Amwell Evaluates Potential Divestitures Amid Strategic Shifts in Healthcare Landscape

Amwell Explores Asset Sales Amidst Telehealth Market Shift

November 5, 2025 | By Archyde News staff

Amwell is actively considering the divestiture of select non-core assets as the organization seeks to refine its business focus and bolster its overall financial standing, According to statements made during a third quarter earnings conference call on Tuesday.

Executives indicated that potential sales would target assets easily separable from the company’s core offerings without disrupting service to existing clients. Mark Hirschhorn, Chief Financial Officer and Chief operating Officer of Amwell, explained that thes assets represent “distinct profiles of clients that we could, in fact, cordon off.”

This move follows an earlier transaction completed earlier this year,where amwell sold its virtual psychiatric care division to Avel eCare for approximately $21 million.

Financial Pressures and Strategic Repositioning

The review of potential divestitures occurs as Amwell’s stock value has experienced a downturn in recent years following a peak during the rapid expansion of telehealth services in 2020. Last year, the company enacted a reverse stock split to maintain compliance with New York Stock Exchange listing requirements.

Amwell is now concentrated on achieving positive cash flow by 2026 and a sustained return to profitable growth, according to company leaders. This strategy centers on optimizing its primary virtual care platform and maximizing operational efficiency.

Leveraging Artificial Intelligence and Streamlining Operations

Chief Executive Officer Ido Schoenberg outlined the company’s intention to integrate artificial intelligence into key processes, such as patient intake, clinical program matching, and onboarding. Schoenberg emphasized that these AI-driven solutions will improve efficiency and the overall patient experience.

Amwell also intends to reduce investment in legacy products. Schoenberg noted the existence of a “long list” of older systems, including automated hospital programs and inpatient care tools, which will receive reduced funding despite remaining functional and reliable.

Recent Financial Performance

Amwell reported revenue of $56.3 million for the third quarter,representing an 8% decrease compared to the same period last year. The company also recorded a net loss of $31.9 million,an enhancement from the $44 million loss reported in the prior-year quarter.

Metric	Q3 2025	Q3 2024
Revenue	$56.3 Million	$61.2 Million
Net Loss	$31.9 Million	$44.0 Million

The company has adjusted its full-year 2025 revenue guidance to a range of $245 million to $248 million, a slight reduction from its previous forecast of $245 million to $250 million.

Adjusted earnings before interest, taxes, depreciation, and amortization are now projected to be between a loss of $45 million and $42 million, compared to a previous estimate of a loss between $50 million and $45 million.

Impact of Defense Contract adjustments

Amwell previously lowered its revenue expectations after the Defense health Agency extended a contract, but without immediate project deployments for behavioral health and automated care programs due to budgetary constraints within the Department of Defense.

The Evolving Telehealth Landscape

The telehealth industry has undergone significant changes since its surge in popularity during the Covid-19 pandemic. While demand remains elevated compared to pre-pandemic levels, the market has become more competitive, and reimbursement models are still evolving. The Centers for Medicare & Medicaid services (CMS) has proposed changes to telehealth coverage policies in recent years, creating uncertainty for providers. According to a report by McKinsey & Company, the telehealth market is projected to reach $450 billion by 2030, but sustained growth requires addressing issues related to interoperability, data security, and equitable access.

Did You No? Telehealth utilization surged 38X from pre-pandemic levels in 2020, demonstrating a dramatic shift in healthcare delivery.

Pro Tip: Companies like Amwell are focusing on specialized virtual care services and integrated platforms to differentiate themselves in the market.

Frequently Asked Questions About Amwell

• What is Amwell doing to improve its financial performance? Amwell is strategically divesting non-core assets and focusing on its primary virtual care platform to achieve profitability.
• What impact will the asset sales have on Amwell’s customers? The company intends to sell assets that will not disrupt service to existing clients.
• How is amwell leveraging artificial intelligence? Amwell is implementing AI to improve efficiency in tasks like patient intake and clinical program matching.
• What caused Amwell to revise its revenue guidance? A delayed deployment of a Defense Health Agency contract contributed to the lower revenue forecast.
• What is the current state of the telehealth market? The telehealth market is growing but becoming more competitive, with evolving reimbursement models.
• What are some of the challenges facing telehealth providers? Key challenges include interoperability, data security, and ensuring equitable access to care.

