TDOC

A month has gone by since the last earnings report for Teladoc (TDOC). Shares have lost about 3.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Teladoc due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Teladoc Health Q2 Earnings Beat Estimates on Integrated Care StrengthTeladoc Health reported a second-quarter 2026 adjusted loss of 21 cents per share, which beat the Zacks Consensus Estimate of a loss of 24 cents. However, the bottom line deteriorated from a loss of 19 cents per share in the year-ago quarter. Operating revenues declined 4% year over year to $606.9 million and missed the Zacks Consensus Estimate by 1.3%.The quarterly results were supported by strength in the Integrated Care segment, higher international revenues and lower operating expenses, which were partially offset by weakness in the BetterHelp segment, particularly pressure on cash pay revenues, and declining access fees revenues. Revenues from access fees totaled $474.2 million, down 9% year over year. The figure missed the Zacks Consensus Estimate and our estimate of $499.5 million. Other revenues increased 23% year over year to $132.7 million. The metric beat the Zacks Consensus Estimate and our estimate of $113 million. On a geographical basis, Teladoc Health generated $487.4 million in revenues from the United States, down 6% year over year. The metric lagged the Zacks Consensus Estimate of $498.3 million. International revenues of $119.6 million advanced 7% year over year and surpassed the consensus mark of $114.2 million.Adjusted EBITDA declined 5% year over year to $65.7 million and beat our estimate of $56.2 million. Total costs and expenses decreased 6.2% year over year to $644 million and came below our estimate of $661 million. The year-over-year decline was primarily due to lower technology and development, advertising and marketing, and general and administrative expenses. The Integrated Care segment’s revenues increased 1% year over year to $394.3 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $392.2 million and our estimate of $392 million. Adjusted EBITDA increased 14% year over year to $65.2 million and surpassed the Zacks Consensus Estimate of $59.3 million. The adjusted EBITDA margin expanded 180 basis points (bps) year over year to 16.5%. The BetterHelp segment generated revenues of $212.6 million, down 12% year over year. The metric missed the Zacks Consensus Estimate of $221.8 million. Adjusted EBITDA declined 96% year over year to $0.47 million. The figure missed the consensus mark of $1.8 million. The adjusted EBITDA margin of 0.2% contracted 470 bps year over year. Total visits to Teladoc Health were 4.1 million in the second quarter, down 2% year over year. The metric beat the Zacks Consensus Estimate by 1.2%U.S. Integrated Care members totaled 100.3 million, down 2% year over year. However, the figure beat the consensus mark by 0.7%. Teladoc Health exited the second quarter of 2026 with cash and cash equivalents of $774.3 million, down from $781.1 million as of 2025-end. Total assets decreased to $2.76 billion from $2.86 billion at the end of 2025.Debt totaled $996.7 million, up from $994.9 million as of 2025-end.Total stockholders’ equity declined to $1.3 billion from $1.4 billion as of Dec. 31, 2025.In the second quarter of 2026, TDOC generated net cash from operations of $64.7 million, down 29.3% year over year. Free cash flow was $35.7 million, down 41.6% year over year. Revenues in the Integrated Care segment are forecasted to witness year-over-year growth of 0.0-3.0%. The unit’s adjusted EBITDA margin is anticipated to be in the band of 15.7-17.2%. U.S. Integrated Care members are expected to be between 99.0-100.5 million Revenues in the BetterHelp segment are estimated to register a 12.3-24.2% year-over-year decline. The segment’s adjusted EBITDA margin is anticipated to be in the band of 0.5-2.5%. Total revenues are expected to be between $569 million and $609 million. Adjusted EBITDA is anticipated to be between $62 million and $74 million. Net loss per share is estimated to be between 20 cents and 30 cents. Revenues in the Integrated Care segment are expected to grow 0.8-2.4% year over year compared with the prior guidance of 0.8-3.5%. U.S. Integrated Care members are projected to be between 98.5 million and 100.5 million, up from the earlier projection of 97-100 million. The segment's adjusted EBITDA margin is expected to be between 15.6% and 16.4% compared with the previous guidance of 15.1-16.1%. Revenues in the BetterHelp segment are expected to decline 12.7-19.0% year over year compared with the earlier guidance of 1.0-6.5%. The segment's adjusted EBITDA margin is expected to be between 3.0% and 4.6%, unchanged from the prior guidance.The company expects 2026 revenues to be in the range of $2.362-$2.447 billion, down from the previous guidance of $2.481-$2.576 billion. Adjusted EBITDA is projected to be between $271 million and $303 million compared with the earlier outlook of $267-$306 million. Net loss per share is expected to be between 75 cents and $1.00 versus the previous guidance of 75 cents-$1.05. Free cash flow guidance remains unchanged at $130-$170 million. Since the earnings release, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -27.35% due to these changes. Currently, Teladoc has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Teladoc has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Teladoc belongs to the Zacks Medical Services industry. Another stock from the same industry, Medpace (MEDP), has gained 5.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Medpace reported revenues of $707.33 million in the last reported quarter, representing a year-over-year change of +17.2%. EPS of $4.25 for the same period compares with $3.10 a year ago. Medpace is expected to post earnings of $4.39 per share for the current quarter, representing a year-over-year change of +13.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Medpace. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 5 p.m. ET Chief Executive Officer - Charles Divita Investor Relations - Michael Minchak Operator: Ladies and gentlemen, thank you for joining us and welcome to the Teladoc Health Q2 26 Earnings Conference Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Michael Minchak. Michael? Please go ahead. Michael Minchak: Thank you, and good afternoon. Today, after the market close, we issued a press release announcing our second quarter 26 financial results. This press release and the accompanying slide presentation is available in the Investor Relations section of the teladoc.com website. On this call to discuss the results will be Charles Divita, our Chief Executive Officer During this call, we will also discuss our outlook, and our prepared remarks will be followed by a question-and-answer session. Please note that we will be discussing certain non GAAP financial measures that we believe are important in evaluating our performance. Details on the relationship between these non GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release that is posted on our website. During this call, we will make forward looking statements as defined by the Private Securities Litigation Reform Act of 2000. Examples of forward looking statements include without limitation, statements regarding our 2026 financial outlook, the timing, availability and market response of new products and services including Teladoc 1, expected BetterHelp insurance revenue and exit run rate, expected cash pay trends, provider network capacity, advertising and marketing spending and efficiency, the timing and impact of our BetterHelp insurance rollout, and the expected benefits of the actions we are taking. Such statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary statement in today's earnings release and the risk factors in our most recent Form 10 ks and Form 10 Q for this quarter including risks relating specifically to each of our reporting segments. I would now like to turn the call over to Charles Divita. Charles Divita: Thanks, Mike. Let's begin with the health care landscape that we operate in. The industry continues to evolve, with changes in client needs and expectations and meaningful shifts in how consumers access care. These changes reinforce our confidence in the strategic priorities we previously outlined, and will continue to shape how we innovate, where we invest, how we allocate resources, and where we focus the organization to drive long term value. Against this backdrop, we have seen continued progress in the second quarter, strengthening our position as the global leader in virtual care while building on this foundation for sustainable financial performance. Our second quarter results were within our guidance ranges on a consolidated basis, and reflected distinct dynamics across our 2 segments. Integrated care, we again delivered a solid performance, with revenue and adjusted EBITDA both above the midpoint of our guidance ranges. And our ongoing focus on innovation was underscored by the recent launch of Teladoc 1, our new connected care model that brings together the full breadth of our clinical and technical capabilities to deliver outcomes for each individual and across populations for our clients. Within BetterHelp, our top priority remains the scaling of insurance and in-network services. And for the quarter, insurance related revenue was near the high end of our expected range. Additionally, we established a baseline national footprint for insurance during the quarter, ahead of our prior expected rollout schedule launching all remaining states in the U.S. Adjusted EBITDA for this segment tracked closely to the midpoint of our guidance range. Although segment revenue came in at the lower end of the range, due to lower cash pay revenue. As I will explain in more detail in a moment, through mid May, operating trends at BetterHelp remain generally consistent with the assumptions in the guidance provided with our first quarter results on April 29. However, as we move through the rest of May and into June, the increasing speed of consumer movement towards insurance provider capacity and network constraints against this increased demand, and a more accelerated decline in cash pay users and other factors became more pronounced and persistent than the assumptions underlying our prior outlook. These developments led us to reassess our plans and priorities, and accordingly revise our BetterHelp revenue outlook. Before spending more time on BetterHelp, let me first make some comments on our integrated care segment. We have established a leading position by providing a broad range of virtual care services to support physical health and mental well-being. Health care continues to be significantly impacted by rising costs, the burden of chronic illness, access issues, and other concerns, and we believe our scale, clinical approach, and extensive platform position us well against this market backdrop. And we have been accelerating innovation in our products, services, and capabilities to further capitalize on our strengths, lean into this market opportunity, and deliver greater value to our clients. We conduct millions of visits annually in this segment, and earlier this year, brought new innovations to our flagship 27 care service. The enhanced offering addresses more conditions, provides specialist support to treating clinicians, and includes other value added features to make these visits more impactful connected engagement points. And we have advanced technology and capability innovations to support our integrated patient care model. This includes Teladoc Health Pulse, our new intelligence engine, which brings together unique, multidimensional data and advanced AI models power clinical insights, guide targeted actions, optimize experiences, and to surface these insights and other actionable information directly at the point of care for appropriate action by our clinical team. We have been building 1 of the most extensive integrated practices in virtual care broadening and deepening our clinical model and investing in purpose built technology to support it. And working to bring this all together in a comprehensive new solution that we believe clearly differentiates us including by orienting around the care and needs of the individual and not a fragmented product category, as is prevalent across the market today. Last week, we introduced this new approach called Teladoc 1, which we view as the most comprehensive offering ever brought to market by the company. It is a new care model that delivers a predictive and adaptive experience designed around an individual's health care journey rather than a specific or singular condition. And for clients, Teladoc 1 provides the ability to address needs across populations, with accountability for both clinical performance and total cost of care impact. At its core, Teladoc 1 leverages the full extent of our clinical capabilities delivered through a unified, multidisciplinary care team spanning clinicians, specialists, therapists, coaches, and dietitians. And complemented by AI enabled capabilities through Pulse, to efficiently support care teams enable timely and effective interventions, enhance engagement, and help people stay on track with their care plans between clinical interactions. The care model is designed to help coordinate care across settings, including with the individual's local care provider when applicable. And to help ensure care needs are addressed timely and consistently. With broad availability beginning January 2027, we will initially apply this care model to populations impacted by cardiometabolic health conditions. A major driver of health care cost and a market focus for us. Over time, we also see opportunities to extend the model across additional populations, further expanding value for clients, and market potential. We believe that the addition of Teladoc 1 to our portfolio, and our continued focus on innovation and delivering differentiated solutions to clients will further leverage the strength and potential of our integrated care segment. Let me turn back to BetterHelp to provide a more detailed update on the business our priorities for the remainder of 2026, and our updated outlook as we continue to focus on rapidly scaling insurance in the U.S. and pivoting the business more towards an in-network model. As we have previously discussed, the U.S. cash pay market has been under continued pressure, which is the principal reason we began building