HEALWELL Reports Record Revenue Growth of 208% in Q1-2025 Including Record Growth of 224% in AI and Data Science Revenue

• HEALWELL achieved quarterly revenue from continuing operations of $14.1 million in Q1-2025, 208% higher than the $4.6 million generated in Q1-2024. Revenue growth was driven by acquisitions in the past year and record growth of 224% in the Company's AI and Data Science business.
• On April 1, 2025, HEALWELL completed the acquisition of Orion Health, which is expected to contribute approximately $100 million in annual SaaS and services revenue starting in Q2-2025 and propels the Company to being profitable on an Adjusted EBITDA basis. Furthermore, Orion expands HEALWELL's global reach, adding over 70 large enterprise customers across 11 countries, providing HEALWELL with a significant new channel of distribution for its AI and disease detection services.
• On April 23, 2025, HEALWELL announced changes to its leadership team to support its next phase of growth and integration. Mr. James Lee will be appointed CEO effective July 1, 2025, while Dr. Alexander Dobranowski will transition to the role of President to focus on acceleration of the Company's AI and data science solutions as well as continue to lead capital markets activities. To further strengthen execution capabilities, Mr. Sacha Gera joins as Chief Operating Officer, and Mr. Brad Porter is appointed Chief Commercial Officer.

Toronto, Ontario--(Newsfile Corp. - May 13, 2025) - HEALWELL AI Inc. (TSX: AIDX) (OTCQX: HWAIF) ("HEALWELL" or the "Company"), a healthcare artificial intelligence company focused on preventative care, is pleased to announce its unaudited interim condensed consolidated financial results for the quarter ended March 31, 2025. A summary of the Company's financial and operational results is set out below, and more detailed information is contained in the interim financial statements and related management discussion and analysis, which are available on the Company's SEDAR+ page at www.sedarplus.ca. Financial measures described as "Adjusted" in this news release are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies. Please see Non-IFRS Financial Measures below for more information.

Dr. Alexander Dobranowski, HEALWELL's CEO, commented, "Our primary focus in Q1 was on securing the financing for and implementing our transformational acquisition of Orion Health, which closed on April 1, 2025. With the addition of Orion Health, we are entering a new phase for HEALWELL. Orion Health is a global leader in healthcare data interoperability and this transformational acquisition brings global scale and robust healthcare software infrastructure to our platform. The combination of world-class artificial intelligence technology, experienced management, and firsthand access to some of the largest health systems globally positions HEALWELL for sustainable growth and long-term leadership in the global health AI ecosystem. Our seamless integration of Orion Health's software offerings with HEALWELL's AI solutions, coupled with our joint go-to-market strategy for public and private sector opportunities, will be key drivers of our future growth. Together, the combined 'WELL' family offers unparalleled depth, capability and value. With WELL Health, WELLSTAR, HEALWELL, and now Orion Health, we are uniquely positioned to provide comprehensive public sector solutions that few other organizations can match."

Dr. Dobranowski further adds, "Our Q1 results reflect the strength and diversification of HEALWELL's business, even before the addition of Orion Health, as we continue to scale a category-defining AI-powered healthcare platform. The momentum in our AI and Data Science division is especially exciting-Khure Health has seen rapid adoption from key healthcare stakeholders, while Pentavere is gaining traction with new enterprise relationships. These technologies are fundamentally reshaping how at-risk patients are compliantly identified, understood, and treated across the healthcare ecosystem."

Anthony Lam, Chief Financial Officer of HEALWELL, commented, "Our Q1 financial results exceeded expectations. Our targeted cost optimization efforts-including a workforce reduction-are expected to generate $3 million in annualized savings, further strengthening our financial position moving forward. Additionally, we secured over $100 million in total financing to support the acquisition of Orion Health, comprising a $50 million credit facility led by Scotiabank and RBC, and the proceeds of a $55.5 million bought deal financing, which consisted of $30 million in convertible debentures and $25.5 million in equity. We anticipate that Orion Health will positively contribute to our financial results starting in Q2-2025, adding approximately $25 million in top-line revenue in the quarter. With the benefit of the Orion acquisition, we expect to be Adjusted EBITDA positive for the full year in 2025."

