In 2024, digital health companies faced significant challenges despite the broader Nasdaq gaining 32%. Roughly two-thirds of 39 public digital health firms analyzed were down for the year, with some going out of business. Notable exceptions included Hims & Hers Health, which thrived due to its weight loss offerings. Analysts described the year as a “reckoning,” emphasizing a shift towards profitability and more selective partnerships. Companies like Teladoc and 23andMe experienced substantial declines, while Doximity and Oscar Health emerged as success stories. The sector is now recalibrating after the pandemic’s surge in demand, entering a phase of strategic reassessment.
