Ontrak, Inc. (OTRK): Business Model Canvas [Dec-2025 Updated]

You're looking at the final blueprint of a company that just vanished. Ontrak, Inc.'s Business Model Canvas, as it stood before the operational shutdown on July 31, 2025, and subsequent Chapter 7 liquidation in November 2025, tells a classic story of high-tech promise meeting harsh market reality. Despite a value proposition centered on reducing medical costs for health plans using their proprietary AI-driven system and securing key partnerships like Sentara Health Plans, the model buckled, reporting only $2.0 million in Q1 2025 revenue before the end. Honestly, it's a fascinating, albeit tragic, case study in execution risk; read on to see the exact breakdown of their key resources, revenue streams, and the cost structure that ultimately proved unsustainable.

Ontrak, Inc. (OTRK) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Ontrak, Inc. relies on to deliver its AI-powered behavioral health services. These aren't just vendor agreements; they are strategic alignments that provide access to members and critical capital. Honestly, the recent financing and contract extensions show movement, but you need to watch the cash burn against the projected revenue growth.

The partnerships are the engine for Ontrak, Inc.'s market penetration, especially in the value-based care space. Here's the quick math on the key players as of late 2025:

Sentara Health Plans definitely anchors a significant piece of the business. You saw the extension for an additional three years, running through December 2027. This relationship, which has been ongoing for 7 years, now includes the Quality solution to close HEDIS gaps in care. Plus, a June 2025 expansion means approximately 11,500 new lives are anticipated to be eligible for the Engage Solution starting July 1, 2025. That could boost the Engage Outreach Pool by about 3,500-4,500 members. Remember, Sentara Health Plans provides coverage to one million members across Virginia and Florida.

Financing from Acuitas Capital LLC was a lifeline. Ontrak, Inc. secured a $10.0 million financing commitment in May 2025. What this estimate hides is the context: at that time, the company's revenue had declined by approximately 15% over the prior twelve months to $10.85 million, and the negative EBITDA was $16.99 million. The commitment is structured with up to $5.0 million in convertible notes and up to $5.0 million in non-convertible notes, with drawdowns limited to no more than $1.5 million within any 30-day period. The market cap was only $6.66 million then, so this capital is defintely key for growth initiatives.

The relationship with Intermountain Health targets the Medicare Advantage population in Nevada. Ontrak, Inc. launched its WholeHealth+ program for them, adding 2,750 Nevada Medicare Advantage members to the outreach pool immediately upon launch. The initial agreement, signed in January 2025, was expected to add approximately 2,000 members starting in mid-February 2025. Intermountain Health itself is a large system, operating 400 clinics and 34 hospitals in the western United States.

For broader market access, Ontrak, Inc. is expanding its provider status. The company announced that a new affiliated practice association secured official Medicaid provider designation in two new states in April 2025-one in the Midwest and one in the Southeast. This designation allows Ontrak, Inc. to operate as a direct value-based provider, moving beyond just its vendor role.

The model also relies on Clinical Provider Networks. These are the third-party behavioral health providers Ontrak, Inc. partners with to ensure members receive necessary treatment. This network is essential for delivering the care pathways identified by the AI and engagement technology.

Finance: draft 13-week cash view by Friday.

Ontrak, Inc. (OTRK) - Canvas Business Model: Key Activities

You're looking at the operational engine of Ontrak, Inc. as of mid-2025, right after their first quarter results dropped. The core activities revolve around using technology to find and engage members, deliver care, and maintain the necessary compliance to operate with major payors.

AI-driven member identification and engagement (Advanced Engagement System)

The Advanced Engagement System is central; it uses AI to identify members needing intervention. Ontrak, Inc. reported that total enrolled members in their programs reached 3,165 at the end of Q1 2025, which was the highest enrollment since Q4 2021. This represented nearly double the membership year-over-year. In Q1 2025 alone, they enrolled 2,039 new members, the highest quarterly new enrollment since Q3 2021. The system manages large potential pools; the callable outreach pool for Ontrak Engage was 22,152 at March 31, 2025, while WholeHealth+ was 7,319. Historically, member engagement rates in Ontrak's programs average around 40%.

