient visits.

Speaker Change: As we enhanced our digital offerings and provide leading AI products and services. We believe these figures will continue to rise and within the short term, we can see over 50% of all providers in the country coming into contact with well starts platform.

Speaker Change: One can see the increasing importance relevance and roll that well is playing in the country's health care ecosystem and we are determined to continue to make a positive impact.

Speaker Change: Looking at our patient visits our revenues are generally underpinned by patient visits as such its very important to track them closely as they were a true measure of the fundamentals of our business we.

Hamed Shahbazi: As such, it's very important to track them closely, as they're a true measure of the fundamentals of our business. We delivered over 1.6 million patient visits in Q1, a 24% year-over-year increase from the prior year with strong organic growth of 14%. Canadian patient visit metrics continue to demonstrate that it is one of the most prominent growth drivers of the company as visits grew by 30% year over year with organic growth of 12% inclusive of absorptions and same clinic growth.

Speaker Change: We delivered over $1 6 million patient visits in Q1 at 24% year over year increase from the prior year with strong organic growth of 14%.

Speaker Change: Canadian patient visit metrics continue to demonstrate that it is one of the most prominent growth drivers of the company as visits grew by 30% year over year with organic growth of 12% in crude inclusive of absorptions in same clinic growth.

Hamed Shahbazi: U.S. patient visits grew by 16% year-over-year with all of it related to organic growth. Total care interactions, which is defined as total patient visits plus technology interactions plus biller provider hours, were $2.5 million in Q1, which was a 34% increase compared to last year and represented 27% organic growth.

Speaker Change: U S patient visits grew by 16% year over year with all of it related to organic growth.

Speaker Change: Total care interactions, which is defined as total patient visits plus technology interactions plus biller provider hours were $2 5 million in Q1, which was a 34% increase compared to last year and represented 27% organic growth.

Yeah.

Hamed Shahbazi: So now that we've covered off the key results, I'd like to cover off a few topics in the rest of the presentation. These won't be a surprise. One, Heal Well AI, two, WELL Start, three, Canadian Clinics, and then fourth, we'll provide an update on the salesperson.

Speaker Change: So now that we've covered off the key results I'd like to cover off a few topics in the rest of the presentation.

Speaker Change: These won't be a surprise one key OLED I too well start three Canadian clinics, and then fourth we will provide an update on the sales processes.

Hamed Shahbazi: First theme I'd like to talk about is HealWell AI. We're very pleased with the progress at HealWell AI, a company that we had a central role in conceiving and developing in the past couple of years after we acquired its MCI clinics and formed a pure play AI software company. We took a major leadership role in recapitalizing and relaunching the company 19 months ago and shaping its fundraising and M&A journey, along with the management team. Over the last 19 months, HealWell has made six acquisitions, including Pentavir, IntraHealth, Verisaurus, Biopharma, and most recently, Orion and, of course, Neutro.

Speaker Change: First theme I'd like to talk about is <unk>.

Very pleased with the progress <unk> company that we had a central role in conceiving and developing in the past couple of years. After we acquired its Mci clinics and formed a pure play AI software company.

We took a major leadership role and recapitalizing and Relaunching The COVID-19 months ago, and shaping its fundraising and M&A journey, along with the management team.

Speaker Change: Over the last 19 months here well has made six acquisitions, including pension fear intra health <unk> Biopharma and most recently Orion and of course neutral.

Hamed Shahbazi: HealWell has raised over $150 million in equity and debt financing during this period of time. And WELL's net cash contribution was $5.4 million. This net cash contribution included $8.6 million in cash and promissory notes that we received from the sale of IntraHealth to HealWell.

Speaker Change: <unk> has raised over $150 million in equity and debt financing during this period of time.

Speaker Change: And wells net cash contribution was $5 $4 million. This net cash contribution included $8 $6 million in cash and promissory notes that we received from the sale of intra health to heal well.

Hamed Shahbazi: This is an outstanding capital allocation story in which we have been able to invest net cash of only $5.4 million to help create a global AI company that is majority controlled. by WELL Health. HealWell currently has a market cap of approximately half a billion dollars on a fully diluted basis. HealWell is a Canadian capital market success story and is now the second largest publicly listed health care tech company in Canada as measured by revenue and is second only to WELL Health.

Speaker Change: This is an outstanding capital allocation story in which we have been able to invest net cash of only $5 $4 million to help create a global AI company that is majority controlled.

Speaker Change: By World Health.

Speaker Change: Kill well how is it currently has a market cap of approximately half a billion dollars on a fully diluted basis here what was the Canadian capital markets success story and it's now the second largest publicly listed healthcare Tech company in Canada as measured by revenue and is second only to well health.

Speaker Change: Okay.

Hamed Shahbazi: We're very excited about the progress made at HealWell and its future. HealWell's robust client base reflects its ability to deliver. Unparalleled value to the healthcare ecosystem. As you can see in this chart, HealWell has been a tremendous success. Tremendously successful investment for WELL Health and its shareholders. The net amount invested in HealWell is $28.9 million based on the net cash invested, vending equity value related to the sale of IntraHealth, and the face value of the currently outstanding promissory note related to the sale of IntraHealth to HealWell. As of yesterday's close, the current market value of our investment is $158.5 million, representing a $129 million gain or value created for WELL shareholders.

Speaker Change: We're very excited about the progress made at <unk> and its future Hill wells robust client base reflects its ability to deliver on.

Speaker Change: Unparallel value to the health care ecosystem.

Speaker Change: As you can see in this chart.

Speaker Change: <unk> has been a tremendous success.

Speaker Change: It's tremendously successful investment for Hugh well health and its shareholders. The net amount invested and feel well is $28 9 million based on the net cash invested vending equity value related to the sale of ensure health and the face value of the currently outstanding promissory note related to the sale of intra health to heal well.

Speaker Change: Yesterday's close the current market value of our investment is $158 $5 million, representing a $129 million gain or value created for well shareholders. This investment represents a 450% rate of return and five five times millwork or multiple of invested capital.

Hamed Shahbazi: This investment represents a 450% rate of return and 5.5 times MOIC or multiple of invested capital.

Speaker Change: <unk>.

Hamed Shahbazi: I'd now like to share some of my thoughts on HealWell's recent acquisition of Orion Health. With HealWell's recent acquisition of Orion completed on April 1st, HealWell is building the world's leading company in healthcare data interoperability and artificial intelligence. HealWell's strategic acquisition of Orion Health significantly enhanced its market position, accelerating its path to profitability. Orion was generating approximately $100 million in annualized revenue run rate, mostly from SAS, with strong operating EBITDA margins. The company's solutions are powered by approximately 400 global employees working out of 15 global offices in 11 countries. HealWell delivers cutting edge software solutions to public and private sector customers globally.

I'd now like to share some of my thoughts on fewer wells recent acquisition of Orion health.

Speaker Change: He almost recent acquisition of Orion completed on April 1st heal well as building the world's leading company in health care data interoperability and artificial intelligence Stilwell strategic acquisition of Orion, how significantly enhance its market position accelerating its path to profitability or Ryan was generating approximately.

Speaker Change: $100 million annualized revenue run rate, mostly from SaaS with strong operating EBITDA margins. The company solutions are powered by approximately 400 global employees working out of 15 global offices in 11 countries here, well deliver cutting edge software solutions to public and private sector customers globally.

Hamed Shahbazi: Its technology is deployed across 70 plus sites globally, supporting health care systems that collectively manage over 150 million patient records. In conjunction with the HealWell acquisition of Orion, WELL increased its holdings in HealWell to an approximate 30% fully diluted economic interest and an approximate 69% voting interest.

Speaker Change: It's technology is deployed across 70, plus sites globally supporting health care systems that collectively manage over 150 million patient records.

Speaker Change: Junction with the heel will acquisition of Orion well increased its holdings in heal well to an approximate 30% fully diluted economic interest and an approximate 69% voting interest.

Hamed Shahbazi: As a result, the company will begin to fully consolidate HEAL WELL and its financial results starting in Q2 2025 as per IFRS control requirements. HEAL WELL is expected to contribute approximately $120 million in revenue and positive adjusted EBITDA to WELL's fiscal 2025 consolidated financial results. Orion Health provides significant strategic benefits to HealWell and NowWell, which include one, financial benefits such as Orion's strong recurring revenues with large enterprise public sector entities, with healthy operating margins and high free cash flow conversion. Significant distribution opportunity for HealWell AI's offerings, as well as WELLSTAR's best-in-class provider, FocusTech. and significant data science and data interoperability expertise.

As a result, the company will begin to fully consolidate <unk> in its financial results starting in Q2.

Speaker Change: 2025, asper Ifr's control requirements heal well.

Speaker Change: <unk> is expected to contribute approximately $120 million in revenue and positive adjusted EBITDA to wells fiscal 2025 consolidated financial results.

