Hello, and thank you, operator. Joining on the call today are James Lee, CEO of HEALWELL; Dr.

Alexander Dobranowski, President of HEALWELL; and Anthony Lam, HEALWELL CFO. I trust that everyone has received a copy of our financial results press release that was issued yesterday.

Listeners are also encouraged to download a copy of our quarterly financial statements and management discussion analysis that was filed on SEDAR+. Please note, a portion of today's call, other than historical performance, includes statements of forward-looking information within the meaning of applicable securities laws.

These statements are made under the safe harbor provisions of those laws. Please refer to yesterday's press release and to our management discussion and analysis for more details on the company's risks and forward-looking statements.

We provide forward-looking statements solely for the purpose of providing information about management's current expectations and plans relating to the future. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions, assumptions, or circumstances on which any forward-looking statement is based, except if required by law.

We use terms such as gross margin and adjusted EBITDA on this conference call, which are non-IFRS and non-GAAP measures. For more information on how we define these terms, please refer to definitions set out in our management discussion and analysis.

There will be a question-and-answer at the end of the call, which will be limited to analysts only. To ask a question, analysts are required to call into the conference call using the dial-in number provided in our press release.

With that, let me turn the call over to HEALWELL CEO, James Lee.

Good morning, everyone. Thank you for joining us today.

Before I walk through results, I want to step back and frame exactly where we believe HEALWELL sits in the broader healthcare AI landscape. We're in the early innings of what most analysts expect to be one of the largest technology adoption cycles in healthcare's history.

The question for investors is no longer whether AI will transform clinical care, it's which companies have the distribution, the scientific credibility, and secure, compliant, and ethical data infrastructure to capture and embed adoption at scale. We've heard directly from leading healthcare systems, global life science companies, and clinical leaders.

HEALWELL is one of the very few companies globally that has assembled all three. Our Orion Health platform gives us global enterprise customers across 11 countries, where we manage health information exchanges, the foundation for building and bringing clinical data together at scale.

Our DARWEN AI engine is backed by 47 peer-reviewed publications, more clinical validation than any comparable platform we're aware of. Our consent-first by design data network through WELL Health creates a true learning health system feedback loop that makes our AI better with every deployment, and that's the thesis.

Now bringing that back to how 2025's results confirm that, 2025 was a transformational year for HEALWELL as we significantly expanded the scale of the company and advanced our strategy of building a global AI platform for healthcare. Revenue increased 427% to $103.8 million, largely driven by the acquisition of Orion Health, completed in April 2025.

This expanded our global footprint and strengthened our recurring revenue from our healthcare data infrastructure. We also achieved our first year of positive adjusted EBITDA, reaching $2.3 million, reflecting early operating leverage in the model.

During the year, we sharpened our focus, including the divestiture of non-core assets in October, positioning HEALWELL as a pure-play AI and software company. We launched Amadeus AI in September, embedding DARWEN directly into Orion's healthcare platform, and we expanded our AI deployment footprint, including our first AI deployment in the Middle East, which we announced in February this year.

As we move into '26, we are beginning to demonstrate both financial performance and accelerating AI-driven growth, supported by expanding distribution network, positioning us to drive continued top-line growth and long-term impact across healthcare systems. The next step is how we scale that platform, and we'll talk about the four pillars driving that strategy.

As I said, we're building HEALWELL as a scalable AI platform for healthcare. We're still in the early stages of AI adoption in healthcare, but advances in AI and digitalization of data is now enabling large-scale deployment.

We believe this will become one of the most important use cases of AI over time. From our perspective, the companies that will win will be defined by four things: a scaled distribution network, trusted and validated AI, deep integration with clinical workflows, all underpinned by high-quality data and a strong platform economics.

Importantly, this combination of own distribution, consent-based data, and embedded AI is difficult to replicate. Our business is built around these three core principles.

Firstly, our distribution network gives us access to a large global healthcare footprint and allows us to scale AI deployments across healthcare systems and other markets. Secondly, trusted AI.

We continue to invest in clinical validation and privacy-first, consent-driven data frameworks to ensure our technology is trusted across healthcare ecosystems. Through WELL Health, we've delivered a consent-based clinical data network to identify and match patients with clinical trials using DARWEN, creating a differentiated data moat which is highly valuable to our life science partners.

