There is a lot of macro "noise" in the market right now, as one Wall Street analyst called it, with higher tariffs, changes to federal regulations and economic challenges creating uncertainty for healthcare providers, payers and pharmaceutical companies. That, in turn, impacts health tech and digital health companies that sell their products and services to these industry players.
"There is a palpable pain in the market. People are uncertain and people are worried when they think about their financial viability going forward, that includes many of our customers," said Ido Schoenberg, M.D., chairman and CEO of virtual care company Amwell during the company's first-quarter earnings call.
But Schoenberg said the current economic uncertainty could benefit Amwell as customers see its virtual care platform "as part of the solution" to improve efficiency.
"The Amwell platform is all about efficiency. It's all about saving. It's all about growing revenue. The ROI for implementing Amwell platform is very significant in way of efficiency, savings, growth, things of that nature. And therefore, we actually see the trend becoming accelerating rather than decelerating despite the overall market sentiment and headwinds," Schoenberg told investors during Amwell's Q1 earnings call.
Find an analysis of Teladoc's Q1 performance here and a recap of Hims & Hers' strong first quarter here.
Here's how some publicly traded health tech and digital health companies fared in Q1:
Amwell
Amwell, formerly American Well, reported first-quarter revenue growth of 12%, reaching $66.8 million from $59.5 million in the same period a year ago, according to its first-quarter financial report (PDF). Subscription software revenue was 48% of total revenue at $32.2 million in Q1, up 30% from a year ago.
The company narrowed its losses, reporting a loss of $18.4 million in the quarter, compared to a loss of $73 million a year ago.
Amwell's visit volume was down 23% compared to a year ago, with 1.3 million visits in the first quarter.
The company reported adjusted EBITDA for the quarter was negative $12.2 million compared to negative $46 million in the same period a year ago. Amwell sold its Amwell Psychiatric Care business to Avel eCare, a provider of clinician-to-clinician telemedicine services, earlier this year.
Amwell continues to roll out products and services for the Military Health System as part of its contract with the Defense Health Agency.
In November 2023, Amwell announced it inked a major contract with the DHA to expand its reach into the government and public sectors. In partnership with Leidos, Amwell will provide a hybrid care technology platform designed to power the “digital first” transformation of the Military Health System, according to the company.
The contract, worth up to $180 million, will deploy Amwell's Converge platform to replace the Military Health System's video connect solution. The project will start at five initial sites followed by a phased enterprise rollout.
Amwell has now rolled out scheduled virtual visits across the Military Health System, Schoenberg said during the Q1 earnings call. Due to leadership changes at the DHA, the deployment of its automated and digital behavioral health programs will be pushed back to the third quarter rather than the second quarter, the executive said.
The enterprise go-live of scheduled virtual visits across the global military health system represented the "most significant growth initiative" in the company's history, Mark Hirschhorn, executive vice president, chief operating officer and chief financial officer, told investors during the earnings call. Software revenue grew over 30% from Q1 of 2024 as the company drove strategic client deployments, including the DHA project.
The company plans to reach positive cash flow by 2026.
Macroeconomic issues and tariffs were top of mind for analysts and investors on the Q1 call.
Schoenberg said Amwell's direct exposure to tariffs was "minimal or nonexistent." "As you may know, we no longer manufacture —most of our hardware comes from third parties and the hardware business in general is a very small part of our business today," he said.
But, he added, "Tariffs obviously impact the sentiment in the market overall and do create some problems for our customers as it relates to their relationship with other suppliers. However, as I mentioned earlier, we are really conceived as part of the solution, adding efficiency, growing revenue for our customers, so in that environment, there is a good ROI for investing in Amwell."
For 2025, Amwell is projecting revenue of $250 to $260 million and American Medical Group virtual visits between 1.3 and 1.35 million. It's projecting adjusted EBITDA in the range of between a loss of $55 million to a loss of $45 million.
For Q2, the company forecasts revenue in the range of $62 million to $67 million.
