Tech stocks have had a rough ride this year, but not all of them deserve the market’s cold shoulder. In fact, one Canadian technology name is quietly doing all the right things, while investors look the other way. WELL Health Technologies (TSX:WELL) is down around 52% from all-time highs during the pandemic. Yet it’s growing faster than many of its peers and doing something unique, modernizing public healthcare systems across Canada and the U.S.
About WELL
WELL isn’t your typical tech stock. It’s part digital health platform, part clinic operator, and part software powerhouse. In a fragmented and overwhelmed healthcare landscape, that matters. Physicians want to focus on patients, not paperwork, and WELL offers solutions that help them do just that. WELL is well-positioned to keep expanding, especially as it integrates artificial intelligence (AI) into clinical workflows. In fact, it currently holds over 200 clinics and more than 42,000 healthcare providers using its platform.
Let’s start with the numbers. WELL Health just posted record revenue of $294.1 million for the first quarter (Q1) of 2025, up 32% from the same period last year. That includes strong organic growth of 13.4% in Canada, where its patient services grew 29% year over year. If not for deferred revenue recognition at its U.S. subsidiary Circle Medical, that top line would have come in even stronger.
The tech stock also saw 1.6 million patient visits in the quarter and over 2.6 million total interactions. Canadian operations are thriving, with earnings before interest, taxes, depreciation, and amortization (EBITDA) climbing 29% year over year. This isn’t just about clinics, it’s about the tech stack behind them. WELLSTAR and CYBERWELL, its cybersecurity arm, provide support services that shield practices from digital threats. Furthermore, WELL is bringing artificial intelligence directly into the exam room. That’s with the launch of Nexus AI, its new clinical documentation tool,
More to come
The tech stock’s recent acquisition of Harmony Anesthesia and majority stake in HEALWELL AI also add firepower. Starting in Q2, WELL will consolidate HEALWELL’s results, which are expected to contribute $40 million in quarterly revenue and positive EBITDA. This builds on a strong merger and acquisition (M&A) pipeline that includes 11 signed letters of intent representing $65 million in annual revenue.
Despite all this growth, the market isn’t giving WELL the credit it deserves. The tech stock trades well below its highs even though the company is forecasting $1.4 to $1.45 billion in annual revenue for 2025, with adjusted EBITDA between $190 and $210 million. And it’s not burning through cash to get there. WELL generated $11.8 million in free cash flow to shareholders in Q1 and plans to reinitiate its share buyback program, something most tech firms wouldn’t even consider in this environment.
WELL’s CEO Hamed Shahbazi summed it up well: “WELL is quickly becoming a valued and trusted place for administratively burdened physicians who want to focus on providing care and not on running operations.” That’s a pain point across the entire healthcare sector, and WELL is uniquely positioned to solve it.
Bottom line
The company has also made clear that its focus in 2025 will be on optimizing its platform, extracting synergies, and investing in growth, without compromising profitability. With Canadian operations leading the charge and new tech like Nexus AI gaining traction, there’s plenty of upside if the market comes around.
So, why is the stock down? Partly, it’s the broader tech selloff and skepticism around healthcare reform. But that’s precisely why it’s attractive now. WELL is executing, scaling, and it’s still under the radar for most investors.
In the long term, WELL is building something that Canada’s healthcare system desperately needs. And in doing so, it’s giving growth investors a rare combination: a tech stock that’s both undervalued and overperforming. That’s why it’s my pick in the tech sector, even if no one else is talking about it yet.
