Editor’s note (Oct. 6, 2025): This story was updated with additional commentary from Talkspace after the story was originally published.

Digital mental health company Talkspace Inc. (Nasdaq: TALK) has acquired one of its digital partners: Wisdo Health.

On Monday, New York City-based Talkspace announced it had acquired Wisdo Health, a moderated social media and peer support platform. Terms of the deal were not released.

Talkspace announced its partnership with Wisdo Health in October 2024 to address social isolation and loneliness in patients aged 65 years and older. Such enterprise partnerships have become a common strategy of Talkspace.

The integration of the Wisdo Health platform will add coaching and peer support to the Talkspace offering and will support patients before and after therapy while also acting as a potential feeder into talk therapy as needs arise.

“Wisdo’s clinically proven AI-powered peer support and communities platform perfectly complements our services, enabling us to offer personalized, stepped, care solutions that address social and mental health and improve outcomes for all users,” Dr. Jon Cohen, CEO of Talkspace, said in a news release. “Together, we will expand access and deepen engagement, especially for those impacted by social drivers of health.”

The move indicates that the company is now comfortable enough with its financial position to explore acquisitions. Earlier this year, a Talkspace executive hinted at the company’s readiness to do so during the company’s fourth-quarter/annual earnings call.

So far, the company has secured five profitable quarters in a row, the result of an about-face pivot in its business model that started in 2021, shortly after the company went public. Once a direct-to-consumer business, the company has long since pivoted most of its business to come from in-network agreements with payers and contracting relationships with organizations that have responsibilities over people’s health, such as employers and government entities.

The acquisition also comes without a material impact to Talkspace’s profitability profile, Ian Harris, chief financial officer for Talkspace, told Behavioral Health Business.

“We maintain a very high bar for external acquisitions, which Wisdo met for a number of reasons —complementing our existing work while uniquely positioning us to more effectively address social health issues like loneliness and social isolation,” Harris said, adding that the company will focus more on organic growth.

He added that Wisdo Health’s services are scalable and come with “very high profit margins.”

The move also gives Talkspace access to another enormous tranche of data. In a news release, Wisdo Health states that it has machine learning tools that are based on over 100 million peer interactions to date. These interactions are used in matching patients to peers, moderated online communities and group coaching.

In the company’s annual financial filing, Talkspace states that it has access to 140 million anonymized messages, 6.2 million psychological assessments, 4.3 million progress and psychotherapy notes and 3 million patient ratings of therapists.

Patient matching has been a significant focus for the company. It announced in August that it launched a partnership with a startup called Outcome Referrals that will add a core element to its matching and care outcomes tracking systems.

The deal also gives Talkspace “both a highly capable and specialized team” as well as time saved by acquiring a company such as Wisdo, as opposed to building something similar from scratch, Harris said. The Wisdo technology also has the protection of patents.

Adding Wiso Health will also support the Talkspace Teenspace Communities and expand peer communities to other demographics, the release states.

“Our platform has shown that meaningful peer connections can transform lives while delivering significant value for our healthcare, life science, and government clients,” Wisdo Health CEO Ron Goldman said in the release. “Together, we will create a seamless continuum of care that ensures people receive the right support at the right time — while continuing to expand our AI roadmap, built on one of the richest proprietary datasets on loneliness and social health.”

Wisdo Health has raised $15 million to date, according to Crunchbase. It was founded in 2017.

With this first deal and additional partnerships meant to deepen Talkspace’s capacity, the company could be positioned to be a major acquirer in the digital mental health space.

During the acute phase of the pandemic and the years, venture capital firms pumped billions of dollars into digital mental health companies. Since then, the space has become much tougher to navigate, as several duplicate companies were able to secure funding from investors and cheap debt with that time’s low interest rates.

This market dynamic could lead to a long-anticipated wave of consolidation or closures in the space. Some experts have thought to see a dynamic year for digital health consolidation in 2025.