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Teladoc Health, Inc. (TDOC)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 came in slightly above consensus and at the high end of guidance: revenue $626.4M vs $626.3M consensus (slight beat) and Primary EPS -$0.19 vs -$0.31 consensus (beat), while GAAP net loss per share was -$0.28 . Revenue declined 2% YoY; adjusted EBITDA was $69.9M (down 16% YoY) . Primary EPS and revenue estimates from S&P Global*.
  • Segment divergence persisted: Integrated Care revenue +2% YoY with 17.0% adj. EBITDA margin; BetterHelp revenue -8% YoY with 1.6% margin as the U.S. cash-pay business remained pressured during insurance rollout .
  • FY25 guidance tightened: consolidated revenue $2.510–$2.539B (narrowed), adjusted EBITDA $270–$287M (narrowed), FCF $170–$185M (narrowed), with Integrated Care revenue growth raised and margin lifted; BetterHelp revenue and margin ranges lowered . Prior guidance from Q2 is shown in Guidance Changes .
  • Strategic updates: BetterHelp insurance live in seven states plus D.C.; early metrics in line with expectations, with ~$12–$14M insurance revenue expected in 2025; international Integrated Care grew mid-teens cc; Catapult/Telecare contributing to funnel and growth .
  • Potential catalysts: continued insurance rollout at BetterHelp, Q4 execution vs guidance ($622–$652M revenue; net loss/share -$0.25 to -$0.10) ; raised Integrated Care outlook; CFO transition underway with interim structure announced (prelim Q3 results reaffirmed outlook) .

What Went Well and What Went Wrong

What Went Well

  • Integrated Care resilience and profitability: revenue +2% YoY to $389.5M; adj. EBITDA $66.1M; margin 17.0% (up vs adjusted YoY basis) .
  • International momentum: International revenue +12% YoY in Q3; management cited mid-teens constant-currency growth and Telecare integration; Catapult and Telecare added ~245 bps to segment growth .
  • Early progress on BetterHelp insurance: live in seven states plus D.C., initial KPIs (conversion, user growth, sessions per user) tracking to plan; expected $12–$14M insurance revenue in 2025; building credentialed network to meet demand .

Quoted management:

  • “We again delivered consolidated revenues and adjusted EBITDA in the upper half of our guidance ranges” — CEO Chuck Divita .
  • “We are developing enhanced clinical intervention models… apply AI-enabled risk evaluation and stratification” for rising/high-risk chronic populations .
  • “We are now live in seven states… metrics… in line with our expectations” for BetterHelp insurance rollout .

What Went Wrong

  • BetterHelp drag: revenue -8% YoY to $236.9M; adj. EBITDA $3.8M; margin 1.6% as U.S. cash-pay remains pressured and investments support insurance rollout .
  • Consolidated profitability pressure: adjusted EBITDA $69.9M (-16% YoY); GAAP net loss widened to -$49.5M versus -$33.3M a year ago, including $12.6M goodwill impairment and $85.8M amortization .
  • Tariff/supply chain headwind: management maintained a ~$3M adjusted EBITDA headwind estimate for 2025 and is pursuing mitigation (alternative sourcing) .

Financial Results

Consolidated performance (chronological: oldest → newest)

MetricQ1 2025Q2 2025Q3 2025Q3 2024
Revenue ($M)$629.4 $631.9 $626.4 $640.5
GAAP Net Loss/Share ($)($0.53) ($0.19) ($0.28) ($0.19)
Adjusted EBITDA ($M)$58.1 $69.3 $69.9 $83.3
Total Visits (M)4.44 4.1 4.1 —

Estimate comparison (S&P Global):

  • Q3 2025 Revenue: Actual $626.4M vs Consensus $626.3M* .
  • Q3 2025 Primary EPS: Actual -$0.19* vs Consensus -$0.31*. Values retrieved from S&P Global.

