Teladoc Health — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for the three months ended September 30, 2026, was $605.1 million, a 3% decrease year-over-year from $626.4 million.
• Net loss for the quarter was $26.9 million ($0.15 per share), compared to a net loss of $49.5 million ($0.28 per share) in the prior year period.
• Adjusted EBITDA for the quarter was $79.4 million, an increase of 14% year-over-year from $69.9 million.
• For the nine months ended September 30, 2026, consolidated revenue was $1,825.9 million, down 3% from $1,887.7 million.
• Net loss for the nine months was $129.7 million ($0.72 per share), a 26% improvement from $175.2 million ($1.00 per share) in the prior year.
• Adjusted EBITDA for the nine months was $203.2 million, up 3% from $197.3 million.
• Cash flow from operations was $106.5 million for the quarter and $180.6 million for the nine months.
• Free cash flow was $75.9 million for the quarter and $85.4 million for the nine months.
• Capital expenditures and capitalized software development costs totaled $30.5 million for the quarter and $95.3 million for the nine months.
• Cash and cash equivalents were $849.9 million as of September 30, 2026, compared to $781.1 million as of December 31, 2025.
• Total liabilities were $1,480.4 million as of September 30, 2026, compared to $1,472.6 million as of December 31, 2025.
• Convertible senior notes, net—current, were $997.6 million as of September 30, 2026, with no non-current portion, compared to $994.9 million in non-current notes and no current portion as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue is expected to be between $2,395 million and $2,441 million.
• Full-year 2026 adjusted EBITDA is expected to be between $277 million and $303 million.
• Full-year 2026 net loss per share is expected to be between ($0.95) and ($0.75).
• Full-year 2026 free cash flow is expected to be between $135 million and $165 million.
• Full-year 2026 U.S. Integrated Care Members are expected to be between 99.5 million and 100.5 million.
• Full-year 2026 Integrated Care revenue growth is expected to be 1.1% to 2.1% year-over-year with an adjusted EBITDA margin of 16.0% to 16.6%.
• Full-year 2026 BetterHelp revenue growth is expected to be (16.1%) to (12.9%) year-over-year with an adjusted EBITDA margin of 2.7% to 4.3%.
• Fourth quarter 2026 revenue is expected to be between $569 million and $615 million.
• Fourth quarter 2026 adjusted EBITDA is expected to be between $74 million and $100 million.
• Fourth quarter 2026 net loss per share is expected to be between ($0.23) and ($0.03).
• Fourth quarter 2026 U.S. Integrated Care Members are expected to be between 99.5 million and 100.5 million.
• Fourth quarter 2026 Integrated Care revenue growth is expected to be 0.0% to 3.8% year-over-year with an adjusted EBITDA margin of 14.5% to 16.8%.
• Fourth quarter 2026 BetterHelp revenue growth is expected to be (31.5%) to (18.5%) year-over-year with an adjusted EBITDA margin of 9.2% to 15.1%.

Business Segments and Product Lines:

• Integrated Care segment revenue was $398.5 million for the quarter, up 2% year-over-year, with an adjusted EBITDA margin of 18.8%.
• BetterHelp segment revenue was $206.6 million for the quarter, down 13% year-over-year, with an adjusted EBITDA margin of 2.2%.
• Access fees revenue decreased 10% to $466.7 million, while other revenue increased 31% to $138.4 million.
• U.S. revenue decreased 4% to $489.2 million, while International revenue decreased 1% to $115.9 million.
• Integrated Care segment revenue for the nine months was $1,188.2 million, up 2% year-over-year.
• BetterHelp segment revenue for the nine months was $637.7 million, down 11% year-over-year.
• BetterHelp Consumer and Other revenue was $174.5 million for the quarter (down 25%), while Insurance Covered Services revenue was $32.1 million.
• U.S. Integrated Care Members were 100.1 million as of September 30, 2026, down 2% from 102.5 million in the prior year.
• Chronic Care Program Enrollment was 1.344 million as of September 30, 2026, up 15% from 1.165 million.
• Average monthly revenue per U.S. Integrated Care member was $1.33 for the quarter, up 5% from $1.27.
• BetterHelp paying users averaged 0.336 million for the quarter, down 12% from 0.382 million.
• Management noted the implementation of Teladoc One with early launch partners and expansion of hybrid care and AI-enabled solutions.
• BetterHelp reported insurance revenue exceeding expectations and progress in expanding provider capacity.

Market and Competitive Landscape:

• The company operates as the global leader in virtual care, serving health plans, employers, providers, health systems, and consumers.
• The Integrated Care segment includes general medical, expert medical services, specialty medical, chronic condition management, mental health, and enterprise telehealth solutions.
• The BetterHelp segment includes virtual therapy and wellness services marketed and sold on a direct-to-consumer basis, including insurance-covered services.
• Total visits decreased 2% to 4.0 million for the quarter and 2% to 12.5 million for the nine months.

Risks and Challenges:

• Risks include changes in laws and regulations, market conditions, litigation outcomes, and loss of key clients or members.
• Potential decreases in revenue from out-of-pocket paying users without offsetting growth in insurance-covered services.
• Risks related to asset valuations, provider recruitment and retention, and impairment losses on goodwill or other assets.
• Risks include tariffs, supply chain disruptions, and the performance of new products like Teladoc One.
• Risks include the rate of decline in BetterHelp cash-pay users and the margin effects of insurance mix.
• Risks include the effectiveness of advertising and marketing spending and the performance of insurance-specific workflows.

Management Commentary and Tone:

• Chuck Divita, CEO, stated results were near the upper end of the guidance range for consolidated revenue and above the range for consolidated adjusted EBITDA.
• Management expressed confidence in solid execution across segments and noted that actions taken are showing traction.
• Management remains focused on disciplined execution against strategic priorities and believes the company is well-positioned for future opportunities.

Other Key Points:

• Results for the quarter included amortization of intangibles of $88.3 million, stock-based compensation of $11.6 million, and restructuring costs of $4.4 million.
• Results for the nine months included amortization of intangibles of $266.6 million, stock-based compensation of $35.5 million, and restructuring costs of $17.3 million.
• The 2025 period included a non-cash goodwill impairment charge of $12.6 million in the quarter and $71.8 million for the nine months related to acquisitions of Telecare Australia, Catapult Health, and Telecare.
• The company repaid convertible senior notes totaling $550.6 million during the nine months of 2025; no such repayment occurred in 2026.
• A discrete tax benefit of $20.1 million and acquisition-related tax benefits of $11.1 million were recorded in the nine months of 2025.
• The company has two reportable segments: Integrated Care and BetterHelp.