Teladoc Health (NYSE:TDOC) Releases Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Teladoc reported a Q1 GAAP loss of -$0.36 EPS, missing estimates by $0.02 while revenue was $613.85M (down ~2.5% YoY); management set Q2 FY26 EPS guidance at -0.30 to -0.20 and FY26 at -1.05 to -0.75.
• Management pointed to operational progress — consolidated adjusted EBITDA of $58M, $751M cash with net debt/adjusted EBITDA below 0.9x, steady Integrated Care growth (revenue $395M, 14.2% EBITDA margin) and an accelerating BetterHelp insurance rollout targeting at least a $125M run‑rate by end‑2026.
• The stock traded down about 7.4% on the results to $5.51, and CEO Charles Divita III sold 27,731 shares, reducing his position by roughly 7%.

Teladoc Health (NYSE:TDOC - Get Free Report) posted its quarterly earnings data on Wednesday. The health services provider reported ($0.36) earnings per share for the quarter, missing analysts' consensus estimates of ($0.34) by ($0.02), FiscalAI reports. Teladoc Health had a negative net margin of 7.92% and a negative return on equity of 9.13%. The company had revenue of $613.85 million for the quarter, compared to the consensus estimate of $613.82 million. During the same period last year, the business earned ($0.53) EPS. The firm's quarterly revenue was down 2.5% on a year-over-year basis. Teladoc Health updated its FY 2026 guidance to -1.050--0.750 EPS and its Q2 2026 guidance to -0.300--0.200 EPS.

Here are the key takeaways from Teladoc Health's conference call:

• Consolidated results beat guidance — Q1 revenue $614M and adjusted EBITDA $58M, with $751M in cash and net debt/adjusted EBITDA below 0.9x, signaling near-term financial strength.
• Integrated Care showed steady growth and margin expansion — revenue $395M (+1.5% YoY) and adjusted EBITDA $56M (14.2% margin); management expects the shift from subscriptions to visit-based care and new AI-enabled, enhanced 24/7 offerings to become a net tailwind in H2.
• BetterHelp insurance rollout is ahead of plan — live in 30 states + DC, >6,000 credentialed providers, >150M insured lives, and insurance sessions >14,000/week; company now expects to exit 2026 with a BetterHelp insurance run-rate of at least $125M.
• BetterHelp’s direct-to-consumer business remains pressured — Q1 revenue declined 9% YoY to $218M, average paying users fell 9%, and adjusted EBITDA was only $2M (0.9% margin) as cash-pay weakness and insurance-scaling investments weighed on profitability.
• Management reiterated full-year 2026 guidance (revenue $2.48B–$2.58B; adj EBITDA $267M–$306M; FCF $130M–$170M), plans a two-phase approach to reduce 2027 convertible-related gross debt, and expects stock-based comp to fall below $55M, indicating disciplined capital and cost management.

Teladoc Health Trading Down 7.4%

Shares of TDOC traded down $0.44 during mid-day trading on Thursday, reaching $5.51. 3,132,131 shares of the company's stock traded hands, compared to its average volume of 5,878,921. The stock has a market cap of $994.36 million, a P/E ratio of -4.78 and a beta of 2.07. The stock's 50-day moving average is $5.37 and its two-hundred day moving average is $6.47. Teladoc Health has a 12 month low of $4.40 and a 12 month high of $9.77. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.77 and a quick ratio of 2.67.

Insider Activity

In related news, CEO Charles Divita III sold 27,731 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $5.49, for a total transaction of $152,243.19. Following the completion of the sale, the chief executive officer directly owned 364,784 shares of the company's stock, valued at approximately $2,002,664.16. This trade represents a 7.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.70% of the company's stock.

Institutional Trading of Teladoc Health

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP lifted its position in shares of Teladoc Health by 23.8% during the third quarter. Dimensional Fund Advisors LP now owns 6,889,194 shares of the health services provider's stock worth $53,260,000 after purchasing an additional 1,325,106 shares during the last quarter. Trexquant Investment LP bought a new position in shares of Teladoc Health in the fourth quarter worth about $9,156,000. Bridgeway Capital Management LLC bought a new position in shares of Teladoc Health in the second quarter worth about $8,729,000. Man Group plc increased its stake in Teladoc Health by 113.8% in the 4th quarter. Man Group plc now owns 1,620,633 shares of the health services provider's stock worth $11,344,000 after buying an additional 862,454 shares during the period. Finally, Nuveen LLC increased its stake in Teladoc Health by 38.7% in the 4th quarter. Nuveen LLC now owns 2,659,662 shares of the health services provider's stock worth $18,618,000 after buying an additional 742,240 shares during the period. Hedge funds and other institutional investors own 76.82% of the company's stock.

Analyst Ratings Changes

TDOC has been the topic of a number of research reports. Canaccord Genuity Group dropped their price target on Teladoc Health from $12.00 to $10.00 and set a "buy" rating on the stock in a research note on Thursday, February 26th. Deutsche Bank Aktiengesellschaft upgraded shares of Teladoc Health from a "hold" rating to a "buy" rating and set a $11.00 price target on the stock in a research report on Tuesday, March 10th. Oppenheimer cut their price target on Teladoc Health from $12.00 to $7.00 and set an "outperform" rating for the company in a report on Tuesday, March 3rd. Stifel Nicolaus decreased their target price on shares of Teladoc Health from $8.00 to $6.00 and set a "hold" rating on the stock in a research note on Thursday, February 26th. Finally, BMO Capital Markets dropped their price objective on shares of Teladoc Health from $8.00 to $5.00 and set a "market perform" rating for the company in a report on Thursday, February 26th. Six investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Teladoc Health currently has a consensus rating of "Hold" and a consensus price target of $7.62.

Key Teladoc Health News

Here are the key news stories impacting Teladoc Health this week:

• Positive Sentiment: Q1 revenue slightly beat expectations — Teladoc reported $613.8M in revenue (down ~2–2.5% y/y) but marginally above consensus, and management highlighted strategic progress in AI and insurance initiatives that could drive longer-term growth. Earnings Call Highlights
• Neutral Sentiment: Full disclosure and materials posted — The company released its press release, slide deck and the full earnings-call transcript, which provide detail on metrics and the roadmap for BetterHelp, AI integration and insurer partnerships for investors doing deeper analysis. Press Release Call Transcript
• Negative Sentiment: EPS miss and larger GAAP loss — GAAP loss was $0.36/sh, missing consensus and wider than a year ago; bottom-line weakness is the immediate driver of selling pressure. Q1 Sales Surprise But Stock Drops
• Negative Sentiment: Guidance disappointment — Q2 EPS guide of -$0.30 to -$0.20 and FY26 EPS of -$1.05 to -$0.75 sit below analyst expectations (Q2 revenue range also had a low end below consensus), raising near-term uncertainty on profitability and cash flow. Company Guidance / Slide Deck
• Negative Sentiment: Operational and cash-flow concerns — Commentary flagged cash-flow pressure and ongoing business-model shifts (including BetterHelp monetization and insurer deals) that may require investment before margin improvement is realized. This adds near-term risk despite strategic positives. Earnings Call Highlights

About Teladoc Health

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.