The news: Digital mental health company Talkspace had its first full year of profitability in 2024. The company, founded in 2012, reported $1.1 million in net income for the year during this week’s Q4 and full-year earnings release.

What’s driving profitability for Talkspace? It strategically pivoted to contract with more health insurers and employers that would cover its mental health services as a benefit for members.

The shift toward B2B customers has paid off, especially as inflationary pressures drove consumers to cut back on out-of-pocket therapy spending in favor of insurance-covered mental healthcare.