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Teladoc Health's Q3 Loss Widens Y/Y on Weak BetterHelp Unit
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Key Takeaways
TDOC's Q3 loss widened year over year, due to lower U.S. revenues and weak BetterHelp performance.
International revenues rose 12% while total expenses dipped 1% due to cost-saving initiatives.
BetterHelp revenues dropped 8% year over year and EBITDA plunged 75%.
Shares of Teladoc Health, Inc. (TDOC - Free Report) have declined 8.9% since it reported third-quarter 2025 results on Oct. 29. The quarterly results were hit by a decline in access fee revenues, a decline in U.S. revenues and softer performance of the BetterHelp segment. Nevertheless, the downside was partly offset by strong international revenue growth and a lower expense level.
Teladoc Health incurred a third-quarter 2025 adjusted loss of 21 cents per share, narrower than the Zacks Consensus Estimate of a loss of 26 cents but wider than the year-ago quarter’s loss of 19 cents.
Operating revenues dipped 2% year over year to $626.4 million. Nevertheless, the top line beat the consensus mark by 0.2%.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
Revenues from access fees amounted to $520.9 million, which fell 6% year over year. The metric fell short of the Zacks Consensus Estimate of $534 million and our estimate of $528.6 million.
Other revenues climbed 24% year over year to $105.5 million, higher than the consensus mark of $91 million and our estimate of $97.1 million.
On a geographical basis, Teladoc Health generated $509.8 million in revenues from the United States, down 5% year over year. The metric lagged the Zacks Consensus Estimate of $521 million. International revenues of $116.7 million advanced 12% year over year in the quarter under review and surpassed the consensus mark of $105 million.
Adjusted EBITDA tumbled 16% year over year to $69.9 million but came higher than our estimate of $60 million.
Total costs and expenses of $678.4 million dipped 1% year over year and came lower than our estimate of $691.4 million. The year-over-year decline came on the back of lower advertising and marketing, technology and development, general and administrative, and restructuring expenses.
Teladoc Health’s Q3 Segmental Update
The Integrated Care segment’s revenues grew 2% year over year to $389.5 million in the third quarter, which beat the Zacks Consensus Estimate of $388 million and our estimate of $385.8 million. Adjusted EBITDA came in at $66.1 million, which slipped 3% year over year but outpaced the consensus mark of $59 million. The adjusted EBITDA margin deteriorated 70 basis points (bps) year over year to 17%.
The BetterHelp segment recorded revenues of $236.9 million in the quarter under review, which decreased 8% year over year and missed the Zacks Consensus Estimate of $238 million and our estimate of $240 million. Adjusted EBITDA plunged 75% year over year to $3.8 million and lagged the consensus mark of $8.5 million. The adjusted EBITDA margin of 1.6% deteriorated 490 bps year over year.
Visits & Memberships of Teladoc Health
Total visits to Teladoc Health were 4.1 million in the third quarter, which inched up 1% year over year and beat the Zacks Consensus Estimate of 4 million.
U.S. Integrated Care Members came in at 102.5 million as of Sept. 30, 2025, which rose 9% year over year, and surpassed the consensus mark of 102 million and our estimate of 102.2 million.
Teladoc Health’s Financial Update (As of Sept. 30, 2025)
Teladoc Health exited the third quarter with cash and cash equivalents of $726.2 million, which dropped 44.1% from the 2024-end level.
Total assets of $2.9 billion fell 18.1% from the figure at 2024-end.
Debt amounted to $994 million, up 0.3% from the figure as of Dec. 31, 2024.
Total stockholders’ equity of $1.4 billion tumbled 6.6% from the 2024-end level.
TDOC generated net cash from operations of $99.3 million in the third quarter, which decreased 9.9% year over year. Free cash flow dropped 14% year over year to $67.9 million. Capex escalated 42.8% year over year to $2.3 million in the quarter under review.
Teladoc Health’s Outlook
Q4 View
Revenues in the Integrated Care segment are forecasted to witness year-over-year growth in the range of 1-5.2%. The unit’s adjusted EBITDA margin is anticipated to be in the band of 15.3-16.8%. U.S. Integrated Care members are expected to be between 101.5 million and 102.5 million.
Revenues in the BetterHelp segment are estimated to register a 8.8-3.8% year-over-year decline. The segment’s adjusted EBITDA margin is anticipated to be in the band of 5.5-8.6%.