Third, AI adoption expansion. Our AI is embedded directly into clinical workflows, enabling faster patient identification insights and improves only through time through real-world data and usage.

Finally, financial performance. As adoption grows, each deployment expands our data network, increases AI usage, and improves the overall economics of the business.

To execute this strategy, we've laid out clear milestones that reflect how we're scaling the platform. In the second half of 2025, we made strong progress across all four pillars.

We expanded our distribution network, we integrated DARWEN directly into HEALWELL, delivering a unified AI platform, and we simplified the business into a focused AI and software company, all while achieving positive EBITDA across Q2, Q3, and Q4. As we hit into Q1 of 2026, our focus is continuing this momentum by expanding enterprise deployments, strengthening our AI leadership through continued validation, and driving further AI adoption expansion across our network while maintaining a positive adjusted EBITDA.

Looking wider across '26, the priority is scaling globally, expanding our distribution network, increasing adoption, and strengthening our financial position. As the platform scales, we expect to drive strong growth in AI revenue and continued operating leverage, targeting approximately 50% AI revenue growth and an exit run-rate adjusted EBITDA margin around 10%.

On behalf of the team, we'd like to thank you for your continued support and look forward to sharing progress over the coming quarters. I'd now like to hand the call over to our CFO, Anthony Lam, to walk you through Q4 and the year-end financials in more detail.

Thank you, James. Before I begin, I'd like to remind everyone that all of the figures I will be discussing today are in Canadian dollars and our financial statements are presented in accordance with IFRS, International Financial Reporting Standards.

Our fourth quarter 2025 results are as follows. HEALWELL achieved quarterly revenues of $32.2 million during Q4 2025 compared to $6.8 million in Q4 2024, an increase of 374%.

Revenue growth in the quarter was primarily driven by the acquisition and integration of Orion Health. During Q4 2025, HEALWELL reported positive adjusted EBITDA of $1.4 million compared to an adjusted EBITDA loss of $5 million in Q4 of 2024.

This marks the company's third consecutive quarter of positive adjusted EBITDA, highlighting continued growth execution improvements and stronger financial performance, representing a year-over-year increase of approximately 122% in adjusted EBITDA. HEALWELL achieved gross profit of $17.66 million during Q4 2025, an increase of 376% compared to $3.7 million in Q4 2024.

The increase is due to higher revenues in the quarter. HEALWELL achieved gross margin percentage of 55% during Q4 2024 2025, and this is in line with 55% in Q4 2024.

HEALWELL reported an IFRS net loss from continuing operations of $7 million for Q4 2025 compared to a net loss of $11.4 million in Q4 2024. HEALWELL ended the quarter on December 31st, 2025, with $18.6 million in cash and nearly doubling from its $9.4 million at the end of Q4 2024.

I'd also note that the company holds a strategic investment position in xAI, now part of the broader SpaceX ecosystem, which represents additional balance sheet value beyond the reported cash. As we evaluate the appropriate timing to monetize this position, it provides meaningful optionality to further strengthen our capital base and support the company's growing initiatives.

Our year-end 2025 results are as follows. HEALWELL achieved annual revenues of $103 million $103.8 million during 2025 compared to $19.7 million generated during 2024, an increase of 427%.

Revenue growth in the quarter was primarily driven by the acquisition and integration of Orion Health. During 2025, HEALWELL reported positive adjusted EBITDA of $2.3 million compared to an adjusted EBITDA loss of $14.2 million in 2024.

This marks the company's first year of positive adjusted EBITDA, highlighting continued execution improvements and stronger financial performance, representing a year-over-year increase of approximately 116% in adjusted EBITDA. HEALWELL achieved gross profit of $57.3 million during 2025, an increase of 429% compared to $10.8 million in 2024.

The increase is due to the higher revenues in the quarter. HEALWELL achieved gross margin percentage of 55% during 2025, and this is in line with last year's 55% in 2024.

HEALWELL reported an IFRS net loss from continuing operations of $39.1 million in 2025 compared to a net loss of $27.5 million in 2024. Now looking at our revenue segments.

As of November 1st, 2025, following the divestiture of the company's clinical research and patient services division, HEALWELL now generates revenue across two core segments: first, AI and data science; second, healthcare software. Our AI and data science segment achieved revenue of $10.2 million in 2025, marking a 120% year-over-year growth compared to $4.6 million in 2024.

