20/20 Biolabs, Inc. Common Stock Q1 FY2026 earnings call

James Lee started by grounding Heal Well's focus on becoming the primary enabler of preventative care. He discussed the four interconnected problems the company is addressing: infrastructure, clinical-grade tools, scientific evidence, and economic incentives. He highlighted progress made in each area, including the Orion acquisition, strategic alliance with Well Health, peer-reviewed publications, and work on economic incentives. Anthony Lam walked through Q1 financial results, noting revenues, adjusted EBITDA, gross profit, and gross margin. Dr. Alexander Dovranosky discussed the Canadian and global public sector opportunity, including shifts in public sector posture towards healthcare data interoperability, federal and provincial initiatives in Canada, and Heal Well's competitive advantages such as clinical validation, global distribution, unified AI platform, and deep workflow integration. Key strategic and operational highlights for the quarter included unifying Cure and Pentavir into a single Darwin-powered AI engine, launching WellTrust in partnership with WellHealth, and building commercial momentum across the business.

As of November 1, 2025, following the divestiture of the company's clinical research and patient services division, Q1 generates revenue across two core segments. The AI and data science segment achieved revenue of 2.6 million in Q1 2026, marking a 13% year-over-year growth compared to the 2.3 million in Q1 2025. The increase was driven by contributions from the Verisource data as a service offering and Orion Health Systems component with the AI segment, partially offset by the divestiture of Mutual. The healthcare software segment generated $30.6 million in revenue in Q1 2026, an increase of 439% from $5.7 million in Q1 2025, primarily driven by significant growth reflecting the continued contribution of Orion Health acquisition and organic growth expansion initiatives.

For the balance of the year, Heal Well will be accelerating enterprise pipeline development across the US, Australia, and the Middle East. They will continue to deepen life science partnerships, leverage validated AI models and regulatory grade real-world data for clinical trial matching and drug discovery, and expand Darwin across additional EHRs and population platforms. By year end, targets are to activate the global network across life sciences, increase enterprise AI sales, and achieve approximately a 10% exit run rate for adjusted EBITDA margin.

No specific risks explicitly discussed in detail in the provided transcript, but it was mentioned to refer to yesterday's press release and management discussion analysis for more details on risk and forward-looking statements.

Questions and answers include inquiries about the U.S. market activity, healthcare software segment details, organic growth, gross margin, subscription support and maintenance, Middle East sales cycle, R&D investments, invoicing and revenue recognition, cross-sell and up-sell opportunities, and conversations with life sciences companies