Total revenues are expected to be between $622 and $652 million. Adjusted EBITDA is anticipated to lie between $73 million and $90 million. Net loss per share is estimated to be between 25 cents and 10 cents.
2025 View
Revenues in the Integrated Care segment are now expected to witness 2.4-3.5% growth on a year-over-year basis, up from the earlier estimated growth range of 1.75-3.25%. U.S. Integrated Care members are projected within 102.5-103.5 million compared with the prior view of 101-103 million. The adjusted EBITDA margin in the Integrated Care segment is now forecasted within 15-15.4%, up from the previous expectation of 14.5-15.25%.
Revenues in the BetterHelp segment are now anticipated to record a year-over-year decline within 9.2-8% compared with the prior outlook of a 9.2-6.8% decline. The adjusted EBITDA margin in the BetterHelp segment is now estimated to be between 3.8% and 4.6%, lower than the previous view of 4-5.5%.
The company now expects 2025 revenues within $2.510-$2.539 billion compared with the earlier guidance of $2.501-$2.548 billion. Adjusted EBITDA is forecasted within $270-$287 million compared with the prior outlook of $263-$294 million. Net loss per share is estimated within $1.25-$1.10 compared with the earlier expected range of $1.35-$1 per share.
Free cash flow is currently projected to be within $170-$185 million for 2025.
Of the Medical sector players that have reported third-quarter 2025 results so far, the bottom-line results of Universal Health Services, Inc. (UHS - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat the respective Zacks Consensus Estimate.
Universal Health reported third-quarter 2025 adjusted earnings per share (EPS) of $5.69, which outpaced the Zacks Consensus Estimate by 22.1%. The bottom line soared 53.4% year over year. Net revenues of $4.5 billion improved 13.4% year over year. The top line beat the consensus mark by 4.2%. Adjusted EBITDA, net of NCI, rose 27.4% year over year to $670.6 million.
In the Acute Care Hospital Services segment, adjusted admissions (adjusted for outpatient activity) grew 2% on a same-facility basis in the third quarter. Net revenues stemming from Universal Health’s acute care services improved 12.8% on a same-facility basis. In the Behavioral Health Care Services unit, adjusted admissions inched up 0.5% on a same-facility basis. Adjusted patient days rose 1.3% on a same-facility basis, while net revenue per adjusted patient day advanced 7.9%. Net revenues derived from UHS’ behavioral healthcare services improved 9.3% on a same-facility basis.
Tenet Healthcare’s third-quarter 2025 adjusted EPS of $3.70 surpassed the Zacks Consensus Estimate by 11.1%. The bottom line increased 26.3% year over year. Net operating revenues advanced 3.2% year over year to $5.3 billion. The top line beat the consensus mark by 1%. Adjusted net income of $328 million climbed 16.3% year over year in the quarter under review. Adjusted EBITDA improved 12.4% year over year to $1.1 billion.
The Hospital Operations and Services segment recorded net operating revenues of $4 billion, which inched up 0.7% year over year. Adjusted EBITDA climbed 12.6% year over year to $607 million in the third quarter. Adjusted EBITDA margin of 15.1% improved 160 bps year over year. The Ambulatory Care segment’s net operating revenues rose 11.9% year over year to $1.3 billion. Adjusted EBITDA was $492 million, which advanced 12.1% year over year. Adjusted EBITDA margin improved 10 bps year over year at 38.6%.
HCA Healthcare’s third-quarter 2025 adjusted EPS of $6.96 surpassed the Zacks Consensus Estimate by 23.2%. The bottom line improved 42% year over year. Revenues were $19.2 billion, which advanced 9.6% year over year. The top line beat the consensus mark by 3.6%. Same-facility equivalent admissions advanced 2.4% year over year in the third quarter, while same-facility admissions increased 2.1%. Same-facility revenue per equivalent admission advanced 6.6% year over year.
Same-facility inpatient surgeries rose 1.4% year over year, while same-facility outpatient surgeries grew 1.1%. Additionally, same-facility emergency room visits inched up 1.3% year over year in the quarter under review. Adjusted EBITDA improved 18.5% year over year to $3.9 billion. HCA Healthcare operated 191 hospitals and roughly 2,500 ambulatory sites of care across 20 states and the United Kingdom as of Sept. 30, 2025.