The commercial adoption of CURO and PentaVere technologies drove strong organic growth in the quarter, reflecting increasing demand for HEALWELL's AI-powered disease identification and clinical insight tools. Growth in the AI segment was supported by both expansion within the existing customer base and new client wins, with approximately 20% of the revenue growth driven by existing customers and 69% from new customers.

The AI segment also saw meaningful expansion in its customer base, with the number of revenue-generating customers increasing from 60 from 262 in 2025 from 36 in 2024, underscoring the accelerating commercialization of our AI solutions. Our second revenue stream is healthcare software, which generated $93.7 million in revenue in 2025, an increase of 520% from $15.1 million in 2024.

The acquisitions of Orion and Verasur have been the primary drivers of growth in this segment. With the recent divestiture of non-core assets, HEALWELL is now fully focused on driving growth, innovation, and profitability across its two high-margin scalable segments: AI data science and healthcare software.

This strategic focus positions the company to continue delivering strong financial performance with rapidly growing revenue streams, expanding customer adoption, and meaningful contributions to overall profitability. With that, I'd now like to turn the call over to our President, Dr.

Alexander Dobranowski, who will discuss how we're positioning HEALWELL within the broader healthcare AI landscape and the key pillars supporting that strategy.

Thank you, Anthony. Thank you, James.

Look, as the healthcare AI market continues to mature, we're seeing a clear shift across the industry from early experimentation toward deploying AI solutions that deliver measurable outcomes and integrate directly into real-world clinical workflows at scale. If we step back and think about how we're positioning HEALWELL competitively in the broader healthcare AI landscape, we believe the long-term winners in this space will be companies that combine deep AI capabilities with strong distribution, access to high-quality data, and solutions that are embedded directly into clinical workflows.

Importantly, our first competitive advantage is our clinical validation and scientific credibility, which we believe represents a key moat that is very difficult to replicate quickly. Our DARWEN AI platform, which is trademarked and has patent IP, has now been validated across 47 peer-reviewed publications, and our work was recognized with the 2024 Prix Galien USA Award.

This award, with no exaggeration, is held to a similar esteem as a Nobel Prize. Importantly, our platform can produce regulatory-grade, real-world data, which provides a globally unique capability for generating real-world clinical evidence.

We also continue to collaborate with leading institutions and pharmaceutical companies, inclusive of some of the top-ranked hospital networks and cancer centers, and many of the world's largest pharmaceutical companies. In fact, we currently work commercially with 8 of the top 10 largest pharma companies globally.

Our second competitive advantage is our Orion Health distribution network, which gives us global enterprise access that many AI companies simply do not have. This is also something that is not easy to replicate.

Through Orion Health, we have relationships with more than 70 large enterprise healthcare customers across 11 countries. This is a very special and unique customer base.

Earlier this year, we also signed an AI deployment in the Middle East, representing our first major AI public sector contract outside Western markets. When we look ahead, we see a growing pipeline across Canada, the US, Australia, New Zealand, the United Kingdom, and the Middle East.

This distribution infrastructure allows us to scale HEALWELL's AI capabilities across global healthcare systems. This is truly an exciting and distinctive opportunity.

Our third competitive advantage is the DARWEN AI platform itself, which is our proprietary AI engine. Over the past year, we've merged the capabilities of our subsidiaries, Curo Health and PentaVere, into a unified, DARWEN-powered platform.

The platform includes our Smart Identify, our Smart Search, and Smart Summary products, which are designed to automate clinical data analysis and patient ID across massive healthcare data sets. In published studies, DARWEN has demonstrated up to a 100-fold efficiency improvement compared to manual chart review.

Finally, we believe we benefit from embedded switching costs and a growing clinical data network. Our AI solutions are embedded directly into existing EHR and clinical workflows, which creates high retention and long-term relationships with customers.

Today, we have approximately 30 master service agreements in place with pharmaceutical companies, including, as mentioned, 8 of the world's top 10 largest pharma companies. Each new deployment deepens our proprietary clinical data network and further improves the performance of our AI models over time.

One other point to mention with regards to our resilience is that our software falls into a category that is also known as system of record software, and this category of software is typically very difficult to displace. Taken all together, we believe these elements—scientific validation, global distribution, a unified AI platform, and deep workflow integration—position HEALWELL at a significant competitive advantage as healthcare AI adoption continues to scale.

