Summary of Talkspace (TALK) FY Conference - August 12, 2025 Company Overview - **Company**: Talkspace (TALK) - **Industry**: Digital and tech-enabled mental health services Key Points and Arguments Financial Performance - **Q2 Growth**: Talkspace reported an 18% overall growth and a 35% growth in payer revenue, indicating a strong acceleration compared to Q1 [3][4] - **User Growth**: The company added 10,000 net new users in Q2, marking the largest increase in over two years [4] - **Direct to Enterprise Delays**: Some direct to enterprise contracts were delayed from Q2 to Q3, but three significant contracts were announced, expected to generate SaaS revenue in Q3 [5] Strategic Initiatives - **AI Investments**: Talkspace is investing in AI to enhance user engagement and improve therapist support, including the development of a unique LLM model focused on mental health [6][7] - **Transition to Payer Model**: The company is transitioning from a consumer-based model to a payer-based model, which involves a different approach to patient engagement and provider network management [10][12] - **Payer Relationships**: Talkspace has established significant relationships with payers, covering approximately 200 million lives, which is a substantial increase from the previous year [16] Market Dynamics - **Narrowing Networks**: Payers are narrowing their networks and focusing on quality over quantity, which may impact companies that do not provide comprehensive services [19][21] - **Partnerships**: Talkspace announced a partnership with a national matching network to streamline the patient journey, allowing users to schedule appointments directly through payer directories [22][23] New Patient Populations - **TRICARE and Medicare**: Talkspace is targeting military families through TRICARE and is gradually expanding into the Medicare market, which presents unique challenges due to its size and diversity [28][30] Therapist Recruitment and Retention - **Supply Side Stability**: Currently, Talkspace is not facing issues with therapist supply, maintaining quick matching times for users [36][38] - **Psychiatry Focus**: The company is expanding its psychiatric services, which have seen significant growth, with a 40% increase in sessions [40][41] AI and Innovation - **Personalized Engagement**: Talkspace launched a personalized podcast feature for users, resulting in a 15% increase in engagement between sessions [45] - **Safety in AI**: The company emphasizes the importance of building a safe LLM for mental health, contrasting it with existing models that may not be appropriate for therapy [46][48] Additional Important Insights - **Operational Complexity**: The operational and regulatory challenges of managing a mental health network are significant, providing a defensive moat against competitors [43] - **Flexibility in Marketing**: Talkspace employs a nimble marketing strategy, adjusting allocations based on performance to ensure effective user growth [33][34] This summary encapsulates the key insights from the Talkspace conference, highlighting the company's growth, strategic initiatives, and market positioning within the mental health industry.

PART I [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited H1 2025 financial statements show increased revenue, reduced net loss, and decreased cash from investing and financing activities [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $132.8 million by June 30, 2025, driven by reduced cash, with liabilities and equity also declining Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $54,342 | $76,692 | | Marketable securities | $48,427 | $41,118 | | Accounts receivable, net | $15,422 | $9,643 | | Total current assets | $120,667 | $130,182 | | **Total assets** | **$132,786** | **$138,677** | | **Liabilities & Equity** | | | | Total current liabilities | $18,540 | $19,023 | | **Total liabilities** | **$19,845** | **$21,282** | | **Total stockholders' equity** | **$112,941** | **$117,395** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported increased revenue for Q2 and H1 2025, alongside a significantly reduced net loss for the six-month period Statement of Operations Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $54,310 | $46,058 | $106,492 | $91,474 | | Loss from operations | $(1,790) | $(3,486) | $(2,875) | $(5,165) | | Net loss | $(541) | $(474) | $(223) | $(1,940) | | Net loss per share (Basic & Diluted) | $(0.00) | $(0.00) | $(0.00) | $(0.01) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw net cash used in operating activities, increased usage in investing and financing, resulting in a $22.4 million net decrease in cash Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1,590) | $1,418 | | Net cash used in investing activities | $(11,386) | $(2,150) | | Net