Teladoc Health Q3 Earnings Call Highlights

Teladoc Health NYSE: TDOC reported third-quarter 2026 revenue near the upper end of its guidance range and adjusted EBITDA above expectations, as growth in Integrated Care and BetterHelp insurance revenue partly offset continued pressure in BetterHelp’s cash-pay business.

Consolidated revenue totaled $605 million, down 3.4% from a year earlier. Adjusted EBITDA rose 13.5% to $79 million, with adjusted EBITDA margin expanding about 200 basis points year over year to 13.1%. The company reported a net loss of $0.15 per share, compared with a loss of $0.28 per share in the prior-year quarter.

Free cash flow was $76 million in the quarter, bringing year-to-date free cash flow to $85 million. Teladoc ended the period with $850 million in cash and cash equivalents, while net debt to trailing adjusted EBITDA declined to 0.5 times from 1.0 times a year earlier.

Integrated Care margins improve

Integrated Care revenue rose 2.3% year over year to $398 million, aided by better-than-expected chronic care performance, double-digit international growth, and growth in chronic care and visits revenue. Those gains were partly offset by lower subscription revenue.

U.S. Integrated Care membership ended the quarter at 100.1 million. Total chronic care program enrollment increased 15% from a year earlier and 6% sequentially to 1.34 million, which management attributed to adoption of bundled offerings and improved member-engagement efforts.

Integrated Care adjusted EBITDA increased 13.3% to $75 million, and the segment’s adjusted EBITDA margin rose about 180 basis points to 18.8%. CFO Mike Grasher said margin expansion occurred despite a continuing shift toward visit-based arrangements, citing productivity initiatives and expense management.

CEO Chuck Divita said the company has begun engaging patients through its Teladoc One care model following its July announcement. The offering combines multidisciplinary care teams with AI-driven insights from Teladoc’s Pulse intelligence engine. Teladoc expects broader market availability in 2027, with commercial momentum expected to build over time.

The company also said it completed the acquisition of Teledyne Health, which provides virtual clinical services to U.S. hospitals and health systems. Divita said the acquisition is intended to expand Teladoc’s U.S. hybrid-care services, building on models the company has used internationally that combine virtual clinical services with technology in physical care settings.

BetterHelp pivots toward insurance

BetterHelp revenue fell 12.8% year over year to $207 million, reflecting lower cash-pay revenue in both U.S. and international markets. Still, the segment’s result landed near the upper end of guidance, aided by stronger-than-anticipated cash-pay performance and insurance growth.

Insurance revenue at BetterHelp reached $32 million, exceeding the company’s prior expectations and increasing $10 million sequentially. Weekly insurance-covered sessions recently reached 27,000, representing an annualized revenue run rate above $140 million, according to Divita.

The company said 36% of acquired U.S. users in the quarter came from insurance, up about 8 percentage points from the second quarter. BetterHelp added more than 3,000 therapists to its network during the quarter, bringing the number credentialed to more than 11,000.

Divita said BetterHelp is modifying therapist compensation programs, improving matching and scheduling tools, streamlining provider workflows, and adding technology and AI-enabled capabilities intended to reduce administrative burden. The company is also evaluating capacity by local market and payer.

Average total paying users at BetterHelp were 336,000, down 12% year over year and 3% sequentially. Segment adjusted EBITDA was $4 million, or a 2.2% margin, as lower advertising and marketing spending more than offset mix-related gross-margin pressure and investments to scale insurance.

Advertising and marketing spending declined 27% from the prior-year quarter. Management expects a more significant sequential reduction in fourth-quarter spending than in prior years, citing holiday advertising dynamics and the company’s shift toward insurance-focused marketing. Divita said the reduction in advertising is expected to weigh on cash-pay user acquisition because of the historical correlation between spending and demand generation.

Guidance raised at midpoint

Teladoc raised its 2026 revenue outlook to $2.39 billion to $2.44 billion, increasing the midpoint by $13 million. It now expects adjusted EBITDA of $277 million to $303 million, a $3 million midpoint increase, and free cash flow of $135 million to $165 million, with the midpoint unchanged.

• Integrated Care revenue is expected to grow 1.1% to 2.1% in 2026.
• Integrated Care adjusted EBITDA margin is projected at 16.0% to 16.6%.
• BetterHelp revenue is expected to decline 16.1% to 12.9% for the year.
• BetterHelp insurance revenue is expected to reach $99 million to $105 million in 2026.

For the fourth quarter, Teladoc expects consolidated revenue of $569 million to $615 million and adjusted EBITDA of $74 million to $100 million. BetterHelp is expected to generate $32 million to $38 million in insurance revenue during the quarter.

Looking toward 2027, management said it expects BetterHelp insurance revenue to continue growing sequentially, with a goal of reaching an annualized exit run rate of at least $200 million. The company expects full-year advertising and marketing spending at BetterHelp to decline in the mid-to-high 20% range in 2027.

Grasher also said Teladoc intends to address the June 2027 maturity of $1 billion in convertible notes through a potential two-phase approach, subject to market conditions. The company may repurchase a substantial portion of the notes using cash and traditional debt financing before year-end, then repay the remaining balance with cash at maturity.

About Teladoc Health (NYSE:TDOC)

Teladoc Health, Inc provides virtual healthcare services and technology designed to connect patients with medical professionals remotely. Through its digital platforms, the company supports a range of healthcare needs, including general medical consultations, mental health services, specialty care, and ongoing management of chronic conditions.

Its offerings include telehealth visits with physicians and other licensed providers, behavioral health services through BetterHelp, and chronic care programs that use digital tools and clinical support to help people manage conditions such as diabetes and hypertension.

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