23andMe Holding Co. (ME): BCG Matrix [Dec-2025 Updated]

You're looking at 23andMe Holding Co. (ME) right now, and honestly, the old playbook is dead; the company is in a major strategic shift that demands a fresh look at its assets. We've mapped their portfolio using the BCG Matrix as of late 2025, and the story is clear: the once-reliable Personal Genome Service kit sales are fading, yet their recurring membership revenue has doubled, now making up a significant 21% of the total pie. The massive, consented genetic database remains the bedrock Cash Cow, but the real excitement-and risk-lies in whether the new GLP-1 weight loss telehealth membership can turn those high-growth 'Question Marks' into the 'Stars' that replace the discontinued Therapeutics unit. Dive in to see exactly where you should focus your attention on this evolving business.

Background of 23andMe Holding Co. (ME)

You're looking at 23andMe Holding Co. (ME) right as it navigates a major transition, having been acquired by TTAM Research Institute on June 13, 2025. Honestly, the company's story has always been about leveraging its massive genetic database, which it started building back in 2006 when it first offered direct-to-consumer genetic testing for ancestry and traits. It's headquartered in Sunnyvale, United States, and operates in the B2C HealthTech and Life Sciences spaces.

Financially, things have been tight, but the company has been aggressively cutting costs. For instance, after reporting Q3 of fiscal year 2025 (which ended December 31, 2024), 23andMe Holding Co. announced a 40% reduction in force, expecting to save over $35 million annually from that move alone. The TTM (Trailing Twelve Months) revenue as of November 2025 stood at $0.17 Billion USD, down from $0.19 Billion USD as of March 31, 2025.

The business model has been pivoting hard toward recurring revenue. In Q2 of FY25 (ending September 30, 2024), membership services revenue grew to represent 21% of total revenue, a big jump from just 9% in the prior year quarter. This focus is key because the high-revenue research services stream, largely tied to the GSK collaboration, concluded its exclusivity term in July 2023, causing a significant revenue drop in subsequent quarters. By Q1 of FY25, consumer services-which bundles the Personal Genome Service (PGS) kits, telehealth, and memberships-made up about 97% of the total revenue.

To be fair, the company has kept innovating its consumer offerings, launching things like the comprehensive Total Health longevity service and a GLP-1 weight loss telehealth membership on its Lemonaid Health platform. However, the company made a significant strategic shift by discontinuing its Therapeutics business segment on November 11, 2024, meaning it now operates in a single segment focused on the consumer side, though its long-term strategy still involves leveraging its data assets. You can see the cash position has been tightening, ending Q3 FY25 (December 31, 2024) with $79.4 million in cash and cash equivalents.

23andMe Holding Co. (ME) - BCG Matrix: Stars

You're looking at the engine that 23andMe Holding Co. is betting on for future growth, the area with high market potential where they are currently a leader-the Stars quadrant.

The core of this category is the subscription business, which management has explicitly stated they are focused on growing by adding value and driving engagement. This focus is paying off in the numbers, showing a clear shift in revenue mix toward more predictable, high-margin streams.

Here are the key financial indicators for this segment as of the second quarter of fiscal year 2025 (FY25 Q2), which ended September 30, 2024:

The strategy here is clear: invest heavily to maintain and grow this market share because these units are in a high-growth market segment. If 23andMe Holding Co. can sustain this success as the overall market growth rate eventually slows, this segment is positioned to transition into a Cash Cow.

The growth engine is being fueled by specific product enhancements and strategic rollouts designed to increase customer lifetime value. This is the future growth engine, plain and simple.

• Membership monetization accelerated, with recurring revenue share more than doubling to 21% of total revenue.
• New offerings driving engagement include the 23andMe+ Premium tier, which now features a new genetic report on Emotional Eating.
• The comprehensive Total Health longevity service is now broadly available, combining whole exome genetic sequencing with bi-annual lab tests for 55+ key blood biomarkers and expert clinician guidance.
• The company also launched its first AI chatbot, "DaNA," to help customers identify actionable insights from their results.