cash used in financing activities | $(9,374) | $(8,263) | | **Net decrease in cash and cash equivalents** | **$(22,350)** | **$(8,995)** | | **Cash and cash equivalents at end of period** | **$54,342** | **$114,913** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business operations, revenue sources by channel (Payor, DTE, Consumer), capital management including share repurchases, and consolidation of VIEs - The company operates as a **single reportable segment**, providing **virtual behavioral healthcare services**. The CEO, as the chief operating decision maker, reviews consolidated results to assess performance and allocate resources[30](index=30&type=chunk)[31](index=31&type=chunk) Revenue by Source for Six Months Ended June 30 (in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Payor | $78,343 | $58,453 | | DTE | $18,986 | $19,541 | | Consumer | $9,163 | $13,480 | | **Total revenue** | **$106,492** | **$91,474** | - The Board of Directors authorized a share repurchase program, initially for **$15.0 million** and later increased by an additional **$25.0 million**. In the first six months of 2025, the company repurchased **3,060,438 shares** for **$8.4 million**[53](index=53&type=chunk)[54](index=54&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes H1 2025 revenue growth to the Payor segment, leading to a narrowed operating loss and improved Adjusted EBITDA, while maintaining strong liquidity Key Business Metrics | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Number of completed Payor sessions (thousands) | 735.1 | 582.8 | | Number of health plan customers | 31 | 24 | | Number of enterprise customers | 165 | 187 | | Number of Consumer active members (thousands) | 6.6 | 10.7 | - The increase in revenue for the first six months of 2025 was primarily due to a **$19.8 million (34.0%)** increase in Payor revenue, driven by more completed sessions. This was partially offset by a **$4.3 million (32.0%)** decrease in Consumer revenue, reflecting a strategic shift in marketing focus towards Payor members[96](index=96&type=chunk) - General and administrative expenses decreased by **$1.6 million (12.8%)** for the six months ended June 30, 2025, mainly due to lower severance payments compared to 2024 when certain key executives departed[101](index=101&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Line Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $(223) | $(1,940) | | Depreciation and amortization | 1,368 | 421 | | Stock-based compensation | 4,688 | 5,359 | | Financial income, net | (2,851) | (3,422) | | Income tax expense | 199 | 197 | | Non-recurring expenses | 1,057 | 1,338 | | **Adjusted EBITDA** | **$4,238** | **$1,953** | [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in market risk disclosures during the six months ended June 30, 2025, compared to the prior annual report - There were **no material changes** to the information regarding quantitative and qualitative disclosures about market risk during the six months ended June 30, 2025[136](index=136&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[137](index=137&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the second quarter of 2025[138](index=138&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) As of June 30, 2025, the company reports no material pending legal proceedings, consistent with financial statement notes - The Company has **no material pending legal proceedings** as of June 30, 2025[141](index=141&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for 2024 - During the six months ended June 30, 2025, there were **no material changes** to the risk factors detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[142](index=142&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details share repurchase activity for Q2 2025, with all repurchases in April, leaving $20.6 million available under the program Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining (in thousands) | | :--- | :--- | :--- | :--- | | April 1 - 30 | 541,268 | $2.62 | $20,632 | | May 1 - 31 | — | — | — | | June 1 - 30 | — | — | — | | **Total** | **541,268** | **$2.62** | **$20,632** | [Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[145](index=145&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[146](index=146&type=chunk) [Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - **No directors or officers adopted, modified, or terminated** a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2025[147](index=147&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) The report includes various exhibits, notably CEO and CFO certifications and Inline XBRL data files - Exhibits filed with the report include **CEO and CFO certifications** (31.1, 31.2, 32.1, 32.2) and **Inline XBRL documents** (101.INS, 101.SCH, 104)[150](index=150&type=chunk)

