Nokia’s health tech business is in trouble — more than the company will publicly admit.

Last week, the Finnish telecoms launched a “strategic review” into the health division, stressing that no firm decision about its future had been made. But, in a company memo seen by The Verge along with screenshots of the internal work chat, Nokia’s chief strategy officer Kathrin Buvac told employees that “our digital health business has struggled to scale and meet its growth expectations.”

“Rather than only falling in love with our technology, we must be honest with ourselves,” writes Buvac. “Currently, we don’t see a path for [the digital health business] to become a meaningful part of a company as large as Nokia.”

The memo does not say definitively that Nokia is shutting down its digital health business, but it is unquestionably preparing the ground. Buvac even signs off the memo with the adage: “Failing fast isn’t failure, it is accelerated learning.” Nokia declined to comment on the note and would neither confirm nor deny its authenticity, but a spokesperson told The Verge: “We now need to see how the strategic review progresses — there is no preordained outcome.”

Got a tip for us? Use SecureDrop or Signal to securely send messages and files to The Verge without revealing your identity.

But the signs are not good. Nokia first jumped into the digital health industry in 2016 with its $190 million purchase of French startup Withings. After the purchase, Nokia adopted and rebranded a selection of Withing’s products, including the Steel and Steel HR smartwatches. The devices were praised by customers and reviewers for their elegant and stylish design, although some found their tracking functions inconsistent.

But the division had trouble, too, including a redesign of the Withings smartphone app which users panned as buggy and prone to crashing. More significantly, Nokia said last October in its quarterly financial report that it was writing down €141 million ($164 million) on the purchase of Withings, meaning it had overvalued the startup significantly. At the same time, the company announced it was stopping development of its $45,000 virtual reality camera and cutting hundreds of jobs.

Nokia still maintains a thriving telecoms and patent business worth roughly €23 billion a year. But since the company’s exit from the mobile phone market, it’s had a hard time finding a new consumer electronics foothold. (Nokia’s mobile brand lives on and is doing quite well, but the phones we call Nokia’s are definitely not.)

As Buvac states in the memo, Nokia’s ambition is now to become “a business-to-business and licensing company.” It will continue to explore new sectors by incubating startups internally, she writes, and its foray into digital health has given the company a “new perspective on the sector” as well as “opened conversations with companies and influencers.” But this has not been enough to turn a profit.

You can read the full memo below: