Regulatory Scrutiny Weighs on Healwell AI’s Strategic Ambitions

Healwell AI Inc. finds its strategic momentum under a regulatory cloud as 2026 begins. An investigation by Canada's Competition Bureau into two pivotal acquisitions completed last year is creating investor uncertainty, overshadowing concurrent operational gains reported by the healthcare technology firm.

Despite the regulatory overhang, Healwell AI's business fundamentals demonstrate significant progress. For the third quarter of 2025, the company posted revenue of 30.4 million CAD. This performance was largely fueled by the integration of Orion Health, a transaction finalized in April of that year. The prior quarter had already set a record, with Healwell reporting a staggering year-over-year surge of 645 percent to reach 40.5 million CAD in revenue.

Further positive indicators emerged from the company's profitability metrics. On an adjusted basis, Healwell AI's EBITDA turned positive for the second consecutive quarter in Q3 2025. Additionally, its core artificial intelligence and software segment expanded dramatically, growing 223 percent to exceed 5 million CAD in the first half of 2025.

Competition Bureau Probes Interlinked Transactions

The source of current market pressure stems from an official inquiry launched by the Competition Bureau Canada. In a notice dated December 10, 2025, the regulator announced it is examining two interconnected deals that fundamentally reshaped Healwell AI last year.

The review focuses on WELL Health Technologies Corp.'s acquisition of a majority stake in Healwell AI, followed immediately by Healwell's subsequent purchase of Orion Health. Authorities are assessing whether this sequence of transactions could result in a "substantial lessening or prevention of competition" within the Canadian market for healthcare technology products and related services.

Should investors sell immediately? Or is it worth buying Healwell AI?

Key areas of regulatory concern include:
* The potential impact on choice and pricing for electronic medical record (EMR) systems.
* Whether the deals could raise barriers to entry for other competitors.
* The possible consolidation of dominant market positions across Canada's health-tech sector.

In a statement reported by BetaKit on December 12, 2025, WELL Health affirmed its commitment to full cooperation with the investigation. The company stated it does not anticipate the probe will materially disrupt its day-to-day operations.

Strategic Shift to Pure-Play Software Provider

Amid this scrutiny, Healwell AI has been actively refining its corporate focus. In November 2025, the company divested its Polyclinics division, selling its interest in Mutuo Health Solutions to Wellstar. This move is part of a deliberate strategy to pivot entirely toward high-growth software-as-a-service (SaaS) and artificial intelligence offerings, distancing itself from clinical operations.

The ongoing regulatory review is cited by market analysts as the primary factor behind the stock's weak performance, which has seen shares decline approximately 43 percent over the preceding twelve-month period. While the involved companies do not expect severe intervention, the Bureau's ultimate decision holds significant weight. The investigation could theoretically lead to mandated conditions, such as contract modifications or, in a more extreme scenario, forced divestitures. The outcome is likely to be a major determinant of the equity's future trajectory.