Core Insights - Talkspace, a leading behavioral healthcare company, will participate in the Canaccord Genuity 45th Annual Growth Conference on August 12, 2025 [1] - The company is committed to providing high-quality mental healthcare and believes it is essential for overall health [2] - Talkspace offers a range of mental health services, including therapy for individuals, teens, couples, and psychiatric treatment [3] Company Overview - Talkspace pioneered text-based communication with licensed therapists and now provides various therapy options, including live video, audio, and unlimited asynchronous text messaging [3] - All services are delivered through a secure, fully-encrypted platform that complies with HIPAA and other regulatory requirements [4] - Access to Talkspace is available through health insurance plans, employee assistance programs, and partnerships with healthcare companies [4]

Financial Performance - Second Quarter 2025 revenue reached $64 million[6] - Payor revenue increased by 35% year-over-year[16] - Adjusted EBITDA grew nearly 100% year-over-year[16] - The company has approximately $103 million in cash and equivalents, including available for sale securities, with zero debt[16] - Approximately $14 million of shares were repurchased under the company's buyback plan[16] Business Growth & Innovation - Unique Active Payor Members increased by 25%, and Payor sessions grew by 29% year-over-year[15] - The company is partnering with AWS Generative AI Innovation Center to develop a Safety and Quality Model[15] - The company enhanced its suicide detection technology and expanded into areas like substance misuse and abuse or neglect[15] Partnerships & Expansion - The company deepened its relationship with Amazon by launching Amazon Pharmacy Integration[16] - The company expanded in women's health through a new partnership with Tia Health[16] - Several additional partners, such as Genomind, Bark, and Hinge, will integrate Talkspace into their ecosystem[16] Financial Guidance - The company maintains its revenue guidance of $220 million to $235 million, representing a 17% to 25% year-over-year increase[21] - The company maintains its Adjusted EBITDA guidance of $14 million to $20 million, representing a 101% to 187% year-over-year increase[22]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Talkspace achieved strong Q2 2025 top-line growth with total revenue increasing 18% to **$54.3M**, driven by a 35% rise in Payor revenue, leading to a narrower net loss and a 94% increase in Adjusted EBITDA to **$2.3M** Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | % YoY Change | | :--- | :--- | :--- | | Total Revenue | $54.3M | 18% | | Payor Revenue | $40.5M | 35% | | Consumer Revenue | $4.4M | (32)% | | Net Loss | $(0.5)M | (14)% | | Adjusted EBITDA | $2.3M | 94% | Q2 2025 Key Operational Metrics (vs. Q2 2024) | Metric | Q2 2025 | % YoY Change | | :--- | :--- | :--- | | Completed Payor Sessions | 385.1 thousand | 29% | | Unique Active Payor Members | 111.2 thousand | 25% | - The company repurchased **$1.4M** of its shares during the second quarter of 2025[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Dr. Jon Cohen attributed positive Q2 operational momentum to H1 technology and marketing investments, resulting in 10% sequential growth in unique active payor members and completed payor sessions, providing strong H2 2025 visibility - Management highlighted positive momentum from technology and marketing investments made in H1 2025[2](index=2&type=chunk) - The company achieved **10%** sequential growth in unique active payor members and completed payor sessions, indicating a strong trajectory for the second half of the year[2](index=2&type=chunk) [Financial Guidance](index=2&type=section&id=Financial%20Guidance) [Full Year 2025 Outlook](index=2&type=section&id=Full%20Year%202025%20Outlook) Talkspace reaffirmed its full-year 2025 financial guidance, expecting total revenue between **$220M** and **$235M** and Adjusted EBITDA between **$14M** and **$20M** Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $220M - $235M | | Adjusted EBITDA | $14M - $20M | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) In Q2 2025, total revenue grew **17.9%** year-over-year to **$54.3M**, primarily from a **35.3%** increase in Payor revenue, while operating loss significantly reduced by **48.7%** to **$(1.8)M** Revenue Breakdown (Q2 2025 vs Q2 2024) | Revenue Stream | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | % Change | | :--- | :--- | :--- | :--- | | Payor revenue | 40,501 | 29,945 | 35.3% | | DTE revenue | 9,403 | 9,628 | (2.3)% | | Consumer revenue | 4,406 | 6,485 | (32.1)% | | **Total revenue** | **54,310** | **46,058** | **17.9%** | Profitability