American Well Focuses on Platform, Cost Cuts in Transformation

Digital health company narrows strategy, divests non-core activities to drive toward positive cash flow in Q4 2026

Published on Feb. 14, 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

American Well's shift to focus exclusively on its technology platform and reduce costs reflects broader trends in the digital health industry toward platform consolidation, automation, and measurable return on investment, particularly among payer and government customers. The company's strategy aims to provide a unified, API-first platform that allows sponsors to more easily integrate and manage their digital health offerings.

The details

On Amwell's fourth-quarter and full-year 2025 earnings call, Chairman and CEO Dr. Ido Schoenberg and CFO and COO Mark Hirschhorn emphasized a market environment they believe is increasingly driven by platform consolidation, automation, and measurable return on investment. 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. The company restructured and 'dramatically reduced' its cost base while realigning product roadmap and go-to-market investments.

  • Fiscal 2025 marked a 'pivotal' year of transformation for American Well.
  • In 2025, American Well divested non-core activities and restructured to dramatically reduce its cost base.
  • American Well expects to achieve positive cash flow from operations in the fourth quarter of 2026.

The players

Dr. Ido Schoenberg

Chairman and CEO of American Well.

Mark Hirschhorn

CFO and COO of American Well.

American Well

A Boston-based digital health company that develops and delivers telehealth solutions to healthcare providers, payers, employers and patients.

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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.”

— Dr. Ido Schoenberg, Chairman and CEO (American Well earnings call)

“We made a decisive choice in 2025 to focus exclusively on offering what we call the best technology platform in the market.”

— Dr. Ido Schoenberg, Chairman and CEO (American Well earnings call)

What’s next

American Well expects to provide an update on its government segment opportunities, including potential revenue impact, in the second quarter of 2026.

The takeaway

American Well's transformation toward a more focused, platform-centric business model reflects the broader shift in digital health toward consolidation, automation, and demonstrable return on investment, particularly among payers and government customers seeking to streamline their technology stack and improve member experiences.