Segment breakdown

MetricQ1 2025Q2 2025Q3 2025Q3 2024
Integrated Care Revenue ($M)$389.5 $391.5 $389.5 $383.7
Integrated Care Adj. EBITDA ($M)$50.4 $57.5 $66.1 $68.0
Integrated Care Adj. EBITDA Margin (%)12.9% 14.7% 17.0% 17.7%
BetterHelp Revenue ($M)$239.9 $240.4 $236.9 $256.8
BetterHelp Adj. EBITDA ($M)$7.7 $11.9 $3.8 $15.2
BetterHelp Adj. EBITDA Margin (%)3.2% 4.9% 1.6% 5.9%

Operating KPIs

KPIQ1 2025Q2 2025Q3 2025YoY (Q3)
U.S. Integrated Care Members (M, period-end)102.5 102.4 102.5 +9%
Chronic Care Program Enrollment (M, period-end)1.151 1.117 1.165 (1)% YoY
Avg. Monthly Revenue per U.S. IC Member ($)$1.27 $1.27 $1.27 (7)% YoY
BetterHelp Paying Users (M, avg.)0.397 0.388 0.382 (4)% YoY

Non-GAAP adjustments (Q3): goodwill impairment $12.6M; amortization $85.8M; stock-based compensation $17.0M; restructuring $2.0M .

Cash and liquidity: Q3 FCF $67.9M; YTD FCF $113.5M; cash & equivalents $726M; net debt/trailing adj. EBITDA <1x (management) .

Guidance Changes

MetricPeriodPrevious Guidance (7/29)Current Guidance (10/29)Change
Revenue ($B)FY 2025$2.501–$2.548 $2.510–$2.539 Narrowed; midpoint slightly higher
Adjusted EBITDA ($M)FY 2025$263–$294 $270–$287 Narrowed; midpoint maintained (management)
Net Loss/Share ($)FY 2025($1.35)–($1.00) ($1.25)–($1.10) Narrowed; midpoint unchanged (mgmt)
Free Cash Flow ($M)FY 2025$170–$200 $170–$185 Lowered high end
U.S. IC Members (M)FY 2025101–103 101.5–102.5 Tightened
Integrated Care Revenue Growth (%)FY 20251.75–3.25 2.4–3.5 Raised
Integrated Care Adj. EBITDA Margin (%)FY 202514.5–15.25 15.0–15.4 Raised
BetterHelp Revenue Growth (%)FY 2025(9.2)–(6.8) (9.2)–(8.0) Lowered (tighter, worse midpoint)
BetterHelp Adj. EBITDA Margin (%)FY 20254.0–5.5 3.8–4.6 Lowered
Revenue ($M)Q4 2025—$622–$652 New Q4 range
Adjusted EBITDA ($M)Q4 2025—$73–$90 New Q4 range
Net Loss/Share ($)Q4 2025—($0.25)–($0.10) New Q4 range

Notes from management: Integrated Care FY25 guidance raised on performance and Telecare; BetterHelp narrowed to lower half on U.S. cash-pay softness; ~$3M tariff headwind maintained .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
AI/Technology initiativesFocus on strengthening portfolio; UpLift acquisition to broaden BetterHelp benefit access Developing AI-enabled risk stratification and intervention models in chronic care; PRSM platform enhancements to surface point-of-care insights Increasing emphasis on AI-driven clinical interventions
BetterHelp strategyAnnounced UpLift acquisition to enable insurance; DTC pressure in U.S. Insurance live in 7 states + D.C.; early KPIs on plan; expect $12–$14M insurance revenue in 2025; non-U.S. users growing high single digits Pivoting to insurance; international supporting growth
Integrated Care mix/monetizationIC growth; members +11% YoY (Q2) Mix continues shifting to fee-for-service; international mid-teens cc; Catapult/Telecare contributing; value-based contracting conversations intensifying Monetization evolving toward visit-based + value sharing
Tariffs/Supply chainGuidance excluded new tariff impacts (uncertainty) ~$3M FY25 adjusted EBITDA headwind maintained; exploring alternative sourcing Managed headwind with mitigation planning
Capital structureRetired $550.6M converts; added $300M revolver (Q2) Cash $726M; net leverage <1x; 2027 converts options under evaluation (refinance vs uses of cash/M&A) Strengthened liquidity; optionality maintained
International expansion—Telecare acquired; Australia focus; International revenue +12% YoY in Q3; mid-teens cc growth cited Building international footprint and growth

