23andMe Holding Co. (ME): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that just executed a major financial pivot in 2025, shedding its costly therapeutics division to refocus on its core consumer genetics and data engine, now serving over 15.1 million customers. Honestly, understanding the new blueprint-the Business Model Canvas-is the fastest way to map the risks and opportunities in this leaner structure. We need to see how they balance one-time kit sales against subscription growth, which already hit 21% of Q2 FY25 total revenue, to judge the new path forward. Dive below to see the nine blocks defining the post-restructuring strategy for 23andMe Holding Co.

23andMe Holding Co. (ME) - Canvas Business Model: Key Partnerships

You're looking at the structure after the major asset sale, so the nature of these relationships has shifted from a publicly traded entity to one under a nonprofit umbrella. The key partnerships now reflect how the core data asset is managed and monetized under the TTAM Research Institute.

The most significant recent event is the acquisition of substantially all assets, including the Personal Genome Service (PGS) and Research Services business lines, by TTAM Research Institute, a nonprofit public benefit corporation led by Co-Founder Anne Wojcicki. This transaction was finalized after court approval in June 2025 for a purchase price of $305 million. This move fundamentally changes the governance and financial incentives behind the data partnerships.

Here's a look at the key relationships that define the current operational landscape for the inherited business assets:

• TTAM Research Institute: New parent nonprofit owner, acquiring the business for $305 million.
• GSK (GlaxoSmithKline): Exclusive drug discovery term ended in July 2023.
• Mirador Therapeutics: Strategic research collaboration leveraging de-identified data.
• Academic Institutions: Ongoing research collaboration with the National Institutes of Health (NIH) and Johns Hopkins University School of Medicine.
• Retail/Distribution: The PGS business remains reliant on distribution channels, which contributed to 97% of Q1 Fiscal 2025 total revenue.

The legacy of the GSK collaboration provides context for the Research Services segment. While the exclusive term concluded in July 2023, a subsequent, non-exclusive data licensing deal saw GSK pay $20 million for a one-year license to insights. Historically, the partnership identified over 40 therapeutic programs. The initial 2018 deal included a $300 million equity investment from GSK, followed by a $50 million extension payment in January 2022. Research services revenue accounted for only about 3% of total revenue in Q1 Fiscal 2025, a clear reflection of the post-exclusivity structure.

The partnership with Mirador Therapeutics, announced in late 2024, shows the ongoing value of the data asset. Mirador is using the data to augment its Mirador360™ development engine, which reportedly houses over two million human molecular profiles focused on immune-mediated diseases. This type of data licensing is now central to the research services strategy under TTAM Research Institute.

The collaboration with academic bodies, such as the study with the NIH and Johns Hopkins University School of Medicine on sickle cell trait, continues to generate scientific output, supporting the mission of advancing human health knowledge. The company's ability to recruit for these studies is tied to its consumer base, which is the engine for the PGS side of the business.

Here's a quick snapshot of the financial context as of the latest reported periods in 2025, which frames the value these partnerships must support:

Metric	Value (as of late 2025)	Reference Date/Period
TTM Revenue	$175 million	As of 30-Jun-2025
Q2 Fiscal 2025 Total Revenue	$44 million	For the quarter ending September 30, 2024
Q1 Fiscal 2025 Consumer Services Revenue Share	97%	For Q1 FY2025
Q1 Fiscal 2025 Research Services Revenue Share	3%	For Q1 FY2025
Stock Price	$4.76	As of 25-Jul-2025
Market Capitalization	$131 million	As of 25-Jul-2025

The reliance on consumer sales is clear; consumer services revenue, which includes PGS kit sales, represented approximately 97% of total revenue in Q1 Fiscal 2025. The research services segment, where data partnerships like Mirador sit, was only 3% of that total. The company's ability to extend its cash runway defintely depends on maintaining the health of the PGS distribution network.

23andMe Holding Co. (ME) - Canvas Business Model: Key Activities

You're looking at the core engine of 23andMe Holding Co. (ME) as it navigated a massive shift through 2025. The key activities revolve around managing that massive genetic dataset and pivoting the consumer offering toward recurring health services, especially after the March 2025 bankruptcy filing and subsequent acquisition by TTAM Research Institute in June 2025.