Ryan: Ryan Health provides significant strategic benefits stickier and now well, which include one financial benefits such as Orion strong recurring revenues with large enterprise public sector entities with healthy operating margins and high free cash flow conversion.

Ryan: Significant distribution opportunity for heeled wealthy EIS offerings as well as well stars best in class provider focus tech and.

Ryan: And significant data science and data interoperability expertise.

Hamed Shahbazi: The four public sector clients can use AI in any meaningful manner. Remember, they must get their data in order. They must get it their data normalized and organized and achieve interoperability. This is not an easy task. And Orion is one of the best in the world at helping public sector health care groups organize their data, often beating out some of the largest companies in the world. for these major initiatives.

Ryan: For public sector clients can use AI in any meaningful manner remember they must get their data in order they must get at their data and normalize and organize and achieve interoperability. This is not an easy task and Orion is one of the best in the world at helping public sector health care groups organize their data often beating out some of the largest company.

Ryan: In the world.

Ryan: Before these major initiatives.

Hamed Shahbazi: The second theme I'd like to talk about is our strategic spin out of WellSTAR. Last year, we created WellSTAR, a WELL subsidiary that we intend to spin out as a publicly listed, high-growth, profitable, pure-play SaaS healthcare technology company, which would still be majority-owned by WELL. As a reminder, WELLSTAR is a technology platform that powers WELL's clinical ecosystem. WELLSTAR is dedicated to empowering health care providers with innovative solutions that enhance patient care and optimize operational efficiency. WELLSTAR is laser focused on addressing the diverse needs of health care providers by streamlining care delivery, integrating fragmented health care systems, reducing provider burnout and improving patient experiences and outcomes.

Ryan: The second theme I'd like to talk about is our strategic spin out of well start last year, we created well start a well subsidiary that we intend to spin out as a publicly listed high growth profitable pure play SaaS health care Technology company, which would still be majority owned by well.

As a reminder, well started the technology platform that powers wells clinical ecosystem, while starts dedicated to empowering health care providers with innovative solutions that enhance patient care and optimize operational efficiency will start its laser focus on addressing the diverse needs of healthcare providers by streamlining care.

Ryan: Delivery integrating fragmented health care systems, reducing provider burnout, and improving patient experiences and outcomes. We're.

Hamed Shahbazi: We're pleased to report that WELLSTAR had another great quarter, clocking in organic growth of approximately 20% as well as adjusted EBITDA margins of 29% on a four-wall basis, pulling in a Rule of 49 performance for the quarter. WELLSTAR is currently on a $70 million annual revenue run rate and generates 80% gross margins. WELLSTAR is already one of the most relevant and consequential companies in Canada's healthcare technology landscape and has firmly established itself as a de facto market leader in technology enabling clinicians across Canada. We've already completed the first step in WellSTAR's Go Public plans, which was to add significant capital to WellSTAR's balance sheet so it can execute on its acquisition plans.

Ryan: We're pleased to report that well start had another great quarter clocking in organic growth of approximately 20% as well as adjusted EBITDA margins of 29% on a four wall basis pulling in a rule of 49 performance for the quarter well start is currently on a $70 million annual revenue run rate and generates 80% gross margins well start.

Ryan: It is already one of the most relevant and consequential companies and candidates health care technology landscape and has firmly established itself as a de facto market leader and technology, enabling clinicians across Canada.

Ryan: We've already completed the first step in well starts to go public plans, which was to add significant capital to well starts balance sheet. So it can execute on its acquisition plans.

Hamed Shahbazi: As such, during Q4, as I mentioned earlier, WELLSTAR closed a $50 million equity placement entirely supported by Mower Investment Management, Edgecoin Wealth Management, and Pender Fund Capital Management. Three very reputable firms with a strong track record of investing in Canadian technology companies. WELL and WELLSTAR Management also participated in this financing to fund WELLSTAR's pre-spin-out growth objectives. WELL did not issue any shares as part of this transaction. We believe WELLSTAR will be a very strong IPO candidate on the TSX main board sometime in late 2025 or early 2026. There are two factors that dictate timing of our listing.

Ryan: As such during Q4 as I mentioned earlier, well close it will start closed a $50 million equity placement entirely supported by more investment management, <unk> wealth management, and Pender Fund capital management.

Ryan: Three very reputable firms with a strong track record of investing in Canadian technology companies, well, then well start Madison also participated in this financing to fund.

Ryan: Starz pre spin out growth objectives, well did not issue any shares as part of this transaction.

Ryan: We believe we'll start will be a very strong IPO candidate on the chest X mainboard sometime in late 2025 or early 2026 to.

Ryan: Two factors that dictate timing of our listing when his company readiness.

Hamed Shahbazi: One is company readiness, and the second is market readiness. We've assembled a very strong team led by Amir Javedan as CEO, and WELLSTAR has a compelling pipeline of target acquisition opportunities, as our plan is to build additional scale by completing additional acquisitions that will position WELLSTAR towards $100 million in annualized revenue run rate before going public. The second factor is market readiness, which we can't predict when that will be, but our plan is to be ready for any market opportunity that may appear in late 2025 or early 2026.

Ryan: And the second is market readiness, we've assembled a very strong team led by near Jab at N as CEO and well start has a compelling pipeline of target acquisition opportunities as a place to build additional scale by completing additional acquisitions that will position well start towards $100 million and annualized revenue run rate before going public.

Ryan: The second factor is market readiness, which we can't predict when that will be but our plan is to be ready for any market opportunity that may appear in late 2025 or early 2026.

Hamed Shahbazi: As a majority voting shareholder, we fully expect to continue consolidating WellSTAR's financial results into WELL in accordance with IFRS accounting rules, even after WellSTAR is its own public company and has its own listing.

That's the majority voting shareholder we fully expect to continue consolidating well start with financial results into well in accordance with Ifr's accounting rules, even after well start.

Ryan: Its own public company and has its own listing.

Ryan: Okay.

Hamed Shahbazi: The third theme I will address this morning is the success of our Canadian business. As you can see from these charts, the historical performance of our Canadian clinics business has been exceptionally strong. Canadian Clinics achieved revenue of $319 million in 2024. Over the past four years, our Canadian Clinics business has exceeded 50% compound annual growth. Adjusted EBITDA attributable to our Canadian clinic business has grown at a CAGR of 44% and achieved over $40 million in 2024. Note that we've had a great start to the year and we expect this strong performance to continue in 2025 driven by healthy organic growth and our significant large M&A pipeline.

Ryan: The third theme I will address this morning is the success of our Canadian business as you can see from these charts. The historical performance of our Canadian clinics business has been exceptionally strong.

Ryan: Canadian clinics achieved revenue of $319 million in 2024 over the past four years, our Canadian clinics business has exceeded 50% compound annual growth.

Adjusted EBITDA attributable to our Canadian clinic business has grown at a CAGR of 44% and achieve over $40 million in.

Ryan: In 2024.

Ryan: Note that we've had a great start to the year and we expect this strong performance.

Ryan: To continue in 2025, driven by healthy organic growth and our significant large M&A pipeline.

Hamed Shahbazi: Look, we have a really special capital allocation program at WELL Clinics happening, and I feel that we have really undertold this story in the past few years. This quarter, we really wanted to change that and provide some more significant data for investors to see how the program is trending. We've been very thoughtful about this and are pleased to share this new data with shareholders that provide some perspective on just how disciplined we have been in building Canada's largest clinical network and how our discipline has evolved, which is in great part encouraging us to be so bullish on the future, even to the extent that we would like to be fully focused on it and exit our successful U.S.

Ryan: Look we have a really special capital allocation program at well clinics happening and I feel that we have really under told this story in the past few years.

Ryan: This quarter, we really wanted to change that and provide some more significant data for investors to see how the program is trending.

We've been very thoughtful about this and are pleased to share this new data with shareholders that provide some perspective on just how disciplined we have been in building Canada's largest clinical network and how our discipline has evolved.

Ryan: Which is in great part encouraging us to be so bullish on the future even to the extent that we would like to be fully focused on it and exit our successful U S care businesses.

Hamed Shahbazi: care businesses. So bear with me because there's a lot of data on this page, but the key elements are as follows. We've identified a number of cohorts of clinics purchased by timeframe, and for each cohort, we've provided the original blended multiple of EBITDA associated with our original purchase of these clinics, and then we've showed the resulting or improved or implied multiple that we've achieved due to the improvements we've made to the EBITDA over time. So, for example, in our 2018 to 2020 cohort, we purchased those clinics on an average multiple to EBITDA of 6.3 times.

Ryan: So bear with me because there's a lot of data on this page, but the key elements are as follows we've.