First Quarter 2025 Financial Highlights

Significant financial highlights for the Company's continuing operations during the three months ended March 31, 2025 included:

• HEALWELL achieved quarterly revenue from continuing operations of $14.1 million in Q1-2025, an increase of 208% compared to revenue of $4.6 million generated in Q1-2024.
• HEALWELL achieved Gross Profit of $6.5 million during Q1-2025, an increase of 226% compared to $2.0 million in Q1-2024. The increase in Gross Profit is primarily attributed to increase in Khure Health revenue and acquisitions over the past year including Pentavere, Intrahealth, Verosource, Biopharma and Mutuo.
• HEALWELL achieved a Gross Margin percentage of 46% during Q1-2025, compared to 44% in Q1-2024.
• During Q1-2025, HEALWELL reported an Adjusted EBITDA loss of $3.3 million, compared to an Adjusted EBITDA loss of $2.5 million in Q1-2024.
• As of March 31, 2025, HEALWELL had $18.4 million in cash, compared to $9.4 million as of December 31, 2024. The Company also had $86.6 million cash that was advanced for its acquisition of Orion, which was completed on April 1, 2025.

First Quarter 2025 Business and Operational Highlights

Significant business and operational highlights for the Company during the three months ended March 31, 2025 included:

• $25.5M Equity Tranche Completion: On January 21, 2025, HEALWELL announced the closing of the first tranche of its Bought Deal Acquisition Financing, raising aggregate gross proceeds of approximately $25.5 million.
• $30M Convertible Debt Tranche Closure: On January 28, 2025, HEALWELL announced the closing of the second tranche of its Bought Deal Acquisition Financing, raising aggregate gross proceeds of $27.3 million, after taking into account the OID (Original Issue Discount) on the underlying debentures.
• Strategic Cost Optimization Initiative: On February 3, 2025, HEALWELL provided a corporate update highlighting a cost optimization initiative aimed at streamlining operations and maximizing M&A efficiencies. The Company expects to achieve at least $3.0 million in annual cost savings, reinforcing its commitment to operational excellence.
• $50M Credit Agreement Led by Scotiabank and RBC to Support Orion Acquisition: On February 26, 2025, HEALWELL announced the signing of a $50 million credit agreement, led by Scotiabank and RBC, to support its acquisition of Orion Health. The financing includes a $20 million term loan and a $30 million revolving credit facility, with an additional uncommitted accordion feature of up to $25 million. Combined with recent capital raises, HEALWELL has secured over $100 million in funding for the Orion Health acquisition.

Events Subsequent to March 31, 2025

Significant business and operational highlights for the Company subsequent to March 31, 2025 included:

• Acquisition of Orion Health: On April 1, 2025, HEALWELL completed the acquisition of Orion Health, a leading provider of healthcare data interoperability solutions based in Auckland, New Zealand. This acquisition establishes HEALWELL as a global leader in healthcare AI and interoperability, with the combined company poised to deliver innovative healthcare solutions at scale across multiple regions.
• Exercise of Call Option by WELL Health: On April 1, 2025, WELL Health Technologies exercised its call right to acquire a majority controlling interest in HEALWELL AI, coinciding with HEALWELL's acquisition of Orion Health. As part of this strategic move, WELL acquired 30.8 million Class A Subordinate Voting Shares and 30.8 million Class B Multiple Voting Shares of HEALWELL. Additionally, WELL converted all of its convertible debentures and exercised all outstanding share purchase warrants, resulting in ownership of approximately 37% of the economic interest and 69% of the voting rights in HEALWELL on a non-diluted basis.
• Strategic Changes to Executive Leadership Team: On April 23, 2025, HEALWELL announced strategic changes to its executive leadership team to support its next phase of integration and growth. Effective July 1, 2025, Mr. James Lee will be appointed Chief Executive Officer, bringing over two decades of leadership in financial services and strategic transformation. Dr. Alexander Dobranowski, founding CEO, will transition to the role of President, where he will focus on large enterprise AI initiatives and capital markets strategy. The Company also welcomed Sacha Gera as Chief Operating Officer to drive operational execution and technology alignment, and Brad Porter as Chief Commercial Officer to oversee revenue growth and go-to-market strategy across HEALWELL and Orion Health. These changes are designed to unlock further synergies from recent acquisitions and position HEALWELL to capitalize on a growing global demand for AI-enabled healthcare solutions.

Webcast and Conference Call Details:

HEALWELL will be holding a conference call and simultaneous webcast to discuss its financial results on Tuesday, May 13, 2025 at 1:00 pm ET (10:00 am PT). The call will be hosted by Dr. Alexander Dobranowski, Chief Executive Officer, and Anthony Lam, Chief Financial Officer. Please dial-in 10 minutes prior to the start of the call.

Date: Tuesday, May 13, 2025
Time: 1:00 PM ET / 10:00 AM PT
Webcast link: https://www.gowebcasting.com/14053
Toll-Free North America: 1-833-752-3509
International Toll: 1-647-846-7993

When connecting to the conference call via phone, please dial in 10 minutes prior to the start of the call and ask to be joined into the "HEALWELL AI Inc. Conference Call."