The foundational activity remains the high-throughput laboratory work. This involves the complex processing and analyzing of saliva-based DNA samples. While the consumer revenue stream saw a dip, with Consumer Services Revenue at $39.6 million in Q3 of Fiscal Year 2025 (ending December 31, 2024), the underlying infrastructure for sample analysis is what feeds the entire ecosystem.

A major focus is the continuous development of new insights for the membership tier. Members now have access to over 30 genetic Polygenic Risk Score (PRS) reports, with new ones like Emotional Eating being added in Q2 FY2025. Furthermore, the Ancestry Composition feature saw its most significant update ever, Version 7, announced in September 2025, promising nearly four times the resolution in Europe and six new populations in the Americas, all thanks to the consented research participants.

Maintaining and expanding the proprietary genetic database is critical, even post-acquisition. This database, which the prompt specifies as being over 15.1 million customers, is the primary asset leveraged for research. This data pool is what allows for the development of those PRS reports and attracts research partners, though the ownership structure changed when TTAM Research Institute acquired the assets for $305 million in mid-2025.

Operating the Lemonaid Health telehealth platform became an increasingly central activity, especially with the strategic pivot away from the Therapeutics business. The launch of the GLP-1 weight loss telehealth membership occurred around the end of August 2024. This service offers access to semaglutide medications, with a reported $49 monthly membership fee for clinician consultations, plus medication costs starting around an additional $299 per month for compounded versions, as of late 2024. To be fair, Telehealth revenue saw a $1.5 million decrease in Q3 FY25, but the strategic importance of this recurring revenue stream is clear.

Finally, conducting large-scale genetic research for biopharma partners remains a key activity, though its financial contribution fluctuated. Research services revenue was only about 3% of total Q1 FY2025 revenue, amounting to $1.2 million. However, a significant non-recurring research services revenue of $19.3 million was recognized in Q3 FY2025 related to the finalization of the 2023 GSK Amendment. A current, large-scale research effort involves launching a study to identify genetic mechanisms for GLP-1 efficacy, aiming to enroll 10,000 participants.

Here's a quick look at the financial context surrounding these activities as of the end of 2024, before the major 2025 restructuring:

Metric	Value (as of Q3 FY2025 / Dec 31, 2024)	Context
Total Revenue	$60.3 million	Q3 FY2025 Total Revenue
Consumer Services Revenue	$39.6 million	Q3 FY2025 Revenue, includes PGS and Telehealth
Membership Services Revenue Growth	$4.6 million	Increase in Q3 FY2025 over prior year quarter
Research Services Revenue Recognized	$19.3 million	Non-recurring revenue from 2023 GSK Amendment in Q3 FY2025
Cash and Cash Equivalents	$79.4 million	Balance as of December 31, 2024
Lemonaid Health Acquisition Cost	$400 million	Acquisition cost in 2021

The operational focus areas driving value, particularly for the membership tier, include:

• Processing and analyzing saliva samples via genotyping.
• Launching new genetic reports for 23andMe+ members.
• Operating the GLP-1 weight loss telehealth service.
• Securing research collaborations leveraging the database.
• Refining the core Ancestry Composition algorithm (Version 7).

What this estimate hides is the immediate liquidity crunch; the company ended 2024 with $79.4 million in cash and needed to raise additional liquidity to fund operations, leading directly to the March 2025 bankruptcy filing.

Finance: draft 13-week cash view by Friday.

23andMe Holding Co. (ME) - Canvas Business Model: Key Resources

You're looking at the core assets that 23andMe Holding Co. (ME) relies on to operate and pursue its strategy in late 2025. These aren't just line items; they are the engine for both the consumer and the research/drug development arms of the business, even after recent restructuring.

The most significant resource is definitely the data itself, which fuels everything else.

• Proprietary genetic database with over 11 million consented participants.
• Lemonaid Health telehealth platform and network of clinicians.
• FDA authorizations for specific genetic health risk and pharmacogenetic reports.
• Intellectual property (IP) related to genetic analysis and drug targets.
• Cash and cash equivalents of $79.4 million as of December 31, 2024.

Let's break down the financial and scale components, because that's where the near-term reality check is.

