Amwell Expects Lower Revenue in 2026

Why It Matters

The pivot to a unified platform reduces complexity, improves margin potential, and positions Amwell to achieve operational breakeven, a key milestone for investors and the broader telehealth market.

Key Takeaways

• Amwell projects $195‑$205M revenue for 2026, down from $249.3M.
• Company streamlined to single platform, focusing on SaaS revenue.
• Aims to achieve cash‑flow breakeven by Q4 2026.
• Net loss narrowed to $95M in 2025 versus $212.6M 2024.
• Defense Health Agency contract renewal remains critical growth opportunity.

Pulse Analysis

Amwell’s latest earnings call underscores a strategic shift that mirrors a broader industry trend: moving from fragmented product suites to integrated, subscription‑based platforms. By shedding hardware, inpatient tools, and niche psychiatric services, the firm is betting on the scalability of a single, cloud‑native solution that can be bundled with third‑party offerings. This consolidation not only simplifies sales cycles but also creates more predictable recurring revenue, a metric increasingly prized by investors seeking sustainable growth in the telehealth space.

The financial implications of this refocus are evident in the revised guidance. While top‑line revenue is set to dip by roughly 2 percent year‑over‑year, Amwell emphasizes that the remaining revenue is "high‑quality, high‑upside, sticky," suggesting stronger customer retention and higher lifetime value. Coupled with a narrowed net loss—down to $95 million in 2025—the company is on track to hit cash‑flow breakeven by the fourth quarter of 2026. Achieving breakeven is a critical inflection point, signaling operational efficiency and reducing reliance on external capital, which can be a catalyst for a higher valuation.

External contracts remain a pivotal growth lever, particularly the Defense Health Agency (DHA) partnership. Although the DHA deal was trimmed this year, its renewal and potential expansion could inject significant upside, especially if Amwell reinstates its behavioral‑health and automated‑care modules. Analysts view the contract as a bellwether for future government engagements, and successful renegotiation could offset the modest revenue decline while reinforcing Amwell’s position as a leading digital‑health platform provider.

Amwell expects lower revenue in 2026

Dive Brief · Emily Olsen · February 17, 2026

The health technology company has divested assets and refocused on its core offering, resulting in a smaller top line, executives said on an earnings call Thursday.

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.