an insurance-covered, in-network offering. The BetterHelp revenue growth outlook provided with our first quarter results assumed we would achieve the dual goals of scaling insurance while at the same time stabilizing and growing overall BetterHelp segment revenues as we progress through the year. We expected that the combination of strong growth of insurance sessions and growth of cash pay users in non US markets would increasingly offset the impact of expected declines in US cash pay users. Including the movement of potential cash pay users towards insurance and lower planned advertising spending levels compared to the prior year. Operating information available to us through April, including cash pay user trends, advertising and customer acquisition cost factors, insurance session growth, and insurance provider network expansion, were within the assumptions underlying our outlook at the time of our first quarter earnings call. And results continue to be generally consistent and reflective of those assumptions through mid May. Including insurance user gains largely offsetting declines in US cash pay users. After that point, certain changes in the business became more pronounced and persistent than we had anticipated. And as we move through the second half of May and into June, 3 related developments became increasingly clear to us. First, consumer demand for insurance versus cash pay increased faster than expected. And reflective of sustained high levels of consumer preference for insurance. Approximately 70% of potential users indicating a preference for insurance and as much as 80% in certain markets. Second, high preference and demand for insurance caused a greater and faster shift away from cash pay acquisition than we had modeled. Including potential users who previously might have entered through the cash pay pathway increasingly shifting towards insurance, or otherwise converting to paying users at a lower rate. The decline in cash pay users and cash pay revenue, therefore, accelerated beyond the decline incorporated in our prior outlook. Third, while our insurance provider capacity continued to increase, it did not expand at the same pace as the increase in demand. Although we had credentialed thousands of providers for the network, the available capacity also depends on provider availability for the applicable state and payer, as well as clinical need, appointment time, and length. Higher demand, therefore, exceeded the capacity available to convert this into a greater number of paying users, completed sessions, and revenue. As a result, cash pay revenue declined faster than anticipated, while insurance revenue could not increase at a level sufficient to offset the cash pay decline. The insurance business grew well, and revenue was in line with our expected range. However, because the pace and geographic construct of the demand for insurance exceeded available capacity, overall BetterHelp revenue was pressured as the transition away from cash pay accelerated. Business patterns can fluctuate over short periods. Including during the state by state insurance rollout, and factors such as varying indications of consumer behavior, provider network requirements, and payer mix considerations. But as we move through June, we concluded that these developments likely represented sustained changes in the business rather than short term variability and that assumptions supporting our prior full year BetterHelp segment revenue expectations were no longer representing the business outlook as we transition more towards an in-network model. Additionally, seeing sustained high levels of consumer preference for insurance and given the strategic importance of insurance to better help we accelerated national insurance availability during the quarter. And ahead of our earlier expectation to roll out over the remainder of 2026. The additional 20 states launched comprise nearly 1/3 of the U.S. population, and therefore were essential to moving to a national capability for insurance. We believe the national rollout will provide a more representative view of consumer behavior and operating requirements. As well as further enable the evolution of BetterHelp's advertising and marketing approach towards a more insurance oriented model over time. Early indications from this emerging national footprint further demonstrated that insurance preference and market specific capacity requirements developing differently more rapidly across the broader footprint as compared to the earlier state by state rollout approach. The developments I just covered caused us to conclude that our prior revenue assumptions had to be adjusted and we made several strategic decisions in response. Those decisions and resulting actions will place further pressure on cash pay revenue but we believe they are the appropriate actions to strengthen the business and build a durable insurance position over the longer term. First, we are highly focused on expanding insurance network capacity. Including a greater ability to support and adapt capacity on a market by market basis in response to demand dynamics. This includes initiatives to support accelerated provider recruitment, activation, long term retention as well as enhancements to the insurance platform to support productivity, capacity, and user experience. We have made considerable progress in building the insurance offering including establishing a baseline national footprint a year after launching our first state. We have contracted for over 150 million in network lives, and credentialed more than 8 thousand mental health professionals the network at this point. Insurance coverage sessions have grown substantially over the rollout. With over 20 thousand sessions completed last week alone, representing an estimated annualized revenue run rate on that basis of over $110 million up from over $75 million at the time of our first quarter earnings call and more than double the level from the fourth quarter 25 earnings call held in February. Second, we are evolving BetterHelp's historical direct to consumer cash pay advertising and marketing approach. To more prominently reflect insurance objectives. This includes better aligning the expected demand generation of advertising spending levels with available provider capacity as well as moving from state level insurance marketing to more national strategies. We believe these and other changes can improve marketing efficiency and user conversion economics over time, and as insurance becomes a higher mix of our revenue. As a result of these actions, we now expect advertising spending in 2026 to be lower than our prior plans and as we continue to focus on supporting overall margin objectives for the business. While reduced advertising spending will have a negative impact on cash pay user acquisition, we believe this evolving approach better aligns us with the growing part of the U.S. market in-network services, with lesser orientation on the declining US cash pay market. Third, we are reducing near term emphasis on markets outside the U.S., including associated resource allocation, and reduction in advertising levels. This is not expected to be a permanent shift. As we continue to see meaningful opportunities outside the U.S. longer term given the large addressable market and significant unmet need. However, given the importance of the U.S. insurance market to better help, we believe the highest return use of our product, engineering, operational, and marketing resources in the near term is supporting our insurance initiatives in the U.S. We are also reprioritizing certain other previously planned initiatives to support this effort as well. Our updated guidance leads to a BetterHelp segment revenue range of $770 million to $830 million for 2026. Relative to our expectations at the time of the first quarter earnings call, this new range reflects cash pay revenue declining faster than anticipated due to the factors and actions I mentioned. We are reaffirming our expectation for 2026 insurance revenue of $90 million to $105 million. The actions we are taking and planned initiatives to address more insurance demand will take time to implement and drive impact, We remain encouraged by the momentum we are seeing and expect these and other moves to further strengthen the insurance business in 2026 and position it for continued strong insurance revenue growth in 2027. With respect to BetterHelp's adjusted EBITDA margin, we continue to expect a range of 3.0%-4.6% for the full year and have aligned our actions to support our ability to invest in the insurance opportunity ahead. While the business dynamics are different than we previously anticipated, and presenting more challenges as we make this business model transition a better health, We are also encouraged by the progress being made towards building out our insurance position and the opportunity ahead in the insurance market. We believe the actions we are taking are focused on the right areas to make BetterHelp a stronger and more durable business over time. Now let me cover our results for the second quarter. Consolidated revenue was $607 million and adjusted EBITDA was $66 million representing a 10.8% margin on a consolidated basis. Net loss per share was $0.21 includes the following pretax per share amounts. Amortization of intangible assets of $0.49, and stock based compensation of $0.05. Free cash flow for the quarter was $36 million, and we ended the second quarter with $774 million in cash and cash equivalents on the balance sheet. Net debt to trailing adjusted EBITDA was 0.8x, and 3.6x on gross debt basis. Turning to segment results. Second quarter integrated care revenue was $394 million an increase of 0.7% over the prior year and in the upper half of our guidance range. Factors that contributed to the year over year revenue increase included international, which was again up by double digits this quarter boosted by a 30% increase in revenue from hybrid care models, and to a lesser extent, higher chronic care enrollment and visit revenue growth in the segment. In aggregate, these factors more than offset the headwind from lower subscription revenue we have spoken about previously. Approximately 60 basis points of year over year growth came from acquisitions. We finished the quarter with 100.3 million U.S. Integrated care members, slightly above the high end of our guidance range. We have modestly raised our full year outlook by roughly 1 million lives at the midpoint, based on results seen thus far. Our full year range still contemplates some slight moderation, as our health plan clients deal with potential changes to their underlying enrollment levels. Chronic care program enrollment was 1.27 million at quarter end. Up approximately 6% sequentially and 14% higher year over year. Driven largely by continued client adoption of multi condition bundles which in turn expand the potential enrollee population. Second quarter Integrated Care adjusted EBITDA was $65 million up 13.6% over the prior year period. And represented a 16.5% margin. This was above the high end of our guidance range, and up approximately 190 basis points from the second quarter of 25. Adjusted EBITDA performance was driven by the revenue upside versus our midpoint, as well as disciplined cost management, which more than offset mix related gross margin pressure from the shift to visit based arrangements. BetterHelp's second quarter revenue was $213 million, 11.6% lower than the prior year period, and down 2.6% sequentially. Insurance revenue of $22 million near the high end of our expectation. And up approximately $9 million sequentially. This was offset by a greater than expected decline in the cash pay business, including the result of deliberate actions we took during the quarter, including reduced advertising spending as we prioritize the acceleration of the insurance rollout and the achievement of profitability objectives. Average paying users in total declined 11% from the prior year's quarter. 346 thousand and were down 4% sequentially. While insurance users increased by over 70% sequentially and reflecting a growing part of BetterHelp's business. BetterHelp's adjusted EBITDA for the quarter was $500 thousand a 0.2% margin just slightly below the midpoint of the guidance range. This was impacted by lower cash pay revenue, and additional investments to support the scaling of insurance including the accelerated nationwide rollout. These items were somewhat offset by a 17% decline in advertising and marketing expense versus the second quarter of 25. Now turning to guidance. We expect 2026 consolidated revenue of $2.36 billion to $2.45 billion a 5% reduction at the midpoint versus the prior range, primarily attributable to the updated BetterHelp cash pay outlook. We expect adjusted EBITDA of $271 million to $303 million up slightly at the midpoint versus the prior range, and representing approximately 85 basis points of margin expansion versus 2025. Our free cash flow guidance remains unchanged $130 million to $170 million. We now expect full year stock based compensation expense to be below $50 million which would represent a decline of over 35% from 2025 and 75 percent lower than 2023 levels. And we now project net loss per share of $1 to $0.75. Note that our cash flow and net loss per share guidance ranges do not incorporate any potential impact from changes in our current debt structure. For the third quarter, we expect consolidated revenue in the range of $569 million to $609 million and adjusted EBITDA in the range of $62 million to $74 million Moving to the segments. For Integrated Care, we expect 2026 revenue growth of 0.8% to 2.4%. Were several factors that contributed to the updated range. Including the deferral of a previously expected contract implementation in 2026 to 2027 at the client's request. And a lower relative forecast for FX where we now expect the tailwind to be approximately 10 to 15 basis points below our prior expectation. We continue to expect international revenue growth in the high single digits on an organic constant currency basis. Our full year Integrated Care adjusted EBITDA margin guidance of 15.6% to 16.4% is up 40 basis points at the midpoint versus our prior guidance range. And represents an increase of approximately 85 basis points over 2025. We are guiding the third quarter integrated care revenue flat to up 3% year over year, which includes roughly 25 basis points of contribution from prior acquisitions. And adjusted EBITDA