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TH

Teladoc Health, Inc. (TDOC)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $629.4M, at the high end of guidance and above Wall Street consensus; GAAP diluted EPS was -$0.53 due to a $59.1M goodwill impairment taken post-guidance; adjusted EBITDA was $58.1M near the high end of the range . Revenue consensus: $619.2M*; EPS consensus: -$0.358*.
  • Integrated Care outperformed, with revenue +3% YoY to $389.5M and adjusted EBITDA margin up ~30 bps YoY to 12.9% . BetterHelp revenue fell 11% YoY to $239.9M and margin compressed to 3.2% .
  • FY25 guidance was revised: adjusted EBITDA lowered to $263–$304M (from $278–$319M), free cash flow lowered to $170–$200M (from $190–$220M), and GAAP EPS range widened to (-$1.40)–(-$0.90); revenue maintained at $2.468–$2.576B .
  • Q2 2025 outlook: revenue $614–$633M, adjusted EBITDA $56–$70M, GAAP EPS (-$0.40)–(-$0.20); management flagged a potential H2 adjusted EBITDA headwind of $5–$10M from announced tariffs (depending on start dates and mitigation) .
  • Strategic catalyst: acquisition of UpLift to enable BetterHelp users to access insurance benefits, expected to add ~$10M of 2025 revenue and support a 2026 return to segment growth; near-term investments and mix shift will pressure BetterHelp margins in 2025 .

What Went Well and What Went Wrong

What Went Well

  • Integrated Care delivered revenue above its guidance range and margin expansion, supported by risk-based Chronic Care performance, FX tailwinds, and international mid-teens constant-currency growth; “we are pleased with the solid start to 2025” (CEO) .
  • U.S. Integrated Care members reached 102.5M (+12% YoY), with 7% YoY growth in U.S. virtual visits and Stable/expanding Chronic Care enrollment (+3% YoY) .
  • UpLift acquisition augments virtual mental health, bringing payer coverage over 100M lives and >1,500 providers; “we see significant business synergies… to serve a broader population” (CEO) .

What Went Wrong

  • BetterHelp revenue -11% YoY with adjusted EBITDA margin down to 3.2%; management cited macro softness and a slight churn uptick; margin guide lowered for FY25 due to UpLift and scaling costs .
  • Average monthly revenue per U.S. Integrated Care member fell 8% YoY to $1.27 amid large cohorts onboarding in general medical; GAAP net loss widened to $93.0M on the Integrated Care goodwill impairment tied to Catapult purchase accounting .
  • Health plan channel headwinds and one client transition drive a sequential decline in Chronic Care enrollment in Q2 before resuming growth in Q3; management remains cautious on tariffs (145% China rate reference) and broader macro sentiment .

Financial Results

Consolidated Quarter-over-Quarter and YoY

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$641.0 $640.5 $629.4
Diluted EPS ($USD, GAAP)-$0.19 -$0.28 -$0.53
Adjusted EBITDA ($USD Millions)$83.3 $74.8 $58.1
Adjusted EBITDA Margin (%)13.0% 11.7% 9.2%

Segment Breakdown

MetricQ3 2024Q4 2024Q1 2025
Integrated Care Revenue ($USD Millions)$384.0 $390.7 $389.5
Integrated Care Adj. EBITDA ($USD Millions)$68.0 $53.2 $50.4
Integrated Care Adj. EBITDA Margin (%)17.7% 13.6% 12.9%
BetterHelp Revenue ($USD Millions)$257.0 $249.8 $239.9
BetterHelp Adj. EBITDA ($USD Millions)$15.2 $21.7 $7.7
BetterHelp Adj. EBITDA Margin (%)5.9% 8.7% 3.2%

KPIs and Operating Metrics

KPIQ1 2024Q1 2025
Total Visits (Millions)4.59 4.44
U.S. Integrated Care Members (Millions, period-end)91.8 102.5
Chronic Care Program Enrollment (Millions, period-end)1.121 1.151
Avg. Monthly Revenue per U.S. Integrated Care Member ($)$1.38 $1.27
BetterHelp Paying Users (Millions, avg.)0.415 0.397

Results vs Wall Street Consensus (S&P Global)

MetricQ1 2025 ActualQ1 2025 ConsensusSurprise
Revenue ($USD Millions)$629.4 $619.2*Beat +$10.1*
GAAP Diluted EPS ($USD)-$0.53 -$0.358*Miss -$0.172*
Primary EPS (SPGI “Primary EPS”) ($USD)-0.219*-0.358*Beat +$0.139*

Values marked with an asterisk (*) retrieved from S&P Global.

Note: SPGI’s “Primary EPS actual” (-$0.219*) differs from the GAAP diluted EPS (-$0.53) due to non-cash items (e.g., impairment). Management disclosed a $59.1M impairment recorded after prior guidance .

