[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited condensed consolidated financial statements as of June 30, 2025, show decreased total assets and equity, a narrowed net loss, and a shift to net cash outflow from operations, with increased Payor revenue Condensed Consolidated Balance Sheets Summary (Thousands of USD) | Assets/Liabilities | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | $54,342 | $76,692 | | Marketable Securities | $48,427 | $41,118 | | Total Current Assets | $120,667 | $130,182 | | **Total Assets** | **$132,786** | **$138,677** | | **Liabilities and Stockholders' 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 Summary (Thousands of USD) | Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $54,310 | $46,058 | $106,492 | $91,474 | | Operating Loss | $(1,790) | $(3,486) | $(2,875) | $(5,165) | | Net Loss | $(541) | $(474) | $(223) | $(1,940) | | Net Loss Per Share | $(0.00) | $(0.00) | $(0.00) | $(0.01) | Condensed Consolidated Statements of Cash Flows Summary (Thousands of USD) | Item | H1 2025 | H1 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) | Revenue by Source (Thousands of USD) | Revenue Source | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Payor | $40,501 | $29,945 | $78,343 | $58,453 | | Direct-to-Enterprise (DTE) | $9,403 | $9,628 | $18,986 | $19,541 | | Consumer | $4,406 | $6,485 | $9,163 | $13,480 | | **Total Revenue** | **$54,310** | **$46,058** | **$106,492** | **$91,474** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights a strategic shift to Payor business, driving significant revenue growth and improved profitability, with Adjusted EBITDA more than doubling, alongside active share repurchases - The company strategically shifted its marketing focus to attract Payor members, resulting in significant Payor revenue growth and a corresponding decrease in Consumer revenue[95](index=95&type=chunk)[96](index=96&type=chunk) Key Business Metrics | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Payor Completed Sessions (Thousands) | 735.1 | 582.8 | | Health Plan Clients (Period End) | 31 | 24 | | Enterprise Clients (Period End) | 165 | 187 | | Active Consumer Members (Thousands, Period End) | 6.6 | 10.7 | Summary of Operating Results and Year-over-Year Changes (Thousands of USD) | Item | H1 2025 | H1 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$106,492** | **$91,474** | **$15,018** | **16.4%** | | Payor Revenue | $78,343 | $58,453 | $19,890 | 34.0% | | Consumer Revenue | $9,163 | $13,480 | $(4,317) | (32.0)% | | Total Costs and Operating Expenses | $109,367 | $96,639 | $12,728 | 13.2% | | Operating Loss | $(2,875) | $(5,165) | $2,290 | 44.3% | | Net Loss | $(223) | $(1,940) | $1,717 | 88.5% | Reconciliation of Adjusted EBITDA to Net Loss (Thousands of USD) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Loss | $(223) | $(1,940) | | Add: Depreciation and Amortization | 1,368 | 421 | | Add: Stock-Based Compensation Expense | 4,688 | 5,359 | | Add: Net Interest Income | (2,851) | (3,422) | | Add: Income Tax Expense | 199 | 197 | | Add: Non-Recurring Expenses | 1,057 | 1,338 | | **Adjusted EBITDA** | **$4,238** | **$1,953** | - The company expanded its share repurchase program on August 1, 2024, increasing the total authorized repurchase amount to **$40 million**[114](index=114&type=chunk) - As of June 30, 2025, **$20.6 million** remained available for repurchase under the plan[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in market risk disclosures for the six months ended June 30, 2025, compared to its 2024 Annual Report on Form 10-K - Market risk information has not materially changed compared to the 2024 fiscal year annual report[136](index=136&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls over financial reporting during Q2 2025 - Management assessed that the company's disclosure controls and procedures were effective as of June 30, 2025[137](index=137&type=chunk) - No material changes occurred in internal control over financial reporting during Q2 2025[138](index=138&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) As of June 30, 2025, the company has no material pending legal proceedings - As of June 30, 2025, the company has no material pending legal proceedings, claims, or litigation[141](index=141&type=chunk)[49](index=49&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred in the company's risk factors for the six months ended June 30, 2025, compared to the 2024 Annual Report on Form 10-K - Risk factors have not materially changed compared to those discussed in the 2024 10-K report[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 the company's share repurchase activities for the three months ended June 30, 2025, including the repurchase of 541,268 shares in April 2025 Summary of Share Repurchases for Q2 2025 | Period | Total Shares Repurchased | Average Price Paid | Approximate Dollar Value of Shares that May Yet Be Repurchased Under the Plan (Thousands of USD) | | :--- | :--- | :--- | :--- | | April 1 - 30 | 541,268 | $2.62 | $20,632 | | May 1 - 31 | — | — | — | | June 1 - 30 | — | — | — | | **Total** | **541,268** | | | [Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - No defaults upon senior securities occurred[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's operations - 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 trading arrangements during the three months ended June 30, 2025 - No directors or officers adopted, modified, or terminated 10b5-1 trading arrangements during Q2 2025[147](index=147&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including executive certifications and XBRL data files - Report exhibits include certifications by the Chief Executive Officer and Chief Financial Officer under Rule 13a-14(a)/15d-14(a) and 18 U.S.C. Section 1350, along with Inline XBRL documents[150](index=150&type=chunk)