The technology drives efficiency, which is critical given the financial context:

Value-based care delivery and clinical program management

The delivery of care is measured by financial performance, which showed pressure in Q1 2025. Revenue for Q1 2025 was $2.0 million, a 25% decrease year-over-year. The gross margin compressed significantly to 37% in Q1 2025, down from 61% in the prior quarter. The company reported a GAAP net loss of $(6.9) million for the first quarter of 2025. The operating loss was $(5.9) million, a 37% increase in loss year-over-year.

The revenue per member metric reflects the shift in business mix:

• Revenue per enrolled member per month (Q1 2025): Approximately $254.
• Revenue per enrolled member per month (Q4 2024): $500.
• Revenue per enrolled member per month (Q1 2024): $504.

For the immediate future, Ontrak, Inc. estimated revenue for the quarter ending June 30, 2025, to be in the range of $2.2 million to $2.6 million. The company is focused on converting pipeline opportunities that could represent approximately $15 million of additional revenue. Clinical outcomes from a 2024 rollout with Sentara Health Plans showed the Engage Solution reduced hospital readmissions by 32% and cut emergency department visits by 25%.

Care coaching and personalized care pathway development

The care pathway development is directly tied to the two main solutions. At the end of Q1 2025, the total enrolled member base was split almost evenly: 1,578 members in WholeHealth+ and 1,587 in Ontrak Engage. The Engage solution, which is lower-revenue per member, is growing faster. The personalized pathways guide members to resources like therapy or medication, addressing needs such as anxiety, depression, substance use disorders, and chronic diseases.

Maintaining NCQA Credentials Verification Organization (CVO) certification

Maintaining compliance is a key activity supporting sales to health plans. Ontrak, Inc. announced it was re-certified by the National Committee for Quality Assurance (NCQA) as a Credentials Verification Organization (CVO) for the element of license to practice in April 2025. This renewed NCQA certification will extend through April 22, 2027.

Sales and contracting with large US health plans

Sales activity in 2025 included securing financing and extending major contracts. Ontrak, Inc. secured a $10.0 million financing commitment from Acuitas Capital LLC in May 2025. The company extended its strategic partnership with Sentara Health Plans for an additional three years through December 2027. Furthermore, a new affiliated practice association secured the official Medicaid designation in two new states in April 2025, enabling Ontrak to operate as a direct value-based provider. Revenue concentration remains a factor; in 2024, Customer A accounted for 59.5% of total revenue. Current customers under contract account for approximately $14 to $16 million of annual revenue.

Ontrak, Inc. (OTRK) - Canvas Business Model: Key Resources

You're looking at the core assets Ontrak, Inc. (OTRK) relied upon to execute its value-based behavioral healthcare model leading up to its operational cessation in mid-2025. These resources were central to their engagement strategy and compliance posture.

The tangible and intangible assets underpinning the business model included proprietary technology, certified personnel, and key regulatory validations. Here's the quick math on the most concrete figures available from the first quarter of 2025 reporting period.

The technology stack was a primary differentiator. This intellectual capital was the engine driving member interaction and data analysis.

• Proprietary AI-driven Advanced Engagement System technology.
• Intellectual property related to predictive analytics and engagement, integrated with clinical and claims data.

The human capital component was essential for service delivery, especially for value-based contracts requiring direct interaction.

• Certified Care Coaches and licensed clinical staff.

Compliance and quality assurance were formalized through external validation, which was a necessary resource for contracting with major payors.

The National Committee for Quality Assurance (NCQA) Credentials Verification Organization (CVO) recertification, valid through April 22, 2027, served as a critical resource for demonstrating operational rigor in provider credentialing.

Ontrak, Inc. (OTRK) - Canvas Business Model: Value Propositions

The core value proposition for Ontrak, Inc. centered on delivering measurable financial and clinical improvements for health plan partners by engaging hard-to-reach members with chronic and comorbid conditions.

Reduced overall medical costs for health plan partners.