Guidance Changes

MetricPeriodPrevious Guidance (Feb 26, 2025)Current Guidance (Apr 30, 2025)Change
Revenue ($USD Billions)FY 2025$2.468–$2.576 $2.468–$2.576 Maintained
Adjusted EBITDA ($USD Millions)FY 2025$278–$319 $263–$304 Lowered
GAAP EPS ($USD)FY 2025(-$1.10)–(-$0.50) (-$1.40)–(-$0.90) Lowered
Free Cash Flow ($USD Millions)FY 2025$190–$220 $170–$200 Lowered
U.S. Integrated Care Members (Millions)FY 2025101–103 101–103 Maintained
Integrated Care Revenue Growth (%)FY 20250.0–3.0 0.0–3.0 Maintained
Integrated Care Adj. EBITDA Margin (%)FY 202514.3–15.3 14.3–15.3 Maintained
BetterHelp Revenue Growth (%)FY 2025-9.75 to -3.75 -9.75 to -3.75 Maintained
BetterHelp Adj. EBITDA Margin (%)FY 20256.25–7.75 4.75–6.25 Lowered
Revenue ($USD Millions)Q2 2025N/A$614–$633 New
Adjusted EBITDA ($USD Millions)Q2 2025N/A$56–$70 New
GAAP EPS ($USD)Q2 2025N/A(-$0.40)–(-$0.20) New

Management also sized a potential $5–$10M adjusted EBITDA headwind in 2025 (largely H2) from announced tariffs, depending on timing, rates (referencing up to 145% for China), and mitigation .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Integrated Care momentumMembership grew; visit revenue strong; margin uplift from one-off billing resolution Integrated Care +2% YoY revenue; margin 13.6%; TRICARE and new bookings, but health plan headwinds Q1 above range for revenue/margin; 102.5M members; mid-teens international growth Improving operational execution
BetterHelp stabilizationFocus on balancing growth/profit; weekly pricing pilot and international spend Paying users grew sequentially; weekly pricing helped; 2025 guide cautious on macro/CAC Slight churn uptick; macro softness; UpLift to enable benefits coverage; near-term margin dilution Stabilization with strategic pivot
AI/Tech platform (Prism)Streamlining org; future investments Point-of-care tech and ecosystem integration planned Added AI-enabled clinical documentation; broadened integrations via Prism Building capabilities
Tariffs/supply chainNot highlightedPlanning for 2025 impacts Mitigation via exemptions, pricing, alternate sourcing; $5–$10M EBITDA risk Emerging headwind
Weight mgmt/GLP-1Market interest; 2025 contract adds Continued traction; program additions LillyDirect/Gifthealth GLP-1 self-pay access for Zepbound Expanding offering
Preventive care (Catapult)Agreement announced Close expected end-Feb; leverage to CCM Closed in Feb; Integrated Care fair value impairment upon acquisition Integrated, with accounting impact

Management Commentary

  • CEO: “We are pleased with the solid start to 2025… Integrated Care segment being above our ranges for both measures and BetterHelp segment results in the upper half” .
  • CEO: On UpLift synergy and consumer benefits access—“we see significant business synergies… enable us to serve a broader population” .
  • CFO: “Integrated Care segment revenue… exceeded the top end of our guidance range… margin… above our guidance… driven by flow-through from revenue upside on risk-based deals” .
  • CFO: On tariffs—“we estimate a potential $5–$10 million headwind to adjusted EBITDA in 2025, largely in the second half” .

Q&A Highlights

  • BetterHelp weekly pricing: improved conversion, but higher weekly churn; net positive on LTV; expect pricing experiments in 2025 .
  • Benefits coverage strategy: UpLift accelerates payer access vs building network from scratch; expect staged enablement over 6–12 months; conversion rates higher with coverage; initially lower gross margins offset by higher volumes .
  • Integrated Care revenue-per-member decline: mix impact from onboarding large cohorts (e.g., TRICARE); same-store revenue per member up slightly; plan to cross-sell CCM and other services over time .
  • Capital allocation: retiring 2025 converts with cash; evaluating 2027 notes and buybacks; prioritizing capability-building M&A (Catapult, UpLift) to drive sustainable growth .
  • Chronic Care enrollment cadence: Q2 sequential decline from client transition; expect growth resumption in Q3, helped by large weight management contract .

Estimates Context

  • Q1 2025 revenue beat consensus by ~$10.1M; EPS outcome depends on basis. Using GAAP diluted EPS (-$0.53), results were below consensus (-$0.358*). Using SPGI “Primary EPS actual” (-$0.219*), results were above consensus, reflecting exclusion of non-cash impairment . Revenue consensus: $619.2M*; EPS consensus: -$0.358*.
  • Q2 2025 consensus revenue $622.4M* vs company guidance $614–$633M; EPS consensus -$0.31* vs guidance (-$0.40)–(-$0.20). Values marked with an asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Integrated Care is the near-term stabilizer with membership scale, international growth, and margin discipline; watch visit activation and cross-sell into Chronic Care to lift revenue per member .
  • BetterHelp pivot to benefits coverage is the structural catalyst; expect a staged ramp, lower unit margins offset by higher conversion/usage, and a 2026 path back to growth .
  • FY25 guidance reset lowers EBITDA and FCF; H2 tariff risk ($5–$10M EBITDA) is a new uncertainty; execution on mitigation and inventory positioning will matter .
  • Q2 setup is modest with a guided adjusted EBITDA $56–$70M and sequential CCM enrollment decline; monitor Q3 re-acceleration from weight management contracts .
  • Cash-rich balance sheet (~$1.19B) and upcoming convert retirement reduce financing overhang; optionality remains for buybacks vs M&A as capabilities scale .
  • Trading lens: near-term stock reactions hinge on clarity around BetterHelp churn/retention trends, insurance-enabled conversion metrics, and evidence of Integrated Care visit monetization; any tariff relief or stronger-than-expected Q3 CCM ramp would be positive .
  • Cross-document consistency: GAAP EPS impacted by post-guidance impairment; investors should triangulate adjusted metrics and SPGI normalized EPS when assessing “beat/miss” context .

Values marked with an asterisk (*) retrieved from S&P Global.