Doximity
Doximity, an online platform for medical professionals, saw its top line grow 17% to reach $138 million in revenue in the most recent quarter versus $118 million a year ago. The company also reported subscription revenue of $132 million, versus $112.7 million a year ago, also up 17%, according to its fiscal fourth-quarter earnings results (for the quarter ending March 31, 2025).
Doximity also brought in profits of $62.5 million, versus $40.6 million, representing a margin of 45.2%, versus 34.4%. Adjusted earnings per share came to 38 cents per share.
The company’s top and bottom-line results in the quarter topped Wall Street analysts’ expectations.
And it reported adjusted EBITDA of $69.7 million in its fiscal Q4 versus $56.4 million, an increase of 24% year-over-year.
For the full fiscal year 2025, Doximity brought in $570 million in revenue, up 20% from $475 million in its 2024 fiscal year. Subscription revenue came to $544 million, versus $450 million, an increase of 21% year-over-year.
Net income for 2025 came to $223 million compared to profits of $147 million the previous year.
Shares of Doximity dropped 16% in early Friday trading after the company provided a soft outlook for its annual forecast when reporting financial results Thursday.
Citing macro uncertainty, Doximity provided initial fiscal 2026 guidance that came in slightly below Wall Street estimates: $625 million revenue midpoint versus the $634.6 million consensus.
For the first fiscal quarter of 2026, the company expects revenue in the range of $139 million to $140 million, representing 10% growth at the midpoint.
Doximity has a broad reach into the medical community as its network members include more than 80% of U.S. physicians across all specialties and practice areas. The company's paying customers include pharmaceutical manufacturers, health systems and medical recruiting firms who use its platform to market their products and services.
"We have not seen any signs of a market slowdown yet. But given the material policy uncertainty, we are assuming that there will be," Jeff Tangney, co-founder and CEO of Doximity, told analysts and investors during the company's earnings call on Thursday.
Anna Bryson, Doximity's chief financial officer, said the pharma HCP [healthcare professional] digital market is expected to grow at roughly 5% to 7% again this year. "We believe it's prudent to assume the market growth rate could be on the lower end of this range, which is reflected in our guidance," she said.
Doximity still expects pharma to remain its fastest-growing business, noting that health systems are "typically more near-term impacted by policy changes and macro uncertainty."
The company provides software tools for doctors and clinicians and its clinical workflow tools saw record use in the fourth quarter with more than 620,000 unique active prescribers, Tangney said. Its workflow tools include our telehealth, fax, scheduling and AI tools. "Our AI tools grew the fastest, again, last quarter, up more than 5x year-on-year. In short, as the practice of medicine grows both more mobile and more AI-powered, we're proud to be leading the way," he said.
The company offers an AI writing assistant, called Doximity GPT, that helps doctors draft prior authorization letters, insurance appeals and letters of patient support, among other tasks.
"In a short couple of years, we've seen AI tools like this truly change the mood in medicine from AI leery to AI cheery," Tangney said. "For the first time in over a decade, there's genuine hope that physician burnout and information overload can actually be eased with technology."
The company is increasing its investment in artificial intelligence, leadership said.
"We believe we are in the early innings of realizing AI's full potential at Doximity, and we couldn't be more excited for the feature," Bryson said.
Waystar
Healthcare payment software company Waystar outperformed analysts' expectations in the third quarter with strong revenue growth and profitability. The company also booked its fourth consecutive quarter of double-digit revenue growth as a public company, according to executives.
The company brought in $256 million in first-quarter revenue, up 14% from the same period a year ago. That beat Wall Street estimates by 3%, according to Yahoo Finance.
Waystar reported net income of $29 million and GAAP net income per share of 16 cents, according to its Q1 financial results. Waystar's bottom results also beat Wall Street estimates. The company reported adjusted EBITDA of
The company offers healthcare payment and revenue cycle management tools, serving approximately 30,000 clients representing over 1 million distinct providers
CEO Matt Hawkins told investors during a call to discuss Q1 results that Waystar is "uniquely equipped to create long-term shareholder value independent of broader market conditions," given the increasing macro volatility.