The model was designed to drive savings through improved member health. For a prominent health plan's Medicaid members, a study showed statistically significant cost reduction figures associated with the WholeHealth+ program. Graduates of the program showed a reduction of $721 PMPM (Per Member Per Month), while non-graduates showed a reduction of $508 PMPM. The overall mission was to help improve health and save the lives of as many people as possible, which translated directly into total cost of care reduction for payors.

Improved clinical outcomes for high-cost, comorbid members.

Ontrak, Inc. used its proprietary Advanced Engagement System to deliver personalized care coaching and customized care pathways. This was intended to help individuals with anxiety, depression, substance use disorder, and chronic disease receive necessary treatment and advocacy, overcoming systemic barriers that exacerbate their illnesses. The company's value-based approach aligned quality outcomes and HEDIS measures with shared medical cost savings.

Multi-solution approach: WholeHealth+ (comprehensive) and Ontrak Engage (à la carte).

Ontrak, Inc. offered a multi-solution structure to address different member needs and expand market reach. The WholeHealth+ solution provided comprehensive, whole-person care, while Ontrak Engage was offered as an à la carte option focusing on initial engagement. Here are the member counts as of the end of the first quarter of 2025:

The Engage solution saw significant sequential growth, increasing from 716 members at the end of Q4 2024 to 1,587 by the end of Q1 2025.

Access to medical spend budgets via the new value-based provider model.

A strategic shift in 2025 involved Ontrak, Inc. operating as a direct value-based provider. This was enabled by securing official Medicaid designation in two new states in April 2025, which provided payors with greater flexibility. This model aligned quality outcomes with shared medical cost savings and unlocked access to reimbursable fees for the company.

High member engagement rate, nearly doubling total enrolled members year-over-year.

The company's growth trajectory was validated by membership increases. The total enrolled members across Ontrak programs reached 3,165 at the end of Q1 2025, which the CEO highlighted as nearly doubling year-over-year.

• Total Enrolled Members (End of Q1 2025): 3,165.
• New Members Enrolled in Q1 2025: 2,039.
• Net Increase in Members in Q1 2025: 1,040 members.
• The Q1 2025 enrollment figure was the highest since Q4 2021.

The AI-driven Advanced Engagement System was key to this, achieving higher engagement rates than industry standards.

Ontrak, Inc. (OTRK) - Canvas Business Model: Customer Relationships

You're looking at the relationship structure Ontrak, Inc. (OTRK) maintained with its health plan partners as of mid-2025, right before operations ceased. This model was heavily reliant on deep, multi-year B2B contracts and proving clinical value through measurable savings.

Dedicated, high-touch care coaching for enrolled members

The core of the relationship involved deploying personalized care coaching, augmented by the AI-driven Advanced Engagement System. The member base, while growing, showed a mix of the higher-value WholeHealth+ program and the lower-revenue Engage Solution.

Here's the quick math on the member base as of the First Quarter of 2025:

The total enrolled membership nearly doubled year-over-year leading into Q1 2025, signaling strong initial adoption of the high-touch engagement strategy.

Strategic, long-term contracts with health plans (B2B)

Customer relationships were cemented through multi-year agreements with health plans, often covering specific lines of business like Commercial or Medicaid. These contracts defined the scope of service delivery.

• Sentara Health Plans extended its strategic partnership for an additional three years through December 2027.
• Sentara Health Plans provides coverage to one million members across Virginia and Florida.
• Approximately 11,500 new lives were anticipated to become eligible for Ontrak Engage benefits on July 1, 2025, from Sentara employer groups.
• This potential expansion could increase the Engage Outreach Pool by approximately 3,500-4,500 members.
• A 2-year strategic partnership was signed in August 2024 with a large, regional health plan in the Northeast.
• Ontrak was approved as a subcontractor for Community Care Plan (Florida Medicaid) in May 2024.
• In April 2025, Ontrak secured official Medicaid designation in two new states.

Value-based contracting model aligning financial incentives with outcomes

The financial structure aimed to tie Ontrak, Inc.'s revenue directly to the medical cost savings delivered to the payor partners. This alignment was critical for securing and expanding contracts.

