WELL Health Technologies (TSX:WELL), a digital healthcare company, is experiencing significant growth, fueled by the expansion of its clinic network and a record pipeline of public sector business opportunities. This momentum is largely attributed to a surge in ‘buy Canadian’ sentiment following former U.S. President Trump’s imposition of tariffs on Canadian goods.
Since February 1, 2025, WELL Health has added 11 Canadian clinics to its network, which collectively generate C$29 million in revenue and C$2 million in EBITDA. The company is optimistic about increasing these figures. In 2024, the network achieved an organic growth rate of 24%, driven by 12% same-clinic revenue growth and 12% growth through organic absorption.
Demand from the Canadian public sector is also on the rise. WELL currently has nearly 70 opportunities in development across all provinces and at the federal level. The combined total contract value of these projects exceeds C$300 million, representing a threefold increase year-over-year. Additionally, WELL’s Canadian clinic acquisition growth pipeline includes 34 targets currently under evaluation, which represent C$450 million in revenue.
The recent tariffs, which were implemented on March 4, apply broadly but do not affect services. As a result, WELL does not have direct exposure to them. Furthermore, while over 60% of the company’s revenue, adjusted EBITDA, and cash flow are generated in U.S. dollars, these funds originate from U.S.-based entities.
“While tariffs may contribute to a challenging macroeconomic environment, WELL operates in the healthcare sector, which is inherently defensive, recession proof and insulated from much of the volatility affecting other industries,” according to a news release published on Tuesday.
This perspective is supported by measures taken by Canadian provincial leaders. British Columbia Premier David Eby banned new procurement from U.S. companies in response to the tariffs, which particularly benefits WELL given B.C.’s status as a key market. Furthermore, Ontario Premier Doug Ford, Quebec Premier François Legault, and François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, have advocated for prioritizing Canadian suppliers.
“The expansion of our Canadian clinics platform and the remarkable growth in our public sector technology pipeline are powerful indicators of WELL’s ability to execute its growth strategy effectively,” said Hamed Shahbazi, founder and chief executive officer of WELL Health Technologies, in a statement. “The ‘buy Canadian’ movement aligns perfectly with our vision of strengthening the Canadian healthcare ecosystem. We are well-positioned to seize these opportunities by delivering innovative solutions that not only support healthcare practitioners but also contribute to Canada’s economic resilience.”
“I have never seen such strong interest from public sector leaders in our products and services as we are experiencing right now,” added Shane Sabatino, chief people officer and head of public sector partnerships at WELL. “Our expanded capabilities, combined with a growing momentum to source from Canadian companies, have created a unique opportunity for WELL to make a significant impact. We are proud to collaborate with public sector organizations across Canada, delivering innovative, homegrown solutions that enhance healthcare delivery and support our national economy.”
WELL Health Technologies is committed to tech-enabling healthcare providers. The company’s solutions improve outcomes for over 41,000 healthcare providers across the U.S. and Canada. It powers the largest owned and operated healthcare ecosystem in Canada, with over 200 clinics. These clinics provide primary care, specialized care, and diagnostic services. WELL’s U.S. operations focus on specialized markets including gastrointestinal, women’s health, primary care, and mental health.
As of 9:39 am ET, WELL Health stock (TSX:WELL) was trading at C$5.32 per share, down 2.03%. The stock has experienced a 30.39% increase year-over-year and a 218.56% increase since 2020.