Ryan: We've identified a number of cohorts of clinics purchased by timeframe and for each cohort. We provided the original blended multiple of EBITDA associated with our original purchase of these clinics and then we showed the resulting or improved or implied multiple that we've achieved due to the improvements we've made to the EBIT.

Ryan: Over time.

Ryan: So for example in our 2018 to 2020 cohort we purchased those clinics on an average multiple to EBITDA of $6 three times and.

Hamed Shahbazi: And we have improved the EBITDA of those clinics substantially by 73%, which has now reduced our implied multiple to 3.6 times. Note that in 2021 we had a higher original multiple. This is mainly because of our acquisition of the MyHealth platform, which carried a double-digit multiple of EBITDA. Since then, we've significantly improved the EBITDA of My Health and the implied multiple of that large cohort is now closer to 7.1. As you can see, we've allocated $280.7 million overall in 31 separate transactions, where we have acquired $273 million in revenues. Our average yield multiple over time was 9.4 times EBITDA, which was pushed up by our largest Canadian acquisition to date, which was MyHealth.

Ryan: And we have improved the EBITDA of those clinics substantially by 73%, which has now reduced our implied multiples of three six times.

Ryan: Note that in 2021, we had a higher original multiple this is mainly because of our acquisition of the my health platform, which carried a double digit multiple of EBITDA.

Ryan: Since then we've significantly improved the EBITDA of my health and the implied multiple of that large cohort is now closer to seven one times.

Ryan: As you can see we've allocated $287 million overall 31 separate transactions, where we have acquired $273 million in revenues our average deal multiple over time with nine four times EBITDA.

Ryan: Which was pushed up by our largest Canadian acquisition to date, which was my health.

Hamed Shahbazi: Since then, we've grown the EBITDA of all our acquired assets by 73%, re-rating the implied multiple to 5.4 times. Interestingly, if one takes out MyHealth, which was our most expensive acquisition in Canada, the average original multiple that we transacted against for our primary care business was 5.8 times EBITDA. But given that we've improved the EBITDA for all these businesses by an average of 121%, the implied multiple after improvements currently is at just 2.9 times EBITDA, dramatically improving the return on capital invested. I'll point out a couple of additional observations here. In 2023, our clinic acquisition program was mainly focused on MCI's clinics, which were not profitable at the time, so there was no multiple of EBITDA.

Since then we've grown the EBITDA of all our acquired assets by 73% re rating the implied multiple to five four times.

Ryan: Interestingly, if one takes out my health, which was our most expensive acquisition in Canada. The average original multiple that we transacted at gains for our primary care business was five eight times EBITDA.

Ryan: But given that we've improved the EBITDA for all these businesses by an average of 121% the implied multiple after improvements currently is at just two nine times EBITDA dramatically improving the return on capital invested.

Ryan: I'll point out a couple of additional observations here in 2023, our clinic acquisition program was mainly focused on nci's clinics, which were not profitable at the time. So there was no multiple of EBITDA as you are likely all aware we've turned those clinics around and are now operating profitably based on a 2.2 times multiple of EBITDA based on our original.

Hamed Shahbazi: As you're likely all aware, we've turned those clinics around and are now operating them profitably based on a 2.2 times multiple of EBITDA based on our original purchase price. Another key observation I'd like to share is our 2024 cohort. Note that the original multiples are now coming down, and we are continuing to improve those multiples with time. This is a very clear demonstration of the power of our platform. You know, true value creation is when one can repeatedly deliver above average returns over time and have a substantial TAM. by which to execute its strategy gains.

Ryan: Purchase price.

Ryan: Another key observation I'd like to share is our 2024 cohort note that the original multiples are now coming down and we are continuing to improve those multiples with time.

Ryan: This is a very clear demonstration of the power of our platform.

Ryan: True value accretion is when one can repeatedly deliver above average returns over time and have a substantial tam.

Ryan: By which to execute this strategy against we believe we've been able to demonstrate steady performance over a significant period of time, where we have methodically deliver great returns while using.

Hamed Shahbazi: We believe we've been able to demonstrate steady performance over a significant period of time where we have methodically delivered great returns while using high cost of capital to execute those plans. Our Canadian Clinics business continued its strong growth trajectory in Q1 2025. Patient visits in our Canadian Clinics network totaled 933,000 in the first quarter, up 30 percent from 716,000 in Q1 2024, demonstrating significant increase in patient engagement. The number of billable providers within the network reached 1,833 in Q1, up 11% from 1,654 in Q1 2024, highlighting the growing magnitude of our scale. With patient visits growing faster than the number of billable providers in WELL's Canadian Clinic Network, we're demonstrating increasing efficiency in our clinics, resulting in an increasing number of patients per billable provider.

Ryan: High cost of capital to execute those plans.

Ryan: Our Canadian clinics business continued its strong growth trajectory in Q1 2025 patient visits in our Canadian clinics network totaled 933000 in the first quarter up 30% from 716000 in Q1 2024, demonstrating significant increase.

Ryan: And patient engagement.

Ryan: The number of billable provide us within network reached 1833 in Q1 up 11% from 1654 and in Q1 2024, highlighting the growing magnitude of our scale.

Ryan: With patient visits growing faster than the number of billable providers and wealth Canadian clinic network, we're demonstrating increasing efficiency in our clinics, resulting in an increasing number of patients per billable provider simply.

Hamed Shahbazi: Simply, WELL providers are seeing more patients, which we believe is demonstrative of the impact that we're having. Our platform allows providers to spend more time seeing patients. And do not have to worry about the overhead tasks or managing a clinic or spending hours on charting patient records. Now looking at our Canadian business, including Canadian clinics, WELLSTAR and CyberWell, our WELL Canada business is experiencing accelerating growth. In Q1 2025, WELL generated revenue of $120.6 million compared to $91 million in Q1 2024, an increase of 32% as compared to the previous year's growth of 30%. Similarly, adjusted EBITDA for WELL Canada reached $18.7 million in Q1 2025, up from $14.5 million in Q1 2024, representing an increase of 29% as compared to the prior year's growth of 23%.

Ryan: Simply well providers youre seeing more patients, which we believe is demonstrative of the impact that we're having our platform allows providers to spend more time seeing patients.

Ryan: And and do not have to worry about the overhead cost or managing the clinic or spending hours are charging patient records.

Ryan: Now looking at our cleaning business, including Canadian clinics, well started cyber well.

Ryan: Well, Canada business is experiencing.

Ryan: Celebrating growth in Q1, 2025, well generated revenue of $120 6 million compared to $91 million in Q1, 24, an increase of 32% as compared to the previous year's growth of 30%.

Ryan: Similarly, adjusted EBITDA for well, Canada reached $18 7 million in Q1 25 up from $14 5 million in Q1, 'twenty four representing an increase of 29% as compared to the prior year's growth of 23%.

Hamed Shahbazi: As you can see here, we have a very steady history of improving our EBITDA growth in Canada, which has been attributable to both organic and inorganic growth. We recently increased our investments in shared services and clinic transformation, and we believe we're well positioned to continue this growth journey with Canadian clinics, WellSTAR and CyberWell. The WELL Canada team achieved annual adjusted EBITDA of $56.3 million in 2024, an increase of 23% as compared to $46 million in 2023. In 2025, we're expecting our Adjusted-EBITDA in Canada to experience over 25% growth inclusive of both organic and inorganic growth.

Ryan: As you can see here, we have a very steady history of improving our EBITDA growth in Canada, which has been attributable to both organic and inorganic growth. We recently increased our investments in shared services and clinic transformation and we believe we are well positioned to continue this growth journey with Canadian clinics well.

Ryan: <unk> and cyber well.

Ryan: Well, Canada team.

Ryan: Team achieved annual adjusted EBITDA of $56 3 million in 2024, an increase of 23% as compared to $46 million in 2023.

In 2025, we're expecting our adjusted EBITDA and candidates experience.

Ryan: Over 25% growth inclusive of both organic and inorganic growth.

Hamed Shahbazi: We're very confident in our Canadian business and are now targeting over $100 million in Adjusted EBITDA on Canada alone by the end of next year. and on an annualized run rate basis, inclusive of additional M&A activity. We think this is very much an achievable goal and are focused on making this a reality.

Ryan: We're very confident in our Canadian business and are now targeting over $100 million and adjusted EBITDA in Canada alone by the end of next year.

Ryan: And an annualized on an annualized run rate basis inclusive of additional M&A activity.

Ryan: We think this is very much an achievable goal and are focused on making this a reality note that this may require some of the divestments that we've been talking about to go through so that we have the capital to reinvest and grow.

Hamed Shahbazi: Note that this may require some of the divestments that we've been talking about to go through so that we have the capital to reinvest and grow.

Ryan: Okay.

