American Well Corp Revenue Disclosure
4. Revenue and Deferred Revenue
Revenue
The following table presents the Company’s revenues disaggregated by revenue source:
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Platform subscription |
|
$ |
132,407 |
|
|
$ |
115,543 |
|
|
$ |
112,361 |
|
Visits |
|
|
94,286 |
|
|
|
116,456 |
|
|
|
119,485 |
|
Other |
|
|
22,632 |
|
|
|
22,365 |
|
|
|
27,201 |
|
Total Revenue |
|
$ |
249,325 |
|
|
$ |
254,364 |
|
|
$ |
259,047 |
|
Contract Balances
The Company has rights to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the client. Unbilled receivables as of December 31, 2025 and December 31, 2024 is $4,322 and $13,628, respectively, and has been included within accounts receivable on the consolidated balance sheet.
Contract liabilities consist of deferred revenue and include billings in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the years ended December 31, 2025, 2024 and 2023, the Company recognized revenue of $47,714, $36,430 and $40,595, respectively, that was included in the corresponding contract liability balance at the beginning of the periods presented.
The Company receives payments from clients based upon contractual billing schedules. The Company typically invoices its clients annually in advance for their annual software access fee. The Company records accounts receivable when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically net 30 days.
Deferred Revenue
Significant changes in the Company’s deferred revenue balance for the years ended December 31, 2025, 2024 and 2023:
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Total deferred revenue, beginning of the period |
|
$ |
56,012 |
|
|
$ |
52,456 |
|
|
$ |
55,794 |
|
Additions |
|
|
114,444 |
|
|
|
130,559 |
|
|
|
124,091 |
|
Recognized |
|
|
(147,013 |
) |
|
|
(127,003 |
) |
|
|
(127,429 |
) |
Total deferred revenue, end of the period |
|
$ |
23,443 |
|
|
$ |
56,012 |
|
|
$ |
52,456 |
|
Current deferred revenue |
|
|
22,625 |
|
|
|
53,232 |
|
|
|
46,365 |
|
Non-current deferred revenue |
|
|
818 |
|
|
|
2,780 |
|
|
|
6,091 |
|
Total |
|
$ |
23,443 |
|
|
$ |
56,012 |
|
|
$ |
52,456 |
|
Transaction Price Allocated to Remaining Performance Obligations
As of December 31, 2025 and 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $85,200 and $143,529, respectively. The substantial majority of the unsatisfied performance obligations will be satisfied over the next three years. As it pertains to the December 31, 2025 amount, the Company expects to recognize 76% of the transaction price in the year ending December 31, 2026 in its consolidated statement of operations and comprehensive loss with the remainder recognized thereafter.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 26, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.