Teladoc targets up to $2.548B 2025 revenue with insurance-driven BetterHelp growth and international expansion

Earnings Call Insights: Teladoc Health, Inc. (TDOC) Q2 2025

Management View

• CEO Charles Divita reported “strong performance in the second quarter with consolidated revenue and adjusted EBITDA both at the higher end of our guidance ranges” and stated that the company is “narrowing our guidance range in 2025 consolidated revenue and adjusted EBITDA.”
• Divita highlighted the launch of Wellbound, a new employee assistance program, and product enhancements in the cardiometabolic health program, including new connected devices and clinical interventions for chronic conditions. He said, “We recently launched Wellbound, a new employee assistance program offering… While early, we’re pleased with the level of interest we’re seeing.”
• Divita announced a new AI-enabled virtual sitter solution for hospital clients, new hybrid care models internationally, and strategic acquisitions including Catapult Health and UpLift. He provided an update on BetterHelp’s insurance initiative, noting, “We began a soft launch of BetterHelp insurance in a single state, laying the groundwork for a methodical ramp of the business over the next several quarters.”
• Divita also stated, “We’ve strengthened operational execution, added new partnerships and collaborations, and made advancements in our technological infrastructure.”
• CFO Mala Murthy reported, “Second quarter consolidated revenue was $631.9 million, near the high end of the guidance range and down 1.6% year-over-year, driven by a decline at BetterHelp, offset to some extent by growth in Integrated Care revenues.” She added, “Adjusted EBITDA of $69.3 million was also at the upper end of the guidance range, and represented a margin of 11%. Net loss per share was $0.19. Free cash flow was $61 million in the second quarter.”

Outlook

• Teladoc now expects 2025 consolidated revenue of $2.501 billion to $2.548 billion, with the midpoint “increasing slightly versus our prior range, with an increase in Integrated Care outpacing a lower BetterHelp outlook.” Adjusted EBITDA is expected to be in the range of $263 million to $294 million. Murthy stated, “Full year free cash flow guidance of $170 million to $200 million remains unchanged.”
• Integrated Care full year revenue guidance has been raised and narrowed, now expected to be up 1.75% to 3.25% year-over-year, and full year adjusted EBITDA margin guidance is 14.5% to 15.25%.
• BetterHelp revenue is expected to decline 6.8% to 9.2% year-over-year in 2025, with insurance revenue contribution of approximately $10 million for the year. Murthy said, “We expect a more meaningful revenue contribution in 2026 as we continue to methodically scale operations and expand our payer therapist network.”
• For Q3, consolidated revenue is expected in the range of $614 million to $636 million, and adjusted EBITDA in the range of $56 million to $70 million.

Financial Results

• Consolidated revenue for Q2 was $631.9 million. Adjusted EBITDA was $69.3 million, representing a margin of 11%. Net loss per share was $0.19. Free cash flow reached $61 million for the quarter.
• Integrated Care segment revenue was $391.5 million, up 3.7% year-over-year. U.S. Integrated Care segment membership ended the quarter at 102.4 million members, up 11% year-over-year. Virtual visit volume increased by 6% versus the prior year.
• BetterHelp segment revenue was $240.4 million. Average paying users declined by 9,000 sequentially to 388,000, down 5% year-over-year. BetterHelp adjusted EBITDA was $11.9 million with a margin of 4.9%.
• The company ended the quarter with $680 million in cash and cash equivalents, after retiring $551 million in convertible senior notes. Teladoc also entered a new $300 million revolving credit facility.