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Teladoc Health's Q3 Loss Widens Y/Y on Weak BetterHelp Unit
Key Takeaways
Shares of Teladoc Health, Inc. (TDOC - Free Report) have declined 8.9% since it reported third-quarter 2025 results on Oct. 29. The quarterly results were hit by a decline in access fee revenues, a decline in U.S. revenues and softer performance of the BetterHelp segment. Nevertheless, the downside was partly offset by strong international revenue growth and a lower expense level.
Teladoc Health incurred a third-quarter 2025 adjusted loss of 21 cents per share, narrower than the Zacks Consensus Estimate of a loss of 26 cents but wider than the year-ago quarter’s loss of 19 cents.
Operating revenues dipped 2% year over year to $626.4 million. Nevertheless, the top line beat the consensus mark by 0.2%.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote
Quarterly Operational Update of Teladoc Health
Revenues from access fees amounted to $520.9 million, which fell 6% year over year. The metric fell short of the Zacks Consensus Estimate of $534 million and our estimate of $528.6 million.
Other revenues climbed 24% year over year to $105.5 million, higher than the consensus mark of $91 million and our estimate of $97.1 million.
On a geographical basis, Teladoc Health generated $509.8 million in revenues from the United States, down 5% year over year. The metric lagged the Zacks Consensus Estimate of $521 million. International revenues of $116.7 million advanced 12% year over year in the quarter under review and surpassed the consensus mark of $105 million.
Adjusted EBITDA tumbled 16% year over year to $69.9 million but came higher than our estimate of $60 million.
Total costs and expenses of $678.4 million dipped 1% year over year and came lower than our estimate of $691.4 million. The year-over-year decline came on the back of lower advertising and marketing, technology and development, general and administrative, and restructuring expenses.
Teladoc Health’s Q3 Segmental Update
The Integrated Care segment’s revenues grew 2% year over year to $389.5 million in the third quarter, which beat the Zacks Consensus Estimate of $388 million and our estimate of $385.8 million. Adjusted EBITDA came in at $66.1 million, which slipped 3% year over year but outpaced the consensus mark of $59 million. The adjusted EBITDA margin deteriorated 70 basis points (bps) year over year to 17%.
The BetterHelp segment recorded revenues of $236.9 million in the quarter under review, which decreased 8% year over year and missed the Zacks Consensus Estimate of $238 million and our estimate of $240 million. Adjusted EBITDA plunged 75% year over year to $3.8 million and lagged the consensus mark of $8.5 million. The adjusted EBITDA margin of 1.6% deteriorated 490 bps year over year.
Visits & Memberships of Teladoc Health
Total visits to Teladoc Health were 4.1 million in the third quarter, which inched up 1% year over year and beat the Zacks Consensus Estimate of 4 million.
U.S. Integrated Care Members came in at 102.5 million as of Sept. 30, 2025, which rose 9% year over year, and surpassed the consensus mark of 102 million and our estimate of 102.2 million.
Teladoc Health’s Financial Update (As of Sept. 30, 2025)
Teladoc Health exited the third quarter with cash and cash equivalents of $726.2 million, which dropped 44.1% from the 2024-end level.
Total assets of $2.9 billion fell 18.1% from the figure at 2024-end.
Debt amounted to $994 million, up 0.3% from the figure as of Dec. 31, 2024.
Total stockholders’ equity of $1.4 billion tumbled 6.6% from the 2024-end level.
TDOC generated net cash from operations of $99.3 million in the third quarter, which decreased 9.9% year over year. Free cash flow dropped 14% year over year to $67.9 million. Capex escalated 42.8% year over year to $2.3 million in the quarter under review.
Teladoc Health’s Outlook
Q4 View
Revenues in the Integrated Care segment are forecasted to witness year-over-year growth in the range of 1-5.2%. The unit’s adjusted EBITDA margin is anticipated to be in the band of 15.3-16.8%. U.S. Integrated Care members are expected to be between 101.5 million and 102.5 million.
Revenues in the BetterHelp segment are estimated to register a 8.8-3.8% year-over-year decline. The segment’s adjusted EBITDA margin is anticipated to be in the band of 5.5-8.6%.
