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].

Group 1 - The stock market is rebounding sharply from post-tariff lows, leading to stretched valuation multiples [1] - Investors are advised to focus on careful stock-picking to identify value-oriented stocks, particularly in the small/mid-cap space [1] - Value stocks that also offer growth potential are considered a bonus for investors [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications [1] - His articles are syndicated to popular trading apps like Robinhood, indicating a broad reach and influence [1]

Financial Data and Key Metrics Changes - The company reported total revenue of $52.2 million for Q1 2025, representing a 15% increase compared to Q1 2024 [22] - EBITDA increased by 153% year-over-year, reaching $2 million for the quarter [6][27] - The gross profit for the quarter was $23.3 million, up 7% from the previous year, with a gross margin of 44.6% [25] Business Line Data and Key Metrics Changes - The payer business revenue grew by 33% year-over-year, with payer sessions totaling approximately 350,000, an increase of 23% [22] - Direct to Enterprise (DTE) revenue was $9.6 million, down 3% year-over-year, while consumer revenue declined by over $2 million [25] - Unique payer members completing a session grew 17% year-over-year, reaching over 101,000 [22] Market Data and Key Metrics Changes - The company now covers nearly 200 million lives, a growth of over 40% year-over-year [23] - The Medicare population showed strong patient outcomes, with 84% of members demonstrating clinical improvement [12] Company Strategy and Development Direction - The company is focused on driving engagement within the population that has access to Talkspace through insurance plans [7] - Initiatives to enhance customer experience include real-time benefits verification and an easy button for EAP members to switch to insurance coverage [9][10] - The company is committed to expanding its psychiatry offerings and has reconfigured a dedicated team for this purpose [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for 2025, expecting continued demand for affordable in-network care [21] - The company is not directly affected by tariffs and has shifted its core business to an insured patient base, reducing reliance on out-of-pocket spending [20] - Management noted that marketing investments are expected to yield benefits in the latter half of the year [60] Other Important Information - The company has launched AI applications to enhance client onboarding and clinical assessments, including a risk assessment tool with over 90% accuracy [18] - A partnership with BART Technologies aims to address teen mental health by providing access to Talkspace through their platform [17] Q&A Session Summary Question: How will the positive clinical data for Medicare Advantage be used to market to other MA plans? - Management noted significant interest from MA plans and the potential for developing deeper relationships with specific plans in the future [34] Question: What is the marketing budget for Medicare? - The company is taking a portfolio approach to marketing, adjusting budgets based on data-driven insights [38] Question: How broadly is the easy button for EAP to insurance switching rolled out? - The rollout is ongoing, plan by plan, and is having a significant positive impact on user engagement [43] Question: How has data retention changed with technology enhancements? - Session velocity metrics are up 5% year-over-year, indicating positive retention trends [49] Question: What portion of 2025 revenue guidance is expected from Medicare and military? - The company does not break out specific revenue sources but is optimistic about growth from these segments [47] Question: Can you discuss the Bark partnership and its economics? - The partnership allows easy access to Talkspace for Bark users, with the app preloaded on Bark phones [70] Question: How is the Talkcast feature being utilized? - The feature has generated 6,000 podcasts, with therapists deciding on their distribution to members [75] Question: What is the financial difference between EAP and insurance patients? - EAP sessions are fee-for-service, similar to insurance coverage, but insurance typically offers higher-priced sessions [82]

