Dive Brief:
- Amwell is projecting lower revenue in 2026 after the health technology firm divested assets, executives said during an earnings call Thursday.
- The firm expects revenue from $195 million to $205 million this year. In comparison, the telehealth vendor and health tech firm brought in revenue of $249.3 million in 2025.
- The top line for 2026 is smaller, but it’s “primarily high-quality, high-upside, sticky revenue,” CEO Ido Schoenberg said on the call.
Dive Insight:
Last year was a period of refocus for Amwell, executives said on the earnings call.
The company previously offered a number of products across markets, including inpatient tools, a large hardware business and a virtual psychiatric care offering, Schoenberg said. Amwell has since cut back on many of those efforts, focusing instead on a single platform where buyers consolidate virtual care and digital health programs.
“We really essentially have now reduced all those many products into one beautiful platform — the technology-enabled care Amwell platform — and connected it to our own native services and a growing array of third-party services,” he said.
The shift allows Amwell to focus on more predictable software-as-a-service revenue, CFO Mark Hirschhorn added.
The move is likely the right strategic decision for Amwell, but “it also sets up 2026 to be another transition year,” TD Cowen analyst Charles Rhyee wrote in a Thursday note. Additionally, the lowered guidance might not be entirely linked to divestitures, given analyst estimations that subscription revenue will also decline this year, he said.
Amwell has long targeted 2026 to break even on cash flow from operations, and the company is on track to reach its goal in the fourth quarter, executives said. Meanwhile, Amwell narrowed its net loss in 2025 to $95 million, compared with a loss of $212.6 million in 2024.
Still, revenue declined about 2% year over year. And Amwell’s top line in the fourth quarter fell about 22%, driven in part by lower revenue from its contract with the Defense Health Agency, Hirschhorn said.
The DHA deal is a major initiative for Amwell. The company, in partnership with technology firm Leidos, first won the contract worth up to $180 million in 2023.
The contract was extended last summer, but it cut out deployments for Amwell’s behavioral health and automated care programs due to budget restrictions at the Department of Defense, executives said.
The contract is up for renewal again this summer, management added.
“We certainly feel very, very positive about the status of that contract and the opportunity to revisit adding those two programs to the base platform renewal coming up,” Hirschhorn said.
