Executive Summary

Q2 2025 revenue was $631.9M (down 2% YoY) and adjusted EBITDA was $69.3M; both landed near the high end of guidance, while GAAP net loss per share was $0.19 .
Versus Wall Street consensus, TDOC delivered a revenue beat ($631.9M vs $622.4M*) and an EPS beat (Primary EPS -0.15 vs -0.31*); adjusted EBITDA was slightly above consensus ($69.3M vs $63.5M*) .
Guidance was narrowed/updated: FY25 revenue raised to $2.501–$2.548B, Integrated Care revenue growth midpoint increased, while BetterHelp outlook was lowered; Q3 guidance set at revenue $614–$636M and adjusted EBITDA $56–$70M .
Strategic catalysts: growing international Integrated Care, early progress in BetterHelp insurance rollout (soft launch in one state), and enhanced flexibility via a new $300M revolver; TDOC retired ~$551M of 2025 converts from cash on hand .

What Went Well and What Went Wrong

What Went Well
- Revenue and adjusted EBITDA at the high end of guidance; management highlighted “disciplined execution” and strategic progress .
- Integrated Care revenue grew 4% YoY to $391.5M with adjusted EBITDA margin 14.7%; international Integrated Care delivered mid-teens growth (constant currency) and FX tailwinds .
- BetterHelp insurance initiative advanced: soft launch in one state, 2,000+ therapist credentialing in process, +15M covered lives added to Uplift’s >100M base; expectation for 2026 contribution .
What Went Wrong
- BetterHelp remained under pressure: segment revenue down 9% YoY, adjusted EBITDA margin compressed to 4.9% amid U.S. cash-pay headwinds, higher acquisition costs, and elevated churn .
- Consolidated adjusted EBITDA fell 23% YoY (to $69.3M) as prior-year tailwinds rolled off and BetterHelp investments increased; consolidated margin was ~11% .
- Chronic Care program enrollment declined sequentially due to a previously disclosed contract loss; management expects sequential improvement in Q3, aided by Weight Management .

Financial Results

Quarterly financials (consolidated):

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$640.5	$629.4	$631.9
Net Loss per Share (GAAP)	$(0.28)	$(0.53)	$(0.19)
Adjusted EBITDA ($USD Millions)	$74.8	$58.1	$69.3
Adjusted EBITDA Margin %	11.7%	9.2%	~11.0%

Q2 vs estimates (S&P Global):

Metric	Consensus	Actual	Surprise
Revenue ($USD Millions)	$622.4*	$631.9	+$9.5*
Primary EPS ($USD)	-0.31*	-0.15*	+$0.16*
Adjusted EBITDA ($USD Millions)	$63.5*	$69.3	+$5.8*

Segment performance (quarterly):

Segment Metric	Q4 2024	Q1 2025	Q2 2025
Integrated Care Revenue ($USD Millions)	$390.7	$389.5	$391.5
Integrated Care Adjusted EBITDA ($USD Millions)	$53.2	$50.4	$57.5
Integrated Care Adjusted EBITDA Margin %	13.6%	12.9%	14.7%
BetterHelp Revenue ($USD Millions)	$249.8	$239.9	$240.4
BetterHelp Adjusted EBITDA ($USD Millions)	$21.7	$7.7	$11.9
BetterHelp Adjusted EBITDA Margin %	8.7%	3.2%	4.9%

Key operating metrics:

KPI	Q4 2024	Q1 2025	Q2 2025
Total Visits (Millions)	4.4	4.44	4.1
U.S. Integrated Care Members (Millions)	93.8	102.5	102.4
Chronic Care Program Enrollment (Millions)	1.203	1.151	1.117
Avg Monthly Revenue per U.S. IC Member ($)	$1.39	$1.27	$1.27
BetterHelp Paying Users (Millions)	0.400	0.397	0.388

Cash flow and balance sheet highlights:

Free cash flow was $61.2M in Q2; cash from operations $91.4M; Capex $30.2M .
Cash and equivalents ended at $679.6M after retiring ~$550.6M of converts; net debt/EBITDA ~1.1x (management disclosure) .
New $300M five-year senior secured revolving credit facility signed July 17, 2025; no current borrowings .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$2.468–$2.576B	$2.501–$2.548B	Raised (midpoint ↑)
Adjusted EBITDA	FY 2025	$263–$304M	$263–$294M	Narrowed/Lowered (midpoint ↓)
Net loss per share	FY 2025	($1.40)–($0.90)	($1.35)–($1.00)	Narrowed
Free Cash Flow	FY 2025	$170–$200M	$170–$200M	Maintained
U.S. Integrated Care Members	FY 2025	101–103M	101–103M	Maintained
Integrated Care Revenue Growth YoY	FY 2025	0.0%–3.0%	1.75%–3.25%	Raised/Narrowed
Integrated Care Adj. EBITDA Margin	FY 2025	14.3%–15.3%	14.5%–15.25%	Slightly raised midpoint
BetterHelp Revenue Growth YoY	FY 2025	(9.75%)–(3.75%)	(9.20%)–(6.80%)	Lowered (midpoint ↓)
BetterHelp Adj. EBITDA Margin	FY 2025	4.75%–6.25%	4.0%–5.5%	Lowered
Revenue	Q3 2025	—	$614–$636M	New
Adjusted EBITDA	Q3 2025	—	$56–$70M	New
Net loss per share	Q3 2025	—	($0.35)–($0.20)	New