The balance sheet position as of the end of the last reported fiscal year shows the immediate runway. You need to know this number because it dictates the urgency of capital raising efforts.

Financial Metric	Amount	Date
Cash and Cash Equivalents	$79.4 million	December 31, 2024
Debt	$0	December 31, 2024

The database size is the foundation of the research value proposition. While the company has faced challenges and some users have opted out, the sheer scale remains a critical asset for generating new insights and potential licensing revenue.

The FDA authorizations are a massive competitive moat, especially in the consumer health space. These regulatory clearances validate the scientific rigor behind specific reports, which is not something a new entrant can easily replicate.

Here are the key regulatory milestones that underpin the Health segment:

• Authorization for direct-to-consumer Pharmacogenetic Reports, which inform medication metabolism discussions.
• Clearance for Genetic Health Risk Reports, including those for Late-Onset Alzheimer's Disease, Parkinson's Disease, and Hereditary Thrombophilia.
• Authorization for reporting on specific cancer risk variants, such as those in the BRCA1 and BRCA2 genes.

The Lemonaid Health acquisition was strategic, designed to bridge the gap between genetic insight and clinical action. It provides the infrastructure for the genomic health service pivot.

The Lemonaid Health platform itself is key because it offers:

• Direct online access to medical care nationally across the U.S.
• Consultation and treatment for common conditions, including via a GLP-1 weight loss telehealth membership launched in Q3 FY25.
• The ability to integrate genetic information directly into care plans, using licensed doctors and nurse practitioners.

Finally, the Intellectual Property is the latent value, even after the decision to discontinue the dedicated Therapeutics business. The company retained royalty rights on certain GSK partnered programs, meaning the IP generated from the initial research collaboration remains a potential future revenue stream.

Finance: draft 13-week cash view by Friday.

23andMe Holding Co. (ME) - Canvas Business Model: Value Propositions

Personalized health and ancestry insights from a single saliva test remain the core value proposition for 23andMe Holding Co. The company provides reports based on genotyping, which includes Ancestry Composition, Ancestry Detail Reports, Maternal & Paternal Haplogroups, and Neanderthal Ancestry. The service is the first and only direct-to-consumer DNA service with multiple health reports that have received FDA clearance.

The shift toward recurring revenue is a key part of the current model. In the second quarter of fiscal year 2025, subscription revenue accounted for 21% of total revenue, more than double the 9% recorded in the prior-year quarter. This recurring stream is driven by the 23andMe+ tiers, which offer ongoing reports and features.

Membership Tier	Key Features/Reports	Renewal Price (Annual)
23andMe+ Premium	100+ genetic insights, Health action tools, Advanced Ancestry insights	$69/yr
23andMe+ Total Health	Exome sequencing, Biannual blood testing (55+ biomarkers), Clinician access, Biological Age tracking	$499/yr

Telehealth access is expanding to offer genetics-informed preventive care. 23andMe Holding Co. announced the initiation of a large-scale genetic research study to pinpoint the genetic factors driving the efficacy and side effects of GLP-1 medications. Furthermore, the company planned to launch a GLP-1 weight loss telehealth membership on the Lemonaid Health platform by the end of the month following Q1 FY25 results, enabling members to receive prescriptions for brand-name or compounded semaglutide medications.

The unparalleled scale of genetic data is the backbone for biopharma drug target identification, even after the end of the exclusive collaboration term with GlaxoSmithKline (GSK) in July 2023. The company's research platform is built on the genetic data of over 15 million genotyped individuals. This massive dataset is considered a 'gold mine' for identifying genetic associations with diseases and traits, supporting drug discovery efforts.

Democratizing access to genetic information is supported by the sheer volume of users and the depth of reporting available. The database holds the genetic data of 15 million people. The Total Health offering enhances this by including exome sequencing, which analyzes a portion of DNA to detect 200x more disease-causing variants compared to standard genotyping.

• The company's Q3 FY25 Consumer Services Revenue was $39.6 million.
• PGS membership services revenue grew by $4.6 million in Q3 FY25 compared to the prior year quarter.
• Total Health members receive analysis of 55+ blood biomarkers.
• Members have access to over 30 genetic Polygenic Risk Score (PRS) reports.