Now, before we conclude, I want to leave you with a few key takeaways about where HEALWELL stands today and where we're headed. First, our strategy of combining AI with a scalable healthcare software platform is working.

We've successfully transitioned toward a model where proprietary AI technologies are paired with large-scale healthcare data interoperability software to create meaningful clinical and commercial value. Second, Orion's deep relationships with health systems and governments creates a powerful opportunity to deploy AI tools directly into the clinical care setting at scale.

These enterprise relationships provide a strong distribution channel for our AI solutions and positions us well as demand for clinical AI continues to explosively grow. Third, we continue to build one of the most scientifically validated AI platforms in healthcare.

As mentioned, our DARWEN AI engine is now supported by 47 peer-reviewed publications, demonstrating its ability to identify patients with rare, complex, and chronic diseases across a wide range of real-world clinical data sets. Fourth, the Orion Health acquisition significantly expands our global scale.

Orion brings a healthcare data platform supporting over 150 million patient records and deep relationships within major enterprise health systems around the world, creating a powerful distribution channel for HEALWELL's AI solutions. Fifth, we are seeing strong financial momentum.

This year, we delivered record revenue growth and our first year of positive adjusted EBITDA, demonstrating that our platform strategy is translating into real financial performance. Finally, when you combine these validated AI models, a global healthcare software platform, and growing enterprise relationships, we believe HEALWELL is uniquely positioned to scale AI-powered healthcare solutions globally and drive long-term growth.

We're still in the early stages of what we believe is an extremely large opportunity in healthcare, and we're excited about the growth ahead. With that, I'd like to thank everyone for attending this call.

I'll hand it back to the operator and move to the Q&A portion. Thank you.

Hey there. Good morning.

I want to talk about the nice press release you had a few weeks ago on the US state win on HIE. I was wondering if you can talk about what drove that win.

It was competitive, I'm sure. Just talk about the drivers that led to that win.

Was it a brand-new state for you? How do we think about maybe the size of that contract in the context of your revenue base?

Hi, Kevin. Lots of good questions there.

Where to start. Yes, new state for us.

In terms of the why, I think the exciting thing for us, it was the first win we've had where we had a combined offering of all of our capabilities from Orion, the Verasur, and our Smart Identify, Smart functions within the DARWEN platform into a single entity. What we found was we won because of what the product set could do and the way we looked at addressing the partner.

We also think was the first state that was funded by this new Big Beautiful Bill for rural funding, which really does show us that that market is beginning to open up. It really gave us confidence that the US is a place in the next 2 or 3 years that can have significant growth in the business.

I think what we've seen over there is that the market is at a really early adoption phase of AI, coming in with our capabilities as an easy add-on feature and a nice pathway is a really compelling argument for them. We went very quickly from a long list to a short list.

To be honest, it became very apparent that we had a unique proposition in that market. In terms of scale, it's a large state.

It's a multi-year contract. It's obviously within our existing numbers for the year.

It would put it there as one of the larger contracts we have in the US, which we're excited about. Also, I think as we look at the opportunity set in front of us, we're probably getting more excited.

We're just trying to temper about what we could see coming out of that market.

Awesome. Good stuff.

Maybe just for my follow-up, maybe turning to M&A. I'm wondering if you could give us broad thoughts on how you're approaching M&A this year.

I know you're still digesting and integrating Orion, but just talk about that. I want to also raise that one of the competitors out there in the US market, a large HIE looks like it's under a strategic review.

Just wondering if you've got any thoughts on that as well and potential for taking up some similar assets there in other states.

Yeah. Yep, really good questions.

M&A is always a focus for this business, as any business, as we look to scale. We look at lots of assets.

I think you've seen that over the last 9 months, we've been really disciplined since Orion to focus on integrating that and integrate our DARWEN engine into their asset. Partly that's because there's a lot of work to be done in integration, a lot of benefit to come through a margin.

We want to demonstrate that to the market and to investors that we are getting operational leverage, not just adding on new assets like others. As we look across the market, yes, we will be looking to expand our footprint.

We have a long list of states and areas where we think there's natural growth paths and natural synergies. You're unlikely to see something in the first 6 months.

I think in the next 6 months, we're very focused on hitting our targets and demonstrating our business organically. That said, look, we look at every process.

We can see many synergies on like-minded platforms, but the platforms themselves really matter. Just buying a platform won't work for us.