To be defintely clear, while the overall top line faced pressure-total revenue was $44 million in Q2 FY25, down 12% year-over-year-the growth in this recurring membership revenue partially offset declines in lower-margin PGS kit sales and research services revenue following the conclusion of the GSK collaboration exclusivity term in July 2023. Finance: model the cash burn required to support the growth of this segment against the projected annualized cost savings of ≥$35 million from the restructuring by next Tuesday.

23andMe Holding Co. (ME) - BCG Matrix: Cash Cows

You're looking at the core engine that historically generated the necessary funds to keep 23andMe Holding Co. running, even as the consumer side struggled. In the BCG framework, Cash Cows are those business units or assets with a high market share in a mature, low-growth market. For 23andMe Holding Co., this is unequivocally the proprietary genetic data asset.

This asset is the foundation for all research partnerships, and while the consumer testing market itself is mature, the value of the data within it remains high, generating significant, albeit sometimes non-recurring, cash flow. The strategy here is to 'milk' this asset for all it's worth to cover corporate overhead and fund other ventures, like the now-discontinued Therapeutics segment.

The proprietary genetic database of over 15 million consented customers represents this high-share, low-growth cash generator. It is the largest, most phenotyped human genetic dataset globally, which is why it commands partnership interest. You saw this in the third quarter of fiscal year 2025 (FY25 Q3), which ended December 31, 2024, where the company recognized a non-recurring $19.3 million research revenue related to the 2023 GSK Amendment. That one-time event highlights the lumpy but high-value nature of milking this asset.

The low growth in the core business makes this asset even more critical. For instance, Consumer Services Revenue in Q3 FY25 was 8% lower compared to the prior year quarter, showing the consumer side wasn't driving growth. The total revenue for that quarter was $60.3 million, heavily influenced by that non-recurring research recognition. This dynamic-a strong, established data asset generating cash against a soft consumer backdrop-is the textbook definition of a Cash Cow.

Here's a quick look at the key metrics defining this asset's cash-cow status as of the latest available data points leading up to the March 2025 bankruptcy filing:

The investments here are minimal to maintain the current state, focusing on infrastructure to support data integrity and efficient partnership execution, rather than expensive consumer promotion. The company's decision to discontinue its Therapeutics business was a move to reduce cash burn and focus on 'milking' the remaining profitable or cash-generating parts of the business, which centers on this data asset and the membership services.

The core characteristics supporting the Cash Cow placement are:

• The proprietary genetic database of over 15 million consented customers.
• It is the largest, most phenotyped human genetic dataset globally.
• The asset is the foundation for all research partnerships.
• Generated a non-recurring $19.3 million research revenue in Q3 FY25.
• Low-growth market, but the data asset holds dominant relative market share.

To be fair, the ultimate outcome-filing for Chapter 11 bankruptcy in March 2025 and subsequent sale-suggests that while the asset was a Cash Cow, the overall corporate structure and consumer business were Dogs or Question Marks consuming more cash than the Cow could generate to sustain operations.

23andMe Holding Co. (ME) - BCG Matrix: Dogs

The Dogs quadrant in the Boston Consulting Group Matrix captures business units or product lines operating in low-growth markets with a low relative market share. For 23andMe Holding Co., the core elements fitting this description are the legacy hardware-centric Personal Genome Service (PGS) kit sales and, until its discontinuation, the Telehealth offering, Lemonaid Health.

These units tie up capital without generating significant returns, making them prime candidates for divestiture or minimization. The financial data from the third quarter of fiscal year 2025 clearly illustrates the cash-consuming or low-return nature of these specific product sales.

The Personal Genome Service (PGS) kit sales volume is defintely declining, reflecting a mature market where initial adoption has slowed and competition is high. This trend is directly reflected in the top-line revenue figures for the quarter ending in December 2024.

Here's a quick look at the impact on Consumer Services revenue for Q3 FY25:

The Telehealth segment, operating under Lemonaid Health, also showed weakness. You saw lower orders in Q3 FY25, continuing a trend that also affected Q1 FY25 results. This suggests the service is struggling to gain meaningful traction or market share in a highly competitive, low-growth environment for non-specialized virtual care.