"While no business or sector is entirely insulated from economic cycles, we believe Waystar's broad presence and business model are recession-resistant. We are confident in our ability to deliver strong performance. Our software has enabled providers to succeed despite the challenges of an unpredictable environment," he said.
The company's software platform plays a "mission-critical role in helping providers get paid faster and more accurately while reducing administrative costs." Its payment and RCM tools help providers maximize revenue capture and streamline operational efficiency, which could become more critical if policy changes put pressure on providers.
In times of volatility and market stress, Waystar software can be deployed rapidly and efficiently to help providers optimize cash flow, he noted. Waystar does not anticipate any major impact from the Trump administration's potential healthcare policy changes, he said.
"We believe we'll be a net winner during this cycle as we help clients and as we stay very focused on serving them," he said.
While the potential impact of tariffs weighs on healthcare providers' minds, the company has "very limited" direct exposure to tariffs, CFO Steven Oreskovich told investors. Waystar has a diversity of clients in terms of size, specialty and geography to make it "fairly insulated from anything that may happen to a specific specialty or type of reimbursement rate," he said.
The company continues to roll out new generative AI capabilities and advanced automation to target administrative waste across the
Its Auth Accelerate solution marks a major expansion of its advanced automation capabilities designed to streamline the prior authorization process. Hawkins said early adopter clients are already seeing measurable results, an 85% auto approval rate and a 70% reduction in time spent on authorizations. The company is scaling its prior authorization capabilities for key payers across the ambulatory market, he said.
"What we know is that 90% of healthcare decision-makers that we're talking to, they are prioritizing AI and advanced automation to help them address this economic cycle. But the vast majority of them were still very early in the actual adoption and use of AI in this time frame. The vast majority have either been using it for less than a couple of months, AI in any form or not at all. So, we view this as opportunity," Hawkins said on the call.
Budgets for genAI-enabled solutions are increasingly being centrally pooled and funded at the largest provider organizations, Hawkins noted. "These resources often sit outside traditional health care IT budgets. Incremental pools of capital are being allocated to fund key initiatives that deliver real ROI," he told investors.
Waystar raised its full-year revenue and adjusted EBITDA guidance. The company forecasts full-year revenue to hit between $1.006 billion and $1.022 billion, representing a $6 million increase at the midpoint of $1.014 billion. Adjusted EBITDA is expected to be between $406 million and $414 million. Diluted non-GAAP net income per share is expected to be between $1.31 and $1.34.
Talkspace
Online therapy provider Talkspace boasted its fifth consecutive profitable quarter. Talkspace reported net income of $318,000 compared to a loss of $1.5 million in the same period a year ago.
For full-year 2024, the company reported net income of $1.1 million, the first time it turned a profit on a yearly basis.
The company's revenue grew 15% year-over-year to reach $52.2 million in the first quarter of 2025, driven by 33% year-over-year growth in payor revenue, or insurance-covered sessions.
The company continues to focus on its payer strategy, which could help it weather a rocky 2025.
"I'd like to proactively address a common question we received amid recent market volatility. Our business is not directly affected by tariffs. More importantly, our long-term strategy has shifted the core of our business to an insured patient base, reducing reliance on out-of-pocket spending," Talkspace CEO Jon Cohen told investors and analysts during the company's recent first-quarter earnings call. "As an in-network provider for nearly 200 million covered lives, we remain accessible and affordable. We are a national provider for Medicare, including Medicare Advantage and continue to benefit from the federal investment in senior mental health. Since we're not in Medicaid, we are insulated from potential changes to those programs."
It ended the period with 101 million eligible payer lives, demonstrating growth of about 17% year-over-year. Payer sales came in at roughly $37.8 million, driven by 350,000 mental health sessions, up 23% year-over-year.
