Why Is Teladoc (TDOC) Up 4.6% Since Last Earnings Report?

It has been about a month since the last earnings report for Teladoc (TDOC). Shares have added about 4.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Teladoc due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Teladoc Health, Inc. before we dive into how investors and analysts have reacted as of late.

Teladoc Health Q2 Loss Narrower Than Expected on Declining Expenses

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%.

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.

Quarterly Operational Update of Teladoc Health

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.

Teladoc Health’s Q2 Segmental Update

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.

Visits & Memberships of Teladoc Health

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’s Financial Update (As of June 30, 2025)

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.

Teladoc Health’s Outlook

Q3 View

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.

2025 View

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -16.64% due to these changes.

VGM Scores

At this time, Teladoc has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Teladoc has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Teladoc is part of the Zacks Medical Services industry. Over the past month, Danaher (DHR), a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended June 2025 more than a month ago.

Danaher reported revenues of $5.94 billion in the last reported quarter, representing a year-over-year change of +3.4%. EPS of $1.80 for the same period compares with $1.72 a year ago.

For the current quarter, Danaher is expected to post earnings of $1.72 per share, indicating a change of +0.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Danaher. Also, the stock has a VGM Score of F.

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This article originally published on Zacks Investment Research (zacks.com).

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