Metrics (Q2 2025 vs Q2 2024) | Metric ($ thousands) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Loss from operations | (1,790) | (3,486) | 48.7% | | Net loss | (541) | (474) | (14.1)% | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Talkspace maintained a strong liquidity position with **$54.3M** in cash and **$48.4M** in marketable securities, resulting in **$132.8M** in total assets and **$112.9M** in stockholders' equity Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $54,342 | $76,692 | | Total current assets | $120,667 | $130,182 | | Total assets | $132,786 | $138,677 | | Total liabilities | $19,845 | $21,282 | | Total stockholders' equity | $112,941 | $117,395 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash used in operating activities was **$1.6M**, with investing activities using **$11.4M** and financing activities using **$9.4M** (including **$8.4M** in stock repurchases), leading to a **$22.4M** net decrease in cash Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1,590) | $1,418 | | Net cash used in investing activities | $(11,386) | $(2,150) | | Net cash used in financing activities | $(9,374) | $(8,263) | | **Net decrease in cash** | **$(22,350)** | **$(8,995)** | - The company repurchased **$8.4M** of common stock for retirement during the first six months of 2025[19](index=19&type=chunk) [Non-GAAP Financial Measures and Reconciliation](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliation) [Definition and Use of Non-GAAP Measures](index=9&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) Adjusted EBITDA serves as a key non-GAAP metric for assessing operating performance and business planning, providing supplemental information by excluding non-core items, despite its inherent limitations - Adjusted EBITDA is a key performance measure used by management for evaluating operating performance and for business planning purposes[20](index=20&type=chunk) - The company defines Adjusted EBITDA as net loss excluding depreciation and amortization, stock-based compensation, net financial income, income tax, and certain non-recurring expenses[24](index=24&type=chunk) [Reconciliation of Net Loss to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) In Q2 2025, Talkspace reconciled a GAAP net loss of **$(0.54)M** to an Adjusted EBITDA of **$2.28M**, primarily by adjusting for **$2.36M** in stock-based compensation and **$1.0M** in non-recurring expenses Reconciliation of Net Loss to Adjusted EBITDA (Q2 2025 vs Q2 2024, in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net loss** | **$ (541)** | **$ (474)** | | Depreciation and amortization | 718 | 220 | | Stock-based compensation | 2,355 | 3,107 | | Financial income, net | (1,325) | (3,044) | | Income tax expense | 76 | 32 | | Non-recurring expenses | 999 | 1,338 | | **Adjusted EBITDA** | **$ 2,282** | **$ 1,179** | - Non-recurring expenses for Q2 2025 primarily consisted of severance costs, one-time legal fees, and other one-time expenses[26](index=26&type=chunk) [Other Information](index=3&type=section&id=Other%20Information) [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Information) The Q2 2025 earnings conference call and webcast were held on August 5, 2025, at 8:30 a.m. E.T., with a replay available for approximately 90 days - The earnings conference call was held on August 5, 2025, at 8:30 a.m. E.T., with a replay available for 90 days[5](index=5&type=chunk) [About Talkspace](index=3&type=section&id=About%20Talkspace) Talkspace is a leading virtual behavioral healthcare provider, offering therapy and psychiatric treatment via a secure, HIPAA-compliant platform accessible through various partnerships - Talkspace offers a comprehensive suite of virtual mental health services, including therapy and psychiatric treatment, through a fully-encrypted web and mobile platform[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding the company's financial condition and future performance, which are subject to risks and uncertainties, and readers should refer to SEC filings for detailed risk factors - The report contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. The company directs readers to its SEC filings, such as the Form 10-K, for a full list of risk factors[9](index=9&type=chunk)

Second Quarter 2025 Key Performance Metrics Financial Guidance Revenue increased 18% over the prior-year period to $54.3 million, driven by a 35% year-over-year increase in Payor revenue, partially offset by a 32% year-over-year decline in Consumer revenue. Cost of revenue, excluding depreciation and amortization, increased 24% over the prior-year period to $30.9 million, driven by a higher number of completed Payor sessions. Total costs and operating expenses were $56.1 million, an increase of 13% year-ove ...

