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TDOC Q1 Earnings Miss, Revenues Down Y/Y on BetterHelp Weakness
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Key Takeaways
TDOC reported Q1 loss of 36 cents per share, missing estimates despite improving year over year.
Revenue fell 2% as BetterHelp and subscription declines offset Integrated Care growth.
BetterHelp revenues dropped 9% with EBITDA plunging 75%, while Integrated Care rose modestly.
Teladoc Health, Inc. (TDOC - Free Report) reported a first-quarter 2026 adjusted loss of 36 cents per share, missing the Zacks Consensus Estimate of a 32-cent loss. This marks an improvement from a loss of 53 cents per share in the same quarter last year.
Operating revenues declined 2% year over year to $613.8 million but modestly exceeded the consensus estimate by 0.3%.
The quarterly results were primarily impacted by weakness in the BetterHelp segment and declining subscription revenues, which were partially offset by strength in the Integrated Care segment, international growth and cost efficiencies.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
Revenues from access fees totaled $484.7 million, down 8% year over year. The figure missed the Zacks Consensus Estimate of $506.5 million as well as our estimate of $506.9 million. Other revenues increased 25% year over year to $129.2 million. The metric beat the Zacks Consensus Estimate of $106.7 million and our estimate of $106.1 million.
On a geographical basis, Teladoc Health generated $491.5 million in revenues from the United States, down 6% year over year. The metric lagged the Zacks Consensus Estimate of $502 million. International revenues of $122.3 million advanced 17% year over year in the quarter and surpassed the consensus mark of $111 million.
Adjusted EBITDA rose 0.1% year over year to $58.2 million and beat our estimate of around $50.5 million. Total costs and expenses of $675.6 million declined 9.9% year over year and were below our estimate of $679.8 million. The year-over-year decrease was primarily due to goodwill impairment and lower advertising and marketing and general and administrative expenses.
TDOC: Q1 Segmental Update
The Integrated Care segment’s revenues increased 2% year over year to $395.4 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $391.8 million and our estimate of $390.3 million. Adjusted EBITDA rose 12% year over year to $56.3 million and surpassed the consensus mark of $52.3 million. The adjusted EBITDA margin expanded 130 basis points (bps) year over year to 14.2%.
The BetterHelp segment generated revenues of $218.4 million, down 9% year over year. The metric missed our estimate of $222.7 million. Adjusted EBITDA declined 75% year over year to $1.9 million. The figure missed the consensus mark of $2.8 million. The adjusted EBITDA margin of 0.9% contracted 230 bps year over year.
Visits & Memberships of Teladoc Health
Total visits to Teladoc Health were 4.4 million in the first quarter, down 2% year over year. The metric marginally beat the Zacks Consensus Estimate by 0.2%
U.S. Integrated Care members totaled 101.2 million, down 1% year over year. However, the figure beat the consensus mark by 2.1%.
TDOC’s Financial Update (As of March 31, 2026)
Teladoc Health exited the first quarter of 2026 with cash and cash equivalents of $750.7 million, down from $781.1 million as of 2025-end.
Total assets decreased to $2.81 billion from $2.86 billion at the end of 2025.
Debt totaled $995.8 million, up from $994.9 million as of 2025-end.
Total stockholders’ equity declined to $1.3 billion from $1.4 billion as of Dec. 31, 2025.
In the first quarter of 2026, TDOC generated net cash from operations of $9.5 million, down 40.2% year over year. Free cash flow of $26.3 million was an outflow in the first quarter of 2026 compared with an outflow of $15.7 million in the prior-year quarter.
Teladoc Health’s Q2 2026 Outlook
Revenues in the Integrated Care segment are forecasted to witness year-over-year growth of (1.75)-1.75%. The unit’s adjusted EBITDA margin is anticipated to be in the band of 14.7-16%. U.S. Integrated Care members are expected to be between 98.5 million and 100 million.
Revenues in the BetterHelp segment are estimated to register a 5.25-11.75% year-over-year decline. The segment’s adjusted EBITDA margin is anticipated to be in the band of (0.5)-1.5%.
Total revenues are expected to be between $597 million and $626 million. Adjusted EBITDA is anticipated to be between $55 million and $67 million. Net loss per share is estimated to be between 20 cents and 30 cents.
