Teladoc Health, Inc.

What they do

Teladoc Health provides virtual care services through B2B and direct-to-consumer channels, completing 17.1 million telehealth visits in 2025. Its Integrated Care segment offers preventive care, primary care, 24/7 urgent care, mental healthcare, chronic care and expert second opinions to more than 100 million members through employers and insurers. Its BetterHelp segment provides online counseling and therapy via a network of nearly 35,000 licensed clinicians on web, mobile app, phone and text. Revenue is predominantly recurring access fees (83% of 2025 consolidated revenue), with smaller visit fees and hardware/other revenue.

Revenue drivers

• Integrated Care access fees — Charged monthly on PMPM, PEPM or PPPM bases to employers, health plans, hospitals and health systems; segment revenue was $394.3 million in Q2 2026 (65% of total).
• BetterHelp — Mental health platform monetized primarily through cash-pay and insurance-covered sessions; segment revenue was $212.6 million in Q2 2026 (35% of total), down 12% year-over-year.
• Other revenue (hardware and related services) — Sales of hardware and related services to hospitals and health systems within Integrated Care; other revenue rose 23% to $132.7 million in Q2 2026.
• International revenue — Non-U.S. revenue was $119.6 million in Q2 2026, up 7% year-over-year, while U.S. revenue fell 6% to $487.4 million.

Recent performance

Second quarter 2026 revenue was $606.9 million, down 4% from $631.9 million in Q2 2025. Integrated Care revenue rose 1% to $394.3 million with a 16.5% adjusted EBITDA margin, while BetterHelp revenue fell 12% to $212.6 million with a 0.2% adjusted EBITDA margin. Net loss was $38.9 million, or $0.21 per share, compared to a $32.7 million net loss in Q2 2025. Adjusted EBITDA declined 5% to $65.7 million, and access fees revenue fell 9% to $474.2 million. Full-year 2025 revenue was $2.53 billion with a net loss of $200.3 million.

Strategy

Management is prioritizing the launch of Teladoc One, described as a new connected care model for the U.S. market, to strengthen value to clients and members. In BetterHelp, management accelerated the nationwide insurance rollout ahead of plan given strong consumer preference for insurance, and is taking focused actions to scale insurance capacity and workflows. The company continues to expect 2026 insurance revenue within its previously communicated range. It lowered its BetterHelp segment revenue outlook to reflect updated cash-pay assumptions and prioritization of the growing insurance market. Management states it is addressing BetterHelp's near-term challenges with urgency and discipline while positioning the segment for more durable performance over time.

Risks

• BetterHelp cash-pay decline — BetterHelp cash-pay revenue pressure accelerated in late May and June 2026 beyond prior assumptions, and the company lowered its BetterHelp segment revenue outlook.
• Provider capacity constraints — Demand for insurance-covered services outpaced available provider capacity, limiting conversion of demand into sessions and revenue.
• History of losses — Teladoc reported net losses in each year from 2021 through 2025, including a $200.3 million loss in 2025, and cites its accumulated deficit and risk it may not achieve profitability.
• Goodwill and intangible impairment — The company cites the potential for future non-cash charges for impairment of goodwill and other intangible assets, and notes potential impairment of BetterHelp goodwill.

Outlook

Management said second-quarter 2026 results were within consolidated guidance ranges and reiterated its previously communicated 2026 insurance revenue range. It lowered its BetterHelp segment revenue outlook to reflect updated cash-pay assumptions and prioritization of the growing insurance market. Management said it continues to expect 2026 insurance revenue within the previously communicated range, while taking actions to scale insurance capacity and address BetterHelp's near-term challenges.