We need to buy a platform where the platform integration process is relatively simple. Buying an old legacy platform that we would find hard to integrate doesn't really work for us.

We need to find a way for assets where our AI can be deployed into them. Does that answer your question?

Yeah. Hey, James.

Thanks a lot. That really helpful context.

I'll pass the line. Thanks, guys.

Good morning. Thanks for taking my call.

Maybe a question for Alex on the WELL Trust platform launched in February for ethical patient identification and recruitment. I realize it's early, but how is that platform being received by the top 8 of 10 global pharmaceutical customers, as mentioned?

WELL disclosed yesterday that they had 4.3 million patient visits in 2025, so that suggests a substantial data pool to potentially access, and just wondering if that's leading to any traction with your customers.

Justin, really appreciate the question, and of course, appreciate the support. Look, this structure that we label WELL Trust is really important and has been developed over quite a significant period of time with a lot of care.

Where this is orienting, just to add some context, is a globally unique function of being able to compliantly with a consent-driven framework recruit patients at scale. I can't actually point to another health system or ecosystem that has been able to do this at this level of quality and scale anywhere else globally.

Look, this is in its early phases, but of course, the whole concept here is, remember HEALWELL's mission is early disease detection. Remember, we're doing this at scale.

We're finding tens of thousands of patients now per quarter, which is incredible, right? This is extraordinary capability that's in production at scale.

What's the next step? When we're able to identify these at-risk patients, well, the next step is make sure that they have access to quality care and are on the right guideline-directed care, and on top of that, have access to lifesaving clinical trials, and that's why WELL Trust has been developed.

Now, it just so happens that a huge pain point for the life sciences sector is being able to recruit patients in a cost-effective and time-effective way. That's what this is eventually going to also solve and is currently starting to solve today.

To answer your question, is there interest from our life sciences partners? Yes, absolutely, and we'll be talking to the development of this whole clinical trial recruitment paradigm a little bit more pointedly in coming quarters.

Absolutely. Maybe just a follow-up question.

What should we expect for organic growth in 2026 for the data and healthcare sciences segment?

Justin, this is a segment of ours that is really exciting, okay? We went from under $5 million in 2024 to $10 million in 2025, right?

We're looking to maintain a significant level of growth. North of 50% is what I'll share today, and we'll come back as our pipeline continues to develop.

We're looking to continue a really exciting velocity of growth of that business segment.

Very helpful. Thank you.

Thank you very much for taking my question. Good morning.

Morning.

Good. I would really appreciate your mentioning the 10% EBITDA margin as a target exiting the year.

Could you perhaps frame that in terms of the balance between scaling or efficiencies that would drive such a target?

Look, I guess as you look at any target, you look at margin that comes down to three key elements. Obviously, one comes through some efficiencies in integrating platforms.

Last year, we began integrating our AI platforms and started integrating our software platforms. A second part of that is just scaling over corporate costs.

Obviously, the corporate of the operating of the HEALWELL operation, and as the business grows, there's efficiencies there. The final thing is, as software revenue continues to grow as a proportion of the business, our gross margins expand because obviously professional services is a lower-margin business than in our software business lines.

As we're seeing accelerated growth in AI and our software wins, those margins are higher margins than our traditional professional services we've seen as a mix within the Orion platform. The way we think about is it's still early days in terms of margin expansion, and we don't think of exit run-rate 10% as being a final target at all.

Okay. Thank you.

Could you perhaps provide additional perspectives on the status of POVs and RFPs outstanding?

Yep. In terms of the POVs, they range in value, but the value is probably increasing as we go through.

We're seeing now that we're in multiple what we call Phase 1 deployments of, on average, $500,000. We've seen new deployments coming in at Phase 1 range of anywhere from $150 to $500.

What I would say is that as they move into Phase 2, we're getting more and more confident that those second-phase so wider deployments within organizations are multimillion-dollar contracts. That's right across the Smart Summary, Smart Search, and Smart Identify range.

That's great. Thank you.

Perhaps anything with respect to large RFPs outstanding?

Look, the RFP network is a really hard way to answer. We have public RFPs where the revenue opportunity is in multiple, multiple millions of dollars.

If I think about a TCV, they range from $30 to $100 million in terms of range of size that are out there currently. What I would say, though, is they take a long time.

Healthcare is lumpy, and the procurement cycle goes anywhere between 6 months and 6 years. I want to set the expectation that the RFP responses are lumpy contracts.