Teladoc Health’s 2026 outlook
Revenues in the Integrated Care segment are expected to witness 0.8-3.5% growth on a year-over-year basis. U.S. Integrated Care members are projected to be in the band of 97-100 million. The adjusted EBITDA margin in the segment is forecasted to be in the range of 15.1-16.1%.
Revenues in the BetterHelp segment are anticipated to record a year-over-year decline of 1-6.5%. The adjusted EBITDA margin in the segment is estimated to be between 3% and 4.6%.
The company expects 2026 revenues to be in the $2.481-$2.576 billion range. Adjusted EBITDA is guided at $267-$306 million. Net loss per share is estimated to be in the $0.75-$1.05 range.
Free cash flow is currently projected to be in the $130-$170 million band for 2026.
Here are some stocks in the broader Medical space that have also reported earnings for the quarter: HCA Healthcare, Inc. (HCA - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
HCA Healthcare reported first-quarter 2026 adjusted earnings per share of $7.15, slightly below the Zacks Consensus Estimate of $7.17, though up 10.9% year over year. Revenues increased 4.3% to $19.1 billion but narrowly missed the consensus estimate by 0.1%. HCA’s Performance was impacted by declines in same-facility inpatient and outpatient surgeries, along with elevated operating expenses, partially offset by modest growth in emergency room visits.
UnitedHealth Group reported first-quarter 2026 adjusted earnings per share of $7.23, surpassing the Zacks Consensus Estimate of $6.46 and increasing 0.4% year over year. Revenues rose 2% to $111.7 billion and exceeded the consensus estimate by 2.1%. UNH’s Performance was driven by growth in commercial fee-based membership and strength in Optum Rx, partially offset by weakness in Optum Health and a decline in risk-based membership.
Elevance Health reported first-quarter 2026 adjusted earnings per share of $12.58, beating the Zacks Consensus Estimate by 17.8%, driven by strong premium growth. The bottom line increased 5.1% year over year. ELV’s operating revenues rose 1.5% to $49.5 billion and exceeded the consensus estimate by 3.7%. Segment-wise, the Carelon division delivered robust revenue growth, supported by the scaling of risk-based services, while the Health Benefits segment benefited from higher premium yields.
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TDOC Q1 Earnings Miss, Revenues Down Y/Y on BetterHelp Weakness
Key Takeaways
Teladoc Health, Inc. (TDOC - Free Report) reported a first-quarter 2026 adjusted loss of 36 cents per share, missing the Zacks Consensus Estimate of a 32-cent loss. This marks an improvement from a loss of 53 cents per share in the same quarter last year.
Operating revenues declined 2% year over year to $613.8 million but modestly exceeded the consensus estimate by 0.3%.
The quarterly results were primarily impacted by weakness in the BetterHelp segment and declining subscription revenues, which were partially offset by strength in the Integrated Care segment, international growth and cost efficiencies.
Teladoc Health, Inc. Price, Consensus and EPS Surprise
Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote
Q1 Operational Update of Teladoc Health
Revenues from access fees totaled $484.7 million, down 8% year over year. The figure missed the Zacks Consensus Estimate of $506.5 million as well as our estimate of $506.9 million. Other revenues increased 25% year over year to $129.2 million. The metric beat the Zacks Consensus Estimate of $106.7 million and our estimate of $106.1 million.
On a geographical basis, Teladoc Health generated $491.5 million in revenues from the United States, down 6% year over year. The metric lagged the Zacks Consensus Estimate of $502 million. International revenues of $122.3 million advanced 17% year over year in the quarter and surpassed the consensus mark of $111 million.
Adjusted EBITDA rose 0.1% year over year to $58.2 million and beat our estimate of around $50.5 million. Total costs and expenses of $675.6 million declined 9.9% year over year and were below our estimate of $679.8 million. The year-over-year decrease was primarily due to goodwill impairment and lower advertising and marketing and general and administrative expenses.
TDOC: Q1 Segmental Update
The Integrated Care segment’s revenues increased 2% year over year to $395.4 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $391.8 million and our estimate of $390.3 million. Adjusted EBITDA rose 12% year over year to $56.3 million and surpassed the consensus mark of $52.3 million. The adjusted EBITDA margin expanded 130 basis points (bps) year over year to 14.2%.