Finance: draft 13-week cash view by Friday.

23andMe Holding Co. (ME) - Canvas Business Model: Customer Relationships

The relationship with the consumer base for 23andMe Holding Co. centers on a mix of automated digital interaction, recurring membership value, and high-touch research collaboration.

Automated, self-service platform for initial kit purchase and results delivery.

The initial customer acquisition relies on the direct-to-consumer model, though Consumer Services Revenue saw a decrease, with revenue of $39.6 million in Q3 of FY25 compared to $42.9 million in Q3 of FY24. This decrease was driven by a $6.4 million drop in PGS revenue due to lower kit sales volume and lower average selling prices for kits. As of March 31, 2024, 23andMe Holding Co. had approximately 15.1 million customers. Following the 2023 cyber incident, the class action settlement alleged exposure of personal and genetic information for about 6.4 million U.S. customers.

Subscription-based, continuous engagement for 23andMe+ Premium and Total Health members.

23andMe Holding Co. is actively prioritizing recurring revenue streams to stabilize the business model, which historically relied on one-time kit purchases. Membership services revenue growth is a key focus area, having more than doubled from the prior year quarter in Q2 FY25.

Metric	Value/Period	Context/Date
Membership Services Revenue Share of Total Revenue	21%	Q2 Fiscal Year 2025 (FY25 Q2)
Membership Services Revenue Share of Total Revenue (Prior Year)	9%	Q2 Fiscal Year 2024 (FY24 Q2)
Growth in PGS Membership Services Revenue	$4.6 million	Q3 FY25 vs. Q3 FY24
Total Health Key Biomarkers	55+	Bi-annual lab tests included
Available Genetic Polygenic Risk Score (PRS) Reports	Over 30	For 23andMe+ members

The Total Health offering now includes a Biological Age feature for members to monitor physiological aging over time.

Dedicated Customer Care Team for support and inquiries.

Customer support interactions are necessary, especially given past events affecting trust. Anecdotal customer feedback from early 2025 suggested that calling the customer service line resulted in repeating prompts, though the chat function was reported as 'ok' even with a queue of 41 people. The company is also managing claims related to the 2023 data breach, with a total settlement fund of $50,000,000.

AI chatbot DaNA for easier interpretation of health results.

23andMe Holding Co. launched its first AI chatbot, named "DaNA," to help customers more easily identify key health and other important results from their genetic data.

High-touch, B2B relationship management for research and biopharma partners.

The research partnership business remains a focus, though its revenue contribution is currently small following the conclusion of the GSK collaboration exclusivity term in July 2023. Research services revenue accounted for approximately 3% of total revenue for FY25 Q1. In Q3 FY25, 23andMe Holding Co. recognized $19.3 million of non-recurring research services revenue related to the 2023 GSK Amendment. The company also launched a GLP-1 weight loss telehealth membership on the Lemonaid Health platform, enabling prescription of semaglutide medications.

• The company implemented a 40% reduction in force with anticipated cost savings of more than $35 million annually.
• The company announced a collaboration with Nightingale Health to pilot a metabolomics blood biomarker panel with a cohort of 23andMe+ members.

Finance: draft 13-week cash view by Friday.

23andMe Holding Co. (ME) - Canvas Business Model: Channels

You're looking at the channels for 23andMe Holding Co. (ME) as the company navigated a Chapter 11 bankruptcy filing in March 2025 and subsequent asset acquisition by TTAM Research Institute in July 2025. The channels reflect a business model under severe transition, focusing on recurring revenue streams while core transactional sales declined.

Direct-to-Consumer (DTC) e-commerce via the 23andMe website

The primary historical channel for Personal Genome Service (PGS) kit sales and subscription services remains the 23andMe website. However, the financial performance shows strain on this direct channel.

For the third quarter of fiscal year 2025 (FY25 Q3), which ended December 31, 2024, Consumer Services Revenue-which includes PGS kits and membership services-was $39.6 million, marking an 8% decrease compared to the prior year quarter's $42.9 million. This decline was specifically attributed to lower kit sales volume and lower average selling prices for the PGS product line.