The company continues to expand its business with payers and employers and now covers nearly 200 million people in-network and through Medicare and Medicare Advantage plans as well as TRICARE, which serves U.S. military members and their families. As Talkspace grows, it is increasing access to virtual behavioral health services for seniors, teens and members of the U.S. military, executives said.
Nearly 200 million or two-thirds of the eligible American public can access Talkspace as a covered, in-network benefit, according to the company.
In January, the company rolled out additional military coverage and now covers all of TRICARE's 10.5 million members, including families and dependents.
The company is seeing strong results with its Medicare population as 84% of Medicare members showed clinical improvement, surpassing typical expectations of around 70%, Cohen said.
Talkspace also works with municipalities, school districts and state governments to provide its mental health services. The Trump administration has proposed significant cuts to funding for mental health programs that could impact schools.
In response to a question from an investor about the impact to Talkspace's business, Cohen said the funding freezes would impact in-person therapy. "None of that impacts on us because of our virtual service," he said. "We actually believe that because we are much less expensive and we have a larger ability to scale that it may actually be an opportunity for school districts to move from a dominant in-person model to a virtual model. So, right now, we are looking at that."
The company's direct-to-consumer business continues to decline, with revenue dropping 32% to $4.7 million during the quarter. Its direct-to-enterprise business also is slowing with revenue coming in at $9.6 million, down 3% year-over-year during the quarter.
Talkspace continues to invest in artificial intelligence capabilities to enhance its services. It rolled out AI-augmented intake systems that surface key symptoms, psychosocial contacts and diagnostic considerations, streamlining client onboarding and clinical assessments. Cohen said.
In March, the company launched Talkcast, a personalized podcast feature. "Our goal with this product is to drive member engagement between sessions, keep members focused on their progress and ultimately assist in clinical improvement. We have generated 6,000 podcasts in the first several weeks and are already receiving very positive member and provider feedback," Cohen said during the call.
Talkspace validated a new risk assessment tool, a homicide violence ideation algorithm that is over 90% accurate in determining risk for violent behavior, including homicidal ideation and surfaces this risk to clinicians in real time.
"I am purposely highlighting these AI initiatives in the context that utilizing advanced technology to deliver better mental healthcare solutions has been at the core of Talkspace since its inception when we developed asynchronous messaging as an effective method for delivering therapy. The next chapter in innovation and growth is to further integrate AI to deliver even better mental health support," Cohen said.
Talkspace claims it has the largest behavioral health data sets in the industry and is working to use this data to build a "first-of-its-kind" foundational large language model. "Talkspace is uniquely positioned to build this foundational model trained on de-identified clinical data aligned with evidence-based therapeutic frameworks. Unlike horizontal general-purpose models, this vertical AI platform will not only enhance existing Talkspace services but also serve as a launch pad for future AI applications and behavioral health services, unlocking new possibilities in clinical innovation," Cohen said.
Talkspace is projecting full-year revenue to be in the range of $220 million to $235 million and adjusted EBITDA to be in the range of $14 million to $20 million.
DocGo
During its first-quarter earnings call, DocGo, a provider of technology-enabled mobile health and medical transportation services, highlighted a major shift in its revenue guidance as a result of policy changes affecting its government population health business.
"Ongoing policy changes and budget cuts in Washington have created substantial uncertainty and indecisiveness with regard to new municipal project launches and the government RFP channel in general," DocGo CEO Lee Bienstock said during the recent earnings call. "In fact, we are seeing substantial delays with regard to municipal decision-making and delays in launch timelines for contracts we've already signed. We have 35 open government RFP submissions in our pipeline, a number of which were submitted over six months ago that we are still waiting to hear back on."
Some projects that were ready to launch have been put on hold, Bienstock said. "Accordingly, we can no longer rely on these to generate meaningful revenue this calendar year," he noted.
There's "substantial indecisiveness and hesitation" from the federal level down to municipalities as a result of policy changes coming out of Washington, he said, and that directly impacts DocGo's government business.
