WELL Health benefitting from tariff-based ‘buy Canadian’ sentiment | 2025-03-04 | Investing News

• WELL Health Technologies (TSX:WELL), a digital healthcare stock, reports recent momentum in clinics growth and a record pipeline of public sector business opportunities thanks to ‘buy Canadian’ sentiment following U.S. President Trump’s tariffs on Canadian goods
• The company has added 11 Canadian clinics to its network since February 1, 2025, representing combined revenue of C$29 million and EBITDA of C$2 million
• WELL Health’s technology suite improves outcomes for over 41,000 healthcare providers between the U.S. and Canada
• WELL Health stock has added 30.39 per cent year-over-year and 218.56 per cent since 2020

WELL Health Technologies (TSX:WELL), a digital healthcare stock, reports recent momentum in clinics growth and a record pipeline of public sector business opportunities thanks to ‘buy Canadian’ sentiment following U.S. President Trump’s tariffs on Canadian goods.

WELL has added 11 Canadian clinics to its network since February 1, 2025, representing combined revenue of C$29 million and EBITDA of C$2 million, figures the company is confident about improving. The network as a whole posted an organic growth rate of 24 per cent in 2024, including 12 per cent same-clinic revenue growth and 12 per cent growth through organic absorption.

Canadian public sector demand is also rising, with WELL’s current pipeline developing almost 70 opportunities across all provinces, as well as federally, combining for over C$300 million in total contract value – a 3x increase year-over-year. WELL’s combined Canadian clinic acquisition growth pipeline includes 34 targets under evaluation representing C$450 million in revenue.

Trump’s tariffs, which began on March 4, are across-the-board in nature, but do not affect services, meaning WELL has no direct exposure. Additionally, while the company generates over 60 per cent of its revenue, adjusted EBITDA and cashflow generated in U.S. dollars, these funds stem from U.S.-based entities.

According to Tuesday’s news release, “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.”

Management’s view is supported by B.C. Premier David Eby’s directive ban of new procurement from U.S. companies in response to Trump’s tariffs – B.C. is a key market for WELL – in addition to advocacy for the prioritization of Canadian suppliers from Ontario Premier Doug Ford, Quebec Premier François Legault and François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry.

Leadership insights

“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,” Hamed Shahbazi, founder and chief executive officer of WELL Health Technologies, said 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.”

About WELL Health Technologies

WELL is dedicated to tech-enabling healthcare providers. The company’s solutions improve outcomes for over 41,000 healthcare providers between the U.S. and Canada, powering the largest owned and operated healthcare ecosystem in Canada with more than 200 clinics spanning primary care, specialized care and diagnostic services. U.S. operations focus on specialized markets including gastrointestinal, women’s health, primary care and mental health.

WELL Health stock (TSX:WELL) is down by 2.03 per cent trading at C$5.32 per share as of 9:39 am ET. The stock has added 30.39 per cent year-over-year and 218.56 per cent since 2020.

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(Top photo of WELL Health clinic: WELL Health Technologies)