The AI deployments are a more easier stages to navigate with shorter deployment cycles, but they come in two phases.

Okay. That's great.

That's helpful. Thank you.

Great. Thanks for taking my questions, and congrats on all the progress.

Let's see. You finished the quarter with nearly $19 million of cash, and you're looking at potentially monetize that investment at xAI.

What sort of dollar values are associated with that investment, and what's the expected timing around that?

Anthony, do you want to pick that one up?

Kyle. Thanks for the question there.

The investment there is in a private interest right now, and so the timing of that exit will be a little bit dependent on when we find the right opportunity to kind of monetize. It may need to wait till it becomes more readily liquid.

There's no timing from our perspective, but we certainly at this stage are at a point where we're at a very comfortable cash level where we're able to manage our business and execute on all of our objectives this year without having it undertake that transaction to make it happen, right? We'll be happy to update as things progress in that arena, but yeah, we don't have a specific timing on that right now.

I was going to say the only thing I'd add is that we're waiting I think with an expectation that the SpaceX IPO will be announced in the next quarter or so, which would give us a different view about how quickly we might want to liquidate that.

Okay. I imagine you'll be able to pinpoint kind of a dollar value at that point as well?

There's a wide range there. You would know as well as I did that there are press releases of $1.25 trillion, and there are many rumors of numbers higher than that.

It would be irresponsible for us to guess what that might end up looking like. I know that in the secondary market currently, it's trading about 10% higher than where a merger occurred at.

Okay.

Appreciate that. Then nearly half of the full-year adjusted EBITDA in 2025 came in in the fourth quarter and had a quarterly margin of about 4%.

To get to that exit run rate of 10%, should we anticipate kind of a step function increase each quarter or how should we expect some seasonality, just trying to understand kind of the cadence going throughout the year?

Kyle, Anthony here. We certainly made some great progress in 2025.

We will be making continued progress in 2026. Yes, a step function is how we see our business progressing in the year.

We would be obviously more modest in the current Q1 quarter as we are in it now, and it'll grow through Q2, Q3, right into Q4. I think you can expect to see that kind of progression take place as the year unfolds.

Okay. Excellent.

Thanks again for taking my questions. I'll get back in the queue.

Hi. Good morning, guys.

Congrats on all the progress. I just wanted to ask on the launch of Amadeus here in the US in the first half.

How should we be thinking about the pipeline as it pertains to activations in the US this year and early next?

Look, there's two parts to that. I think the first thing, the activation of the AI network, we're already actively discussing with our existing customer base the smart product suite, and we should expect to see and we do expect to see in the first half some conversion of our existing customers in that product mix.

I think the other thing with Amadeus is that we're starting to get more what I call RFIs. Early-stage that health information exchanges in the US are looking at new partners.

We would expect to see some momentum to grow both within the AI deployments in the US, but actually with more state-based HIEs as a broader software deployment through late-half '26 and '27. We're really excited about what we see in the US in terms of a market, which the last 5 years, to give context, has been pretty quiet.

The funding that led to a lot of the HIE deployments in the US was around Obamacare. As that ended in 2024 and the COVID overhang of digital healthcare spend started to end, the US market was a bit tepid.

What we've seen now is that this Big Beautiful Bill of rural funding has reopened that market, and it looks to be a magnitude larger than what we saw through Obamacare. We're really excited what the next 3 or 4 years look like in the US.

That's great, James. Now, just on that point, from a boots-on-the-ground perspective, how are you positioned right now in the US?

Is there some more scaling to go in order to capture the opportunity ahead of you guys? How should we be thinking about your sales headcount or integration headcount in the US?

Good question. Look, I think what you see our investment in sales is both direct sales, partnerships, and external consultants.

The US market is not a, "Hey, there's going something turn up tomorrow." It's very much RFI- and RFP-driven, it's about being around the hoop.

It doesn't require a large-scale investment, but we are making targeted investments in both our AI sales capability, and we're looking deeply at our partner network of how we build widely. Because putting 50 people on the ground in every state isn't a viable option, and it's not needed.

These are long-dated sales cycles. I think the way that we think about is we should get more scale out of existing sales network, and then we will look to partner with other people that bring in deep relationships, as opposed to a big investment in sales going forward.

Thanks, James. Congrats again.