As a result, DocGo removed government population health revenue, which executives estimated to be about $100 million, from its full 2025 guidance.
The company will focus on growing its medical transportation and mobile health businesses for providers, health systems and payers this year and in 2026, executives said.
"Our hospital and payer and provider verticals continue to perform in line with expectations and we believe they are on a solid growth trajectory,” Bienstock said in a statement regarding the company's Q1 financial results.
Formerly called Ambulnz, the company hit the public market in November 2021 in a special purpose acquisition company deal. Founded in 2015, DocGo offers what it calls "last-mile" healthcare services to patients in their homes or at work, such as testing, vaccinations, bloodwork, IV hydration, wound care, mobile imaging and EKGs, among other services.
The company's revenue dropped 50% year-over-year to $96 million from $192.1 million in Q1 2024, primarily due to the wind-down of migrant-related programs.
DocGo reported a net loss of $11.1 million (a loss of 9 cents per share) compared to a net income of $10.6 million Q1 2024. Adjusted EBITDA for the first quarter of 2025 was a loss of $3.9 million compared to adjusted EBITDA of $24.1 million the same period a year ago.
The company's results missed Wall Street analysts' expectations on both revenue and earnings per share. DocGo's stock fell sharply by 19% in after-hours trading after the results were announced on May 8.
In Q1, mobile health services revenue was $45.2 million compared to $143.9 million for the first quarter of 2024. The decline was due primarily to the wind-down of migrant-related programs, the company said.
Transportation services revenue in Q1 was $50.8 million, compared to $48.2 million for the first quarter of 2024.
The company reported record trip volume for its medical transportation business in Q1 and expects to end 2025 with approximately 575,000 total transports.
DocGo notched several contract wins including signing with a New York health plan to offer DocGo primary care services to members, a two-year contract with the North Texas division of a national health system to provide medical transportation services for their network of hospitals in Dallas and Fort Worth, Texas and a one-year contract that expands the company’s relationship with a California-based cardiology group.
In its provider and payer vertical, DocGo continues to see substantial growth and now has more than 900,000 assigned lives since the inception of its care gap closure program, up from 700,000 just a quarter ago, Bienstock said.
That business is on track to quadruple in size over a two-year period, he said. In Q4 2023, the company completed approximately 2,500 care gap closure and transitional care management visits. A year later, in Q4 2024, the number of care gap closure and TCM visits grew to over 4,400. DocGo is now projecting to complete over 11,500 care gap closure and TCM visits by Q4 of this year.
In February, the company acquired PTI Health, a mobile lab collection and phlebotomy services company, to expand its in-home healthcare services. In 2024, DocGo completed 144 primary care visits, and that number is expected to grow to 10,000 this year and over 40,000 in 2026, Bienstock noted.
PTI Health is on track to complete over 125,000 blood draws in patient homes in 2025 and projected to exceed 200,000 in 2026. "All told, between our care gap program, PCP and mobile lab businesses, we expect to visit over 150,000 patients in their homes this year," Bienstock said.
The company's care gap closure PCP programs help health plans reduce healthcare spending by reducing readmissions and hospitalizations and also helps plans to address quality metrics, executives said.
The company's migrant-related work peaked in the fourth quarter of 2023 and the first quarter of 2024 and began to wind down in May 2024 with the exit from the New York City-based sites, executives said. The remaining migrant work with New York City Health and Hospitals is expected to be substantially completed by the midpoint of this year, CFO Norman Rosenberg said on the Q1 earnings call.
"We continue to expect approximately $225 million in revenue from our medical transportation services, $50 million from our payer and providers and $50 million from our remaining migrant services health care work, all unchanged from our previous expectations," Bienstock said.
The company revised its 2025 guidance from $410 million to $450 million in revenue with a 5% adjusted EBITDA margin to $300 million to $330 million with an expected adjusted EBITDA loss of $20 million to $30 million.