margin in the range of 15.7% to 17.2%. Looking at the cadence for the balance of the year for integrated care, we expect the third quarter to fourth quarter ramp to be slightly greater versus 2025. This includes typical seasonality with respect to fluid infectious disease visits, and impact of in year implementations on the fourth quarter. Adjusted EBITDA is expected to benefit from continued execution of cost savings and productivity initiatives. Moving to BetterHelp, Based on the factors and actions described earlier, we now expect 2026 segment revenue to decline 19.0% to 12.7% versus 2025 reflecting a greater decline in cash pay revenue. Expect insurance revenue in the range of $90 million to $105 million. While the total segment revenue range is wider, we believe it is appropriate based on the uncertainties inherent in cash pay and ongoing business model transition. Key swing factors include the timing and progress of insurance network and platform related initiatives, growth and mix of insurance covered sessions, advertising and marketing spend levels, customer acquisition cost trends, and user conversion efficiency and user retention. We are reaffirming our adjusted EBITDA margin guidance of 3.0%-4.6%. This range contemplates mix impacts, investments to support insurance initiatives, and reduction in advertising and marketing expense in the mid to high 20% range more in line with the insurance priorities mentioned earlier. For the third quarter, we are guiding to BetterHelp revenue down 24.2% to down 12.3%, Insurance revenue is expected to be in the range of $25 million to $31 million in the quarter, up 29% sequentially at the midpoint. We expect an adjusted EBITDA margin of 0.5% to 2.5% which is generally consistent with the prior year period at the midpoint. Looking ahead to the fourth quarter, we expect continued sequential growth in insurance revenue. And based on the third quarter insurance revenue range, if fourth quarter results are consistent with the midpoint of the implied fourth quarter range, that would equate to an annualized insurance revenue exit run rate approaching $140 million. Cash pay revenue in the fourth quarter is expected to be impacted by the actions we are taking to align with and support insurance objectives. As well as lower advertising and marketing spending due to holiday ad pricing dynamics. As a result, and similar to prior years, we expect the fourth quarter to see the highest adjusted EBITDA of the year. In closing, we have made meaningful progress on key initiatives that support our strategic priorities. While there is more work ahead, the team remains focused on disciplined execution delivering results with urgency. We remain confident in our strategy. And we are taking deliberate actions that we believe will strengthen the durability of our business, improve long term performance, and create sustainable value for shareholders. With that, we are now ready for questions. Operator: Thank you. We will now begin the question and answer Please limit yourself to 1 question per person. You would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality? If you are muted locally, please remember to unmute your device. Our first question comes from Sarah James from Cantor Fitzgerald. Sarah, your line is open. Please go ahead. Sarah James: Thank you. So I am hoping to get a better idea of what the pacing to closing the supply gap looks like for the therapists that are taking insurance So you went from 6 thousand to 8 thousand. I think you have a network 30 or so. How big is the supply gap right now? What do you mean by you mentioned accelerating insurance adoption through certain programs that you are doing. Can you be more explicit about that and how do you think about the ramp going forward? Thanks. Charles Divita: Yeah. Thanks, Sarah. Appreciate the question. As you mentioned, we have continued to grow the total number of credentialed therapists pretty significantly over the course of the year, and that continues I think, you know, and that is been able to support the insurance sessions and revenue and things that we had expected. Think this higher level of demand and the strong preference for insurance And now our national rollout, obviously, is why we are making these moves and these changes. There I would say there is a number of initiatives going on, but let me bucket them into 2 areas. First of all, I would say around provider acquisition and retention. This is really things that are aimed at recruitment, both out of the BetterHelp network that you referenced, the CashPay network, as well as therapists that are not in the network that are more traditional in terms of taking insurance. So we got a number of things going on there to look at our recruitment processes, the effectiveness of that, how we can scale those more quickly. We are also continuing to look at ways that we can expand delegated credentialing with payers. We have begun and going through the process to pursue NCQA accreditation as a and delegated to delegated credentialing. So we think that is gonna be a benefit And we have also got some initiatives around the onboarding and engagement of therapists onto the platform and get them using it and serving and serving the patients. The second area is around half of what I would say about improving existing provider capacity in addition to new recruitment. And this is really things like improving the platform, the insurance platform we have, you know, tooling, looking at scheduling, efficiencies. We have done a lot there. I mentioned in the last quarter some of the things that we had done around AI to support efficiency and documentation. And things look looking at the experience of the providers and the user experience. We are also, you know, putting into place and have been, but we are doing more looking at state by state and payer level initiatives to be able to respond to demand and capacity needs on a more dynamic basis you know, as that demand and capacity will change over time. So there is a number of things underneath that and really why we took the actions to you know, refocus resources, and really lean into this, you know, insurance opportunity we have. Thank you. Sarah James: And just any view on the timing of closing the gap of where demand is to where supply is? Charles Divita: Look. We are we are actively working on it and have been. We reaffirmed our revenue range that I that I had mentioned in my prepared remarks. Obviously taking these actions to strengthen our position in 2026 to position for a strong insurance revenue growth in 2027. Do not wanna speak on the timing of that. I would just say that we have got number of things underway and really why we have refocused the resources the way we have. Thank you. Operator: Our next question comes from the line of Lisa Gill from JPMorgan Chase & Co. Lisa, your line is open. Please go ahead. Lisa Gill: Thanks very much. And in fact, thank you for all the comments on BetterHelp Just 2 things I wanna try to better understand. 1, is the reimbursement under insurance materially different for the provider where they have a preference for cash pay versus insurance coverage? And then secondly, as we make that conversion over to insurance, can you talk about the profitability to Teladoc? Will that look materially different? I know your advertising costs are gonna materially change over time as you will not have to do it as much direct to consumer advertising, and your customer acquisition cost will not be as high. How do I think about that transition and the impact on your margin as well? Charles Divita: Let me take the first comment. Certainly, in a cash pay environment, the therapists are know, approaching that on a cash pay basis for a number of reasons, including know, flexibility and they do not necessarily have to do all the same documentation requirements that you would have to get, you know, reimbursement from a payer. You know, similar therapy and visit and all that, but different kind of model. In the insurance side of the house, obviously, there is more requirements of the of the therapist in terms of the documentation, administration, Obviously, there is claim submission that happens and all those kinds of things. So it is a bit of a different dynamic, and it is it is not necessarily for everyone. I think the reimbursement really will focus on kinda supply and demand dynamics. And it is market by market basis. And we are we continue to evaluate compensation programs that will make sure that those therapists are supported. But it is a different a little bit of a different animal between the 2 because of the cash pay versus the payer reimbursement. In terms of the margin view, I would say, you know, first of all, we are gonna be very focused on scaling insurance, and we see this in-network move and pivot for BetterHelp as a really important 1 to create a more durable business because the volatility that comes with the cash pay side. From a margin perspective, we are of looking at it this way. You know, we should expect, and I have said this before, lower gross margin percentage in insurance versus cash pay, Cash pay requires a significant level of advertising and marketing as you referenced. And the gross margin profile is different. So we do expect and should expect a lower gross margin percentage in insurance. it is just the dynamic in insurance. We would also expect that the lifetime value for insurance will be more reflective of the patient's need and less around whether the cost is as much of a barrier as it is, obviously, in cash pay fully out of pocket. We do see the ability over time to improve our ad spend efficiency and the spending levels. We had expected that to occur over time, but, obviously, a bit more accelerated now in terms of the advertising spending levels, but we do expect that to create some efficiencies. And we also are you know, we are investing ahead of the opportunity here, so we to see operating leverage kick in as insurance continues to scale further. So beyond that, when the margin profile for BetterHelp will depend on those kinds of factors. The pace of the business transition, how cash pay evolves. But that is how we are looking at, you know, margins under the insurance model. Thank you. Operator: Our next question comes from the line of George Hill from Deutsche Bank. George, your line is open. Please go ahead. George Hill: Hey. Good evening, guys. And I forget I for forgive me if I missed this part, but have we addressed, like, what percentage of the capacity that you currently have in BetterHelp can address the capacity needs in the insured segment. And, again, I apologize if I missed this part. Like, is like, do we need to find a bunch of new therapists to serve the insurance business, or is there a licensing issue why the therapist that served the cash pay business cannot serve the insurance business? Or is that more or is it more addressed to, like, Lisa's question which is, like, there is there is a compensation issue as opposed to licensing issue? Charles Divita: Yeah. The therapist network that is part of the cash pay market are experienced and, you know, a very significant part of BetterHelp's value proposition on the cash pay side. And we have continued to know, recruit and offer insurance to the network as we have rolled out these states, and we have seen good solid interest in therapists, you know, looking at the insurance side. But we are not just limiting ourselves to the therapist network and the cash based side. We have been recruiting and going after therapists that are not necessarily in the cash pay network. So it is a combination of both that is occurring It is a significant network in the cash based side that gives us an opportunity to bring insurance to market. I think what we are seeing, though, is the demand really outpacing what our expectations were in terms of the movement from cash to insurance. We have grown the capacity pretty significantly over the last many number of months as was noted. And we it is a market by market payer by payer dynamic, we do not have capacity constraints uniformly. It varies by market. And so we are approaching it that way as well. So I think it is both. it is a cash pay therapist moving to insurance as well as recruiting therapists that are not in the cash pay network today. George Hill: Okay. And then maybe just a real quick follow-up. Is there quick way to frame, like, can we put a number on by, like, what order of magnitude are we, like, missing capacity? Like, how much revenue are we missing by not having the capacity to capture the volume? Charles Divita: I do not wanna comment on that. I think, again, we have done well in terms of growing capacity. The insurance sessions are growing well. We are able to be at the, you know, the higher end of our revenue expectations. But because of the size of the cash pay market in the U.S. and the cash pay user base that is out there, it obviously it creates a significant capacity issue when you throttle all that demand. Towards insurance. So that is how we are looking at it and why we have know, taken these actions to refocus, more on insurance as well as take into consideration more in our advertising and marketing, which is intended to create awareness and demand generation, to more increasingly focus on the insurance objectives so that we are not out there spending money to generate demand beyond what we have the capacity to fill as we as we grow the network. George Hill: I will hop back in the queue. Thanks. Operator: Our next question comes from the line of Daniel Grosslight from Citigroup. Daniel? Line is open. Please go ahead. Daniel Grosslight: Hi, guys. Thanks for taking the question. I will stick with BetterHelp here. I am really focusing on the international segment here because it is been a pretty consistent area of strength for you. BetterHelp. I get there is a lot to focus on in the U.S. but I am curious why you have chosen to deprioritize international now. And at what point would you consider reaccelerating investment in international markets? Charles Divita: Yeah. I appreciate the question there. It and it has been an important part of BetterHelp and continues to be. We are maintaining our position in the markets that we are in today. And international will continue to be an important area for BetterHelp. We really see this more as a near term prioritization action here. Know, we have got finite resources at BetterHelp, and we feel like the product, the engineering, the