American Well Focuses on Platform Amid Market Shift

Telehealth company narrows strategy, reduces costs, and eyes positive cash flow in 2026

Published on Feb. 13, 2026

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American Well (NYSE:AMWL) executives said fiscal 2025 marked a 'pivotal' year of transformation as the company narrowed its strategy to focus on its technology platform, reduced costs, and entered 2026 with what management described as clear visibility toward achieving positive cash flow from operations in the fourth quarter of 2026.

Why it matters

The healthcare landscape is shifting toward consolidation and automation, with payers and health systems seeking to reduce the administrative burden and security risks of managing 'countless point solutions.' American Well is positioning its platform as a way for sponsors to consolidate their digital health stack, swap clinical programs more easily, and improve member experience through 'a single, simple, personalized' front door.

The details

Management said Amwell made a 'decisive choice' in 2025 to focus exclusively on offering what it called the best technology platform in the market, and it divested non-core activities, including the sale of APC. Schoenberg said the company restructured and 'dramatically reduced' its cost base while realigning product roadmap and go-to-market investments. Commercially, the company executed more than 15 payer contract renewals in 2025, representing the 'vast majority' of existing payer subscription revenue, along with new logo wins.

  • In summer 2025, the DHA contract saw a step-down.
  • Churn occurred earlier in 2024.
  • Amwell expects the DHA renewal in the summer of 2026.

The players

Ido Schoenberg

Chairman and CEO of American Well.

Mark Hirschhorn

CFO and COO of American Well.

Defense Health Agency (DHA)

A U.S. Department of Defense agency that renewed its contract with American Well.

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What they’re saying

“Technology-enabled care is no longer optional, and hybrid care—combining automation with targeted clinician time—is essential for reducing costs and improving outcomes.”

— Ido Schoenberg, Chairman and CEO

“We believe we have improved the 'quality' of our revenue and positioned the business for longer-lasting customer relationships and higher-margin same-store expansion as sponsors add more clinical programs, including AI-driven offerings, on top of the platform.”

— Ido Schoenberg, Chairman and CEO

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.