Dive Brief:

Amwell has extended a contract with the Defense Health Agency to support virtual care at the military health system, one of the company’s most significant growth initiatives, for another year, the telehealth vendor said Tuesday.

However, the deal cut out deployments for Amwell’s behavioral health and automated care programs “due to budget restrictions being broadly enforced by the Department of Defense,” CEO Ido Schoenberg said during a second quarter earnings call on Tuesday.

The contract change led the telehealth firm to revise its guidance for 2025 . Amwell now expects revenue from $245 million to $250 million this year, down from its previous outlook of $250 million to $260 million.

Dive Insight:

The virtual care company, in partnership with technology firm Leidos,

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