How to Play Teladoc Health Stock Post Q3 Results: Buy, Hold or Sell?

Teladoc Health TDOC reported decent third-quarter 2025 results, wherein the top line and the bottom line beat the Zacks Consensus Estimate. However, loss widened year over year and revenues too declined. 

Teladoc is a top player in the telehealth market, and its memberships are consistently growing. It boasts the largest breadth of integrated products and services in the virtual care industry and strives to be the “front door” to the healthcare system for its members. Teladoc is going after a $261-billion U.S. total addressable market.

A Sneak Peek Into Q3 Results

Its revenues of $626.4 million declined 2.2% year over year as growth in the Integrated Care segment was offset by a decline at BetterHelp. However, the top line beat the consensus estimate by 0.2%.

Though adjusted EBITDA of $70 million declined 16% year over year, it was at the high end of its guidance range owing to disciplined execution across the business. Adjusted EBITDA margin was 11.2%.

Integrated Care segment revenues of $389.5 million increased 2% year over year, and the adjusted EBITDA margin was 17%. BetterHelp segment revenues of $236.9 million declined 8% year over year. Adjusted EBITDA margin was 1.6%.

Geographically, U.S. revenues decreased 5% to $509.8 million. International revenues increased 12% to $116.7 million.

Total costs and expenses decreased 1% year over year to $678.4 million.

Loss of 21 cents per share was wider than the 19 cents loss incurred in the year-ago quarter. However, the bottom line beat the consensus estimate by 19.2%.

TDOC expects 2025 consolidated revenues of $2.510 billion to $2.539 billion and adjusted EBITDA of $270 million to $287 million. 

Net loss per share is expected to be between $1.10 and $1.25.

Free cash flow is expected to be in the range of $170 million to $185 million.

The Case of Teladoc

Teladoc continues to strengthen its leadership in integrated care within the United States by expanding its service offerings, deepening care coordination and delivering improved patient and client outcomes. The company’s key initiative, the Prism care delivery platform—designed to enhance clinical intervention models for rising-risk and high-risk populations—is progressing well, with active pilots expected to go live in 2026, signaling solid growth prospects.

Teladoc’s acquisition-driven growth strategy has significantly broadened its distribution capabilities, enriched its service portfolio and strengthened its global presence. The company focuses on acquiring scalable and high-growth products, technologies, clinical specialties and distribution channels to accelerate expansion and innovation.

Its international operations provide crucial diversification as competition intensifies in the U.S. market. With a broad platform and an extensive global network, Teladoc is well-positioned to expand its international footprint across Europe, South America and Asia.

Leveraging advanced technology, Teladoc ensures seamless healthcare delivery. Its comprehensive suite of services spans hundreds of medical subspecialties, supported by cutting-edge artificial intelligence (AI), machine learning and clinical expertise—positioning it as a leader in digital health innovation.

It has a strong liquidity position with $726 million in cash and cash equivalents and free cash flow $113 million.

Yet Teladoc has been incurring losses since its inception and has accumulated a deficit. These losses and accumulated deficits stemmed from substantial investments made by the company to acquire new clients, build its proprietary network of healthcare providers and develop its technology platform.

TDOC's Price Performance

Shares of Teladoc have lost 12.2% year to date against the industry’s increase of 2.8%.

TDOC vs. Industry

Shares of medical service providers like HCA Healthcare HCA and CVS Health Corporation CVS have gained 57.1% and 73.9%, respectively, year to date.

HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. Its numerous acquisitions, rising admissions, diversified business and capital deployment position it well for growth.

CVS Health is a pharmacy innovation company with integrated offerings across the entire spectrum of pharmacy care. CVS is advancing its digital strategy and investing in emerging technologies to drive simplicity and efficiency and deliver better customer experiences. The growing adoption and shift of commercial scripts to the CVS CostVantage model is highly promising.

Estimate Revision Trend

Earnings estimates for 2025 witnessed no movement, while that of 2026 has improved by 2 cents in the past seven days. The expected long-term earnings growth is pegged at 52.3%, better than the industry average of 15.3%. TDOC has a Growth Score of B.

TDOC Stock's Expensive Valuation

TDOC is currently expensive. It is trading at a forward 12-month price-to-sales multiple of 0.56, higher than the industry average of 0.46. 

While TDOC is cheaper than HCA, it is expensive when compared with CVS.

To Conclude

Telemedicine is significantly enhancing healthcare access, with expanded telehealth services temporarily supported by the 1135 waiver and the Coronavirus Preparedness Act. Rising demand for remote medical expertise is boosting the telehealth market. Teladoc, being the leading player in this industry, is poised to gain from this trend. Its VGM Score of B instills confidence. 

Yet, price erosion, its inability to achieve profits this year and probably the next, and a premium valuation keep us cautious on this Zacks Rank #3 (Hold) company.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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