Hey, good morning, and congratulations on the results. I wanted to sort of take a step back and understand or have you speak more about your strategy to monetize your internal AI capabilities, and what you've been learning as you've been going out and selling the initial AI products you have, and how you might translate those learnings into further product launches and monetizing your AI in RS?

That's a really, really good question. As you imagine, there's been a ton of learning.

What we've seen particularly in the US, is that the demand for point solutions isn't very high. People don't want a single solution to do one thing.

What they're looking for is a platform that enables lots of things. As we've gone around the US understanding requirements, what we've seen is that actually building upon Smart Search, Smart Summary as core functionality would then identify as a, let's just say, an add-on is a far more attractive proposition than going in trying to sell a single entity.

We've actually found the bigger deployments of search and summary have actually faster and more, let's say, a stronger pipeline of business, largely because the amount of work to deploy at their end is the same. The benefit of those platforms is actually in getting infrastructure over their entire platform, and then how do we get in wider insights.

What we've also seen is that the type of customer that's looking for that is really broad. We've got a deployment now in a large pharmacy chain business.

We've got a deployment across government entities, regulators, large medical device companies, all sorts of as an insight platform. What we're finding is the platform has got many more use cases than just the Smart Search, Smart Summary, and going into identification.

That the people with the best funding right now are actually the large healthcare systems, but actually what I would say healthcare-adjacent businesses as well. Our learnings currently are that the cycle of adoption is still really early, and that going with a single deployment is actually the wrong approach.

The approach is to go in with a strategy and say, "This is what you should do over the next 2 to 3 years, and these are all the things you can add on from our portfolio, which will then let you enable both preventative healthcare and patient identification." We've been pivoting our sales pitch accordingly, particularly in the US.

Amazing. Amazing.

Thank you. Thank you very much for that.

I remember there was some price discovery that you guys were undergoing, especially when it comes to pharmaceutical customers. What have you learned as you've been out there in the world when it comes to appropriately pricing your offerings across this portfolio?

Look, what we've actually found in life sciences is that we're adding more value than we're charging for. Prices are beginning to increase as we go into wider deployments with more and bigger data sets.

Alex, do you want to give a couple of examples of what we've seen for some of the customer for 10 or 11 deployments?

Sure. Michael, great question.

I think this allows me just to add quickly just some perspective, right? Because in this area of healthcare AI, there aren't that many companies we can point to that are starting to get material revenue traction.

What, you could kind of count them on one hand, and we're one of them, right? Getting to that $10 million mark in terms of our 2025 AI revenue is really exciting.

I think it's really set the stage and foundation for this next level of growth. What I mean by that is our engagements with our life sciences companies—and by the way, we have a phenomenal team, Don Watts now, he leads our global life sciences sales, supported by Aaron Liebtag, who is the CEO of PentaVere, right, who leads now our work with some of the most discerning and leading organizations in Canada, including health systems, right?

As James mentioned, we work with the governments, we work with MedTech at a global level. Why I'm mentioning is that we went from these very small initial type of pilot prototype engagements with life sciences companies to now seven-figure multi-jurisdictional collaborations.

This is part of our competitive advantage because it takes years to build that type of credibility, those proof points, this validation. We're getting to that point of real product-market fit, and you're going to see these engagements continue to evolve, and some of them now are in a subscription format.

That's super exciting and super unique.

Amazing. Okay.

Thank you very much, Alex. Then forgive me if you did touch on it in your prepared remarks, but considering the healthcare software business alone, how should we think about growth on that revenue line, considering I guess fourth quarter as a base?

Was the question geared towards software? Was it overall business with Q4 as a base?

The software line.

Look, the software line will be lumpy. What I mean by that is that there are two components.

There's a PSG number and a recurring number within our software business. What I think you'll see is the recurring number will grow, let's call it 10% across the board, and then the PSG will be really lumpy.

That comes down to delivery cycles. Some quarters it'll grow more and some grows are less depending when customer dependencies are.

The way the revenue recognition is their milestones. Whether something lands in Q1, Q2, or Q3, there are some of those things are out of our control.

As we think about that, we think that as an annual number. What I would say, though, is that going out beyond 2026, we are seeing a probably more exciting pipeline of where we think we'll get recurring sales beyond that.

Okay. Thanks very much.

I'll pass the line.

Hi. Thanks for taking my question.