Hamed Shahbazi: Moving on in Q1 2025. We continued executing on our strategic growth plan through the expansion of our clinic network. We acquired over 11 clinics. generating $31.5 million in annual revenue. Our owned and operated clinic network welcomed 71 new providers in the first quarter, further strengthening our capacity to deliver high-quality care. With a diversified clinic strategy, a growing physician base, and a scalable expansion model, we're well-positioned to drive long-term growth and operational efficiency. We now have a very healthy pipeline of clinic acquisition opportunities, which I believe is directly correlated with the challenges doctors are feeling in the marketplace and WELL's growing brand recognition.

Ryan: Moving on in Q1 2025.

Ryan: We continued executing on our strategic growth plan through the expansion of our clinic network, we acquired over 11 clinics generating.

Ryan: Generating $31 5 million in annual revenue, our owned and operated clinic network. Welcome 71, new providers in the first quarter further strengthening our capacity to deliver high quality care with a diversified clinic strategy, a great physician base and its scalable expansion model, we're well positioned to drive long term growth and operational efficiency.

Ryan: We now have a very healthy pipeline of clinic acquisition opportunities, which I believe is directly correlated with the challenges doctors are feeling in the marketplace and wells growing brand recognition.

Hamed Shahbazi: We continue to focus on acquiring Canadian clinics, both under our absorption model and our paid acquisition model. As a reminder, under the absorption model, we're usually acquiring clinics with lower operating margins for nominal consideration. Meanwhile, under the acquisition model, we're acquiring more profitable clinics that can typically be acquired for approximately three to five times EBITDA multiples. Our current pipeline of Canadian clinics acquisition opportunities is very active. In Canadian clinics, we currently have eight signed LOIs representing 10 clinics and approximately $44 million in annual revenue. This is an improvement from our prior call last month where we have five clinics with $31 million in annual revenue under LOIs.

Ryan: We continue to focus on acquiring Canadian clinics both.

Ryan: Under our absorption model N.

Ryan: Our paid acquisition model as a reminder, under the absorption model, where it usually acquiring clinics with lower operating margins for nominal consideration.

Ryan: Meanwhile, under the acquisition model, we're acquiring more profitable connects that can typically be acquired for approximately three to five times EBITDA multiples.

Ryan: Our current pipeline of Canadian clinics acquisition opportunities is very active and Canadian clinics. We currently have eight signed otherwise representing 10 clinics and approximately $44 million.

Ryan: Annual revenue. This is an improvement from our prior call last month, where we have five clinics with $31 million in annual revenue under LOI.

Hamed Shahbazi: in total across the organization, including Apologies, that was $65 million in annual revenue. In total, across the entire organization, including Canadian clinics, WELLSTAR and WELL USA, we have a total of 11 signed LOIs representing approximately $65 million in annualized revenue. This compares favorably to our last to our call last month where we had seven signed LOIs and approximately 40 million in annualized revenue. We're expecting to execute on this pipeline of signed LOIs in a non-dilutive manner to current operating margins. We also have a very large pipeline of target acquisitions that are in a pre-LOI stage.

Ryan: In total across the organization, including.

Oh apologies that was $65 million in annual revenue.

Ryan: In total across the entire organization, including Canadian clinics, well started well USA. We have a total of 11 signed loi's, representing approximately $65 million in annualized revenue.

Ryan: This compares favorably to our lab to our call last month, where we had seven signed LOI is an approximately $40 million in annualized revenue.

Ryan: We're expecting to execute on this pipeline of signed otherwise in a non dilutive manner to current operating margins.

Ryan: We also have a very large pipeline of target acquisitions that are in a pre LOI stage, we have more than 35 targets engaged representing over $360 million in annual revenue and more than 130 clinics.

Hamed Shahbazi: We have more than 35 targets engaged, representing over $360 million in annual revenue and more than 130 clinics.

Hamed Shahbazi: The fourth theme I'd like to talk about is our current strategic review process of WISP and Circle Medical. Let's start with WISP. As we've discussed on our Q4 conference call just a month ago, we concluded the first phase of our strategic review for WISP resulting in the receipt of numerous proposals from prospective acquirers. While interest in WISP was significant, the board determined that none of the proposals adequately reflected WISP's exceptional operational performance, accelerating growth trajectory, and substantial market opportunity in women's healthcare. Throughout the review process, WISP continued to demonstrate strong business fundamentals with consistent revenue growth and operating margin expansion.

Ryan: The fourth theme I'd like to talk about is our current strategic review process with Ed Circle medical let's start with waste.

Ryan: As we discussed on our Q4 conference call just a month ago. We concluded the first phase of our strategic review for West, resulting in the receipt of numerous proposals from prospective acquirers, while interesting with significant the board determined that none of the proposals adequately reflected with the exceptional operational.

Ryan: Operational performance accelerating growth trajectory and substantial market opportunity women's health care.

Ryan: The review process with continued to demonstrate strong business fundamentals with consistent revenue growth and operating margin expansion.

Hamed Shahbazi: This performance reinforces the Board's conviction in WISP's long-term value potential beyond what was reflected in the proposals received. The company and its advisors continue to actively work on the strategic review process, and we remain committed to our strategy of divesting the company's U.S. digital assets in order to allocate more capital into Canada and will provide further updates as appropriate. Operationally, WISP had a very strong Q1 2025 with record quarterly revenue of $29.5 million, an increase of 40% from Q1 2024, and it achieved adjusted EBITDA of $459,000 in Q1 compared to $850,000 in Q1 2024. WISP is performing very well and we're expecting WISP to have improved EBITDA performance in 2025, which we believe may assist in attracting a more favorable valuation.

This performance reinforces the board's conviction and with long term value potential beyond what was reflected in the proposals received.

Ryan: The company and its advisers continue to actively work on the strategic review process and we remain committed to our strategy of divesting the companies use digital assets in order to allocate more capital into Canada, and we'll provide further updates as appropriate.

Ryan: Operationally, we had a very strong Q1 2025 with record quarterly revenue of $29 5 million, an increase of 40% from Q1 24.

Ryan: And it achieved adjusted EBITDA of 459000 in Q1 compared to 850000 in Q1 24.

Ryan: With this performing very well and we're expecting wished to have improved EBITDA performance in 2025, which we believe may assist in attracting a more favorable valuation.

Hamed Shahbazi: Moving on to Circle Medical. Last year, we engaged a global investment bank to consider strategic alternatives for Circle. This process had recently slowed down to the regulatory inquiry. However, we are now continuing to move forward on the sale process of Circle Medical and currently have a number of active discussions and engagements occurring with interested parties. While the regulatory inquiry will continue to be a factor, we do not necessarily believe that this matter needs to be fully resolved before a sale takes place or a strategic alternative can be found.

Ryan: Moving on to circle medical last year, we engaged a global investment bank to consider strategic alternatives for circle. This process has recently slowed down to the regulatory inquiry.

Ryan: However, we are now continuing to move forward on the sale process of circle medical and currently have a number of active discussions.

Ryan: And engagements occurring with interested parties.

Ryan: While the regulatory inquiry will continue to be a factor we do not necessarily believe that this matter needs to be fully resolved before sale takes place or strategic alternatives can be found.

Hamed Shahbazi: Circle Medical's patient visits in Q1 were 208,000, representing approximately 19% growth over last year's visits of 174,000. We continue to believe that unlocking the value from Circle and WIST could result in significant cash benefit to WELL, which we'll use in a variety of ways, including redeploying the capital into our Canadian clinic footprint, where we have WELL HEALTH Significant Leadership Advantage and Exceptional Heroic Performance.

Ryan: Circle Medical's patient visits in Q1 were 208000, representing approximately 19% growth over last year's visits of 174000.

Ryan: We continue to believe that unlocking the value from circle and West could result in significant cash benefit to well, which will use in a variety of ways, including redeploying the capital into our Canadian clinic footprint, where we have <unk>.

Speaker Change: Significant leadership advantage and exceptional performance, we will provide material updates as they become available and with that I'd like to pass the call over to our CFO <unk>, who will review the financials for Q1.

Hamed Shahbazi: We will provide material updates as they become available.

Eva Fong: And with that, I'd like to pass the call over to our CFO, Eva Fong, who will review the financials for Q1. Thank you, Hamed. Well-achieved record quarterly revenue of $294.1 million in Q1 2025, marking a 32% increase compared to $223.5 million generated in Q1 of last year. This growth was driven primarily by strong organic expansion and recent acquisition. excluding the impact of Circle Medical's deferred revenue adjustments, Q1 2025 revenue would have reached $307 million. Adjusted EBITDA in Q1 2025 was $27.6 million, a 36% increase. compared to $20.2 million in Q1 2024. Excluding the impact of SoCoMedical's deferred revenue adjustments, adjusted EBITDA would have reached $34.1 million.

<unk>: Thank you Amit well achieved record quarterly revenue of $294 1 million in Q1, 2025, marking a 32% increase compared to $223 5 million generated in Q1 of last year. This growth was driven primarily by strong organic expansion and recent acquisitions.