The strategic pivot focused on recurring revenue is evident here:

• Membership services revenue growth partially offset the decline in transactional PGS revenue.
• Membership services revenue represented 21% of total revenue in Q2 FY25.
• This was a significant increase from representing only 9% of total revenue in the prior year quarter (Q2 FY24).

As of September 30, 2024, 23andMe had accumulated approximately 15.1 million customers across all services.

Retail stores (physical and online) for PGS kit sales

While the DTC website is central, retail presence supports broader market penetration. The performance across geographic markets, which utilize these channels, showed divergence in late 2024.

Geographic revenue performance for the three months ended December 31, 2024, highlights channel effectiveness outside the core US DTC site:

Region	Revenue Change (YoY)	Context
United Kingdom	Increase of 903.23%	Significant market expansion or one-time event.
Canada	Decrease of approximately 32.91%	Underperformance in that specific retail/online market.

The United States remains the major market, holding approximately 55% of the US consumer genomics market share in 2025.

Lemonaid Health mobile app and web platform for telehealth services

The Lemonaid Health platform served as a key channel for telehealth services, including the launch of a GLP-1 weight loss membership in late 2024. However, the channel's future was curtailed following the bankruptcy proceedings.

The service was explicitly noted as not part of the sale to Regeneron Pharmaceuticals in May 2025, and 23andMe stated it would be wound down. Telehealth revenue specifically saw a decrease of $1.5 million in FY25 Q3 compared to the prior year quarter.

Scientific conferences (e.g., NeurIPS 2025) for research dissemination and partner acquisition

This channel is less about direct sales and more about B2B/Research Services engagement, crucial for leveraging the genetic database post-GSK collaboration. While specific 2025 conference attendance numbers aren't public, the research dissemination efforts continued into late 2025 under the new ownership structure.

Research dissemination activities reported in late 2024/early 2025 included:

• Presenting posters for therapeutics programs 23ME-00610 and 23ME-01473 at the American Association for Cancer Research (AACR) annual meeting.
• Publishing a large genetic study on sickle cell trait in collaboration with the National Institutes of Health and Johns Hopkins University School of Medicine.
• Launching a large-scale lung cancer study aiming to enroll 10,000 patients, having already enrolled more than 1,000 as of late 2024.
• The research institute later released data on over 250+ High-Resolution African Genetic Groups in November 2025.

Research services revenue was minimal, accounting for approximately 3% of total revenue in Q1 FY25.

23andMe Holding Co. (ME) - Canvas Business Model: Customer Segments

You're looking at the core groups 23andMe Holding Co. (ME) targets to generate revenue and data assets in late 2025. The customer base is definitely split between direct consumers and institutional partners.

Direct-to-Consumer (DTC) individuals, typically aged 35-65, interested in ancestry and health.

The Personal Genome Service (PGS) kit sales remain a primary driver, though facing headwinds. Consumer services, which bundle PGS, telehealth, and membership, represented approximately 97% of total revenue in Q1 Fiscal Year 2025 (ending June 30, 2024). However, Q3 Fiscal Year 2025 (ending December 31, 2024) saw Consumer Services Revenue at $39.6 million, an 8% lower figure compared to the prior year quarter. This decline was driven by a $6.4 million decrease in PGS revenue due to lower kit sales volumes and lower average selling prices. Geographically, the United States accounts for approximately 55% of the direct-to-consumer genetic testing market share in 2025, while North America holds a 46.7% share of the global consumer genomics market for the same year. The company has faced significant retention challenges, with many customers purchasing the kit only once.

The company's customer base is also segmented by their engagement level, moving toward recurring revenue:

• Access to over 30 genetic Polygenic Risk Score (PRS) reports is available to members.
• Membership services revenue grew by $4.6 million in Q3 FY25 compared to the prior year period.
• Membership services represented 21% of total revenue in Q2 FY25, up from 9% in the prior year quarter.
• The 23andMe+ Premium annual membership price was reported at $69.
• The Total Health offering includes exome sequencing and biannual blood testing.

Biopharmaceutical companies and research institutions seeking genetic data for R&D.

