A Canadian regulatory intervention has introduced significant uncertainty into WELL Health’s recent move to assume majority control of Healwell AI. The Competition Bureau Canada has obtained a court order to conduct a detailed examination of the transaction, raising concerns that the deal may potentially reduce competition within the nation’s healthcare sector. This development adds another layer of pressure to Healwell’s stock, which has already faced a challenging period.
Financial Performance Contrasts with Share Price Weakness
Operationally, Healwell AI has demonstrated substantial growth. The company’s third-quarter 2025 financial results showed a dramatic 354 percent surge in revenue, reaching CAD 30.4 million. For the second consecutive quarter, it reported a positive adjusted EBITDA of CAD 0.7 million. A standout metric was the 535 percent jump in recurring revenue from subscriptions and support, which climbed to CAD 21 million.
Despite these strong operational metrics, the company’s equity performance tells a different story. The stock has endured a difficult 2025, plummeting approximately 54 percent since the start of the year and trading near its 52-week low. Healwell’s current market capitalization stands at roughly CAD 290 million.
Competition Bureau Probes Market Impact
The regulatory review centers on WELL Health’s acquisition of a controlling stake in Healwell AI, which was finalized on March 31, 2025. Complicating the landscape is Healwell’s own concurrent acquisition of New Zealand-based Orion Health. The Competition Bureau is investigating whether these combined transactions could substantially lessen competition in relevant markets.
Key areas of regulatory focus include:
* Potential effects on product pricing and user choice
* The interoperability of systems across different healthcare providers
* Continued access to sector innovation
* The creation of barriers for new market entrants
* The strengthened market position of the combined WELL Health entity
Should investors sell immediately? Or is it worth buying Healwell AI?
The merged organization boasts an extensive portfolio of AI-powered health solutions, spanning electronic health records, telemedicine platforms, and clinical decision support systems. It is precisely this consolidated market presence that has attracted regulatory attention.
Board Appointment Signals Strategic Preparation
Amid the regulatory examination, Healwell AI has moved to strengthen its governance. The company has appointed Ian Kidson, former CFO of Docebo and Apollo Health, to its board of directors. Chairman Hamed Shahbazi highlighted Kidson’s decades of experience in capital markets and the healthcare industry, stating his expertise would be invaluable as the company navigates its growth trajectory.
Market observers may interpret this appointment as a strategic move to bolster the company’s readiness for heightened scrutiny from both regulators and investors.
The ultimate outcome of the competition review remains uncertain. Should the Bureau impose conditions or, in an extreme scenario, seek to unwind the transaction, Healwell AI’s strategic direction would face fundamental challenges. Until a resolution is reached, this cloud of uncertainty is likely to continue weighing on the company’s share price.
Ad
Healwell AI Stock: Buy or Sell?! New Healwell AI Analysis from December 11 delivers the answer:
The latest Healwell AI figures speak for themselves: Urgent action needed for Healwell AI investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 11.
Healwell AI: Buy or sell? Read more here...