Q&A

• David Harrison Roman, Goldman Sachs: Asked about the transition from subscription to visit-based models and the timeline. Divita responded that “in 2025, we now are at a point where more than 50%, the majority of our revenues in virtual care are coming from visit-based arrangements versus subscription-based,” with mental health at about 70% visit-based, and expects further transition over time.
• Richard Collamer Close, Canaccord Genuity: Inquired about BetterHelp insurance margins and rollout. Murthy replied, “We recognize that it is going to be lower than those levels… there are enough public proxies out there that will tell you that it is a lot lower than those levels.” Divita described a methodical rollout, first in one state, with plans to activate multiple markets as network supply grows.
• Lisa Christine Gill, JPMorgan: Sought insights on cost-reduction opportunities for clients. Divita emphasized access and the evolution toward longitudinal care, noting deeper partnerships with providers and health plans driven by affordability concerns and provider shortages.
• Jessica Elizabeth Tassan, Piper Sandler: Asked about 2026 chronic care outlook and competitive landscape. Divita said employer channel is “largely… in line with our expectations,” with continued pressure on health plans but “good level of interest across all of our solutions.” Murthy reinforced confidence in chronic care growth through product innovation and low penetration in the existing member base.
• Daniel R. Grosslight, Citi: Requested more color on BetterHelp insurance contribution in 2026 and scaling investments. Murthy explained ongoing investments in talent and operational capabilities, with scaling expected over 6 to 12 months and progress updates planned for upcoming earnings calls.
• Jailendra P. Singh, Truist: Asked if all pieces are in place for growth. Divita responded, “I’m not sure I would say we’re ever going to be done… but we aren’t finished yet,” citing ongoing investment in capabilities and strategic acquisitions.
• Elizabeth Hammell Anderson, Evercore: Queried about international strategy. Murthy described mid-teen growth for Integrated Care internationally and expansion into localized international markets for BetterHelp. Divita highlighted technology adoption in rural, remote areas and cross-market learnings.
• Sarah Elizabeth James, Cantor: Asked about BetterHelp’s updated outlook and return to growth. Murthy detailed persistent headwinds in U.S. cash pay, ongoing insurance rollout, and revised guidance reflecting lower retention and user additions.
• Charles Rhyee, TD Cowen: Explored virtual care penetration challenges. Divita pointed to opportunities in virtual primary care, leveraging engagement points for value, and a shift from transactional to more longitudinal care.

Sentiment Analysis

• Analysts voiced concerns regarding the pace of business model transitions, BetterHelp’s insurance rollout, chronic care competition, and international strategy, with a tone that was generally neutral but occasionally slightly negative when probing for specifics or clarity on timelines.
• Management maintained a confident and constructive tone in prepared remarks, emphasizing progress and strategic execution. In Q&A, responses were detailed and transparent, with statements like, “We are hitting and checking off on all the metrics that we expect to see at about this point,” and, “We believe that offering the choice of insurance acceptance side-by-side with cash pay… is going to allow for greater conversion.”
• Compared to the previous quarter, analysts maintained similar themes of caution and desire for specificity, while management’s tone remained consistently confident, though more focused on tactical updates.

Quarter-over-Quarter Comparison

• Guidance for 2025 consolidated revenue narrowed and the midpoint increased slightly, driven by Integrated Care, while the BetterHelp outlook was lowered due to ongoing cash pay headwinds.
• Integrated Care’s full year revenue growth range was raised by 100 basis points at the midpoint. BetterHelp’s expected 2025 revenue decline deepened at the midpoint, reflecting persistent U.S. consumer softness and increased insurance competition.
• Analysts continued to focus on BetterHelp’s shift to insurance, chronic care competitiveness, cost management, and capital allocation. Management’s confidence remained stable, with greater detail on insurance ramp and international segment performance.
• Strategic priorities continued to emphasize innovation, operational efficiency, and market expansion, with additional detail on insurance, international growth, and new product launches.

Risks and Concerns

• Management cited “ongoing headwinds in the consumer cash pay business” for BetterHelp, increased customer acquisition costs, and pressure from insurance adoption as challenges.
• Tariffs on China-sourced equipment pose a roughly $3 million unfavorable adjusted EBITDA impact in 2025, with mitigation efforts including alternative sourcing and supply chain diversification.
• Competitive pressure in chronic care was highlighted, with management emphasizing product innovation, clinical capabilities, and low current penetration as mitigation strategies.

Final Takeaway

Teladoc Health leadership emphasized progress in product innovation, operational efficiency, and strategic market shifts, particularly highlighting a methodical rollout of insurance coverage for BetterHelp and robust international growth. Revenue and adjusted EBITDA guidance for 2025 was narrowed, reflecting stronger Integrated Care performance and continued challenges in the U.S. direct-to-consumer mental health segment. Management sees these initiatives, along with ongoing investment in chronic care and technology, as key drivers for returning the company to growth amid evolving market dynamics and macroeconomic headwinds.

Read the full Earnings Call Transcript