20/20 Biolabs, Inc. Common Stock Q4 FY2025 earnings call

James Lee framed HealWell's position in the healthcare AI landscape, emphasizing being in the early innings of a large technology adoption cycle in healthcare. 2025 was transformational with 427% revenue growth driven by the acquisition of Ryan Health, first positive adjusted EBITDA at $2.3 million, divestiture of non-core assets, launch of Amadeus AI, and expansion of AI deployment footprint including first in the Middle East. Anthony Lamb walked through Q4 and year-end financials, noting Q4 2025 revenues $32.2M (+374% y/y), positive adjusted EBITDA $1.4M, gross profit $17.6M (+376% y/y), year-end 2025 revenue $103.8M (+427% y/y), first positive adjusted EBITDA $2.3M, gross profit $57.3M (+429% y/y), and IFRS net loss from continuing operations $39.1M. Dr. Alexander Dobronowski discussed competitive advantages: clinical validation and scientific credibility with Darwin AI platform having 47 peer-reviewed publications, Orion Health distribution network with global enterprise access across 11 countries, unified Darwin-powered platform merging subsidiaries' capabilities, and embedded switching costs with growing clinical data network. Key takeaways included strategy working, Orion's distribution creating deployment opportunity, scientifically validated AI platform, Orion acquisition expanding global scale, and strong financial momentum.

In 2025, HealWell had two core revenue segments. The AI and data science segment achieved revenue of $10.2 million in 2025, a 120% year-over-year growth from $4.6 million in 2024. The healthcare software segment generated $93.7 million in revenue in 2025, an increase of 520% from $15.1 million in 2024. Annual revenue totaled $103.8 million, up 427% from 2024. Q4 2025 revenues were $32.2 million, up 374% from Q4 2024. Positive adjusted EBITDA was achieved in Q4 2025 at $1.4 million, compared to a loss of $5 million in Q4 2024. Gross profit in Q4 2025 was $17.6 million, up 376% from Q4 2024, with a gross margin of 55% in both periods. Year-end 2025 adjusted EBITDA was $2.3 million, a first positive year, and net loss from continuing operations was $39.1 million, compared to $27.5 million in 2024.

Targeting approximately 50% AI revenue growth in 2026. Aiming for an exit run rate of around 10% adjusted EBITDA margin. Focus in Q1 2026 on continuing momentum by expanding enterprise deployments, strengthening AI leadership through validation, and driving AI adoption while maintaining positive adjusted EBITDA. Looking wider across 2026, priority is scaling globally, expanding distribution network, increasing adoption, and strengthening financial position.

No specific risks explicitly detailed in the provided transcript beyond general mentions in the prepared remarks about referring to press release and management discussion analysis for risk details.

Q: Talk about the U.S. state win on HIE, drivers of the win, new state for them, size of contract.

A: New state for them, won due to combined offering of Orion, VeraSource, and Darwin platform capabilities. Driven by new rural funding bill, market in early AI adoption phase, went from long list to short list, large multi-year contract, one of larger U.S. contracts.

Q: Thoughts on M&A, approach to M&A this year, competitor HIE under strategic review.

A: M&A is focus, disciplined since Orion acquisition to integrate and demonstrate operational leverage, will look to expand footprint, likely not see something in first six months, looking at assets with AI deployment potential, not just buying legacy platforms.

Q: WellTrust platform reception by top pharma customers, traction.

A: WellTrust is globally unique for consent-driven patient recruitment, in early phases, has interest from life sciences partners, solving life sciences pain point of cost-effective patient recruitment, finding tens of thousands of patients per quarter.

Q: Balance between scaling/efficiencies for 10% EBITDA margin target, status of POVs and RFPs, large RFPs outstanding.

A: Margin comes from platform integration efficiencies, scaling corporate costs, and growing software revenue proportion. POVs range in value, Phase 1 deployments average $500k, new deployments $150k - $500k, Phase 2 multi-million dollar contracts. RFP network has large revenue opportunities, TCVs $30 - $100M, procurement cycles long.

Q: Dollar value of XAI investment, expected timing to monetize.

A: XAI investment is private, timing dependent on right opportunity, no specific timing, waiting for SpaceX IPO which may give view on liquidation, no specific dollar value given as it's speculative.

Q: Launch of Amadeus in U.S. first half, pipeline for activations in U.S. this year and early next.

A: Activation of AI network with existing customer base conversion in first half, more RFIs for health information exchanges and new partners, excited about U.S. market reopening due to rural funding bill, sales through direct partnerships and consultants, RFI/RFP driven.

Q: Strategy to monetize internal AI capabilities, learnings from selling initial products, pricing of offerings.

A: Demand for platforms over single solutions, bigger deployments of smart search and summary are stronger, platform has multiple use cases, cycle of adoption early, pivoting sales pitch to multi-year strategies. Prices beginning to increase as going into wider deployments with more data sets.

Q: Growth of software business, considering Q4 as base, partnership strategy, ideal partners, scope of work with partners, number of current partners.

A: Software growth lumpy with recurring and PSG components, recurring grows ~10%, PSG lumpy. Partnerships across market, ideal partners complementary, work with sales, clinical, revenue cycle partners, in AI side still building partnerships as market early, have current partners but focusing on new ones to support outsized growth.