operating resources, the marketing resources, that could benefit our insurance scaling that we the best highest use of them is to focus on insurance scaling given the demand and the preference we see. So I would not see it necessarily as a moving away from those non US markets. there is still a large market opportunity there is a lot of unmet need out there. That BetterHelp is leaning into. We are gonna maintain our positions, you know, and presence in those markets And we have the opportunity once we see, you know, these insurance initiatives take hold to revisit, those non US markets in terms of the level of focus we have there. So I would more look at that as a near term prioritization item. And do see that as a longer term opportunity for the company. Daniel Grosslight: Got it. Oh, okay. And as we think about the cash pay part of BetterHelp in 2027, I know you are not giving formal guidance now. But would it be fair to kinda back out what the cash pay is in 4Q and then annualize that as a good run rate for 2027 on just, again, just on the cash pay side, or do you think we will see continued declines in the cash pay business in 2027 from that April run rate. Charles Divita: Yeah. I do not wanna comment on 2027, but I would say that obviously, we are making these moves because we see you know, significant additional opportunity in the insurance market and to position us to grow insurance revenues in 2027. And we had expected and continue to expect pressure on the U.S. cash pay market. Obviously, that is accelerated further than we were thinking. And so as you get to the fourth quarter, you have got a couple things going on. You have got that dynamic. As well as you I know you are aware of this, but we have a typically pullback in ad spending during the holiday season which impacts the cash pay market as well. So I would not necessarily take the fourth quarter and annualize that. I would just say that know, we would expect continued pressure on the cash pay market We would expect to continue to drive insurance revenue growth, including through the actions we are taking And then, to the earlier, question, we will revisit how we are looking at the non US markets and how we look to grow there as well. Daniel Grosslight: Got it. Thank you. Operator: Our next question comes from the line of Jessica Tassan from Piper Sandler & Co. Jessica, your line is open. Jessica Tassan: Hi, guys. Thanks for taking the question. So I am curious if you can give us a sense of just kind of how many insured lives or what level of run rate revenue your 8 thousand BetterHelp providers can support. And then just how are you thinking about the insurance business growing in 2027 and kind of level of capacity do you need in order to support that growth? And then just my quick follow-up would be, can you comment at all on the behavior that you are observing of within the Better Health insured business? So how many visits? Like, what level of acuity? Just what are you seeing in those members? How long are they staying with the product? Etcetera? Thank you. Charles Divita: Okay. Well, I think so I will try to tick through those. Obviously, the first question, you know, the 8 thousand credential therapists in total, we continue to grow the total number, which is important. it is also important their availability from a state perspective, from a payer perspective, obviously, capacity and availability for the clinical need, the appointment time, and the length of the time. So there is a lot of things that go into it beyond the raw number. So we both are important. Continue to grow the network. Credential network, as well as these actions that I mentioned earlier around provider you know, the provider acquisition and retention and improvements, frankly, that we can make to the insurance platform to drive that. So I do not wanna give a number in terms of what the 8 thousand equate to. it is it is more about the capacity and the any utilization that is there as well. So I think that is how I would how I would answer that. In terms of the revenue run rate, you know, we have re reinstated our guidance there, reinforced our guidance around 90 to 105 million. These actions are being taken so that we can strengthen our position in 2026 and drive a strong insurance revenue growth in 2027, and that is really what we are going out. In terms of how the users are behaving, it is early. Obviously, this national rollout, we think, is gonna give us know, maybe a bit more representative view of the consumer behavior not just the cash pay versus insurance, but how they use the platform, what the ongoing operating requirements are, But we had referenced a few things in the last quarter call, and we are seeing you know, good, user, users in the in a usage in the first 90 days relative to cash pay. We are seeing good session growth As I mentioned before, the 20 thousand So a lot of those factors are coming into play as we think about the outlook moving forward. Operator: Our next question comes from the line of Allen Lutz from Bank of America. Alan, your line is open. Allen Lutz: Good afternoon, and thanks for taking the questions. Chuck, I want to follow-up on the Better Health thread here. So you are still expecting the same EBITDA margin despite the issues in cash pay. And cash pay is going to have higher gross profit dollars, as you talked about. But it seems like you are able to at least somewhat manage this through lower advertising spend. And in response to a prior question, you talked about the trajectory of gross profit margin and the trajectory of advertising spend as you make this shift from cash pay to insurance? I am not asking for any type of guidance here, but just conceptually, over the next couple years or however you wanna frame it, how should we think about the cadence of gross margin and the timing of gross margin degradation versus EBITDA margin expansion? Is it do we need to see EBITDA margins go down before they go up based on the dynamics here around cash pay Thank you. Charles Divita: Yeah. I do not wanna go too far on that last point, but I would say that yes, we have taken into consideration in the EBITDA margin guidance the initiatives that we are planning to take and the things the actions we are taking here, as well as, you know, how we are looking at our advertising spending. So that is a big lever. As you know, the cash pay business, there is a significant expenditure to acquire members. there is a high churn. With cash pay, and so it has its own set of dynamics in terms of the efficiency of that spend and how that plays into to margins. We do believe that over time that this scaling of insurance give us a greater ability to know, impact ad spend efficiency and user acquisition efficiency. And now this is a bit more accelerated given the preference and demand we are seeing. We always expected that we would need to evolve that approach over time. As insurance continue to scale and grow. I think the fourth quarter dynamic that we have seen in terms of adjusted EBITDA being higher for BetterHelp in the fourth quarter tending to be at least than other quarters. That dynamic, I think, is still gonna continue to be there even within the insurance market as well, just given the ad the ad spend dynamics around the holidays. So beyond that, I do not necessarily wanna get into know, cadence of gross margin, but we do believe that insurance will create a more durable position for BetterHelp. And, I think, create a more durable view of how that gross margin and the financial profile of the company is gonna proceed going forward. Allen Lutz: Makes sense. Thank you very much. Operator: Our next question comes from the line of Jailendra Singh from Truist Securities. Jailendra? Your line is open. Please go ahead. Jailendra Singh: Thank you, and thanks for taking my question. I actually want to maybe talk about Integrated Care business. I know we are still in the midst of selling season. Maybe if you can talk about any update how the trends have been compared to last year? How does the pipeline look Are you seeing larger deals, better win rates, more product consolidation? And how is Teladoc 1 affecting selling season conversation? Any update that would be helpful. Charles Divita: Yeah. I appreciate that, Jalendra. I would say, first of all, you know, respect to the selling season, I think the operating environment that we are in is really in line with what I have spoken about previously. I would say in the employer market, looking for solutions that you know, align with their goals. I think they are concerned around fragmentation and driving impact from the programs they have in place. The health plans, as you know, they are working through a number of challenges you know, higher medical costs, regulatory dynamics. And, you know, business decisions they are making around that. So that kinda continues to be a similar environment. We are seeing solid interest across the channels in what we are doing. Through the second quarter. I would say the selling season overall was in line with our expectations. And in line with where we were in the first half of 25. I would say the conversations we are having with clients are productive. They are I would say, more strategic in nature, as they look at their challenges and what they wanna do and what the benefits of programs like ours can have. The innovation focus we have, our capabilities the outcomes we can drive, and our focus on reducing fragmentation. I think all those things resonate with them. We have had some nice wins and expansions so far this year. We have also faced some pressures just because of the competitive nature and the market environment. And there is a lot of the year left to go as you referenced. I think we are seeing really good interest across our solutions in virtual care in chronic care. You know, adoption of bundles continues to be a theme. We have seen good growth in weight and obesity management programs. So I think all of that is in line with where we expected to be. We are really excited about bringing Teladoc 1 to market. This is really the culmination of a lot of work over the last year or so. As you know, the products and services that are brought to market today are, you know, focused on a particular problem or a particular need. Whereas Teladoc 1 is a much more comprehensive approach because it is focused on what the individual need is. And not necessarily 1 condition or a fragmented, product solution that is that is prevalent. Out in the market today. We launched it last week, actually, with our clients. We had a client forum I think there was good excitement about what Teladoc is doing in this renewed innovation. I think they understand why we are going in after it this way in terms of this comprehensive model. And why it can really benefit them and benefit their members. We are so excited to get it in the hands of our sellers and, you know, get it out to clients. it is it is really new. I mean, we just, launched it last week. But very encouraging in terms of the market and awareness of what we are doing least from that client forum, and we are gonna build on it going forward. Jailendra Singh: that is super helpful. Just 1 quick follow-up, and it is a clarification on I am sorry if I missed this, but did you say if cash pay trends did they stabilize in July? Or are the trends you saw in Q2 have continued in Q3 here in July? Charles Divita: I do not believe I spoke about July, but certainly as we progress through the tail end of the second quarter, had caused us to, you know, to really take the view that these were not short term variations that we were seeing, that these are more sustained business developments and really required us to reassess the assumptions were underlying our prior outlook given the what was evolving in the marketplace as well as the impact of the actions we are taking. So I think all of that factored into how we are setting the, expectations going forward. Jailendra Singh: Great. Thanks a lot. Operator: Our next question comes from the line of Sean Dodge from BMO Capital Markets. Sean, your line is open. Christopher Charlton: Great. Thanks for taking our questions here. it is Christopher Charlton on for Sean. Sticking on integrated care, can you share some more color on the competitive dynamics within the chronic care portion and kind of what some of the drivers were behind the big step up in enrollment in the quarter? And I know you mentioned greater adoption of the multi condition bundle and called out weight management, but are there any other areas of strength or demand to clout here and how this is setting your expectations for the rest of the selling season and into 2027? Thanks. Charles Divita: Yeah. Appreciate the question. Yeah. I think there is a couple things going on, and I referenced those, but I will just I will just maybe give a bit more detail. Certainly, we are seeing and have seen, but strong adoption of bundles by clients. Again, it addresses more needs of the people that they are serving, creates more recruitable population for us, and in turn, the ability to, you know, increase and improve enrollees. And that is important in terms of, you know, meeting more needs, but also you know, stickiness with the program, engagement, all of those things kinda factor into the benefits to us bundled. Weight and obesity programs have seen significant you know, and solid growth. As you mentioned, those carry a different lower PMPM than some of the other programs. So there is a little bit of a mixed thing going on there. And I think that having more enrollees and having these bundled programs you know, also bodes well with respect to how we bring Teladoc 1 to the market. Because it is more comprehensive offering. Terms of the competitive landscape, it is very competitive, and it is and it has been. But I think the actions we are taking to really lean into our strengths bring new capabilities to market, and really differentiate on this clinical care model that is very comprehensive, obviously enabled by the AI investments that we have made think you are gonna create some distance and differentiation relative to point solutions that are out there. So that is how we are looking at it. We I think we are in the right space. You know, cardiometabolic health area is a significant part of health care expenditure. A lot of challenges that face those individuals, and by us bringing the full breadth of our clinical capabilities, we think we can help them, and we think we can