<unk>: Excluding the impact of circle Medical's deferred revenue adjustments Q1, 2025 revenue would have to reach $307 million.

<unk>: Adjusted EBITDA in Q1, 2025 was $27 6 million at 36% increased.

<unk>: Compared to $20 2 million in Q1 2024.

<unk>: Excluding the impact of Socal medicals deferred revenue adjustments adjusted EBITDA would have reached $34 1 million.

Eva Fong: These growth rates are comparing periods between Q1 2025 and Q1 2024 where both periods have been impacted by the SoCo Medical deferred revenue adjustment. Overall, our Q1 2025 results reflect a solid start to the year, despite the challenges related to Circle Medical's deferred revenue, as Hamed previously discussed.

<unk>: This growth rate comparing periods between Q1 2025 in Q1 2024 were both periods have been impacted by the startup of Socal medical deferred revenue adjustments.

<unk>: Overall, our Q1 2025 results reflect a solid start to the year. Despite the challenges related to circle medical as deferred revenue as Tom previously discussed.

Eva Fong: WELL reported a net loss of $41.9 million or negative $0.19 per share in Q1 2025, compared to net income of $13.8 million or $0.05 per share in Q1 2024. The decrease in net income was primarily due to fair value adjustments on the company's HealWell investments and deferred revenue from Circle Medical, which will be recognized in future peers. Adjusted net income for Q1 2025 was $7.5 million, or $0.03 per share, compared to adjusted net income of $17.2 million, or $0.07 per share, in Q1 2024. We note that last year, Q1 2024 adjusted net income benefited from a gain on our sale of InterHealth to HealWell of $11.3 million.

<unk>: <unk> reported a net loss of $41 9 million or negative <unk> 19 per share in Q1 2025 compared to net income of $13 8 million or <unk> <unk> per share in Q1 2024.

<unk>: The decrease in net income was primarily due to fair value adjustments on the Companys key well investments and deferred revenue from Socal medical which will be recognized in future periods.

<unk>: Adjusted net income for Q1, 2025 was $7 5 million of <unk> <unk> per share compared to adjusted net income of $17 2 million or seven cents per share in Q1 2024.

<unk>: We note that last year Q1, 'twenty 'twenty four and adjusted net income benefited from a gain on a sale of intra health to heal well.

<unk>: $11 3 million.

Eva Fong: excluding the internal health gain and the circle medical deferred revenue impact. That was actually a $2.6 million improvement in adjusted net income. Excluding the impact of Circle Medical deferred revenue adjustments, adjusted free cash flow attributable to shareholders was $11.8 million in Q1 2025, a slight decline from $12.6 million in Q1 of last year, which benefited from a number of one-time payments to physicians. The decline was largely due to higher capital expenditure and cash taxes paid. Cash interest has remained stable with higher debt balances and lower interest rates.

<unk>: Excluding the intra health game and the so-called medical deferred revenue impact that was actually at $2 6 million improvement in adjusted net income.

<unk>: Excluding the impact of Socal medical deferred revenue adjustments and just the free cash flow attributable to shareholders was $11 8 million in Q1 2025.

<unk>: Slight decline from $12 6 million in Q1 of last year, which benefited from a number of onetime payments to physicians.

<unk>: The decline was largely due to higher capital expenditure and cash taxes paid cash interest was has remained stable with higher debt balances and lower interest rate.

Eva Fong: Now turn to our balance sheet as of March 31st, 2025. Well ended Q1 2025 with a solid balance sheet, holding cash and cash equivalents of $103.2 million. We remain in good standing and fully compliant with all covenants related to our two credit lines, JP Morgan in the US and Royal Bank in Canada. The outstanding debt from these credit lines was approximately $340 million in Canadian dollars as of March 31, 2025. Our balance sheet continues to be strong and we are confident that we will continue to see strong free cash flow generation in 2025. I'm pleased to report that we have the cash and available resources to continue to fund our M&A program, as Hamed has discussed earlier.

<unk>: Now turning to our balance sheet as of March 31, 2025.

<unk>: And Q1, 2025, with a solid balance sheet, holding cash and cash equivalents of $103 2 million.

<unk>: We remain in good standing and fully compliant with all covenants related to our two credit lines J P. Morgan in the U S and raw bank in Canada.

<unk>: Outstanding debt from these credit lines was approximately $340 million in Canadian dollars as of March 31st 2025.

<unk>: Our balance sheet continues to be strong and we are confident that we will continue to see strong free cash flow generation in 2025.

<unk>: I'm pleased to report that we had the cash and available resources to continue to fund.

<unk>: M&A program as how it had discussed earlier.

Eva Fong: I'm also very pleased to confirm that we will be re-initiating our share buyback program shortly after reporting our Q1 results. We believe our shares are undervalued and we will continue to improve our cash flow and demonstrate the power of our platform by returning value to our shareholders.

<unk>: I'm also very pleased to confirm that we will be re initiating our share buyback program. Shortly after reporting our Q1 results. We believe our shares are undervalued and we will continue to improve our cash flow and demonstrated the power of our platform by returning value to our shareholders.

Hamed Shahbazi: That concludes my financial update and I'll now turn the call back over to Hamed. Thank you, Eva. I'm very excited about our outlook for this year in which we expect to achieve record revenue, record EBITDA. Adjusted EBITDA, Record Net Income, and Record Free Cash.

<unk>: That concludes my financial update and I'll now turn the call back over to Harlan.

Harlan: Thank you Eva I'm very excited about our outlook for this year, and which we expect to achieve record revenue record EBITDA.

Harlan: Adjusted EBITDA, a record net income and record free cash flow.

Hamed Shahbazi: First of all, I want to reiterate our 2025 guidance as conveyed last quarter, but I want to add a little more clarity for those who are trying to better understand how guidance incorporates deferred revenue. So we've expressed the guidance also excluding Circle Medical. as being guidance for revenue for 2025 at $1.35 to $1.4 billion, and guidance for adjusted EBITDA is between $140 and $160. This guidance doesn't include any unannounced acquisitions, and we have a tremendous pipeline of potential targets that could significantly boost guidance upwards. In addition, we have not included any amounts from the $24.5 million in delayed earnings on CRH until the claims affected are collected or there's a formal settlement with health care, change health care.

Harlan: First of all I want to reiterate our 2025 guidance as conveyed last quarter, but I want to add a little more clarity for those who are trying to better understand how guidance incorporates deferred revenues. So we've expressed the guidance also excluding circle medical impact.

Harlan: As being guidance for revenue for 2025 at 135 to $141 $4 billion in guidance for adjusted EBITDA is between $1 40, and 160 <unk>.

Harlan: This guidance doesn't include any unannounced acquisitions, and we have a tremendous pipeline of potential targets that could significantly boost guidance upwards. In addition, we have not included any amounts from the $24 $5 million in delayed earnings.

Harlan: On CRH until the claims affected our collected or Theres a formal settlement.

Harlan: With health care.

Harlan: Change healthcare.

Hamed Shahbazi: Our guidance also includes fully consolidated financial results from HealWell starting in Q2 2025. Based on the guidance they gave to the market recently, we are expecting HealWell to contribute approximately $120 million in revenue and positive EBITDA to WELL's consolidated financial statements in 2025. We believe HealWell is on a strong growth trajectory and we will see double digit growth through 2026 based on the strength of the platform there, especially post the Orion acquisition. Orion is very well positioned for public sector wins in Canada and beyond given The tariff situation in geopolitical matters that we are all witness to, as their main competitors are U.S.

Harlan: Our guidance also includes fully consolidated financial results from heal well starting in Q2 2025 based on the guidance. They gave to the market recently, we're expecting here well to contribute approximately $120 million in revenue and positive EBITDA two wells consolidated financial statements. In 2025, we believe Gol is on a strong.

Harlan: <unk> growth trajectory and we will see double digit growth through 2026 based on the strength of the platform there, especially post the Orion acquisition.

Harlan: Orion is very well positioned for public sector wins in Canada and beyond given.

Harlan: The tariff situation and geopolitical matters that were all witness too as their main competitors are U S companies not only in Canada, but all over the world.

Hamed Shahbazi: companies, not only in Canada, but all over the world.

Hamed Shahbazi: As I outlined at the outset of the call, we believe exiting our U.S. care businesses will not only reduce complexity to our business, but also unlock significant capital opportunities for us to grow and accelerate our Canadian business, which is demonstrating significant growth and predictability, which is a quality that we really appreciate given some of the volatility we're seeing in the U.S. healthcare market. Divestments of these assets will allow us to redeploy capital into the Canadian market and further improve shareholder value given our superior return on capital invested capabilities in Canada.