Evidence of value-based success included:

• Statistically significant gross all-cause medical cost savings of $721 PMPM over 24 months for WholeHealth+ graduates in one study.
• Statistically significant gross all-cause medical cost savings of $508 PMPM over an average enrollment of 8.2 months for non-graduates in the same study.
• Previously validated savings of $485 PMPM over 24 months for Medicare and Commercial graduates.

Financially, the revenue mix was a concern; the Q1 2025 Revenue of $2.0 million represented a 25% year-over-year drop, partly due to a shift toward the lower-revenue Engage Solution. The Revenue per Enrolled Member per Month (RPEPM) was $254 in Q1 2025, down from $463 in Q2 2024. To support operations, the company secured a $10.0 million financing commitment in May 2025.

Direct sales and account management for health plan executives

Maintaining trust and compliance was a key function of account management, often validated by third-party quality benchmarks. This supported the direct sales effort to health plan executives.

• Ontrak, Inc. was re-certified by the National Committee for Quality Assurance (NCQA) as a Credentials Verification Organization (CVO) in April 2025.
• This CVO certification is valid through April 22, 2027.
• The company was actively working towards an additional NCQA accreditation in case management, targeting achievement in early 2026.

The company's board determined to cease operations on July 29, 2025, and terminate employment on July 31, 2025, citing the absence of realistic prospects to continue funding operations following a missed prospective customer opportunity that represented up to 29,000 potential lives.

Ontrak, Inc. (OTRK) - Canvas Business Model: Channels

You're looking at the channels Ontrak, Inc. (OTRK) used to reach health plans and members right before the August 2025 cessation of operations. The model relied heavily on direct sales to executives and technology integration.

Direct sales team targeting US health plan executives.

• The sales focus targeted high-cost members across Medicare Advantage, Medicaid, and Commercial populations.
• The company was actively pursuing a large Midwestern Medicaid plan contract.
• As of May 2025, existing customer contracts accounted for approximately $14 to $16 million of annual revenue.
• A key channel was the partnership with a large, regional health plan in the Northeast, covering lines of business including Medicaid and HARP in New York.

Direct value-based provider model in two Medicaid states.

Ontrak, Inc. (OTRK) operated under a value-based structure, meaning compensation was tied to achieving specific health outcomes and cost reductions for the covered population. The model flexibility allowed operation across different plan types.

The total enrolled member base nearly doubled year-over-year, reaching 3,165 at the end of Q1 2025.

Technology platform for data integration with health plan systems.

The proprietary Advanced Engagement System was the engine for identifying and prioritizing outreach to members. This system leveraged AI and predictive analytics to ingest and act upon clinical and claims data.

• The AI-driven system achieved more than double the industry-standard outreach success rate.
• The callable outreach pool for WholeHealth+ was 7,319 at March 31, 2025.
• The callable outreach pool for Ontrak Engage was 22,152 at March 31, 2025.

Digital outreach and engagement tools for members.

The digital tools facilitated the delivery of personalized care coaching and support, which was critical for engaging vulnerable populations.

• Telehealth consultations represented 85% of total interactions, based on 2023 data.
• The model demonstrated an average total medical cost reduction of 48%.
• The expected annual healthcare spending reduction per enrolled member was $6,500.

Ontrak, Inc. (OTRK) - Canvas Business Model: Customer Segments

You're looking at the customer base for Ontrak, Inc. (OTRK) as of the first quarter of 2025, which shows a significant shift in product mix and a high reliance on a few key contract types. The total enrolled member base nearly doubled year-over-year to reach 3,165 members at the end of Q1 2025, the highest enrollment since Q4 2021.

US Health Plans: Medicare Advantage, Medicaid, and Commercial lines of business.

Ontrak, Inc. (OTRK) serves health plans across Medicare Advantage, Medicaid, and Commercial lines. The Q1 2025 data shows a near-even split in membership between the two primary programs, WholeHealth+ and Engage Solution, though the revenue contribution remains skewed due to different pricing structures.