What are your thoughts on Amwell’s strategic shift? Share your comments below!

What are the potential implications of Amwell divesting SilverCloud for the digital mental health market?

The Evolving Telehealth Market & Amwell’s Response

Amwell (NYSE: AMWL), a leading telehealth provider, is currently evaluating potential divestitures as it navigates a rapidly changing healthcare landscape. This strategic move signals a recalibration within the company, responding to shifts in payer dynamics, increased competition, and evolving market demands for telehealth solutions. The evaluation, publicly disclosed in recent SEC filings, focuses on streamlining operations and focusing on core competencies. This isn’t an isolated incident; many players in the digital health space are reassessing their portfolios.

Key Drivers Behind the potential Divestitures

Several factors are converging to prompt Amwell’s consideration of asset sales. Understanding these drivers is crucial for investors and industry observers alike.

* Payer Pressures: Reimbursement rates for telehealth services, particularly those mirroring in-person visits, have faced increasing scrutiny from both public and private payers. The expiration of certain pandemic-era flexibilities has further exacerbated this pressure, impacting revenue predictability. Telehealth reimbursement is a critical issue.

* Increased Competition: The telehealth market has become considerably more crowded. Established healthcare systems, retail giants (like CVS and Walgreens), and specialized telehealth companies are all vying for market share. This intensified competition necessitates a sharper focus on differentiation.

* Shift Towards Value-Based Care: The healthcare industry is increasingly moving towards value-based care models, emphasizing outcomes and cost-effectiveness. Amwell, like other providers, needs to demonstrate its ability to deliver measurable value within these frameworks. Value-based healthcare is reshaping the industry.

* Focus on Core Strengths: Amwell appears to be prioritizing its core strengths in physician-to-patient telehealth and chronic care management. Divesting non-core assets allows the company to allocate resources more effectively to these areas.

* Macroeconomic Conditions: The broader economic climate, including rising interest rates and concerns about a potential recession, is also influencing strategic decisions across the healthcare sector.

Assets under Consideration & Potential Buyers

While Amwell hasn’t explicitly named the assets under consideration, analysts speculate that several areas are potential candidates for divestiture.

* SilverCloud: Amwell acquired SilverCloud,a digital mental health platform,in 2021. While the mental health market remains strong, integrating silvercloud fully into Amwell’s broader platform has proven challenging. Potential buyers could include dedicated mental health tech companies or larger healthcare organizations seeking to expand their behavioral health offerings.

* ConvenientCare pratica: This subsidiary focuses on providing virtual primary care services. Its performance hasn’t met expectations, and a sale could streamline Amwell’s primary care strategy.

* International operations: Amwell has a presence in several international markets. Divesting certain international operations could allow the company to focus on its core North American market. Global telehealth expansion requires significant investment.

Potential buyers could range from private equity firms specializing in healthcare to strategic acquirers like large hospital systems or insurance companies.

Impact on Amwell’s Strategic direction

The potential divestitures represent a significant strategic shift for Amwell. The company is signaling a move away from a broad, diversified telehealth platform towards a more focused approach.

* Emphasis on Physician-to-Patient Telehealth: Amwell remains committed to its core business of connecting physicians with patients via video consultations. This segment benefits from established reimbursement models and strong demand.

* Chronic Care Management: Amwell is investing heavily in chronic care management programs,leveraging telehealth to improve outcomes and reduce costs for patients with chronic conditions. Remote patient monitoring is a key component of this strategy.

* Partnerships with Health Systems: Amwell is increasingly focused on forging partnerships with large health systems, providing them with telehealth infrastructure and services. This approach allows Amwell to leverage the health systems’ existing patient networks and brand recognition.

* AI and machine Learning Integration: Amwell is exploring the use of artificial intelligence (AI) and machine learning (ML) to enhance its telehealth platform, improve clinical decision-making, and automate administrative tasks. AI in healthcare is a growing trend.