This segment, categorized as Research Services revenue, accounted for only about 3% of total revenue for Q1 FY25. The prior year's revenue was significantly impacted by the conclusion of the exclusive collaboration term with GSK in July 2023. Under a 2023 amendment, GSK paid $20 million for a one-year license to the database insights. The initial high-profile partnership with GSK involved a $300 million equity investment. However, as of Q3 FY25 reporting, 23andMe Holding Co. discontinued its Therapeutics business to reduce expenses.

Here's a quick look at the financial context surrounding the research segment:

Metric	Value (Q1 FY25 Ending 6/30/2024)	Value (Q3 FY25 Ending 12/31/2024)
Total Revenue	$40 million	$60.3 million
Research Services Revenue Share	Approximately 3%	Non-recurring revenue recognized: $19.3 million
Cash and Cash Equivalents	$170 million (as of 6/30/2024)	$79.4 million (as of 12/31/2024)

Telehealth users seeking convenient, genetics-informed medical care, defintely for weight loss.

The Lemonaid Health platform supports the Telehealth offering within the Consumer & Research Services segment. Telehealth orders contributed to lower consumer revenue in Q1 FY25. Specifically, Telehealth revenue saw a $1.5 million decrease in Q3 FY25 compared to the prior year quarter. The company announced plans to launch a GLP-1 weight loss telehealth membership on the Lemonaid Health platform by the end of August 2024, allowing members to be prescribed semaglutide medications.

23andMe Holding Co. (ME) - Canvas Business Model: Cost Structure

You're looking at the hard costs 23andMe Holding Co. (ME) is managing as it pivots its focus. The cost structure reflects a significant shift away from high-risk, high-cost ventures toward core consumer services and data monetization.

High Cost of Revenue for PGS Kits (Lab Processing, Materials, Shipping)

The core Personal Genome Service (PGS) kit business carries inherent variable costs tied directly to volume. While specific Cost of Goods Sold (COGS) for kits isn't explicitly broken out in the latest reports, the impact on revenue is clear. For the third quarter of Fiscal Year 2025 (FY25 Q3), Consumer Services Revenue, which includes PGS, Telehealth, and membership, was 39.6 million USD, an 8% decline year-over-year. This decline was driven by a 6.4 million USD decrease in PGS revenue alone, attributed to lower kit sales volume and lower average selling prices. This shows that the cost to produce, process, and ship these kits directly pressures the gross profit margin when sales volume drops.

Significant Reduction in Research and Development (R&D) Expenses After Discontinuing Therapeutics

The decision to discontinue the Therapeutics division was a major cost-cutting measure. This move was intended to reduce expenses significantly, especially R&D spend previously associated with drug development. For FY25 Q3, the net loss from discontinued operations (Therapeutics) was 18.8 million USD. This was partially offset by lower personnel-related expenses and a significantly reduced lab-related R&D spend. The shift meant opting for a royalty structure on certain GSK partnered programs, leading to a significant reduction in collaboration expenses compared to prior periods.

Operating Expenses Reduced by a 40% Workforce Reduction

The company aggressively streamlined its overhead. 23andMe Holding Co. implemented a 40% reduction in force, cutting about 200 positions. This restructuring was designed to achieve annualized cost savings of more than 35 million USD annually. The impact on reported operating expenses is stark when comparing recent quarters to the prior year. Operating expenses for FY25 Q3 were 68.2 million USD, a massive drop from 282.6 million USD in the same period the prior year. Even looking at Q2 FY25, operating expenses were 84 million USD, down from 101 million USD the prior year. These personnel-related savings, including non-cash stock-based compensation expenses, were the primary driver for the reduction. However, this came with one-time costs, with the company expecting to incur approximately 12 million USD primarily related to severance and termination costs.

Legal and Settlement Costs Related to the 2023 Data Security Incident

The fallout from the 2023 data security incident created a material liability. The total proposed U.S. class-action settlement fund was increased to 50 million USD, up from an initial 30 million USD. This 50 million USD settlement received preliminary approval from a Missouri bankruptcy court on September 5, 2025. Separately, a proposed Canadian class-action settlement was reported at approximately 4.49 million CAD, or 3.25 million USD before legal fees.

