PresentationGood morning, everyone, and welcome to the last day of the 44th Annual JPMorgan Healthcare Conference. My name is Ta-Von Wilson, a member of the Healthcare group based in New York.Jon CohenCEO & Director Good morning, and thank you for the invitation this morning. So the market remains incredibly large and unpenetrated for mental health services. The -- I'm sorry. The -- if you look at the market specifically, there are 46 million Americans that are -- have an issue with mental health services, ...

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Summary of Talkspace Conference Call Company Overview - **Company**: Talkspace - **Industry**: Mental Health Services Key Points and Arguments 1. **Market Size and Opportunity**: The mental health services market is large and underpenetrated, with 46 million Americans affected, representing 23% of the adult commercial population. Among military personnel, 2 million out of 10 million are affected, and 25% of Medicare beneficiaries (17 million) also face mental health issues. Additionally, 50% of teens aged 13 to 17 are affected, indicating a significant market opportunity for Talkspace [2][3][12]. 2. **Growth Metrics**: Talkspace has seen an annualized revenue growth rate of approximately 23% over the past three years, driven by a nearly 30% annual increase in payer sessions. The company anticipates reaching EBITDA positive performance in 2025, with guidance suggesting an increase from $7 million to approximately $15 million [3][4]. 3. **Operating Efficiency**: Operating expenses as a percentage of revenue are decreasing, contributing to improved EBITDA and operational leverage. The company is focused on activating its 200 million covered lives through various strategies [4][5]. 4. **Consumer Awareness and Marketing**: Only 44% of insured individuals are aware that Talkspace is a covered service. The company is enhancing consumer awareness through targeted marketing strategies, including paid media and partnerships with distribution platforms like Amazon and Zocdoc [4][5][6]. 5. **Partnerships and Collaborations**: Talkspace has established strategic partnerships with over 20 entities, including Tia for women's health, which helps refer patients to Talkspace. These partnerships enhance patient access to mental health services at little to no out-of-pocket cost [6][7]. 6. **Innovations in Patient Journey**: The company has implemented targeted innovations that have led to a 22% increase in checkouts and nearly a 50% increase in patients booking three sessions within the first 30 days. AI integration has been a significant factor in improving the patient journey [8][9]. 7. **Psychiatry Services Expansion**: Talkspace has expanded its psychiatry services, resulting in a 50% growth in this segment. The company has approximately 300 prescribers qualified to manage medications, enhancing its service offerings [10][11]. 8. **Youth Mental Health Initiatives**: The company has provided over 500,000 teenagers with free access to Talkspace through contracts with various government entities, addressing the teen mental health crisis [12]. 9. **AI Development**: Talkspace is developing a specialized AI agent for mental health support, designed to adhere to clinical standards and protect patient privacy. This AI will assist in risk recognition and decision-making while keeping clinicians involved [15][19]. 10. **Future Growth and Market Positioning**: Talkspace aims to leverage its first-mover advantage in the payer strategy and continue to improve the patient journey. The company is positioned to be a leader in applying AI to mental health services, with plans for further integration and partnerships [21][44]. Additional Important Content - **Consumer Engagement**: The AI agent is expected to serve as a gateway to therapy, providing support and potentially referring users to in-person care when necessary. This could also act as a maintenance tool for existing therapy patients [32][37]. - **Market Differentiation**: Talkspace differentiates itself from competitors by being a curated network rather than a matching service, maintaining deep relationships with therapists and ensuring quality oversight [25][26]. - **Long-term Vision**: The company is focused on continuous improvement of the patient experience and expanding its service offerings, including peer-to-peer support through acquisitions like Wisdo [52][54]. This summary encapsulates the key insights and strategic directions discussed during the Talkspace conference call, highlighting the company's growth potential and innovative approaches in the mental health services industry.