Total revenues are expected to be between $622 and $652 million. Adjusted EBITDA is anticipated to lie between $73 million and $90 million. Net loss per share is estimated to be between 25 cents and 10 cents.
2025 View
Revenues in the Integrated Care segment are now expected to witness 2.4-3.5% growth on a year-over-year basis, up from the earlier estimated growth range of 1.75-3.25%. U.S. Integrated Care members are projected within 102.5-103.5 million compared with the prior view of 101-103 million. The adjusted EBITDA margin in the Integrated Care segment is now forecasted within 15-15.4%, up from the previous expectation of 14.5-15.25%.
Revenues in the BetterHelp segment are now anticipated to record a year-over-year decline within 9.2-8% compared with the prior outlook of a 9.2-6.8% decline. The adjusted EBITDA margin in the BetterHelp segment is now estimated to be between 3.8% and 4.6%, lower than the previous view of 4-5.5%.
The company now expects 2025 revenues within $2.510-$2.539 billion compared with the earlier guidance of $2.501-$2.548 billion. Adjusted EBITDA is forecasted within $270-$287 million compared with the prior outlook of $263-$294 million. Net loss per share is estimated within $1.25-$1.10 compared with the earlier expected range of $1.35-$1 per share.
Free cash flow is currently projected to be within $170-$185 million for 2025.
TDOC’s Zacks Rank
Teladoc Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported third-quarter 2025 results so far, the bottom-line results of Universal Health Services, Inc. (UHS - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat the respective Zacks Consensus Estimate.
Universal Health reported third-quarter 2025 adjusted earnings per share (EPS) of $5.69, which outpaced the Zacks Consensus Estimate by 22.1%. The bottom line soared 53.4% year over year. Net revenues of $4.5 billion improved 13.4% year over year. The top line beat the consensus mark by 4.2%. Adjusted EBITDA, net of NCI, rose 27.4% year over year to $670.6 million.
In the Acute Care Hospital Services segment, adjusted admissions (adjusted for outpatient activity) grew 2% on a same-facility basis in the third quarter. Net revenues stemming from Universal Health’s acute care services improved 12.8% on a same-facility basis. In the Behavioral Health Care Services unit, adjusted admissions inched up 0.5% on a same-facility basis. Adjusted patient days rose 1.3% on a same-facility basis, while net revenue per adjusted patient day advanced 7.9%. Net revenues derived from UHS’ behavioral healthcare services improved 9.3% on a same-facility basis.
Tenet Healthcare’s third-quarter 2025 adjusted EPS of $3.70 surpassed the Zacks Consensus Estimate by 11.1%. The bottom line increased 26.3% year over year. Net operating revenues advanced 3.2% year over year to $5.3 billion. The top line beat the consensus mark by 1%. Adjusted net income of $328 million climbed 16.3% year over year in the quarter under review. Adjusted EBITDA improved 12.4% year over year to $1.1 billion.
The Hospital Operations and Services segment recorded net operating revenues of $4 billion, which inched up 0.7% year over year. Adjusted EBITDA climbed 12.6% year over year to $607 million in the third quarter. Adjusted EBITDA margin of 15.1% improved 160 bps year over year. The Ambulatory Care segment’s net operating revenues rose 11.9% year over year to $1.3 billion. Adjusted EBITDA was $492 million, which advanced 12.1% year over year. Adjusted EBITDA margin improved 10 bps year over year at 38.6%.
HCA Healthcare’s third-quarter 2025 adjusted EPS of $6.96 surpassed the Zacks Consensus Estimate by 23.2%. The bottom line improved 42% year over year. Revenues were $19.2 billion, which advanced 9.6% year over year. The top line beat the consensus mark by 3.6%. Same-facility equivalent admissions advanced 2.4% year over year in the third quarter, while same-facility admissions increased 2.1%. Same-facility revenue per equivalent admission advanced 6.6% year over year.
Same-facility inpatient surgeries rose 1.4% year over year, while same-facility outpatient surgeries grew 1.1%. Additionally, same-facility emergency room visits inched up 1.3% year over year in the quarter under review. Adjusted EBITDA improved 18.5% year over year to $3.9 billion. HCA Healthcare operated 191 hospitals and roughly 2,500 ambulatory sites of care across 20 states and the United Kingdom as of Sept. 30, 2025.