drive impact for our clients. Christopher Charlton: Okay. Thanks again. Operator: Our next question comes from the line of Elizabeth Hammell Anderson with Evercore ISI. Elizabeth, your line is open. Please go ahead. Just a reminder that if you are muted locally to please unmute your device. Our next question comes from the line of Charles Rhyee with TD Cowen. Charles, your line is open. Charles Rhyee: Yeah. Thanks for thanks for the question. I guess just to kind of I do not know if you explicitly connected these 2 issues, but it is the issue that we are seeing the accelerated demand as people come to BetterHelp, and they, you know, go through the process, they realize they can get insurance coverage and they seek insurance coverage. it is not and then there is a capacity issue where they cannot get access to a therapist quickly, and then they decide, you know what? I cannot get it now, I am gonna hold off and I do not choose the DTC option. Is are these 2 directly linked And as such, does this you know, as you talk about trying to expand capacity in the areas where you are you are having this issue, what does this do in terms of your ability to expand into other regions on the insurance side? Or those kinda 2 still 2 separate things? Charles Divita: Yeah. I think the, you know, the traditional historical advertising and marketing approach for BetterHelp really is about brand awareness and demand generation, you know, for the cash pay environment. And I think the we are seeing, you know, the demand generation occur with the level of advertising we were doing. And to your point, now that BetterHelp, it is becoming more aware that we are, offering insurance. And as we scale and grow more markets and during the quarter, actually, launched all the remaining markets, that we are now we are now have a baseline footprint nationally. there is more awareness and more interest and which we had expected in because of it really underscores why we have got into insurance to begin with, you know, the pressure on the consumer and affordability. And the know, greater acknowledgment, about the need for mental health. By payers and more in network availability. So all of those things have factored in, and, really, what we needed to do was know, as a result of this higher demand and this accelerated cash pay situation, is that we needed to evolve that marketing approach to more and more take into consideration this emerging national footprint. And so that we were not generating you know, demand, both for cash pay but also for insurance that we were not were not able to meet. So that is what is going on there. We think we are evolving that appropriately. And we will be able to, I think, more effectively tailor the advertising to the capacity we have. And, again, as I said earlier, it is not a uniform challenge. I mean, we have capacity that grows and subtracts in different markets. And so think this evolution really is people wanting to use BetterHelp, people wanting to use BetterHelp and use their insurance coverage. And part of that is our demand generation and then, ultimately, our conversion of that demand into insurance users' paying sessions. And revenue. And that is what is going on and why we really felt that it was not a short term variation that we needed to reevaluate not just the assumptions underlying our prior outlook, but what actions we could take to really strengthen and lean into this insurance market opportunity that we have ahead us. Charles Rhyee: Thank you. And then just to follow-up, I think, from Alan's question earlier. You have maintained the margin guide. How long is this sustainable? Because obviously, you are pulling back on the ad spend in the short term as you are trying to, you know, adjust to this capacity issue. But clearly, you need the advertising for the DTC demand side of the equation. it is kinda like it is sustainable for a certain period, but just curious, how long you think this transition will take you know, is this is this something that we think we can get fixed, you know, within 26, or could this take longer? Thank you Charles Divita: Well, I have touched on before how we are thinking about the margin. I think this, you know, evolving the advertising and marketing approach to more strongly consider our insurance footprint and capacity, I think, is an important part of that answer. We have always, and we will continue to focus on the bottom line of the company and making sure that we are good financial stewards in terms of how we deploy advertising and so forth. And as I mentioned before, we are investing ahead of opportunity. I mean, we are scaling insurance. We have gone from 1 state in less than a year to know, all 50 states and plus DC. So there is some investments that we are making in some operating costs that, you know, we believe that we are gonna be able to get some you know, leverage out of as we continue to scale interest. So I think all of that is in play with the answer to that question. But I think you should you should be aware that we are you know, always looking at the bottom line financial performance of the company. Charles Rhyee: Appreciate it. Thank you very much. Operator: The q and a session has ended. This concludes today's call. You for attending. You may now disconnect. Before you buy stock in Teladoc Health, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Teladoc Health wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Teladoc Health. The Motley Fool has a disclosure policy. Teladoc Health (TDOC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Teladoc Health (TDOC) just gave investors reason to rethink the turnaround story. Shares plunged more than 28% on July 30 after the company reported its second-quarter results and cut its full-year revenue outlook. TDOC stock had been gaining momentum earlier this year, but the latest report brought the BetterHelp problem back into focus. The question now is whether this selloff creates an attractive entry point — or signals that Teladoc's recovery will take longer than investors previously expected. Let's take a closer look. Jeff Bezos Says He’s Selling $1 Billion In Amazon Stock Every Year to Fund Blue Origin — ‘It’s The Most Important Work I’m Doing’ Apple’s New CEO Is Bringing a Familiar Face Back From Retirement. The Shift Is Happening. Nasdaq Futures Climb as Tech Rally Continues on Palantir Boost, U.S. JOLTS Report and SpaceX Earnings on Tap Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Teladoc's Q2 revenue fell 4% year-over-year (YOY) to $606.9 million, below the roughly $615 million analysts had expected. So, the company did not beat on revenue. The earnings picture was a little better. The company reported a net loss of $38.9 million, or $0.21 per share. The adjusted loss came in narrower than Wall Street had anticipated, giving investors at least one positive from the quarter. The bigger problem was inside the business. Integrated Care revenue increased 1% YOY to $394.3 million, while adjusted EBITDA for the segment rose 14% YOY to $65.2 million. The company's Integrate Care business continues to show signs of stability. BetterHelp was a different story. Revenue for the segment dropped 12% YOY to $212.6 million, while adjusted EBITDA fell 96% to just $471,000. Customers are increasingly shifting toward insurance-covered therapy, but Teladoc does not yet have enough provider capacity to fully capture that demand. That transition is creating a difficult period for the company. The earnings miss alone does not explain the size of the recent decline in TDOC stock. The bigger issue is what Teladoc said about the rest of 2026. Teladoc now expects full-year revenue of $2.36 billion to $2.45 billion. That is below the previous forecast of $2.48 billion to $2.58 billion. BetterHelp is also expected to decline 13% to 19% for the year. That is much weaker than the previous outlook for a 1% to 6.5% decline. This changes the turnaround story. Investors had been hoping that the transition toward insurance-covered services would eventually improve BetterHelp's economics. Instead, the shift is creating a mismatch between demand and available provider capacity. That does not mean BetterHelp cannot recover. It means investors may have to wait longer for a recovery to show up in the financial results. Things get interesting when it comes to the valuation of TDOC stock. Teladoc's valuation has fallen sharply over the past several years. Before the latest selloff, the stock was already trading well below 1 times trailing sales. Historical data shows its price-to-sales (P/S) ratio at about 0.65 times in early July, compared with much higher levels in previous years. That looks inexpensive at first glance. But investors should be careful with a low P/S multiple. Teladoc is still reporting losses, so the market is not simply valuing the company on its current revenue base. It is trying to determine whether those sales can eventually produce sustainable earnings and cash flow. Currently, Teladoc stock has a P/S ratio of 0.48 times. Teladoc ended Q2 with about $774 million in cash and cash equivalents. Management also expects full-year free cash flow of $130 million to $170 million. That gives the company some financial flexibility while it works through the BetterHelp transition. Analysts are far from united on Teladoc stock. Bank of America has a “Buy” rating and a $10.50 price target, while Canaccord Genuity recently maintained a “Buy” rating and lifted its target to $11. Citi has a price target of $7.50 and a “Hold” rating. At the same time, several analysts remain more cautious. UBS has a $6 target with a “Hold” rating, while Stifel has a “Hold” and a target of $5.50 per share. That wide range tells investors something important. Wall Street does not have a clear view of how quickly Teladoc can recover, yet the mean price target of $7.65 suggests more than 15% potential upside from current levels. All told, I think investors should treat TDOC as a turnaround stock rather than a traditional growth stock. The valuation is low, the balance sheet provides some cushion, and Integrated Care is showing improvement. Still, BetterHelp remains a major problem, and the guidance cut shows that the recovery may take longer than expected. On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Teladoc Health (TDOC) shares came under focus after the company reported second quarter 2026 results, which showed lower sales and a wider net loss, alongside fresh revenue and earnings guidance for the rest of the year. See our latest analysis for Teladoc Health. The earnings release and updated guidance appear to be weighing heavily on sentiment. Teladoc Health's share price return is down 28.32% over the past day and 24.02% over the past week, while the 1-year total shareholder return has fallen 8.74% and the 5-year total shareholder return is down 95.70%. This points to weak long term performance despite a slightly positive 90 day share price return of 1.86%. If Teladoc Health's recent swing has you reassessing opportunities in digital care, it may help to widen your lens using a curated list of healthcare focused AI stocks such as 41 healthcare AI stocks Teladoc Health now trades at a steep discount to one valuation estimate and sits below the average analyst price target, yet the business still reports falling quarterly sales and a net loss. Is the market being cautious, or simply realistic about the risks? Based on one widely followed narrative, Teladoc Health’s fair value of $15.00 sits well above the last close at $6.58, which frames the current slide in a very different light. Read the complete narrative. Curious what sits behind that $15.00 fair value for Teladoc Health. The narrative leans heavily on free cash flow durability, the BetterHelp insurance shift and a richer earnings multiple that the market is currently ignoring. Result: Fair Value of $15.00 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Teladoc Health still faces pressure if the BetterHelp insurance pivot underdelivers or if telehealth competitors gain share faster than its virtual care platform can adjust. Find out about the key risks to this Teladoc Health narrative. With sentiment clearly mixed around Teladoc Health, it makes sense to look past the headlines and weigh the risks and rewards for yourself. To balance the concerns with the potential upside, take a closer look at the 3 key rewards and 2 important warning signs. If Teladoc Health has you rethinking your watchlist, do not stop here. Use the Simply Wall Street Screener to uncover fresh opportunities that could fit your goals. Target stronger income potential by scanning companies with robust yields using the 8 dividend fortresses. Spot opportunities trading below their estimated worth by reviewing the 56 high quality undervalued stocks. Prioritise resilience by checking companies highlighted in the 89 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TDOC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