Here's the quick math on the Q1 2025 member distribution and associated revenue metric:

The overall Average Monthly Revenue Per Health Plan Enrolled Member was ~$254 in Q1 2025, a significant drop from $504 in Q1 2024. The company also secured official Medicaid designation in two new states in April 2025, enabling billing of reimbursable State-level codes under the value-based provider model.

High-cost members with comorbid behavioral and chronic physical health conditions.

The core value proposition targets the most vulnerable members, specifically those with chronic comorbidities and underlying, unaddressed behavioral health conditions. The WholeHealth+ program is explicitly designed to identify these high-cost, high-acuity members. The total callable outreach pool across both programs at the end of Q1 2025 was 39,471 members (WholeHealth+: 7,319; Engage: 22,152).

Employer-sponsored customers of health plans (via the Engage Solution).

The Ontrak Engage Solution, offered on an à la carte basis since Q2 2024, is increasingly serving employer-sponsored customers. A key example is the expansion with Sentara Health Plans.

• Sentara Health Plans provides coverage to one million members in Virginia and Florida.
• The expansion targets self-funded employer customers in Virginia.
• Approximately 11,500 new lives were expected to be eligible for benefits starting July 1, 2025.
• This expansion could increase the Engage Outreach Pool by approximately 3,500-4,500 members.

Large Midwestern Medicaid plan prospect (a key target for 2025 revenue doubling).

A large Midwest plan prospect, specifically in the government lines of business, is a critical component of Ontrak, Inc. (OTRK)'s near-term financial goals. The successful conversion of this prospect, along with other active opportunities, provides the path to doubling the run-rate revenue for 2025. The company's current customers under contract account for approximately $14 million to $16 million of annual revenue, meaning the conversion of this pipeline could add approximately $15 million in additional revenue.

Finance: draft 13-week cash view by Friday.

Ontrak, Inc. (OTRK) - Canvas Business Model: Cost Structure

The Cost Structure for Ontrak, Inc. as of late 2025 was dominated by operating expenses leading up to the cessation of operations and subsequent Chapter 7 filing.

The aggregate financial performance for the first quarter of 2025 clearly illustrates the cost burden relative to revenue:

Key drivers of the cost base included personnel and technology investment:

• Proactive hiring of member-facing employees, such as Care Coaches and clinical staff, occurred in preparation for expansions, which could cause margin decreases during those launch periods.
• Strategic investments were made in the AI-driven Advanced Engagement System to automate routine tasks and prioritize high-impact interventions.
• A workforce reduction in February 2024 eliminated approximately 21% of employee positions, resulting in an annual compensation cost reduction of approximately $2.0 million.

The final cost structure element relates to the wind-down of the business following the Chapter 7 filing on August 29, 2025:

Ontrak, Inc. (OTRK) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Ontrak, Inc.'s final operational period. Historically, the business model relied on two primary ways to bring in cash from health plans. The first was a recurring fee structure, which you can think of as Per Member Per Month (PMPM) payments tied directly to member enrollment and engagement in their programs. This was the baseline income stream.

The second, and often more lucrative part of the value-based care model, involved performance-based payments. These were payments contingent upon Ontrak, Inc. achieving specific clinical or cost outcomes for the covered lives. If the company successfully helped manage chronic conditions and reduced overall medical costs for the health plan, they earned a bonus, so to speak.

Here's a quick look at the hard numbers from the last reported full quarter before the shutdown, which gives you a clear picture of the financial reality Ontrak, Inc. was facing:

The first quarter of 2025, ending March 31, 2025, showed a significant contraction. Revenue for that period was only $2.0 million, which represented a steep 25% year-over-year decrease. This revenue pressure was partly due to a shift in the mix of services, specifically more members being on the lower-ARPU (Average Revenue Per User) Engage solution. Consequently, the Average Revenue per Enrolled Member per Month (RPM) settled at approximately $254 in Q1 2025, down considerably from figures seen in prior quarters.

To be fair, the entire revenue structure effectively went to zero as of late 2025. The board of directors determined to cease all operations and terminate all employees effective July 31, 2025. This critical decision followed the loss of a major prospective customer, which removed the primary near-term revenue opportunity and made satisfying financial covenants impossible. Finance: draft 13-week cash view by Friday.