Market Opportunity & Performance - The company operates in a large and underpenetrated market, with 75 million people facing mental health conditions[5] - 40%+ of Talkspace patients are new to therapy[5] - The U S Behavioral Health Market is projected to have a CAGR of 7 9% from 2025E to 2030E[5] - The company has demonstrated top-line growth with a 24% revenue CAGR from 2022 to 2025E[6] - The company is experiencing profitability with 115% YoY EBITDA Growth[9] Growth Strategy - The company is focused on expanding coverage and activating lives through diversified growth strategies[13] - The company is driving consumer awareness through diversified channels, including paid media, organic initiatives, and partnerships[14] - The company is establishing strategic partnerships to drive high-intent referrals[18] - The company is improving the patient journey, leading to a +22% checkout conversion rate and +50% members completing 3 sessions in month 1[23] - The company is expanding its offerings to include psychiatry, social health, military & Medicare, and youth services[25, 26, 27] AI Initiatives - The company is developing a "safe" AI agent specifically designed for mental health support, utilizing clinically recognized standards of care with continuous human oversight, and privacy (HIPAA) protection[31] - The company's AI agent is trained on a massive mental health dataset to improve risk recognition, support appropriate decision-making, and avoid the pitfalls already seen in general-purpose AI systems[32]

Today, I am putting Talkspace, Inc. ( TALK ) in the spotlight for the first time since my last article on this small cap concern in April of last year. This telehealth concern experienced 25% year-over-year growth in its most recent reported quarter. ManagementThe Busted IPO Forum is an investing group led by Bret Jensen, Chief Investment Strategist of Simplified Asset Management. Along with his team of analysts, Bret focuses on stocks that have been public for 18 months to 6 years, and that are significant ...

Today, I am putting Talkspace, Inc. ( TALK ) in the spotlight for the first time since my last article on this small cap concern in April of last year. This telehealth concern experienced 25% year-over-year growth in its most recent reported quarter. ManagementThe Busted IPO Forum is an investing group led by Bret Jensen, Chief Investment Strategist of Simplified Asset Management. Along with his team of analysts, Bret focuses on stocks that have been public for 18 months to 6 years, and that are significant ...

NEW YORK, Dec. 22, 2025 (GLOBE NEWSWIRE) -- Talkspace (Nasdaq: TALK), a leading behavioral healthcare company, today announced that Dr. Jon Cohen, Chief Executive Officer, and Ian Harris, Chief Financial Officer, will participate in the 44th Annual J.P. Morgan Healthcare Conference, being held in San Francisco, including a presentation at 7:30am PST on Thursday, January 15, 2026. A webcast link and related presentation materials will be available on Talkspace’s Investor Relations Website: https://investors. ...

Therapists say academic and holiday pressures exacerbate teens’ stress levels, and there are steps parents can take to help.New York, NY , Dec. 18, 2025 (GLOBE NEWSWIRE) -- Talkspace has released a seasonal guide to help families understand why emotional stress tends to peak in December, especially among teens. The resource, informed by licensed mental health professionals, breaks down the unique stressors of the holiday season and academic calendar, and provides families with clear, therapist-backed strate ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a looming question regarding the energy supply needed to sustain this growth [2] - AI data centers consume energy equivalent to that of small cities, leading to concerns about power grid strain and rising electricity prices [2][3] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI, making it a unique investment opportunity [3][6] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses significant nuclear energy infrastructure assets, making it a crucial player in the U.S. energy strategy [7] - The company is noted for its ability to execute large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7][8] Financial Position - The company is completely debt-free and has a substantial cash reserve, amounting to nearly one-third of its market capitalization [8] - It also holds a significant equity stake in another AI-related company, providing indirect exposure to multiple growth opportunities without the associated premium [9][10] Market Sentiment - There is a growing interest from hedge funds in this company, which is considered undervalued and off the radar compared to other AI and energy stocks [9][10] - The company is trading at less than seven times earnings, indicating a potential for significant upside as the market begins to recognize its value [10][11] Future Outlook - The ongoing AI infrastructure supercycle, combined with the onshoring boom and increased U.S. LNG exports, positions the company favorably for future growth [14] - The influx of talent into the AI sector is expected to drive continuous innovation, further solidifying the importance of energy infrastructure in supporting this growth [12][13]