Core Insights - Talkspace, a leading behavioral healthcare company, will release its Q2 2025 results on August 5, 2025, before market open [1] - A conference call to discuss the results will take place at 8:30 AM ET on the same day [1] Company Overview - Talkspace is a prominent virtual behavioral healthcare provider focused on improving mental health access and quality [3] - The company offers a range of mental health services, including therapy for individuals, teens, couples, psychiatric treatment, and medication management [4] - Talkspace's platform is fully encrypted and compliant with HIPAA and other regulatory requirements, ensuring secure access to care [5] Accessibility and Reach - Over 179 million Americans can access Talkspace services through various channels, including health insurance plans and employer-sponsored programs [5]

Group 1 - Talkspace is the largest in-network provider of virtual mental health services in the US, covering almost 200 million lives through major health insurers, employers, and EAP partnerships [1] - Users on the Talkspace platform can access therapy through real-time video [1]

Financial Data and Key Metrics Changes - The company held its Annual General Meeting on June 18, 2025, but specific financial data and key metrics changes were not disclosed during the meeting [1][2][3]. Business Line Data and Key Metrics Changes - No specific data or key metrics changes for various business lines were provided in the meeting [1][2][3]. Market Data and Key Metrics Changes - There were no updates on market data or key metrics changes mentioned during the meeting [1][2][3]. Company Strategy and Development Direction and Industry Competition - The meeting focused on procedural matters such as the election of directors and the appointment of auditors, with no detailed discussion on company strategy or industry competition [1][2][3]. Management Comments on Operating Environment and Future Outlook - Management did not provide comments on the operating environment or future outlook during the meeting [1][2][3]. Other Important Information - The meeting included the election of directors and the ratification of independent auditors for the fiscal year ending December 31, 2025, as well as an advisory vote on executive compensation [1][2][3][4][5][6][16]. Summary of Q&A Session - There was no Q&A session recorded in the meeting, as it primarily focused on voting and procedural matters [1][2][3].

Financial Performance - Total revenue increased by $6.8 million, or 14.9%, to $52.2 million for the three months ended March 31, 2025, compared to $45.4 million for the same period in 2024[85]. - Payor revenue rose by $9.3 million, or 32.7%, to $37.8 million, while Consumer revenue decreased by $2.2 million, or 32.0%, to $4.8 million[85]. - Gross profit increased by $1.6 million, or 7.1%, to $23.3 million, with a gross margin of 44.6% for the three months ended March 31, 2025[87][88]. - The company reported a net income of $318,000 for the three months ended March 31, 2025, compared to a net loss of $1.5 million in the same period of 2024[84]. - Adjusted EBITDA for the three months ended March 31, 2025, was $1,955 thousand, up from $774 thousand in the same period of 2024, reflecting improved operating performance[99]. Customer Metrics - For the three months ended March 31, 2025, the company completed 350,000 Payor sessions, a 23.1% increase from 284,200 sessions in the same period of 2024[64]. - The number of health plan customers increased to 31 from 23, while the number of enterprise customers decreased to 173 from 195[69]. - The company had over 6,900 Consumer active members as of March 31, 2025, down from 11,100 in the same period of 2024[64]. Expenses and Cash Flow - Operating expenses rose by $1.0 million, or 4.1%, to $24.4 million, with significant increases in clinical operations expenses by 26.8% and sales and marketing expenses by 7.5%[89][91][92]. - Research and development expenses decreased by $0.4 million, or 11.2%, to $3.3 million, primarily due to reduced employee-related costs[90]. - Net cash used in operating activities decreased to $1,239 thousand for the three months ended March 31, 2025, compared to $3,391 thousand for the same period in 2024, indicating improved cash flow from operations[107]. - Net cash used in investing activities increased to $9,019 thousand for the three months ended March 31, 2025, primarily due to purchases of marketable securities and increased capitalized software development costs[109]. Capital and Funding - As of March 31, 2025, the company had $60.1 million in cash and cash equivalents and $48.3 million in marketable securities, down from $76.7 million and $41.1 million respectively as of December 31, 2024[100]. - The company had no debt as of March 31, 2025, and anticipates being able to fund its cash needs for at least the next 12 months using available cash[102]. - The company may require additional capital in the future for technological advancements, competitive dynamics, and potential acquisitions[102]. - Future capital requirements will depend on growth rate, contract renewals, and investments in product development and marketing activities[101]. Share Repurchase - The company repurchased 2,519,170 shares of its common stock for a total of $7.0 million during the three months ended March 31, 2025, with $22.1 million remaining under the Share Repurchase Program[104]. Legal and Risk Disclosures - The company did not have any material legal proceedings or significant long-term liabilities as of March 31, 2025[111]. - There were no material changes to market risk disclosures for the three months ended March 31, 2025, compared to the previous Annual Report[125]. Forward-Looking Statements - The company emphasizes that forward-looking statements are predictions based on current expectations and projections, which may be affected by various risks and uncertainties[122]. - Actual future results may differ materially from expectations, and the company cautions against undue reliance on forward-looking statements[123].