Teladoc Cuts Third-Quarter Loss To $26.9 Million As BetterHelp Revenue Falls 13%
Adjusted EBITDA rose 14% to $79.4 million, while $997.6 million of convertible notes moved into current liabilities.
Teladoc Health, the virtual-care company, narrowed its third-quarter net loss to $26.9 million, or $0.15 per share, from $49.5 million, or $0.28 per share, a year earlier, even as revenue slipped 3% to $605.1 million, the company said Wednesday in an 8-K filing. Growth in its doctor-visit business partly offset a shrinking BetterHelp therapy unit.
Two segments pulling opposite ways
Revenue was $626.4 million in the year-earlier quarter. Adjusted EBITDA, the company's profit measure before interest, taxes, depreciation, amortization and certain other costs, rose 14% to $79.4 million from $69.9 million.
Integrated Care, which sells mainly to employers, health plans and health systems, grew revenue 2% to $398.5 million with an 18.8% adjusted EBITDA margin. Its adjusted EBITDA rose $8.8 million, while BetterHelp's rose $0.6 million. Chronic care enrollment reached 1.344 million at September 30, up 15% from a year earlier.
BetterHelp, which sells online therapy to individuals, saw revenue fall 13% to $206.6 million, at a 2.2% adjusted EBITDA margin. The company cited its push toward insurance-covered services and the continuing decline in users paying out of pocket.
From cash pay to insurance
Insurance-covered revenue at BetterHelp reached $32.1 million, up from $3.7 million a year earlier. Consumer and other revenue, mostly out-of-pocket payers, fell 25% to $174.5 million. Average paying users dropped 12% to 336,000.
CEO Chuck Divita said insurance revenue "exceeded our expectations" and that the company is "making encouraging progress expanding provider capacity and scaling access to covered services."
For the first nine months, the net loss was $129.7 million, versus $175.2 million a year earlier.
Notes come due, outlook set
Convertible senior notes of $997.6 million now sit in current liabilities, compared with none at the end of 2025. Cash stood at $849.9 million at September 30.
For the fourth quarter, Teladoc expects revenue of $569 million to $615 million and adjusted EBITDA of $74 million to $100 million. It projects BetterHelp revenue down between 18.5% and 31.5% year over year. Full-year free cash flow is guided to $135 million to $165 million.
Management holds its earnings call at 5:00 p.m. ET Wednesday.
The fourth-quarter outlook range for BetterHelp, a decline of 18.5% to 31.5%, is steeper than the 13% fall it just posted.
Sources
- 8-K Filing — Teladoc Health, Inc. (TDOC) — SEC EDGAR
- Exhibit tdoc-20260930xexx991.htm — Teladoc Health, Inc. 8-K exhibit — SEC EDGAR