Management also embedded an estimated ~$3M FY25 adjusted EBITDA headwind from tariffs (partial-year impact), now included in guidance ranges .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 / Q1’25)	Current Period (Q2’25)	Trend
AI/Technology initiatives	Enhanced Prism platform; AI-enabled clinical documentation; hospital devices; tech spend discipline	Launched AI-enabled virtual sitter integrated into proprietary tech for hospital clients	Expanding AI-enabled offerings
Tariffs/Macro	Preliminary view: potential $5–$10M FY25 EBITDA headwind; mitigation via exemptions/alt sourcing	Now estimate ~$3M FY25 EBITDA headwind included in guidance; continuing supply chain diversification	Impact quantified and integrated
BetterHelp insurance strategy	UpLift acquired; plan to unify funnel; ~$10M 2025 insurance revenue; larger 2026 contribution	Soft launch in one state; 2,000+ therapists in credentialing; +15M covered lives added; margin lower than cash-pay but higher conversion expected	Methodical ramp; infrastructure build
Product performance (Integrated Care)	International mid-teens CC growth; Catapult added ~90 bps to Q1 growth	International mid-teens growth (CC); Catapult added ~240 bps to Q2 IC growth; mental health visits +13% YoY in U.S. IC	Strong international; IC momentum
Regional trends	UK/Canada B2B and public health traction; province expansion in Canada	Continued Canada province expansion; hybrid models supporting rural EDs; international now >15% of revenue	Broadening geographic footprint
Chronic Care/R&D execution	Next-gen cardiometabolic program; LillyDirect relationship for GLP-1 self-pay; enrollment up YoY	Chronic Care enrollment down sequentially from contract loss; expecting Q3 sequential growth; program enhancements continue	Near-term dip; aiming for recovery
Health features/Wellbound EAP	—	Launched Wellbound EAP; integrates BetterHelp therapy, Teladoc psychiatry/primary care; available to sponsors now, user access Jan 2026	New EAP offering for enterprise

Management Commentary

CEO on execution and strategy: “I’m pleased with our performance in the second quarter, with consolidated revenue and adjusted EBITDA both at the higher end of our guidance ranges… We intend to build on our leadership position by delivering and orchestrating care across patients, providers, platforms, and partners” .
CFO on segment dynamics: Integrated Care “exceeded the high end of our guidance range” with mid-teens international growth; BetterHelp faced “headwinds in the underlying U.S. cash pay business” and higher CAC; insurance and international initiatives are encouraging .
CEO on BetterHelp insurance rollout: Not just state-by-state; building supply (credentialed therapists) to activate multiple markets; preserving BetterHelp’s user experience .
CFO on margins: Insurance gross margins will be lower than cash pay, but higher conversion and session count should lift gross profit dollars over time .
CFO on capital structure: Retired $551M converts; $1B 2027 converts remain; net debt/EBITDA ~1.1x; entered $300M revolver for flexibility .

Q&A Highlights

Transition to visit-based model: Majority of virtual care revenue now visit-based; mental health ~70% visit-based; underlying visit growth should translate to revenue over time .
BetterHelp insurance economics and rollout: Insurance margins below cash-pay, but conversion expected to improve; rigorous supply build and payer contracting underway; broader market activation planned post soft launch .
Chronic Care competitiveness: Highly competitive market; TDOC leaning into clinical capabilities and holistic cardiometabolic program to drive outcomes and client value .
Tariffs mitigation: ~$3M adjusted EBITDA headwind embedded; diversifying sourcing to reduce future impacts .
Capital allocation: Flexibility to invest organically/inorganically, consider 2027 notes and potential buybacks; focus remains on strategic capability build (e.g., Catapult, UpLift) .

Estimates Context

Q2 2025: Revenue beat ($631.9M vs $622.4M*), Primary EPS beat (-0.15 vs -0.31*), adjusted EBITDA above consensus ($69.3M vs $63.5M*) as Integrated Care outperformed and BetterHelp stabilized sequentially .
Forward: Street sees Q3 2025 revenue ~$626.3M* and Primary EPS ~-0.31*, broadly consistent with company guidance; Q4 2025 revenue ~$635.1M* [GetEstimates].
Implications: Consensus likely to adjust segment mix assumptions—raise Integrated Care trajectory modestly, reflect lower BetterHelp cash-pay and phased insurance ramp.
Note: Values retrieved from S&P Global.*

Key Takeaways for Investors

Integrated Care is driving the story: resilient growth, margin discipline, international tailwinds, and Catapult contribution; FY25 IC guidance raised (midpoint) .
BetterHelp transition is key medium-term swing factor: near-term pressure from U.S. cash-pay headwinds, but insurance rollout and international localization can restore growth into 2026 .
Profitability levers exist despite tariff headwinds: cost controls (tech/G&A/SBC), pricing/actions, and supply chain diversification support FY25 margin targets .
Balance sheet optionality: ~$680M cash post converts, undrawn $300M revolver; management evaluating capital uses including 2027 notes and potential buybacks .
Near-term trading lens: Q3 guide is prudent; watch sequential Chronic Care enrollment recovery and BetterHelp insurance cadence; any acceleration could be a positive catalyst .
Medium-term thesis: If TDOC executes on orchestration (whole-person care, AI, hospital solutions) and scales insurance efficiently, the mix shift can expand addressable markets and stabilize growth/margins .
Risk checks: U.S. consumer sentiment, competitive ad spend, payer dynamics, tariff policy changes remain key variables to monitor .

Teladoc Health, Inc. (TDOC)·Q2 2025 Earnings Summary