The strategic decision regarding the Therapeutics segment further solidifies the company's recognition of non-core, high-investment areas that were not yielding sufficient near-term returns. 23andMe Holding Co. announced the discontinuation of development of its therapeutics division in November 2024. This move was part of a broader restructuring that included reducing the workforce by approximately 40% (over 200 employees) and aimed for annualized cost savings of more than $35 million.

The components categorized as Dogs share common characteristics:

• Personal Genome Service (PGS) kit sales volume is declining.
• Telehealth (Lemonaid Health) saw lower orders in Q1 and Q3 FY25.
• The Therapeutics segment was discontinued in November 2024.
• These are mature, competitive segments with low market share.

It is important to note that while the core kit sales are declining, the pivot to recurring revenue shows some success, as PGS membership services revenue increased by $4.6 million year-over-year in Q3 FY25. Still, the underlying hardware sales remain a drag, fitting the Dog profile.

Expensive turn-around plans are generally avoided for Dogs because the low-growth market ceiling limits potential upside. The discontinuation of the entire Therapeutics division is the ultimate divestiture action, removing a significant cash consumer. Finance: draft 13-week cash view by Friday.

23andMe Holding Co. (ME) - BCG Matrix: Question Marks

The Question Marks quadrant in the Boston Consulting Group (BCG) Matrix represents business units or products operating in a high-growth market but currently holding a low market share. For 23andMe Holding Co. as of 2025, the GLP-1 weight loss telehealth membership and the Total Health longevity service clearly fit this profile. These are new ventures leveraging existing assets-the Lemonaid Health platform and the genetic database-to enter rapidly expanding, high-potential healthcare sectors.

The GLP-1 weight loss telehealth membership, launched on the Lemonaid Health platform in Q2 FY25 (ended September 30, 2024), targets the booming market for anti-obesity medications. The US Anti-Obesity Drugs Market was valued at $1.83 billion in 2024 and is projected to reach $10.28 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 24.07%. This service, priced at $49 per month for the membership required for GLP-1 access, is a direct play in this high-growth space. Similarly, the Total Health longevity service, which combines whole exome sequencing with bi-annual lab tests for 55+ key blood biomarkers, targets the growing consumer interest in preventive, personalized medicine.

These Question Marks are inherently cash-intensive, as they require significant investment to build awareness, scale operations, and capture share from established incumbents in the competitive telehealth and longevity markets. The financial data from fiscal year 2025 reflects this cash consumption and the pressure to convert these high-potential areas into Stars.

The focus on recurring revenue streams is evident, as membership services revenue grew to represent 21% of total revenue in Q2 FY25, up from 9% in the prior year quarter. However, the overall financial picture remained strained. Total revenue for Q2 FY25 was $44 million, a 12% decrease year-over-year. Furthermore, the company's cash position deteriorated significantly, falling from $216.5 million as of March 31, 2024, to $79.4 million by December 31, 2024. This rapid cash burn signaled the need for drastic action, leading 23andMe Holding Co. to discontinue its Therapeutics business and implement a 40% reduction in force with anticipated annual savings of $35+ million.

The necessity to quickly gain market share or divest is underscored by the subsequent events in 2025, where the company explored strategic alternatives, ultimately leading to a Chapter 11 filing in March 2025 and a subsequent sale of assets to TTAM Research Institute for $305 million in June 2025. This outcome suggests the company was unable to secure the heavy investment needed to quickly transition these Question Marks into Stars.

Here's a look at the high-growth market context for these new services:

The company's strategy was clearly focused on driving adoption for these new offerings, as they represent the future of recurring revenue, but the financial reality demanded immediate cost control.

• GLP-1 membership launched in Q2 FY25 via Lemonaid Health.
• Total Health includes whole exome sequencing and 55+ key blood biomarkers tested biannually.
• These services require heavy investment to compete with incumbents.
• Cash and cash equivalents fell from $216.5 million (March 2024) to $79.4 million (December 2024).
• The company needed these to hit big; the alternative was restructuring and asset sale.

The Total Health service specifically involves multiple steps for the customer, including receiving genotyping results in 4-6 weeks and exome sequencing reports 7-12 weeks after that. The blood test results are faster, arriving 3-5 business days after the draw.