Harlan: As I outlined at the outset of the call. We believe exiting our U S care businesses will not only reduce complexity to our business, but also unlock significant capital opportunities for us to grow and accelerate our Canadian business, which is demonstrating significant growth and predictability, which is a quality that we really appreciate given some of the volatility we're seeing in.

Harlan: The U S health care markets.

Harlan: Divestments of these assets will allow us to redeploy capital into the Canadian market and further improve shareholder value given our superior return on capital invested cap capabilities in Canada.

Hamed Shahbazi: While our most pressing priorities are to execute on our Circle Medical and WIS processes, we will start to undertake efforts to seek strategic alternatives for our CRH business as well. I want to stress that this will not be rushed. It will be a thoughtful and measured process as we generate significant revenue and cash flow at CRH and we want to make sure we have a good strategy to free up cash value and replace profitability with opportunities in Canada. Our Canadian business, including Canadian clinics, WELLSTAR and CyberWell, is outperforming and we have many tailwinds in the Canadian health care market, driving growth in the business, including a strong bi-Canadian sentiment from federal and provincial government.

Harlan: While our most pressing priorities are to execute on our circle medical and with processes. We will start to undertake efforts to seek strategic alternatives for our CRH business as well I want to stress that this will not be rushed it will be a thoughtful and measured process as we generate significant revenue and cash flow at CRH and we wanted to.

Harlan: Make sure we have a good strategy to free up cash value and replace profitability with opportunities in Canada.

Harlan: Our Canadian business, including Canadian clinics, well, starting cyber well is outperforming and we have many tail winds in the Canadian healthcare market driving growth in the business, including a strong buy Canadian sentiment from the federal provincial agreement our governments.

Hamed Shahbazi: We're expecting WELL Canada's adjusted EBITDA to grow by at least 25% in 2025, inclusive of acquisitions, and our longer term view of the Canadian market, as I mentioned earlier, remains very bullish. As noted earlier, we're targeting, inclusive of Canadian clinics, WELLSTAR and CyberWell, to be over $800 million in revenue and over $100 million in injustice EBITDA, inclusive of acquisitions in the next couple of years. We are the market share leader in Canada with the largest owned and operated clinic network, which we believe will experience substantial growth and profitability improvements in the coming years as we continue to pursue our long term market share goal of 10%.

Harlan: We're expecting well Canada's adjusted EBITDA to grow by at least 25% in 2025 inclusive of acquisitions and our longer term view of the Canadian market as I mentioned earlier remains very bullish.

Harlan: As noted earlier, we are targeting inclusive of Canadian clinics, well started cyber well to be over $800 million in revenue and over $100 million and adjusted EBITDA inclusive of acquisitions in the next couple of years.

Harlan: We are the market share leader in Canada with the largest owned and operated clinic network, which we believe will experience substantial growth and profitability improvements in the coming years as we continue to pursue our long term market share goal of 10%.

Hamed Shahbazi: In addition, WELLSTAR is the healthcare technology leader in Canada whose growth will only accelerate with a future IPO and access to capital.

Harlan: In addition, well start as the health care technology leader in Canada, whose growth will only accelerate with the future IPO and access to capital.

Hamed Shahbazi: In summary, we're very pleased with the strengthening fundamentals of our business and look forward to delivering strong results in 2025 and beyond. WELL's growth engine has never been stronger. Our organic growth is operating at an optimal level while we're executing on an extremely healthy M&A pipeline. We have a strong balance sheet and are well positioned to improve shareholder value. We have a committed and disciplined team to ensure we can execute on our objectives.

Harlan: In summary, we're very pleased with the strengthening fundamentals of our business and look forward to delivering strong results in 2025 and beyond wealth growth engine has never been stronger our organic growth is operating at an optimal level. While we are executing on an extremely healthy M&A pipeline, we have a strong balance sheet and are well positioned to improve.

Harlan: Your value.

Harlan: We are a committed and disciplined team to ensure we can execute on our objectives to that I would like to thank wells Senior management team our board of directors all of our employees and contractors for their tremendous effort in particular I'd like to thank our team of health care practitioners and other frontline workers who are providing.

Hamed Shahbazi: To that, I would like to thank WELL's senior management team, our board of directors, all of our employees and contractors for the tremendous effort. In particular, I'd like to thank our team of healthcare practitioners and other frontline workers who are providing incredible care. We are here to support them as they're the real backbone of the healthcare industry.

Harlan: Incredible care.

Harlan: We are here to support them as there is a real backbone of the health care industry.

Hamed Shahbazi: I want to thank you all for joining us on this call today and thank our shareholders and investors for their continued support. The capital markets have been very supportive of our vision and have provided us with the funding needed to pursue our goals and drive societal value. and provide the care that we all need.

Harlan: I want to thank you all for joining us on this call today and thank our shareholders investors for their continued support the capital markets have been very supportive of our vision and have provided us with the funding needed to pursue our goals and drive societal value.

Harlan: And provide the care that we all need.

Operator: And with that, Operator, please open the line to questions. Thank you.

Harlan: And with that operator, we'd be open to please open the line to questions.

Speaker Change: Thank you Lady.

Operator: Ladies and gentlemen, we will now be taking questions from analysts only. Should you have a question, please press the star followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the 2. And if you are using a speakerphone, please lift the handset before pressing star.

Speaker Change: Ladies and gentlemen, we will now be taking questions from analysts tell me should you have a question. Please press the star followed by the one on your Touchtone phone you will hear problems that you had has been raised.

Speaker Change: What should the claim from the polling process. Please press star followed by the Q.

Harlan: And if you are using a speaker phone please lift the handset before pressing any case.

Michael Freeman: Your first question comes from Michael Freeman at Raymond James. Please go ahead.

Michael Freeman: This question comes from Michael Freeman at Raymond James. Please go ahead. Hey, good afternoon, Hamed, Eva. Thank you very much for this super thorough presentation. We really appreciate this rich data.

Michael Freeman: Hey, good afternoon.

Speaker Change: Thank you very much for this super thorough presentation, we really appreciate this rich data.

Hamed Shahbazi: So I guess my first question, I wonder, what if you could take us through the process of well accumulating, you know, something in the direction of 10% market share of Canadian clinics? I'm curious how you envision, you know, the process of acquiring clinics and clinic networks, and wonder if there are parts of your clinic transformation organization that might need to scale in order to achieve this, and I'm wondering if you see any risks in growing to this scale? Yeah, thank you, Michael. Great question. Look, we thought a lot about this. And I'll just say that really most of primary care in the country is characterized by very long tail.

Michael Freeman: So I guess my first question I Wonder I Wonder if you could take us through the process of dwell accumulating.

Michael Freeman: Something in the direction of 10% market share of Canadian clinics.

Michael Freeman: I'm curious how you envision.

Michael Freeman: The process of that.

Michael Freeman: Of acquiring clinics and clinic networks.

Michael Freeman: And wonder if there are parts of your clinic transformation organization that might need to scale in order to in order to achieve this and I'm wondering if you see any risks in growing to this scale.

Michael Freeman: Yeah. Thank you Michael Great question.

Michael Freeman: Look we thought a lot about this and al and I will just say that really most of primary care in the country is characterized by very long tail. There's very few networks and so one of the things that I think really position us well as we just don't know of anyone else who has been able to.

Hamed Shahbazi: There's very few networks. And so one of the things that I think really positioned us well is, we just don't know of anyone else who has been able to take these sort of small baskets of clinics and improve them, improve their margins, go through that change management that's required with the physicians. You know, sometimes a more scaled platform will become available and we find that there's, you know, quite a lot of interest in those, but, but Even from a primary care perspective, we're finding that the profitability in those more skilled platforms is not very high.

Michael Freeman: You take the sort of small baskets of clinics and.

Michael Freeman: Improve them improve their margins go through that change management, that's required with the physicians.

Michael Freeman: Sometimes a more scaled platform will become available and we find that there is quite a lot of interest in those but.

Michael Freeman: Even from a primary care perspective, we're finding that the profitability in those more scaled platforms is not very high you really lead and this is exemplified by what happened with Elena, which obviously was the second largest network out after us and they are they they went off side with their covenants.

Hamed Shahbazi: This is exemplified by what happened with Elna, which obviously was the second largest network after us. They went offside with their covenants and recently their assets have become available. To be successful in this market, you have to be very good at doing the small acquisition, which is not always an easy thing because you have to expend a lot of resources and time and effort to really build a machine that can scale. To that end, we have scaled our clinic transformation team quite a bit. You'll note that some of our overhead expenses increased. That was directly correlated with improvements in our shared services as we're now a roughly 7,000 member team in all of the WELL family of companies and the vast majority that is in WELL clinics.

Michael Freeman: Recently their assets have become available.

Michael Freeman: So so.

Michael Freeman: To be successful in this market you have to be very good at doing the small acquisition, which is not always an easy thing.