In late July 2026, Teladoc Health, Inc. reported second-quarter 2026 results showing sales of US$606.93 million and a net loss of US$38.91 million, with both revenue and per-share loss slightly weaker than the same period a year earlier. Over the first half of 2026, Teladoc’s sales declined to US$1.22 billion while its net loss narrowed to US$102.75 million, indicating that cost controls and efficiency measures may be helping even as top-line growth remains under pressure. We will now consider how Teladoc’s softer quarterly revenue and wider quarterly loss figure affect its existing investment narrative and outlook. Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. To own Teladoc Health, you need to believe virtual care can become a durable, scaled business for chronic and mental health needs, despite ongoing losses. The latest quarter’s softer revenue and slightly wider quarterly loss do not materially change that long-term thesis, but they keep the near term focus on whether Teladoc can stabilize growth while continuing to tighten costs. The biggest current risk remains pressure on key segments like BetterHelp and chronic care, where pricing, churn, and contract renewals are crucial. Against this backdrop, Teladoc’s reaffirmed full year 2026 revenue guidance of US$2,481 million to US$2,576 million, issued in late April, is particularly relevant. Q2 revenue of US$606.93 million sits within the guided quarterly range and suggests management still sees the full year as achievable, even as year to date sales are modestly lower than last year. How well Teladoc tracks against that guidance will likely shape confidence in its cost discipline and product investment plans over the coming quarters. Yet, while these results may look like incremental progress, investors should be aware that the pressure on BetterHelp’s business model and margins could... Read the full narrative on Teladoc Health (it's free!) Teladoc Health's narrative projects $2.6 billion revenue and $172.9 million earnings by 2029. Uncover how Teladoc Health's forecasts yield a $7.97 fair value, a 13% downside to its current price. Some of the most optimistic analysts were assuming Teladoc could reach about US$2.7 billion in revenue and positive earnings by 2029, which contrasts sharply with today’s weaker Q2 numbers and highlights how much views can differ on whether initiatives like BetterHelp insurance can truly offset competitive and pricing pressures. Explore 5 other fair value estimates on Teladoc Health - why the stock might be worth 13% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Teladoc Health research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Teladoc Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Teladoc Health's overall financial health at a glance. Our top stock finds are flying under the radar-for now. Get in early: Find 49 companies with promising cash flow potential yet trading below their fair value. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 15 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TDOC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Teladoc Health, Inc.? Here are five stocks we like better. Teladoc reported mixed second-quarter results: Revenue reached $607 million and adjusted EBITDA was $66 million, while Integrated Care delivered stronger-than-expected revenue and a 16.5% EBITDA margin. BetterHelp remained under pressure as cash-pay revenue and paying users declined, despite rapid growth in insurance users. Teladoc is prioritizing its U.S. insurance expansion, provider capacity and platform improvements. Teladoc cut its 2026 revenue outlook to $2.36 billion–$2.45 billion, primarily due to weaker BetterHelp cash-pay expectations, but slightly raised adjusted EBITDA guidance and maintained free-cash-flow guidance of $130 million–$170 million. 3 Non-Pharma Firms That Could Benefit From the GLP-1 Trend Teladoc Health (NYSE:TDOC) reported second-quarter results within its consolidated guidance range, supported by stronger-than-expected profitability in its Integrated Care segment, while lower cash-pay revenue at BetterHelp prompted the company to reduce its full-year revenue outlook. Consolidated revenue totaled $607 million for the quarter, while adjusted EBITDA was $66 million, representing a 10.8% margin. Teladoc reported a net loss of $0.21 per share and generated $36 million in free cash flow. The company ended the quarter with $774 million in cash and cash equivalents, with net debt equal to 0.8 times trailing adjusted EBITDA. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Peloton Stock Is Rallying, But Can It Deliver Another 70% Upside? Integrated Care revenue rose 0.7% year over year to $394 million, landing in the upper half of Teladoc’s guidance range. The segment’s adjusted EBITDA increased 13.6% from a year earlier to $65 million, producing a 16.5% margin that was above the company’s guidance range. Chief Executive Officer Chuck Divita said international revenue again increased by double digits, aided by a 30% increase in hybrid-care-model revenue. Higher chronic-care enrollment and visit revenue also contributed, more than offsetting lower subscription revenue. Acquisitions accounted for approximately 60 basis points of year-over-year growth. → 3 Value ETFs to Consider as Growth Stocks Lag Behind 2 Telehealth Stocks That Could Gain from Trump’s New FDA Pick Teladoc ended the quarter with 100.3 million U.S. Integrated Care members, slightly above its forecast range. Chronic-care enrollment reached 1.27 million, up 6% sequentially and 14% year over year, driven largely by clients adopting multi-condition bundles. The company recently introduced Teladoc One, a connected-care model that combines its clinical and technology capabilities around an individual’s healthcare needs. The offering will initially target people with cardiometabolic health conditions and is expected to become broadly available in January 2027. Divita said Teladoc One will use the company’s Pulse intelligence engine, which applies multidimensional data and artificial intelligence models to support clinical insights, interventions and engagement. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? For 2026, Teladoc expects Integrated Care revenue growth of 0.8% to 2.4% and an adjusted EBITDA margin of 15.6% to 16.4%. The company said its revenue outlook reflects a client-requested deferral of a planned contract implementation and a lower expected foreign-exchange benefit. It continues to anticipate high-single-digit organic constant-currency international revenue growth. BetterHelp revenue declined 11.6% year over year to $213 million and fell 2.6% sequentially. Insurance revenue was $22 million, near the high end of Teladoc’s expected range and about $9 million higher sequentially. However, the gain was offset by a sharper-than-expected drop in cash-pay revenue. Average BetterHelp paying users fell 11% year over year to 346,000 and declined 4% from the first quarter. Insurance users, meanwhile, increased more than 70% sequentially. BetterHelp generated adjusted EBITDA of $0.5 million, or a 0.2% margin, as lower cash-pay revenue and investments in the accelerated insurance rollout outweighed a 17% reduction in advertising and marketing expense from a year earlier. Divita said demand for insurance coverage accelerated during the latter half of May and into June. About 70% of potential users indicated a preference for insurance, rising to as much as 80% in certain markets, according to the company. The shift reduced cash-pay conversion and increased demand beyond available provider capacity in some states and payer networks. While Teladoc has credentialed more than 8,000 mental-health professionals for BetterHelp’s insurance network and contracted for more than $150 million of in-network lives, Divita said capacity depends on provider availability by state, payer, clinical need and appointment timing. The company completed more than 20,000 insurance-covered sessions in the most recent week cited, representing an annualized revenue run rate of more than $110 million. Teladoc accelerated BetterHelp’s national insurance expansion, launching its remaining states during the quarter and establishing a baseline footprint across all 50 states and Washington, D.C. The company plans to focus resources on provider recruitment, onboarding, retention, scheduling efficiency and insurance-platform improvements. It also intends to align advertising more closely with available insurance-provider capacity and shift from state-level to more national insurance marketing strategies. The company is reducing near-term emphasis on international BetterHelp markets, including related advertising and resource allocation, as it prioritizes the U.S. insurance opportunity. Divita said the move is a near-term prioritization rather than a departure from international markets, where Teladoc still sees long-term opportunity. Teladoc lowered its 2026 consolidated revenue outlook to $2.36 billion to $2.45 billion, a 5% reduction at the midpoint from its prior range, primarily because of the revised BetterHelp cash-pay outlook. The company maintained its free-cash-flow outlook of $130 million to $170 million. Adjusted EBITDA guidance was raised slightly at the midpoint to a range of $271 million to $303 million, which would represent about 85 basis points of margin expansion from 2025. Teladoc now expects a net loss of $1.00 to $0.75 per share for the year and projects stock-based compensation expense below $50 million, down more than 35% from 2025. BetterHelp’s 2026 revenue is now expected to decline 19.0% to 12.7% from 2025, with total segment revenue of $770 million to $830 million. Insurance revenue guidance for BetterHelp was reaffirmed at $90 million to $105 million for 2026. BetterHelp adjusted EBITDA margin guidance remains 3.0% to 4.6%. Third-quarter BetterHelp insurance revenue is projected at $25 million to $31 million. Divita said Teladoc expects insurance revenue to continue growing sequentially in the fourth quarter. At the midpoint of the company’s implied fourth-quarter range, BetterHelp’s insurance business would exit 2026 at an annualized revenue run rate approaching $140 million. Teladoc Health, Inc is a leading global provider of virtual healthcare services, offering on-demand medical consultations via phone, video, and mobile app platforms. The company connects patients with licensed physicians and specialists for non-emergency medical issues, mental health support, dermatology, and chronic condition management. By leveraging digital technologies and data analytics, Teladoc aims to enhance accessibility, reduce healthcare costs, and improve patient outcomes through personalized care plans and remote monitoring. Teladoc's service portfolio includes general medical visits, behavioral health sessions, expert medical services for complex cases, and wellness programs designed to support chronic disease management such as diabetes, hypertension, and heart disease. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Teladoc Health Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management observed a faster-than-anticipated consumer shift toward insurance-covered mental health services, with up to 80% of potential users in certain markets expressing a preference for insurance over cash pay. The BetterHelp segment faced significant revenue pressure as the decline in U.S. cash pay users accelerated beyond modeled expectations, while insurance capacity could not expand quickly enough to offset the loss. Integrated Care delivered solid results driven by double-digit international growth and a 30% increase in hybrid care models, offsetting headwinds from lower subscription revenue. The company launched Teladoc 1, a new unified care model designed to move away from fragmented point solutions toward a multidisciplinary approach focused on total cost of care and individual health journeys. Chronic care enrollment grew 14% year-over-year, primarily attributed to the continued adoption of multi-condition bundles which expand the recruitable population for clients. Management is deliberately reducing advertising spend to align demand generation with available provider capacity, prioritizing profitability over aggressive cash pay user acquisition. The 2026 revenue guidance was lowered by 5% at the midpoint to reflect the accelerated deterioration of the BetterHelp cash pay business and the transition to an in-network model. Management expects the national insurance footprint to provide a more representative view of consumer behavior, enabling a shift from state-level to national marketing strategies over time. Near-term resources are being diverted from international markets to support U.S. insurance scaling, including product engineering and provider recruitment initiatives. Teladoc 1 is scheduled for broad availability in January 2027, initially targeting cardiometabolic health conditions as a primary driver of client healthcare costs. The company anticipates continued pressure on U.S. cash pay revenue through the fourth quarter due to seasonal holiday ad pricing dynamics and the strategic reduction in marketing spend. A baseline national footprint for BetterHelp insurance was established ahead of schedule, covering all 50 states and D.C. to address sustained consumer demand. Stock-based compensation is projected to decline by over 35% from 2025 levels, reflecting a continued focus on disciplined cost management. Integrated Care revenue was impacted by a client-requested deferral of a contract implementation from 2026 to 2027. Management flagged provider capacity constraints as a key risk, noting that available capacity depends on specific state/payer credentials, clinical needs, and appointment timing. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is pursuing NCQA accreditation to enable delegated credentialing, which would accelerate the onboarding of therapists into the insurance network. Initiatives include recruiting from outside the existing BetterHelp cash pay network and using AI to improve provider productivity and documentation efficiency. Insurance services typically carry lower gross margin percentages than cash pay, but management expects higher lifetime value as cost becomes less of a barrier for patients. Operating leverage is expected to improve as the insurance business scales and customer acquisition costs decrease relative to the high-churn cash pay model. The shift is described as a near-term prioritization of finite engineering and marketing resources toward the high-demand U.S. insurance opportunity. Management clarified this is not a permanent exit, as they still view international markets as having significant long-term unmet need. Teladoc 1 aims to differentiate the company from 'point solutions' by offering a comprehensive clinical model that addresses multiple conditions through a single multidisciplinary team. Early client feedback from recent forums indicates strong interest in reducing vendor fragmentation through this integrated approach.