Management Commentary

  • Strategy and execution: “We again delivered consolidated revenues and adjusted EBITDA in the upper half of our guidance ranges” .
  • Product/AI: “We are developing enhanced clinical intervention models… apply AI-enabled risk evaluation and stratification” to improve outcomes and ROI .
  • BetterHelp insurance rollout: “We are now live in seven states… metrics… in line with our expectations,” with insurance as a key lever to improve conversion and LTV even as cash-pay remains challenged .
  • Integrated Care growth drivers: “International business… delivered mid-teens growth on a constant currency basis… acquisitions of Catapult and Telecare contributed approximately 245 bps to segment growth” .
  • Profitability and cash: “Adjusted EBITDA of $70M… Free cash flow was $68M… ended the quarter with $726M in cash… net debt to trailing adjusted EBITDA was under one time” .

Q&A Highlights

  • 2026 selling season and contracting: Clients seeking more performance-based arrangements; Teladoc aims to “participate in the value” created via outcome measures—expect more value-sharing constructs over time .
  • BetterHelp margins and CAC: Insurance introduces pricing pressure but may reduce acquisition costs; near-term margins reflect predominantly cash-pay economics; insurance expected to support LTV and profit dollars as it scales .
  • Integrated Care pricing/mix: Pricing largely “in line”; main dynamic is mix shift toward fee-for-service, with strategic use of visits as engagement points to drive outcomes and value .
  • Therapist network capacity: Launches gated by adequate credentialed capacity; maintaining <48-hour matching standard; strong therapist interest supports scaling insurance offering .
  • Capital planning: 2027 converts strategy contingent on 2026–27 organic/inorganic investments and rate environment; refinancing options under active evaluation .

Estimates Context

  • Q3 2025 vs consensus: Revenue $626.4M vs $626.3M* (slight beat); Primary EPS -$0.19* vs -$0.31* (beat) . GAAP net loss/share was -$0.28 . Values retrieved from S&P Global.
  • Q4 2025 setup: Consensus revenue ~$635.1M* sits near the guidance midpoint ($637M); guidance net loss/share midpoint (-$0.175) implies potential upside vs EPS consensus of -$0.21* if executed . Values retrieved from S&P Global.
  • FY 2025: Consensus revenue ~$2.523B* within guided $2.510–$2.539B; guided ranges suggest tighter delivery bands into year-end*. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Integrated Care is underpinning results with improving margins and rising international contribution; guidance raised for both growth and margin, a constructive signal for 2026 pipeline .
  • BetterHelp remains the swing factor: U.S. cash-pay pressure persists, but insurance rollout and international growth provide a credible path to re-acceleration; near-term margins will be investment-weighted .
  • Q3 printed a clean slight beat on revenue and a beat on Primary EPS vs consensus; Q4 guidance brackets consensus, setting up a “meet to slight beat” trajectory if execution holds . Revenue/EPS consensus from S&P Global*.
  • Cash generation and balance sheet optionality (cash $726M; net leverage <1x) support continued organic product investments and selective M&A (Catapult, UpLift, Telecare) while managing the 2027 converts timeline .
  • Tariff risk is contained for 2025 (~$3M EBITDA headwind), with mitigation underway; watch for 2026 sourcing updates .
  • Watchlist catalysts: cadence of new state launches and payer adds for BetterHelp insurance; Integrated Care value-based contracts and PRSM/AI interventions; international deal flow; CFO transition progress and any changes in financial posture .

Additional Relevant Q3 Items

  • CFO transition announced Oct 23, 2025; company reaffirmed FY2025 revenue and adjusted EBITDA outlook and provided preliminary Q3 revenue ($626.4M) and adj. EBITDA ($69.9M) ahead of results .
  • Launch of Wellbound EAP to integrate BetterHelp and Teladoc services for employers, rolling out for plan users in January 2026 .
  • Telecare acquisition (Australia) to expand international specialist virtual care; expected immaterial to FY25 but strategically broadening footprint .

Footnote on estimates: S&P Global consensus and “Primary EPS” figures marked with an asterisk (*) are values retrieved from S&P Global.