Michael Freeman: Because you have to spend a lot of resources and time and effort to really build a machine that can they can they can scale.

Michael Freeman: To that end, we have scaled our clinic transformation team quite a bit you'll note that some of our overhead expenses increase that was <unk>.

Michael Freeman: Directly correlated with improvements in our shared services as we are you know we're now at roughly 7000 member team are in all of the well.

Michael Freeman: <unk> family of companies and the vast majority of that is in well clinics.

Hamed Shahbazi: I'll also mention that in the diagnostic side of things, there are a few larger clinic networks. and some that are we're speaking to right now and have reflected in our pipeline that we shared with you earlier. There, there is there are some more sort of chunky assets that could significantly and dramatically improve our outlook right away. And so if anything like that happens, obviously, we will let investors know. But but we are very much focused on that. And by the way, that's why it's it's important, I think, for us to make these divestments in the US a priority, because we are seeing some opportunities to redirect and allocate capital that we think would be transformational even for our own clinic network.

Michael Freeman: I'll also mention that isn't the diagnostic side of things there are a few larger clinic networks.

Michael Freeman: And some that are we're speaking to right now and have reflected in our pipeline that we shared with you earlier.

Michael Freeman: There. There is there are some more sort of chunky assets that could significantly and dramatically improve our outlook right away.

Michael Freeman: And so if anything like that happens obviously, we will.

Michael Freeman: Let investors know, but we are very much focused on that and by the way that's why it's.

Michael Freeman: It's important I think for us to make these divestments in the U S. A priority because we are seeing some opportunities to redirect and allocate capital that we think would be transformational even for our own clinic network.

Michael Freeman: Okay, hopefully that's helpful. It's super helpful. Thank you.

Michael Freeman: Okay. So hopefully that's helpful.

Michael Freeman: Super helpful. Thank you.

Hamed Shahbazi: Now, I wonder, you know, speaking of divesting of assets in this Um, you know, you gave us some good color on the on the processes for WISP and Circle and then, you know, appreciate you. Describing that you do plan to ultimately exit from CRH and provider staffing. So I wonder if, you know, on those two last assets, do you anticipate those two assets being sold together or separately? And then I wonder if you could give us give us an idea of rational selling multiple for that, for these sorts of assets that you might see out there in the market.

Michael Freeman: Now I Wonder you know.

Michael Freeman: Speaking of divesting of assets in those states.

Michael Freeman: You gave us some good color on the processes for Western Circle, and then Oh.

Michael Freeman: Got you.

Michael Freeman: Describing that you do plan to ultimately exit from CRH and provider staffing so I wonder yes on those two last assets.

Michael Freeman: You anticipate those two assets being sold together or separately.

Michael Freeman: I wonder.

Michael Freeman: If you could give us give us an idea of rational selling multiple for this for these sorts of assets that you might see out there in the market.

Hamed Shahbazi: Yeah, it's a very good, good question. I mean, look, I think that we would be open to both. I think our preference would be to sell it as one asset, because it would be simpler for us and better for the team, which is definitely a factor for us. You know, we have a great team there that's done a great job and we want to make sure that they have a great experience in terms of what ends up happening next. But I think that it is possible that the assets are sufficiently different where there would be pure play interest in one versus the other.

Michael Freeman: Yeah. It's a very good good question I mean look I think that we would be open to both.

Michael Freeman: I think our preference would be to sell that as one asset because it will be simpler for us and and better for the team, which is definitely a factor for us we have a great team there that's done a great job in and.

Michael Freeman: We want to make sure that they have a great experience with.

Michael Freeman: In terms of what ends up happening next.

Michael Freeman: But I think that that it is possible that the assets are sufficiently different where there would be pure play interest in one versus the other.

Hamed Shahbazi: As far as multiples are concerned, you know, I think that this is an area where, you know, we'll learn more over the next little while. You know, we haven't done a ton of work in this area right now. Of course, we've been staying abreast of developments in the space. What we understand is that actually provider staffing could fetch a higher multiple than general anesthesia, just because of of the scarcity of providers in the United States and because provider staffing is a less inflation sensitive business than than the care business at CRH Anesthesia. I would I would say that, look, we're we'd hope that there would be double digit multiples on both sides.

Michael Freeman: As far as multiples are concerned.

Michael Freeman: You know I think that this is an area, where we'll learn more over the next little while.

Michael Freeman: Yeah, we haven't done a ton of work in this area right now of course, we've been staying at St. Staying abreast of developments in the space, what we understand is that.

Michael Freeman: Actually provider staffing could fetch a higher multiple than general anesthesia is just because of.

Michael Freeman: The scarcity of providers in the United States and because provider staffing is a less inflation sensitive.

Michael Freeman: Business than than than the care business at CRH anesthesia.

Michael Freeman: I would I would say that look we're.

Michael Freeman: We would hope that there would be double digit multiples on both sides, but we will learn more and we'll keep you posted.

Hamed Shahbazi: But, you know, we'll learn more and we'll keep you posted. Okay, thanks very much. I'll pass it along. Thank you.

Michael Freeman: Okay. Thanks, very much I'll pass it all now.

Speaker Change: Thank you. The next question comes from David Klein at TD Cowen. Please go ahead.

David Kwan: The next question comes from David Kwan at TD Cowen. Please go ahead. Thanks, congrats on a nice rebound quarter here.

David Klein: Thanks, Congrats on a nice rebound quarter here.

Hamed Shahbazi: Can you talk about maybe what's going on with that with OceanMD and the BC contract? Can you talk about specifically, I guess, where you are in the deployment there and when we should expect revenues to start wrapping? Yeah, thanks very much, David. You know, we, our deployment has been tracking along well, we've met our deliverables, we understand that, that BC is, you know, currently going through a lot of change. And, you know, and so we're awaiting sort of next steps. And this is not just in terms of digital health, it's, it's the entire province.

David Klein: Could you talk about maybe what's going on with that with Ocean M. D and NBC contract can you talk about specifically I guess, where you are in the deployment there and when we should expect revenues to start ramping.

Michael Freeman: Yeah, Thanks, very much David.

Michael Freeman: We are our deployment has been tracking along well we've met our deliverables.

Michael Freeman: We understand that that BC is.

Michael Freeman: Currently going through a lot of change and.

Michael Freeman: So we are waiting sort of next steps and this is not just in terms of digital health is it's the entire province, I think since the election, there they're kind of.

Hamed Shahbazi: I think since the election, you know, they're, they're kind of, you know, you know, there's a new boss at PHSA, they're going through a lot of, you know, strategy review and whatnot. I will note that our OceanMD referral numbers are improving quite a bit on a percentage basis. Note that the number of e-referrals is still quite low as compared to a market like Ontario, but we're starting to see some real nice uptick. Note that WELL clinics actually are starting to help really, really do that. So, you know, we'll, we haven't received any specific feedback on next steps, but we do know that we, that should be happening in the near future.

Michael Freeman: Theres, a new boss at Phs say, they're going through a lot of our strategy.

Michael Freeman: <unk> review and whatnot.

Michael Freeman: I will note that our ocean MD referral numbers are improving quite a bit on a percentage basis.

Michael Freeman: Note that there are a number of referrals is still quite low as compared to a market like Ontario, but we're starting to see some real nice uptick note that well clinics actually are starting to help really you really do that so.

Michael Freeman: You know what.

Michael Freeman: We haven't received any specific feedback on next steps, but we do know that we should that should be happening in the near future and we'll keep everyone posted.

Hamed Shahbazi: And we'll, we'll keep everyone posted.

Hamed Shahbazi: I will add that with OceanMD, there are other major provinces now that are, you know, heading down the line with the company and we expect and are tracking to hopefully new contracts as well. That's very helpful, Hamed, just in terms of the colour there.

Michael Freeman: I will add that with ocean MD there are other major provinces now that are.

Michael Freeman: Heading down the line with the company and we expect and are tracking to hopefully new contracts as well.

Michael Freeman: No. That's that's that's.

Michael Freeman: Very helpful on that just in terms of the color there.

Hamed Shahbazi: And then just quickly on WISP, the EBITDA margins fell this quarter a bit under 2%.

Michael Freeman: And then just quickly on west.

Michael Freeman: The EBITDA margins fell this quarter a bit under 2% I guess first off how much of that was.

Hamed Shahbazi: I guess first off, how much of that was due to the increased marketing promotion expenses? And I think there was also talk about higher compliance costs.

Michael Freeman: Due to the increased marketing promotion expenses and I think there was also talk about higher compliance costs and then secondly, as you look to sell that business you talked about last quarter.

