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Shares of Teladoc Health, Inc. TDOC have fallen 4.2% since it reported second-quarter 2025 results on Tuesday. Although the company reported better-than-expected results, driven by growing international revenues, an expanding membership base in the Integrated Care segment and a decline in expenses, the upsides were partially offset by lower access fees, a reduction in revenues from the United States and fewer visits.
Teladoc Health incurred a second-quarter 2025 adjusted loss of 19 cents per share, narrower than the Zacks Consensus Estimate of a loss of 27 cents and the year-ago quarter’s loss of 28 cents.
Operating revenues amounted to $631.9 million, which decreased from $642.4 million in the prior year. However, the top line beat the consensus mark by 1.8%.
Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. Quote
Revenues from access fees declined 6% year over year to $523.7 million. The metric missed the Zacks Consensus Estimate by 2.2%.
Other revenues of $108.2 million increased 31% year over year and beat the Zacks Consensus Estimate by 24.4%.
On a geographical basis, Teladoc Health generated $519.7 million in revenues from the United States, down 4% year over year. However, the metric beat the consensus mark by 0.2%. International revenues rose 10% year over year to $112.2 million and outpaced the consensus mark by 11.3%.
Adjusted EBITDA fell 23% year over year to $69.3 million.
Total expenses decreased 53.7% year over year to $686.3 million in the quarter, lower than our estimate of $698.1 million. The year-over-year decline resulted from lower technology and development, general and administrative costs and other expenses.
The Integrated Care segment reported revenues of $391.5 million, which improved 4% year over year in the second quarter and surpassed the Zacks Consensus Estimate of $383 million and our estimate of $379.3 million. Adjusted EBITDA declined 10% year over year to $57.5 million but was higher than the consensus mark of $53 million. The adjusted EBITDA margin of 14.7% deteriorated from 17% a year ago.
The BetterHelp segment’s revenues declined 9% year over year to $240.4 million but beat the Zacks Consensus Estimate of $237 million and our estimate of $240.1 million. Adjusted EBITDA of $11.9 million fell 53% year over year but beat the consensus mark of $9.6 million. The adjusted EBITDA margin deteriorated to 4.9% from 9.6% a year ago.
Total visits to Teladoc Health were 4.1 million, which declined 3% year over year and also came below the Zacks Consensus Estimate by 0.8%.
U.S. Integrated Care Members totaled 102.4 million as of June 30, 2025, which improved 11% year over year. The metric beat the consensus mark by 0.3%.
Teladoc Health exited the second quarter with cash and cash equivalents of $679.6 million, which decreased from $1.3 billion at 2024-end. Total assets of $2.9 billion fell from the 2024-end level of $3.5 billion.
Debt amounted to $993.2 million, which rose from $991.4 million as of Dec. 31, 2024. Total stockholders’ equity of $1.4 billion declined from the 2024-end level of $1.5 billion.
Operating cash flow amounted to $91.4 million in the second quarter of 2025, which increased from $88.7 million in the year-ago quarter. Free cash inflow was $61.2 million in the second quarter of 2025, which improved from $60.9 million a year ago. Capex increased 9% year over year to $30.2 million.
Revenues in the Integrated Care segment are now forecasted to witness a 0.5% decline to 2.25% growth, compared to the earlier expected range of 0.25%-2.75% growth on a year-over-year basis, while the unit’s adjusted EBITDA margin is now anticipated to be in the band of 14%-15.5%, higher than the earlier anticipated band of 13.25%-14.75%. U.S. Integrated Care members are expected to be between 101.5 million and 102.5 million.
Revenues in the BetterHelp segment are now forecasted to witness a 9.75%-5% year-over-year decline, an improvement from the earlier expected range of 11.25%-7.50% year-over-year decline, while the unit’s adjusted EBITDA margin is now anticipated to be in the band of 1-3.75%, lower than the earlier guided band of 2.5-5.25%. Total revenues are now expected to be between $614 and $636 million.
Revenues in the Integrated Care segment are now expected to witness 1.75%-3.25% growth, higher than the earlier projected range of 0-3% growth on a year-over-year basis. U.S. Integrated Care members are expected to remain within the 101-103 million range. The adjusted EBITDA margin in the Integrated Care segment is now estimated to be within the band of 14.5%-15.25%, compared to the earlier anticipated band of 14.3%-15.3% in 2025.
Revenues in the BetterHelp segment are now expected to witness a 9.2%-6.8% decline, compared to the earlier projected range of 9.75%-3.75% decline on a year-over-year basis. The adjusted EBITDA margin in the BetterHelp segment is now estimated to be in the range of 4%-5.5%, lower than the earlier expected range of 4.75%-6.25% in 2025.
The company now expects full-year revenues to be within $2.501-$2.548 billion, compared to the earlier anticipated range of $2.468-$2.576 billion and a net loss of $1-$1.35 per share, compared to the earlier anticipated range of 90 cents-$1.40 per share. Adjusted EBITDA is now likely to be in the range of $263-$294 million. Free cash flow is expected to be within the range of $170-$200 million.
TDOC currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Medical space are West Pharmaceutical Services Inc WST, Fresenius Medical Care AG & Co. FMS and Doximity, Inc. DOCS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for West Pharmaceutical Services’ current-year earnings of $6.60 per share has witnessed four upward revisions in the past seven days against no movement in the opposite direction. West Pharmaceutical Services beat earnings estimates in each of the trailing four quarters, with the average surprise being 16.8%. The consensus estimate for current-year revenues is pegged at $3 billion, indicating 4.6% year-over-year growth.
The consensus estimate for Fresenius Medical Care’s current-year earnings of $2.22 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Fresenius Medical Care beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 6.6%. The consensus estimate for current-year revenues is pegged at $22 billion, indicating 5.2% year-over-year growth.
The Zacks Consensus Estimate for Doximity’s current-year earnings of $1.46 per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. Doximity beat earnings estimates in each of the trailing four quarters, with an average surprise being 29.9%. The consensus estimate for current-year revenues is pegged at $625.7 million, indicating 9.7% year-over-year growth.
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This article originally published on Zacks Investment Research (zacks.com).
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