Selected Financial Information

(in thousands of dollars, except percentages and per share amounts)

Non-IFRS Financial Measures

The terms Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin used in this document do not have any standardized meaning under IFRS, may not be comparable to similar financial measures disclosed by other companies and should not be considered a substitute for, or superior to, IFRS financial measures. Readers are advised to review the section entitled "Non-IFRS Financial Measures" in the Company's management discussion and analysis for the quarter ended March 31, 2025, available on the Company's SEDAR+ page at www.sedarplus.ca, for a detailed explanation of the composition of these measures and their uses.

The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss) for the three-months ended March 31, 2025 and March 31, 2024:

1. The Company has amended the Adjusted EBITDA calculation in Q4 2024 to remove "Other Expenses" as an add-back to Adjustment EBITDA, which has changed the Q1 2024 - Q3 2024 Adjusted EBITDA.
2. Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS measures. Please see "Non-IFRS Measures" above for an explanation of the composition of these measures and their usefulness, and "Reconciliation of Non-IFRS Measures" below for a reconciliation of these measures to the IFRS measures found in the Financial Statements.

Segmented Revenue

Dr. Alexander Dobranowski
Chief Executive Officer
HEALWELL AI Inc.

About HEALWELL

HEALWELL is a healthcare artificial intelligence company focused on preventative care. Its mission is to improve healthcare and save lives through early identification and detection of disease. Using its own proprietary technology, the Company is developing and commercializing advanced clinical decision support systems that can help healthcare providers detect rare and chronic diseases, improve efficiency of their practice and ultimately help improve patient health outcomes. HEALWELL is executing a strategy centered around developing and acquiring technology and clinical sciences capabilities that complement the Company's road map. HEALWELL is publicly traded on the Toronto Stock Exchange under the symbol "AIDX" and on the OTCQX Market under the symbol "HWAIF". To learn more about HEALWELL, please visit https://healwell.ai/.

Forward Looking Statements

Certain statements in this press release, constitute "forward-looking information" and "forward looking statements" (collectively, "forward looking statements") within the meaning of applicable Canadian securities laws, including statements about the potential for HEALWELL and its partners to continually leverage advancements in expert AI technologies to develop new products and services or enhance existing ones; and the anticipated impact of the addition of Orion Health to the Company's financial performance; and are based on assumptions, expectations, estimates and projections as of the date of this press release. Forward-looking statements are often, but not always, identified by words or phrases such as "possibility", "opportunity", "pending", "proposition", "continue to", "improve" or variations of such words and phrases or statements that certain future conditions, actions, events or results "will", "may", "could", "would", "should", "might" or "can" be taken, occur or be achieved, or the negative of any of these terms . Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by HEALWELL as of the date of such statements, are outside of HEALWELL's control and are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue. Forward looking statements contained in this press release are based on various assumptions, including, but not limited to, the following: HEALWELL's ability to integrate Orion Health personnel, products, services, customers and relationships; HEALWELL's ability to maintain and leverage is relationships with its commercial partners; the continued adoption of the software, tools and solutions created by HEALWELL; that HEALWELL will be successful in identifying, executing and integrating new acquisitions, investments and/or partnerships, the stability of general economic and market conditions; sufficiency of working capital and access to financing; HEALWELL's ability to comply with applicable laws and regulations; HEALWELL's continued compliance with third party intellectual property rights; the effects of competition in the industry; the requirement for increasingly innovative product solutions and service offerings; technologies working as intended or at all; trends in customer growth and the adoption of new technologies in the industry; and that the risk factors noted below, collectively, do not have a material impact on HEALWELL's business, operations, revenues and/or results. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections, or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved.

Known and unknown risk factors, many of which are beyond the control of HEALWELL, could cause the actual results of HEALWELL to differ materially from the results, performance, achievements, or developments expressed or implied by such forward-looking statements. Such risk factors include but are not limited to those factors which are discussed under the section entitled "Risk Factors" in HEALWELL's most recent annual information form dated April 1, 2024, which is available under HEALWELL's SEDAR+ profile at www.sedarplus.ca. The risk factors are not intended to represent a complete list of the factors that could affect HEALWELL and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. HEALWELL disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this press release are qualified by these cautionary statements.

This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the expected quarterly revenue and Adjusted EBITDA contributions of Orion Health, which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraphs. The actual financial results of Orion Health may vary from the amounts set out herein and such variation may be material. HEALWELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, HEALWELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about HEALWELL's anticipated future business operations for the coming year. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein

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