Teladoc Health, Inc. TDOC reported a second-quarter 2026 adjusted loss of 21 cents per share, which beat the Zacks Consensus Estimate of a loss of 24 cents. However, the bottom line deteriorated from a loss of 19 cents per share in the year-ago quarter. Operating revenues declined 4% year over year to $606.9 million and missed the Zacks Consensus Estimate by 1.3%. The quarterly results were supported by strength in the Integrated Care segment, higher international revenues and lower operating expenses, which were partially offset by weakness in the BetterHelp segment, particularly pressure on cash pay revenues, and declining access fees revenues. Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote Revenues from access fees totaled $474.2 million, down 9% year over year. The figure missed the Zacks Consensus Estimate and our estimate of $499.5 million. Other revenues increased 23% year over year to $132.7 million. The metric beat the Zacks Consensus Estimate and our estimate of $113 million. On a geographical basis, Teladoc Health generated $487.4 million in revenues from the United States, down 6% year over year. The metric lagged the Zacks Consensus Estimate of $498.3 million. International revenues of $119.6 million advanced 7% year over year and surpassed the consensus mark of $114.2 million. Adjusted EBITDA declined 5% year over year to $65.7 million and beat our estimate of $56.2 million. Total costs and expenses decreased 6.2% year over year to $644 million and came below our estimate of $661 million. The year-over-year decline was primarily due to lower technology and development, advertising and marketing, and general and administrative expenses. The Integrated Care segment’s revenues increased 1% year over year to $394.3 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $392.2 million and our estimate of $392 million. Adjusted EBITDA increased 14% year over year to $65.2 million and surpassed the Zacks Consensus Estimate of $59.3 million. The adjusted EBITDA margin expanded 180 basis points (bps) year over year to 16.5%. The BetterHelp segment generated revenues of $212.6 million, down 12% year over year. The metric missed the Zacks Consensus Estimate of $221.8 million. Adjusted EBITDA declined 96% year over year to $0.47 million. The figure missed the consensus mark of $1.8 million. The adjusted EBITDA margin of 0.2% contracted 470 bps year over year. Total visits to Teladoc Health were 4.1 million in the second quarter, down 2% year over year. The metric beat the Zacks Consensus Estimate by 1.2% U.S. Integrated Care members totaled 100.3 million, down 2% year over year. However, the figure beat the consensus mark by 0.7%. Teladoc Health exited the second quarter of 2026 with cash and cash equivalents of $774.3 million, down from $781.1 million as of 2025-end. Total assets decreased to $2.76 billion from $2.86 billion at the end of 2025. Debt totaled $996.7 million, up from $994.9 million as of 2025-end. Total stockholders’ equity declined to $1.3 billion from $1.4 billion as of Dec. 31, 2025. In the second quarter of 2026, TDOC generated net cash from operations of $64.7 million, down 29.3% year over year. Free cash flow was $35.7 million, down 41.6% year over year. Revenues in the Integrated Care segment are forecasted to witness year-over-year growth of 0.0-3.0%. The unit’s adjusted EBITDA margin is anticipated to be in the band of 15.7-17.2%. U.S. Integrated Care members are expected to be between 99.0-100.5 million Revenues in the BetterHelp segment are estimated to register a 12.3-24.2% year-over-year decline. The segment’s adjusted EBITDA margin is anticipated to be in the band of 0.5-2.5%. Total revenues are expected to be between $569 million and $609 million. Adjusted EBITDA is anticipated to be between $62 million and $74 million. Net loss per share is estimated to be between 20 cents and 30 cents. Revenues in the Integrated Care segment are expected to grow 0.8-2.4% year over year compared with the prior guidance of 0.8-3.5%. U.S. Integrated Care members are projected to be between 98.5 million and 100.5 million, up from the earlier projection of 97-100 million. The segment's adjusted EBITDA margin is expected to be between 15.6% and 16.4% compared with the previous guidance of 15.1-16.1%. Revenues in the BetterHelp segment are expected to decline 12.7-19.0% year over year compared with the earlier guidance of 1.0-6.5%. The segment's adjusted EBITDA margin is expected to be between 3.0% and 4.6%, unchanged from the prior guidance. The company expects 2026 revenues to be in the range of $2.362-$2.447 billion, down from the previous guidance of $2.481-$2.576 billion. Adjusted EBITDA is projected to be between $271 million and $303 million compared with the earlier outlook of $267-$306 million. Net loss per share is expected to be between 75 cents and $1.00 versus the previous guidance of 75 cents-$1.05. Free cash flow guidance remains unchanged at $130-$170 million. Teladoc Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Medical space that have also reported their quarterly results: Acadia Healthcare Company, Inc. ACHC, Elevance Health, Inc. ELV and UnitedHealth Group Incorporated UNH. Here's how they have performed: Acadia Healthcare reported adjusted second-quarter earnings of 38 cents per share, which beat the Zacks Consensus Estimate by 15.2%. However, the bottom line declined 54% year over year. Acadia Healthcare’s top line declined 0.4% year over year to $865.8 million and surpassed the Zacks Consensus Estimate by 2.5%. The quarterly results reflected strong patient demand, as admissions increased and same-facility patient days improved. Residential Treatment Facilities also delivered double-digit revenue growth. However, lower revenue per patient day, a shorter average length of stay and higher operating expenses weighed on profitability. Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. The top line beat the consensus mark by 2.9%. Elevance Health’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses. UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. The top line beat the consensus mark by 1.7%. UnitedHealth Group’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Acadia Healthcare Company, Inc. (ACHC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Teladoc (TDOC) shares crashed on July 30 as the company’s weaker-than-expected fiscal Q2 sales and muted future guidance disappointed investors. The NYSE-listed telehealth specialist lost $0.21 on a per-share basis in its recently concluded quarter and generated $607 million in revenue, which represents a 4% year-over-year decline. Dear Sandisk Stock Fans, Mark Your Calendars for August 5 Intel Stock Sinks 40%, But Most Analysts Still Aren’t Bullish on INTC Nebius Stock Gets Another Wall Street Upgrade. Here’s Why Investors Are Paying Attention. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Teladoc stock has been under immense pressure in recent weeks, now down about 35% versus its year-to-date high. The primary catalyst behind Teladoc’s disappointing topline performance was continued weakness in its BetterHelp direct-to-consumer (DTC) mental health segment. BetterHelp revenue tumbled 12% year-over-year to $212.6 million as cash-paying users exited the platform at an accelerating rate in late May and June. TDOC shares are struggling amid consumer preferences shifting rapidly toward insurance-covered therapy. On the earnings call, CEO Chuck Divita explained that solid demand for insured services outpaced available provider capacity, limiting the company’s ability to convert member interest into billed sessions to offset cash-pay declines. Meanwhile, revenue from the core Integrated Care segment rose just 1% year-over-year to $394.3 million, offering little cushion. Investors considering buying the dip in Teladoc shares should proceed with extreme caution given the company lowered its guidance on Thursday. Management now expects full-year sales to fall between $2.36 billion and $2.45 billion, signaling continued headwinds rather than a quick rebound. Until TDOC resolves its provider capacity constraints and transitions its BetterHelp segment to an insurance-led model, revenue growth appears rather limited. That said, the derivatives market remains bullish on Teladoc Health. According to Barchart, the put-to-call ratio on options contracts expiring mid-October sits at 0.18x, with the upper price on those contracts indicating potential for a more than 19% rally to $7.78 over the next three months. Investors could also take heart in the fact that Wall Street analysts remain bullish on Teladoc for the remainder of 2026. The consensus rating on TDOC stock sits at “Moderate Buy” currently, with the mean price target of about $8 indicating potential upside of more than 22% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Teladoc (TDOC) reported $606.93 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 4%. EPS of -$0.21 for the same period compares to -$0.19 a year ago. The reported revenue represents a surprise of -1.26% over the Zacks Consensus Estimate of $614.69 million. With the consensus EPS estimate being -$0.24, the EPS surprise was +12.5%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Teladoc performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: U.S. Integrated Care Members: 100.3 million compared to the 99.61 million average estimate based on four analysts. Average Monthly Revenue Per U.S. Integrated Care Member: $1.31 versus the four-analyst average estimate of $1.31. BetterHelp Paying Users: 0.35 million versus the four-analyst average estimate of 0.37 million. Chronic Care Program Enrollment: 1.27 million versus 1.19 million estimated by two analysts on average. Revenues by Segment- Integrated Care: $394.31 million compared to the $392.17 million average estimate based on six analysts. The reported number represents a change of +0.7% year over year. Revenues by Segment- BetterHelp: $212.62 million compared to the $221.8 million average estimate based on six analysts. The reported number represents a change of -11.6% year over year. Revenues by Segment- BetterHelp- Consumer and Other: $190.85 million versus $205.47 million estimated by three analysts on average. Revenues by Segment- BetterHelp- Insurance Covered Services: $21.77 million compared to the $20.03 million average estimate based on two analysts. Adjusted EBITDA- BetterHelp: $0.47 million versus the three-analyst average estimate of $1.77 million. Adjusted EBITDA- Integrated Care: $65.24 million versus $59.25 million estimated by three analysts on average. View all Key Company Metrics for Teladoc here>>> Shares of Teladoc have returned +10.4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEW YORK, July 29, 2026 (GLOBE NEWSWIRE) -- Teladoc Health, Inc. (NYSE: TDOC), the global leader in virtual care, today reported financial results for the three months ended June 30, 2026 (“Second Quarter 2026”). Unless otherwise noted, percentage and other changes are relative to the three months ended June 30, 2025 (“Second Quarter 2025”). Highlights Second Quarter 2026 revenue of $606.9 million, down 4% year-over-year Second Quarter 2026 net loss of $38.9 million, or $0.21 per share Second Quarter 2026 adjusted EBITDA of $65.7 million, down 5% year-over-year Integrated Care segment revenue of $394.3 million, up 1% year-over-year, and adjusted EBITDA margin of 16.5% BetterHelp segment revenue of $212.6 million, down 12% year-over-year, and adjusted EBITDA margin of 0.2% “We continue to make progress on the priorities we believe are most important to the long-term success of Teladoc Health. Our second-quarter results were within our guidance ranges on a consolidated basis and reflected distinct dynamics across our two segments,” said Chuck Divita, Chief Executive Officer of Teladoc Health. “We delivered solid Integrated Care segment performance, with revenue growth and adjusted EBITDA margin above the midpoint of our guidance ranges and continued to advance new innovations designed to strengthen the value we provide to clients and members, including the launch of Teladoc One, our new connected care model for the U.S. market.” “In the BetterHelp segment, insurance revenue came in near the high end of our expectations. However, pressure on cash pay revenue accelerated further in late May and into June, beyond the assumptions underlying our prior outlook. We saw stronger than anticipated demand for insurance covered services that outpaced available provider capacity, limiting our ability to convert a greater share of that demand into sessions and revenue to offset the cash pay decline. Given strong consumer preference for insurance, we accelerated the nationwide insurance rollout ahead of plan, and we are taking focused actions to further support the scaling of insurance. We continue to expect 2026 insurance revenue within our previously communicated range, but we have lowered our BetterHelp segment revenue outlook to reflect updated assumptions for cash pay including prioritization of the growing insurance market. We are addressing BetterHelp’s near-term challenges with urgency and discipline and believe these actions will strengthen our ability to meet growing insurance demand and position the segment for more durable performance over time.” See note (1) in the Notes section that follows. Second Quarter 2026 Revenue decreased 4% to $606.9 million from $631.9 million in Second Quarter 2025. Access fees revenue decreased 9% to $474.2 million while other revenue increased 23% to $132.7 million. U.S. revenue decreased 6% to $487.4 million while International revenue increased 7% to $119.6 million. Integrated Care segment revenue increased 1% to $394.3 million in Second Quarter 2026 while BetterHelp segment revenue decreased 12% to $212.6 million. Net loss totaled $38.9 million, or $0.21 per share, for Second Quarter 2026, compared to $32.7 million, or $0.19 per share, for Second Quarter 2025. Results for Second Quarter 2026 included amortization of intangibles of $88.4 million, or $0.49 per share pre-tax, and stock-based compensation expense of $9.3 million, or $0.05 per share pre-tax. Results for Second Quarter 2025 included amortization of intangibles of $88.7 million, or $0.50 per share pre-tax, and stock-based compensation expense of $22.3 million or $0.13 per share pre-tax. Net loss for Second Quarter 2025 also included restructuring costs related to severance costs and costs associated with office space reductions of $5.7 million, or $0.03 per share pre-tax. These items were partially offset by an acquisition related tax benefit of $9.7 million, or $0.06 per share. Adjusted EBITDA(1) decreased 5% to $65.7 million, compared to $69.3 million for Second Quarter 2025. The Integrated Care segment adjusted EBITDA increase of $7.8 million was offset by a $11.4 million decrease of the BetterHelp segment adjusted EBITDA in Second Quarter 2026. Six Months Ended June 30, 2026 Revenue decreased 3% to $1,220.8 million from $1,261.3 million in the first six months of 2025. Access fees revenue decreased 9% to $958.9 million while other revenue increased 24% to $261.9 million. U.S. revenue decreased 6% to $978.9 million while International revenue increased 12% to $241.9 million. Integrated Care segment revenue increased 1% to $789.8 million in the first six months of 2026 while BetterHelp segment revenue decreased 10% to $431.0 million. Net loss totaled $102.7 million, or $0.57 per share, for the first six months of 2026, compared