Teladoc Health Q2 Earnings Call Highlights

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.

Integrated Care Posts Revenue and Margin Gains

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.

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.

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 Transition Pressures Cash-Pay Revenue

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.

Full-Year Revenue Outlook Reduced

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.

About Teladoc Health (NYSE:TDOC)

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 contact@marketbeat.com.