My first one comes around the partnership strategy. I'd just love to better understand if you could characterize what your ideal partners look like, how broad would you go with that, and then maybe understanding the scope of work that you would do with a partner, where that line stops where the partner may add complementary work versus you yourselves picking up that work, where's that line drawn?

Thank you.

Excellent question. Look, the reality is that we look at partners across every part of the market, right?

The healthcare system is a $4.5 trillion market, so as a scale point, we're going to need to have good partners in each component. They range from sales partnership relationships like we saw in the Middle East with Lean we announced in last year, and then we look at clinical partnerships like we have within Canada with WELL.

To give an example, we won't do clinical work. When it has to move into the clinical side of things, that is when we'll use partners in terms of sales channels.

Many of our HIE customers have both embedded clinical lines as well as software. We'll partner with people where that's required.

We'll partner with people that have, let's say revenue cycle management assets where we can go as part of that portfolio, where in the US we can be part of the revenue cycle component of generating revenue in areas where we don't play. We'll look at partners for when we don't have an existing platform.

That can be by geography or by state, or by type of revenue. The market's so big, it's really hard to sit there and pinpoint to one thing.

What I would say is that the ideal partners that we're looking to and talking to generally complementary rather than competitive.

That's fair. Appreciate the color.

Then maybe just as it relates to the RFPs, you mentioned that there's some massive TCVs put out there. When you're approaching these, I would imagine these are partner-attached type initiatives, just trying to understand the type of contracts that you guys are looking at?

That's right. Large software implementation partners will need some of those things where the deployment and the implementation of that software is at such a scale that we wouldn't want to scale up for it.

We'd be reluctant to scale our professional services division to service a $100 million contract, for instance, because we'd find it hard to scale up and scale down efficiently. We'd find we'd probably scale up too late and have too many people then.

Finding a partner to do that in regions really matters. Also in terms of capabilities, too.

Like we've worked with genomics partners where they are bringing a capability we don't have. We're finding lots of those opportunities where the partner network of two or three of us combined is a very, very compelling offering.

I think as we cross those markets, the numbers will often quote, and obviously the hundreds with the we're quoting the entire conglomerate, but the numbers will try and quote on a go-forward basis the TCVs that apply to us. If there's a $50 million TCV of which 25 is for the software, we'll quote 25, not 50, to we've been very clear with what we're talking about applies to HEALWELL.

Okay. Appreciate that transparency.

Then lastly for me, just as you're building up partnerships and have a history of partnerships, where do you stand today? I guess do you have the right number of partners today in the areas that you currently operate?

Obviously, you're expanding, but where you are operating today, do you feel like you have the right partnerships in place, or is that an ongoing process to execute on the opportunities?

Let's frame that in two different ways. For our existing business lines, obviously we've been in these markets for 20, 30 years.

We have a very deep partnership pool for our software implementations. AI is still new, and so we are having to build partnerships and learn and pivot as the market grows.

It's still very, very early in the AI adoption cycle. As we look at partnerships within the AI side of things, the market is still learning.

We've got lots of partners we work with currently, but that's where we're focusing our energy on new partners to say, "Well, the other sales channels that will accelerate, what actually is going to work in this market?" Because we bring something unique with clinical validation and capability with an AI.

For this business to have outsized growth, it'll need an outsized sales partner, because as we look across the potential for this business, this business's potential isn't to grow at 5, 10, 25, 30, 40%, 50%. The market is such a big market for us in front of us.

We're trying to build a platform with partners, with deployments, with the right capabilities and access to data that that's a multi, multi-decade growth profile where we want to be a leading player in that game. We don't want to be part of the equation, we want to lead the equation because we think we have something pretty unique here.

We do accept that AI is very much in its infancy. Even as people get up to speed, they're only just appointing AI officers and AI governance to deploy these things.

As we go in, we're finding that actually our capability is pretty unique in terms of meeting all the requirements for validated AI. I know that's a waffle answer, and I apologize for that, but as we look across the broader market going forward, we really want to build the capability that as we roll into the later years of this decade, that we're not talking about 40, 50% growth, that we've got a capability of delivering higher than that.

Understood. Thanks for taking my questions.

Look, firstly, team, thanks for dialing in. Look, we really appreciate the support.

We get a lot of value from the interactions with the industry. It helps shapes our thinking, look, I know you all have lots to do, appreciate your time, and look forward to keeping in touch over the coming quarter.

Thanks, guys.