Drake Star – Telemedicine: 2025 Recap and 2026 Outlook

Summary

This report reviews the telemedicine sector's performance in 2025 and provides an outlook for 2026.

It highlights a sustainable recovery in M&A activity with 87 deals in 2025, significant transaction volume growth especially in Europe, and major acquisitions such as Paulus Holding's €1,250m acquisition of Alto Pharmacy. The sector is consolidating with large US consolidators dominating deal flow. Fundraising volume increased by 107% year-on-year, driven by early-stage and later-stage investments primarily in US companies. AI is becoming a core enabler, transforming telemedicine platforms into workflow engines that improve clinical productivity and profitability. The report also notes increased EV/Revenue multiples indicating market maturation and renewed VC interest in early-stage innovation.

Region: Global

Published: February 2026

Author(s): Drake Star

Language: English

Tech drivers: AI Standards and interoperability

Social drivers: Aging population Pandemics Sustainability and ethics

Geopolitical drivers: Economic conditions Regulatory changes

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