Financial Data and Key Metrics Changes - The company reported total revenue of $52.2 million for Q1 2025, representing a 15% increase compared to Q1 2024 [19] - EBITDA increased by 153% year-over-year, reaching $2 million for the quarter [5][23] - The gross profit for the quarter was $23.3 million, up 7% from the previous year, with a gross margin of 44.6% [21][22] - GAAP net income improved to $300,000 from a loss of $1.5 million a year ago [22] Business Line Data and Key Metrics Changes - The payer business revenue grew by 33% year-over-year, with payer sessions totaling approximately 350,000, an increase of 23% [19][20] - Direct to Enterprise (DTE) revenue for the quarter was $9.6 million, down 3% year-over-year [21] - Consumer revenue declined by over $2 million compared to the same quarter in 2024, as most new members utilized insurance coverage [21] Market Data and Key Metrics Changes - The company now covers nearly 200 million lives, a growth of over 40% year-over-year [20] - The Medicare population showed strong patient outcomes, with 84% of members demonstrating clinical improvement [10] Company Strategy and Development Direction - The company is focused on enhancing engagement among members with insurance coverage, aiming to optimize the user experience through technological improvements [6][8] - A new psychiatry offering was launched, targeting individuals aged 18 and older, which has seen increased demand [11][12] - The company is actively pursuing partnerships, such as with BART Technologies, to expand its reach into the teen mental health market [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for 2025, expecting continued demand for affordable in-network care [19] - The company is not directly affected by tariffs and has shifted its strategy to focus on an insured patient base, reducing reliance on out-of-pocket spending [18] - The management highlighted the importance of maintaining high-quality care and positive outcomes as a key differentiator in the market [8] Other Important Information - The company has implemented AI initiatives to enhance client engagement and streamline clinical assessments [15][16] - The balance sheet remains strong, with $108 million in cash and cash equivalents at the end of Q1 [23] Q&A Session Summary Question: How will the positive clinical data for Medicare Advantage be used to market to other plans? - Management noted significant interest from MA plans and the potential for developing deeper relationships with specific plans in the future [29][30] Question: What is the marketing budget for the year? - The company is taking a portfolio approach to marketing, adjusting budgets based on data-driven insights and ROI [32][34] Question: How broadly is the easy button for switching between EAP and insurance coverage rolled out? - The rollout is ongoing, plan by plan, and has shown a significant positive impact on user engagement [36][38] Question: How has data retention changed with technology enhancements? - Management indicated that session velocity metrics are up 5% year-over-year, and they are seeing positive impacts from marketing investments [44] Question: Can you discuss the economics of the Bark partnership? - The partnership allows easy access to Talkspace for Bark users, with the app preloaded on Bark phones, enhancing referral opportunities [62][64] Question: What are the metrics used to measure quality in the Medicare population? - The company measures quality through service quality, clinical quality, client experience, productivity, and documentation [84][88] Question: Are there any impacts from behavioral health funding cuts? - Management stated that cuts have primarily affected in-person therapy and believe it may create opportunities for virtual models [91][92]

1Q 2025 Total revenue grew 15% year-over-year to $52.2 million driven by 33% year-over-year growth in Payor revenue 1Q 2025 Share repurchases of $7.0 million Exhibit 99.1 1Q 2025 Net income of $0.3 million and adjusted EBITDA1 of $2.0 million Talkspace Announces First Quarter 2025 Results Financial Guidance | | | Three Months Ended March 31, 2025 | | | --- | --- | --- | --- | | Unaudited | | Results | % Variance from Prior Year | | (In thousands unless otherwise noted) | | | | | Number of completed Payor se ...

2025 First Quarter Earnings Presentation May 6, 2025 2025 FIRST QUARTER EARNINGS PRESENTATION 2 Disclaimer $64 54% $39 34% Revenue1 Composition USD, Millions PAYOR DTE CONSUMER Gross Profit and % Margin USD, Millions (1) Revenue is presented on an as-reported basis. This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this presentation that do not relate to maers of historical fact sh ...

NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) -- Talkspace, Inc. ("Talkspace" or the "Company") (NASDAQ: TALK), today reported first quarter 2025 financial results. | | | Three Months Ended | | | --- | --- | --- | --- | | | | March 31, 2025 | | | | | | % Variance | | | | | from | | Unaudited | | Results | Prior Year | | (In thousands unless otherwise noted) | | | | | Number of completed Payor sessions during the period | | 350.0 | 23% | | Number of Unique Active Payor members during the period | | 101.2 | 17% | | ...