to $125.7 million, or $0.72 per share, for the first six months of 2025. Results for the first six months of 2026 included amortization of intangibles of $178.3 million, or $0.99 per share pre-tax, and stock-based compensation expense of $23.9 million, or $0.13 per share pre-tax. Net loss for the first six months of 2026 also included restructuring costs of $12.9 million, or $0.07 per share pre-tax, primarily related to severance costs. Results for the first six months of 2025 included a non-cash goodwill impairment charge of $59.1 million, or $0.34 per share pre-tax, amortization of intangibles of $173.0 million, or $0.99 per share pre-tax, and stock-based compensation expense of $47.5 million, or $0.27 per share pre-tax. Net loss for the first six months of 2025 also included restructuring costs related to severance costs and costs associated with office space reductions of $10.0 million, or $0.06 per share pre-tax. These items were partially offset by a discrete tax benefit of $20.1 million, or $0.11 per share, related to the completion of a research and development tax credit study and acquisition related tax benefits of $11.1 million, or $0.06 per share. The non-cash goodwill impairment charge recorded in the first six months of 2025 was the result of the fair value of the Integrated Care segment being less than its carrying value at the time of the acquisition of Catapult Health, LLC. Adjusted EBITDA(1) decreased 3% to $123.9 million, compared to $127.4 million for the first six months of 2025. The Integrated Care segment adjusted EBITDA increase of $13.7 million was offset by a $17.2 million decrease of the BetterHelp segment adjusted EBITDA in the first six months of 2026. Capex and Cash Flow Cash flow from operations was $64.7 million in Second Quarter 2026, compared to $91.4 million in Second Quarter 2025, and was $74.2 million in the first six months of 2026, compared to $107.4 million in the first six months of 2025. Capital expenditures and capitalized software development costs (together, “Capex”) were $28.9 million in Second Quarter 2026, compared to $30.2 million in Second Quarter 2025, and were $64.7 million in the first six months of 2026, compared to $61.8 million in the first six months of 2025. Free cash flow was $35.7 million in Second Quarter 2026, compared to $61.2 million in Second Quarter 2025, and was $9.4 million in the first six months of 2026, compared to $45.5 million in the first six months of 2025. Financial Outlook The outlook provided below is based on current market conditions and expectations and what we know today. See note (2) in the Notes section that follows. Earnings Conference Call The Second Quarter 2026 earnings conference call and webcast will be held Wednesday, July 29, 2026 at 5:00 p.m. E.T. The conference call can be accessed by dialing 833-461-5787 for U.S. participants and using the conference ID # 478 236 923. For international participants, please visit the following link for global dial-in numbers, using the same conference ID # 478 236 923: https://help.events.q4inc.com/eahc/international-dial-in-numbers. A live audio webcast will also be available online at http://ir.teladoc.com/news-and-events/events-and-presentations/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days. About Teladoc Health Teladoc Health is the global leader in virtual care. The company is delivering and orchestrating care across patients, care providers, platforms, and partners — transforming virtual care into a catalyst for how better health happens. Through our relationships with health plans, employers, providers, health systems and consumers, we are enabling more access, driving better outcomes, extending provider capacity and lowering costs. Learn more at www.teladochealth.com. Cautionary Note Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, the information under the caption “Financial Outlook” and statements we make regarding future financial or operating results, future numbers of members, BetterHelp paying users or clients, litigation outcomes, regulatory developments, market developments, new products and growth strategies, initiatives to improve our efficiency and competitiveness, and the effects of any of the foregoing on our future results of operations or financial condition. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that have in the past and/or may in the future cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market conditions and receptivity to our services and offerings, including our ability to effectively compete; (iii) results of litigation or regulatory actions; (iv) the loss of one or more key clients or the loss of a significant number of members or BetterHelp paying users; (v) a decrease in revenue from users who pay directly out-of-pocket without offsetting growth in insurance-covered services in our BetterHelp segment; (vi) changes in valuations or useful lives of our assets; (vii) changes to our abilities to recruit and retain qualified providers into our network; (viii) the impact of and risk related to impairment losses with respect to goodwill or other assets; (ix) the success of our initiatives to improve our efficiency and competitiveness; (x) imposed and threatened tariffs by the United States and its trading partners, and any resulting disruptions or inefficiencies in our supply chain; (xi) the rate and magnitude of declines in BetterHelp cash-pay users and revenue; (xii) the extent to which insurance availability changes users’ payment choices; (xiii) available provider capacity including on a state and payer specific basis; (xiv) the timing, cost and effectiveness of provider recruitment, credentialing, enrollment, activation, compensation and retention; (xv) the performance of insurance-specific eligibility, matching, booking, scheduling, utilization, session-duration, claims and collection workflows; (xvi) the effectiveness and revenue consequences of changes in advertising and marketing spending; (xvii) the effects of BetterHelp’s reduced near term emphasis and investment outside the United States; (xviii) the cost, timing and effectiveness of platform and provider-capacity investments; (xix) the margin effects of the insurance mix; and (xx) potential impairment of BetterHelp goodwill. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to, our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law. Stock-based Compensation Summary Compensation expense for stock-based awards was classified as follows (in thousands, unaudited): See note (3) in the Notes section that follows. Revenues Summary Operating Metrics Consolidated Integrated Care BetterHelp See notes (2), (4), (5), and (6) in the Notes section that follows. Operating Results by Segment (see note (7) in the Notes section that follows) The following table presents operating results by reportable segment for the periods indicated: N/M - not meaningful Non-GAAP Financial Measures: To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use certain non-GAAP financial measures to clarify and enhance an understanding of past performance, which include adjusted EBITDA and free cash flow. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance and are commonly used by investors to evaluate our performance and that of our competitors. We further believe that these financial measures are useful to assess our operating performance and financial and business trends from period-to-period by excluding certain items that we believe are not representative of our core business, and that free cash flow reflects an additional way of viewing our liquidity that, when viewed together with GAAP results, provides management, investors, and other users of our financial information with a more complete understanding of factors and trends affecting our cash flows. We use these non-GAAP financial measures for business planning purposes and in measuring our performance relative to that of our competitors. We utilize adjusted EBITDA as a key measure of our performance. Adjusted EBITDA consists of net loss before provision for income taxes; other expense (income), net; interest income; interest expense; depreciation of property and equipment; amortization of intangible assets; restructuring costs; acquisition, integration, and transformation costs; goodwill impairments; and stock-based compensation. Free cash flow is net cash provided by operating activities less capital expenditures and capitalized software development costs. Our use of these non-GAAP terms may vary from that of others in our industry, and other companies may calculate such measures differently than we do, limiting their usefulness as comparative measures. Non-GAAP measures have important limitations as analytical tools and you should not consider them in isolation, and they should not be considered as an alternative to net loss before provision for income taxes, net loss, net loss per share, net cash from operating activities or any other measures derived in accordance with GAAP. Some of these limitations are: adjusted EBITDA eliminates the impact of the provision for income taxes on our results of operations, and does not reflect other expense (income), net, interest income, or interest expense; adjusted EBITDA does not reflect restructuring costs. Restructuring costs may include certain lease impairment costs, certain losses related to early lease terminations, and severance; adjusted EBITDA does not reflect significant acquisition, integration, and transformation costs. Acquisition, integration, and transformation costs include investment banking, financing, legal, accounting, consultancy, integration, fair value changes related to contingent consideration, and certain other transaction costs related to mergers and acquisitions. It also includes costs related to certain business transformation initiatives focused on integrating and optimizing various operations and systems, including upgrading our enterprise resource planning system. These transformation cost adjustments made to our results do not represent normal, recurring, operating expenses necessary to operate the business but, rather, incremental costs incurred in connection with our acquisition and integration activities; adjusted EBITDA does not reflect goodwill impairment charges; and adjusted EBITDA does not reflect the significant non-cash stock-based compensation expense which should be viewed as a component of recurring operating costs. In addition, although amortization of intangible assets and depreciation of property and equipment are non-cash charges, the assets being amortized and depreciated will often have to be replaced in the future, and adjusted EBITDA does not reflect any expenditures for such replacements. We compensate for these limitations by using these non-GAAP measures along with other comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include net loss, net loss per share, net cash from operating activities, and other performance measures. In evaluating these financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in this presentation. Our presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. The following is a reconciliation of net loss, the most directly comparable GAAP financial measure, to adjusted EBITDA: See note (8) in the Notes section that follows. The following is a reconciliation of net cash provided by operating activities, the most directly comparable GAAP financial measure, to free cash flow: See note (9) in the Notes section that follows. Notes: A reconciliation of each non-GAAP measure to the most comparable measure under GAAP has been provided in this press release in the accompanying tables. An explanation of these non-GAAP measures is also included under the heading “Non-GAAP Financial Measures.” U.S. Integrated Care Members represent the number of unique individuals at the end of the applicable period who have access to our suite of integrated care services in the U.S. under paid access fee and/or visit-based arrangements. Excluding the amount capitalized related to software development projects. Chronic Care Program Enrollment represents the total number of enrollees across our suite of chronic care programs at the end of the applicable period. Average monthly revenue per U.S. Integrated Care member is calculated by dividing the total revenue generated from the Integrated Care segment by the average number of U.S. Integrated Care Members (see note 2) during the applicable period. BetterHelp Paying Users represent the average number of global monthly paying users of our BetterHelp therapy and psychiatry services during the applicable period, including both those who pay directly out-of-pocket and those who utilize their insurance coverage. We have two segments: Integrated Care and BetterHelp. The Integrated Care segment includes a suite of global virtual medical services including general medical, expert medical services, specialty medical, chronic condition management, mental health, and enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment includes virtual therapy and other wellness services provided on a global basis which are predominantly marketed and sold on a direct-to-consumer basis, including both those who pay directly out-of-pocket and those who utilize their insurance coverage. Within the BetterHelp segment, Consumer and Other primarily includes revenue from BetterHelp Paying Users that pay for services directly out-of-pocket while Insurance Covered Services reflects revenue from BetterHelp Paying Users that utilize insurance coverage to pay for services, which includes any copayments. We have not provided a full line-item reconciliation for net loss to adjusted EBITDA outlook because we do not provide outlook on the individual reconciling items between net loss and adjusted EBITDA. This is due to the uncertainty as to timing, and the potential variability, of the individual reconciling items such as impairments, stock-based compensation and the related tax impact, provision for income taxes, acquisition, integration, and transformation costs, and restructuring costs, the effect of which may be significant. Accordingly, a full line-item reconciliation of the GAAP measure to the corresponding non-GAAP financial measure outlook is not available without unreasonable effort. We have not provided a line-item reconciliation for free cash flow to net cash from operating activities for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable effort. Investors:Michael [email protected] Media:Lou [email protected]