Marketing and Sales Expenses to Drive Consumer Kit Sales and Subscription Growth

While marketing spend was reduced in Fiscal Year 2024 to boost margin, the current focus is on driving higher-margin recurring revenue. Membership services revenue growth is a key counterpoint to falling kit sales. In FY25 Q2, membership services revenue increased, representing 21% of total revenue, up from 9% in the prior year quarter. This indicates a strategic shift in spending priorities toward customer retention and subscription value rather than purely top-of-funnel kit acquisition, though marketing spend remains a component of operating expenses.

Here's a quick look at the key cost structure movements for recent quarters:

Metric	FY25 Q1 Value (USD)	FY25 Q2 Value (USD)	FY25 Q3 Value (USD)
Operating Expenses	92 million	84 million	68.2 million
Prior Year Operating Expenses	140 million	101 million	282.6 million
Annualized Cost Savings from Workforce Reduction	More than 35 million
One-Time Restructuring Costs	Approximately 12 million

23andMe Holding Co. (ME) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for 23andMe Holding Co. (ME) as of late 2025, focusing on the most recent reported figures from fiscal year 2025. The business model is clearly shifting focus toward more predictable, higher-margin recurring revenue, though one-time research milestones still provide significant boosts.

The Personal Genome Service (PGS) kit sales remain a core, albeit volatile, component, representing the one-time revenue stream from new customer acquisition. For the third quarter of fiscal year 2025 (FY25 Q3), which ended December 31, 2024, the revenue from PGS itself saw a decline. Specifically, PGS revenue dropped by $6.4 million compared to the prior year quarter, driven by lower kit sales volume and lower average selling prices for the kits.

The pivot to recurring revenue is evident in the subscription segment. Subscription revenue from 23andMe+ membership services showed strong growth momentum. In the second quarter of fiscal year 2025 (FY25 Q2), membership services revenue grew to represent 21% of total revenue, up from 9% in the prior year quarter. This focus continued into Q3 FY25, where PGS membership services revenue grew by $4.6 million year-over-year, partially offsetting the decline in one-time PGS sales and Telehealth.

Research services revenue is characterized by large, non-recurring milestone payments, though the company has since restructured its Therapeutics arm. For FY25 Q3, 23andMe recognized $19.3 million of non-recurring research services revenue pursuant to the 2023 GSK Amendment. This amount represented substantially all remaining revenue associated with that amendment, and the cash for this was actually received in Q3 FY24. The company has since discontinued its Therapeutics business to reduce expenses, opting instead for a royalty structure on partnered drug programs.

Telehealth service fees via the Lemonaid Health platform also contribute to consumer services revenue, but this stream also faced headwinds. In FY25 Q3, Telehealth revenue saw a decrease of $1.5 million compared to the prior year quarter due to lower orders. The company had announced plans to launch a GLP-1 weight loss telehealth membership on the Lemonaid Health platform by the end of Q1 FY25.

Here's a quick look at the key revenue components from the Q3 FY25 results, showing the impact of the non-recurring research event:

Revenue Stream Category	FY25 Q3 Amount (USD)	Year-over-Year Change/Note
Total Revenue	$60.3 million	Up 35% YoY (driven by non-recurring event)
Consumer Services Revenue (Total)	$39.6 million	Down 8% YoY
PGS Membership Services Revenue Growth	$4.6 million	Increase YoY
Non-Recurring Research Services Revenue (GSK)	$19.3 million	Recognized in Q3 FY25
PGS Revenue Change (Component of Consumer)	Decrease of $6.4 million	Due to lower kit sales/ASPs
Telehealth Revenue Change (Component of Consumer)	Decrease of $1.5 million	Due to lower orders

The company's strategy emphasizes the shift to recurring revenue streams, as evidenced by the growth in membership services, even as the one-time kit sales and research milestones fluctuate. The structure now relies on:

• Personal Genome Service (PGS) kit sales (one-time revenue).
• Subscription revenue from 23andMe+ membership services, which hit 21% of total revenue in Q2 FY25.
• Research services revenue from biopharma partnerships, including the $19.3 million non-recurring recognition in Q3 FY25.
• Telehealth service fees via the Lemonaid Health platform.
• Royalty payments from partnered drug programs (post-restructuring).

Finance: draft 13-week cash view by Friday.