Hamed Shahbazi: And then secondly, as you look to sell that business, you talked about last more interest coming from financial buyers, so trying to get those margins up. Given it probably will take a couple of quarters, I think, maybe just try to convince these potential buyers of the potential margin opportunity and profile of the company. Do you think that that maybe pushes out the timing for potential sale of WISP? You know, I don't think so, because I think that we are just continuing to see great growth. I mean, you look at the year over year growth that the business had.

Michael Freeman: More interest coming from financial buyers, so trying to get those margins up.

Given it probably will take a couple of quarters I think maybe just try to convince these potential buyers.

Michael Freeman: The potential margin opportunity and profile of the company.

Michael Freeman: Think that maybe pushes out the timing for a potential sale of west.

Michael Freeman: Oh, no I don't.

Michael Freeman: I think so because I think the we are just continuing to see great growth. I mean, you look at the year over year growth of the business.

Hamed Shahbazi: I mean, so typically we are, if you kind of go back in time, you'll note that We always have a bit of a slow start in terms of EBITDA with WISP, and that is because we sort of, at the beginning of the year, we lean a bit more into advertising because, you know, seasonally, we do see, you know, very predictably every single year that, you know, first quarter is the lowest prices and Q4 with Christmas, of course, the important Christmas season, you have the highest rates in advertising. And so we tend to be very strategic around increasing our spend at the front end of the year so we can acquire more customers and we can sort of play out and try to grow the LTV of those customers.

Michael Freeman: Typically we are if you kind of go back in time, you'll note that.

Michael Freeman: We always have a bit of a slow start in terms of EBITDA.

Michael Freeman: With that is because we sort of at the beginning of the year, we lean in a bit more into advertising because seasonally we do see a V.

Michael Freeman: Very predictably every single year.

Michael Freeman: That debt.

Michael Freeman: First quarter is the lowest prices in Q4 with Christmas of course, the important Christmas season, you have the highest rates in advertising. So we.

Michael Freeman: We tend to be very strategic around increasing our spend at the front end of the year. So we can acquire more customers and we can we can we can you sort of play out and.

Michael Freeman: And try to grow the LTV of those customers and so I think youre seeing some of the same pattern there.

Hamed Shahbazi: And so I think you're seeing some of the same pattern there. And yes, we did have some more compliance costs. That's a real priority for us all throughout the United States. And so that factored in a little bit as well. But, you know, we have a lot of confidence that we're already starting to see margins expand into Q2, and we believe that back half of the year will continue to be as strong and predictable as it was last year. That's great. Thanks, all. Thank you.

Michael Freeman: And yes, we did have some more compliance costs thats, a real priority for us all throughout the United States.

Michael Freeman: And so that factored in a little bit as well, but you know we have a lot of confidence that we're already starting to see margins expand into Q2, and and we believe the back half of the year and we'll continue to be as strong and predictable as it was last year.

Michael Freeman: That's great. Thanks, so much.

Speaker Change: Thank you. The next question comes from Scott Flasher of CIBC. Please go ahead.

Scott Flesher: The next question comes from Scott Flesher at CIBC. Please go ahead. Hi, good afternoon. I wanted to ask on the organic growth in the Wellstar Business. Again, strong again, if you could just maybe dig into some of the contributing assets, that'd be great. Yeah, thanks a lot, Scott. Yeah, you're absolutely right. Very good, consistent performance there. You know, we have the sort of the three key divisions there, and they all performed well, and they're all very steady. So our EMR group, you know, has done a great job within the OSCQR group to really kind of migrate some of the acquisitions that we've made.

Scott Flasher: Hi, good afternoon.

Speaker Change: I wanted to ask on the organic growth in the.

Speaker Change: Whilst our business again strong again, if you could just maybe dig into some of the contributing assets that'd be great. Thanks.

Speaker Change: Yeah, Thanks, a lot Scott.

Speaker Change: Yeah, Youre, absolutely right very good consistent performance there.

Speaker Change: You know we have the sort of the three key divisions, there and they all performed well and they're all very steady so our EMR group.

Speaker Change: <unk> has done a great job.

Speaker Change: And the Oscar group to really kind of migrate some of the acquisitions that we've made we fully now.

Hamed Shahbazi: You know, we fully now, you know, migrated off the Indivica platform that we had acquired, even though that was an OSCQR platform, it was a forked OSCQR, which was sufficiently different where that would have been a key matter. And so that's been fully done and in a really quality way. Aware MD is actually executing quite well as well in our EMR segment. Ocean, of course, continues at elevated organic growth levels. And same with billing and back office. I mean, that's an area that we've really built out. And, you know, doctor care has just been a steady driver and just very relevant to doctors' needs these days as these billing systems become more complex in the different provinces.

Speaker Change: Migrated off the <unk> platform that we had acquired even though that was an Oscar platform. It was a fork to Oscar which was sufficiently different where that would have been a key matter and so that's been that's been fully done and in a really quality way are aware MD is actually executing quite well as well.

Speaker Change: In our EMR segment Ocean of course continues at elevated organic growth levels and same with billing and back office I mean, that's an area that we've really built out.

Speaker Change: And.

Speaker Change: A doctor care has just been a steady driver and.

Speaker Change: Just very relevant to doctors' needs. These days as these billing systems become more complex and the different into different provinces doctors don't want to do their billing anymore, and we're really beefing up the back office of course, our acquisition of Bluebird.

Hamed Shahbazi: Doctors don't want to do their billing anymore. And we're really beefing up the back office. Of course, our acquisition of Bluebird was important the last quarter. And I think the organic growth there is pretty solid. So, look, we expect this to continue. And we think that, you know, WellSTAR will continue to be a reliable rule of 40 to rule of 50 player.

Was important the last quarter and I think the organic growth there was pretty solid. So look we we expect this to continue.

Speaker Change: And we think that.

Speaker Change: I'll start we will continue to be a reliable rule of 40 to rule of 50 player.

Hamed Shahbazi: Okay, thanks.

Speaker Change: Okay. Thanks, and then as a follow up there you mentioned in your prepared remarks that you know as you look to get out of the U S. You may still serve some of the software tools into the U S with with what I'll start in terms of the pipeline or are most of the assets you might look at to buy Theyre still largely Canadian focused.

Hamed Shahbazi: And then as a follow up there, you mentioned in your prepared remarks that, you know, as you look to get out of the U.S., you may still serve some of the software tools into the U.S. with WELL Health Star. In terms of the pipeline, are most of the assets you might look to buy there still largely Canadian focused? Yeah, I'm glad you brought that up, actually, because you're right. I made a kind of a very slight reference to that. And of course, WellSTAR is not in the United States today. But, you know, we have tremendous software.

Speaker Change: Yeah, I'm glad you brought that up actually because youre right Ive made a kind of a very slight reference to that and of course, well start is not in the United States today, but we have tremendous software.

Speaker Change: And.

Hamed Shahbazi: And and, you know, we very much could see this all throughout the world. And we think the Commonwealth countries could be a great place. But we also believe that having the Orion Health team resell WellSTAR broadly could be very helpful. And so that's something that you're going to start to see happen over the next little while. Currently, we don't have a US digital health business in our M&A pipeline. Most of, if not all of those of those assets in WellSTAR's, you know, M&A pipeline are in Canada today with our intense focus on Canada. And we're very excited about that because there is some white space where where we are not currently operating that we'd like to close up.

Speaker Change: We very much could see this all throughout the world and we think the Commonwealth countries could be a great place, but we also believe that.

Speaker Change: Having the Orion health teamed resell well start broadly could be very helpful.

Speaker Change: And so thats something that youre going to start to see happen over the next little while currently we don't have a U S digital health business in our M&A pipeline.

Speaker Change: Most of if not all of those of those assets and well starts platform.

Speaker Change: M&A pipeline are in Canada today, with our intense focus on Canada, and we're very excited about that because there is some white space where were we are not currently operating that we'd like to close up.

Hamed Shahbazi: Hopefully that's helpful.

Speaker Change: Hopefully that's helpful.

Speaker Change: Thank you.

Hamed Shahbazi: Thank you.

Speaker Change: Thank you. This concludes today's Q&A I'll turn the call back over to <unk> for closing comments.

Operator: This concludes today's Q&A.

Hamed Shahbazi: I will turn the call back over to Hamed Shahbazi for closing comments. Well, thank you very much for joining today and for all your support and questions. And we look very much to delivering our Q2 report in August. And until then, we wish you a very safe summer and, you know, hopefully, you know, fantastic markets to go along with that. Be well and thanks again.

Speaker Change: Well. Thank you very much for joining today and for all your support and questions and we look very much too.

Speaker Change: Delivering our Q2 report in August and until then we wish you.

Speaker Change: A very safe summer and and.

Speaker Change: And hopefully.

Speaker Change: Fantastic markets to go along with that.

Speaker Change: Well and thanks again.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and we ask that you please disconnect.

Speaker Change: Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and we ask that you. Please disconnect your lines.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Yes.

Well, how was it this month?