Revenue Growth - For the three months ended September 30, 2025, total revenue increased by $12.0 million, or 25.3%, primarily due to a 42.1% increase in Payor revenue[97] - For the nine months ended September 30, 2025, total revenue increased by $27.0 million, or 19.4%, primarily due to a 36.9% increase in Payor revenue[98] - Revenue for the three months ended September 30, 2025 increased by 35.4% to $34.7 million compared to $25.7 million for the same period in 2024, driven by a shift towards Payor revenue mix[101] Customer Metrics - The number of completed Payor sessions increased by 36.6% for the three months ended September 30, 2025, driven by a 29.1% increase in active Payor members and a 30.8% increase in the number of health plan customers[97] - As of September 30, 2025, the number of health plan customers increased to 34 from 26 in the previous year, while the number of enterprise customers decreased to 163 from 189[81] - Consumer active members decreased by 25.9% for the three months ended September 30, 2025, due to the company's strategic decision to focus marketing efforts on attracting Payor members[97] Financial Performance - The company reported a net income of $3.3 million for the three months ended September 30, 2025, compared to a net income of $1.9 million for the same period in 2024, representing a 73.5% increase[96] - Financial income, net decreased by 36.6% to $1.1 million for the three months ended September 30, 2025, and by 23.3% to $3.9 million for the nine months ended September 30, 2025, due to reduced interest income from marketable securities[109][110] Expenses - The cost of revenue, excluding depreciation and amortization, increased by 35.4% for the three months ended September 30, 2025, reflecting the growth in the number of sessions and provider network[96] - Cost of revenue for the nine months ended September 30, 2025 increased by 27.2% to $94.4 million from $74.2 million in the prior year, primarily due to increased therapist hours from more Payor sessions[101] - Research and development expenses decreased by 22.4% for the three months ended September 30, 2025, compared to the same period in 2024[96] - Research and development expenses decreased by 22.4% to $1.8 million for the three months ended September 30, 2025, and by 10.7% to $7.2 million for the nine months ended September 30, 2025, mainly due to reduced employee-related costs[102][103] - Sales and marketing expenses increased by 7.7% to $13.2 million for the three months ended September 30, 2025, and by 7.5% to $41.4 million for the nine months ended September 30, 2025, driven by higher direct marketing costs[105][106] - General and administrative expenses decreased by 9.3% to $16.0 million for the nine months ended September 30, 2025, primarily due to lower severance payments related to executive departures[107] Cash and Liquidity - As of September 30, 2025, the company had $43.7 million in cash and cash equivalents, down from $76.7 million as of December 31, 2024, and $52.1 million in marketable securities[119] - Net cash provided by operating activities was $3.2 million for the nine months ended September 30, 2025, a decrease from $7.6 million in the prior year, primarily due to timing of customer payments[126] - The company anticipates being able to fund its cash needs for at least the next 12 months using available cash and cash equivalents, but may require additional capital for future growth initiatives[121] Share Repurchase and Debt - The company repurchased 3,516,677 shares for $8.8 million during the three months ended September 30, 2025, and 6,577,115 shares for $17.2 million during the nine months ended September 30, 2025[123] - As of September 30, 2025, the company had no short-term or long-term debt, or significant long-term liabilities, with only a non-material long-term operating lease for office space in New York, NY[130] Legal and Compliance - There were no material legal proceedings, claims, or litigation as of September 30, 2025, and the company has not incurred any material costs related to indemnifications to date[131][132] - The company does not invest in any off-balance sheet vehicles that provide liquidity, capital resources, market or credit risk support, or expose it to any liabilities not reflected in its financial statements[134] - The company has not incurred any material costs as a result of indemnifications related to breaches of customer data or third-party intellectual property rights[132] Accounting and Risk - There were no material changes to critical accounting policies and estimates during the nine months ended September 30, 2025 compared to the previous fiscal year[137] - There were no material changes to market risk disclosures during the nine months ended September 30, 2025 compared to the previous fiscal year[144] - The company’s forward-looking statements include expectations about future results of operations, financial position, and market growth, but are subject to known and unknown risks and uncertainties[140][141] Insurance - The company maintains director and officer liability insurance coverage to recover a portion of any future amounts paid related to indemnification obligations[133]