Teladoc’s second quarter results reflected a mix of headwinds and operational progress, with the company’s revenue and adjusted EBITDA exceeding Wall Street expectations but overall sales declining year-over-year. Management attributed the performance to ongoing softness in BetterHelp’s U.S. cash pay business, partially offset by growth in Integrated Care and international markets. CEO Charles Divita noted continued traction with recently launched offerings and emphasized, “We’re in a stronger position to execute in an evolving market.” The market’s modestly negative reaction followed cautious commentary on consumer sentiment and the competitive landscape in virtual mental health.
Is now the time to buy TDOC? Find out in our full research report (it’s free).
Teladoc (TDOC) Q2 CY2025 Highlights:
- Revenue: $631.9 million vs analyst estimates of $622.6 million (1.6% year-on-year decline, 1.5% beat)
- EPS (GAAP): -$0.19 vs analyst estimates of -$0.26 (27.8% beat)
- Adjusted EBITDA: $69.31 million vs analyst estimates of $63.5 million (11% margin, 9.2% beat)
- The company slightly lifted its revenue guidance for the full year to $2.52 billion at the midpoint from $2.52 billion
- EPS (GAAP) guidance for the full year is -$1.18 at the midpoint, missing analyst estimates by 2.2%
- EBITDA guidance for the full year is $278.5 million at the midpoint, below analyst estimates of $280.9 million
- Operating Margin: -8.6%, up from -131% in the same quarter last year
- U.S. Integrated Care Members: 102.4 million, up 10 million year on year
- Market Capitalization: $1.20 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Teladoc’s Q2 Earnings Call
- David Harrison Roman (Goldman Sachs): Asked about the transition from subscription to pay-per-visit models and its effect on reported results. CEO Charles Divita explained the majority of virtual care revenue is now visit-based, especially in mental health, but acknowledged lingering headwinds from the ongoing transition.
- Richard Collamer Close (Canaccord Genuity): Inquired about margin differences between cash pay and insurance for BetterHelp, and the pace of the insurance rollout. CFO Mala Murthy confirmed insurance margins will be lower, while Divita described a methodical expansion beyond the initial single-state launch.
- Lisa Christine Gill (JPMorgan): Asked how Teladoc can address healthcare cost pressures. Divita emphasized virtual care’s ability to improve access and support local delivery systems, noting deeper partnerships with providers and payers as a key opportunity.
- Jessica Elizabeth Tassan (Piper Sandler): Sought details on chronic care competitive dynamics for 2026. Divita and Murthy referenced ongoing innovation in cardiometabolic programs and highlighted the potential for cross-selling within the large member base.
- Daniel R. Grosslight (Citi): Requested details on BetterHelp insurance revenue cadence and required investments. Murthy outlined ongoing operational investments and stated updates on scaling and performance will be provided in subsequent quarters.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will monitor (1) the pace and geographic expansion of BetterHelp’s insurance coverage, including therapist recruitment and payer partnerships; (2) adoption rates and engagement for newly launched chronic care and mental health features; and (3) sustained growth in international markets, particularly as localized offerings roll out. Execution on cost management and supply chain adjustments in response to tariffs will also be closely tracked.
Teladoc currently trades at $6.83, down from $7.52 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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