The BetterHelp segment generated revenues of $218.4 million, down 9% year over year. The metric missed our estimate of $222.7 million. Adjusted EBITDA declined 75% year over year to $1.9 million. The figure missed the consensus mark of $2.8 million. The adjusted EBITDA margin of 0.9% contracted 230 bps year over year.
Visits & Memberships of Teladoc Health
Total visits to Teladoc Health were 4.4 million in the first quarter, down 2% year over year. The metric marginally beat the Zacks Consensus Estimate by 0.2%
U.S. Integrated Care members totaled 101.2 million, down 1% year over year. However, the figure beat the consensus mark by 2.1%.
TDOC’s Financial Update (As of March 31, 2026)
Teladoc Health exited the first quarter of 2026 with cash and cash equivalents of $750.7 million, down from $781.1 million as of 2025-end.
Total assets decreased to $2.81 billion from $2.86 billion at the end of 2025.
Debt totaled $995.8 million, up from $994.9 million as of 2025-end.
Total stockholders’ equity declined to $1.3 billion from $1.4 billion as of Dec. 31, 2025.
In the first quarter of 2026, TDOC generated net cash from operations of $9.5 million, down 40.2% year over year. Free cash flow of $26.3 million was an outflow in the first quarter of 2026 compared with an outflow of $15.7 million in the prior-year quarter.
Teladoc Health’s Q2 2026 Outlook
Revenues in the Integrated Care segment are forecasted to witness year-over-year growth of (1.75)-1.75%. The unit’s adjusted EBITDA margin is anticipated to be in the band of 14.7-16%. U.S. Integrated Care members are expected to be between 98.5 million and 100 million.
Revenues in the BetterHelp segment are estimated to register a 5.25-11.75% year-over-year decline. The segment’s adjusted EBITDA margin is anticipated to be in the band of (0.5)-1.5%.
Total revenues are expected to be between $597 million and $626 million. Adjusted EBITDA is anticipated to be between $55 million and $67 million. Net loss per share is estimated to be between 20 cents and 30 cents.
Teladoc Health’s 2026 outlook
Revenues in the Integrated Care segment are expected to witness 0.8-3.5% growth on a year-over-year basis. U.S. Integrated Care members are projected to be in the band of 97-100 million. The adjusted EBITDA margin in the segment is forecasted to be in the range of 15.1-16.1%.
Revenues in the BetterHelp segment are anticipated to record a year-over-year decline of 1-6.5%. The adjusted EBITDA margin in the segment is estimated to be between 3% and 4.6%.
The company expects 2026 revenues to be in the $2.481-$2.576 billion range. Adjusted EBITDA is guided at $267-$306 million. Net loss per share is estimated to be in the $0.75-$1.05 range.
Free cash flow is currently projected to be in the $130-$170 million band for 2026.
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
Here are some stocks in the broader Medical space that have also reported earnings for the quarter: HCA Healthcare, Inc. (HCA - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
HCA Healthcare reported first-quarter 2026 adjusted earnings per share of $7.15, slightly below the Zacks Consensus Estimate of $7.17, though up 10.9% year over year. Revenues increased 4.3% to $19.1 billion but narrowly missed the consensus estimate by 0.1%. HCA’s Performance was impacted by declines in same-facility inpatient and outpatient surgeries, along with elevated operating expenses, partially offset by modest growth in emergency room visits.
UnitedHealth Group reported first-quarter 2026 adjusted earnings per share of $7.23, surpassing the Zacks Consensus Estimate of $6.46 and increasing 0.4% year over year. Revenues rose 2% to $111.7 billion and exceeded the consensus estimate by 2.1%. UNH’s Performance was driven by growth in commercial fee-based membership and strength in Optum Rx, partially offset by weakness in Optum Health and a decline in risk-based membership.
Elevance Health reported first-quarter 2026 adjusted earnings per share of $12.58, beating the Zacks Consensus Estimate by 17.8%, driven by strong premium growth. The bottom line increased 5.1% year over year. ELV’s operating revenues rose 1.5% to $49.5 billion and exceeded the consensus estimate by 3.7%. Segment-wise, the Carelon division delivered robust revenue growth, supported by the scaling of risk-based services, while the Health Benefits segment benefited from higher premium yields.