Exhibit 99.1 Dr. Jon Cohen, CEO of Talkspace, said, "I'm pleased with the work our team did this quarter to progress several operational initiatives within the business. We exited the quarter with positive momentum from the technology and marketing investments we made in the first half of the year. These investments helped to deliver sequential growth in unique active payor members and completed payor sessions of 10%, respectively, which gives us strong visibility into our trajectory for the second half of ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39314 TALKSPACE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 84-4636604 (State or ot ...

Exhibit 99.1 Talkspace Announces First Quarter 2025 Results 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 Net income of $0.3 million and adjusted EBITDA1 of $2.0 million 1Q 2025 Share repurchases of $7.0 million NEW YORK, New York - May 6, 2025 – Talkspace, Inc. ("Talkspace" or the "Company") (NASDAQ: TALK), today reported first quarter 2025 financial results. | | | Three Months Ended March 31, 2025 | | | --- | --- | --- | --- | | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39314 TALKSPACE, INC. (Exact name of Registrant as specified in its Charter) Delaware 84-4636604 (State or other ju ...

Exhibit 99.1 Talkspace Announces Fourth Quarter and Full Year 2024 Results Full-year 2024 total revenue grew 25% year-over-year to $187.6 million Full-year 2024 net income of $1.1 million and adjusted EBITDA1 of $7.0 million 4Q 2024 total revenue grew 15% year-over-year to $48.7 million 4Q 2024 net income of $1.2 million and adjusted EBITDA1 of $2.7 million NEW YORK, New York - February 20, 2025 – Talkspace, Inc. ("Talkspace" or the "Company") (NASDAQ: TALK), today reported fourth quarter and full year 2024 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39314 TALKSPACE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 84-4636604 (State o ...

Talkspace Announces Third Quarter 2024 Results 3Q 2024 Total revenue grew 23% year-over-year, driven by 45% year-over-year growth in Payor revenue Exhibit 99.1 1 Third Quarter 2024 Key Performance Metrics Financial Guidance Increased 3Q 2024 GAAP Net income to $1.9 million from $4.4 million net loss year-over-year 3Q 2024 Adjusted EBITDA1 of $2.4 million NEW YORK, New York - October 29, 2024 – Talkspace, Inc. ("Talkspace" or the "Company") (NASDAQ: TALK), today reported third quarter 2024 financial results. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39314 TALKSPACE, INC. (Exact Name of Registrant as Specified in its Charter) N/A (Former name, former address ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section covers the unaudited Q1 2024 financial statements, management's discussion and analysis, market risk, and internal controls [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Talkspace, Inc. as of March 31, 2024, and for the three months then ended. It includes the balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with accompanying notes detailing accounting policies, revenue recognition, fair value measurements, and other financial disclosures [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight decrease in total assets to $138.3 million and a reduction in total liabilities to $18.7 million as of March 31, 2024, compared to year-end 2023. Cash and cash equivalents stood at $120.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $120,278 | $123,908 | | Total current assets | $135,730 | $139,800 | | **Total assets** | **$138,276** | **$142,221** | | Total current liabilities | $15,686 | $21,648 | | **Total liabilities** | **$18,698** | **$23,575** | | **Total stockholders' equity** | **$119,578** | **$118,646** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the first quarter of 2024, the company reported a significant increase in revenue and a substantial reduction in net loss compared to the same period in 2023. Revenue grew to $45.4 million, while net loss narrowed to $1.5 million, or ($0.01) per share Q1 2024 vs Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues | $45,416 | $33,336 | | Gross profit | $21,731 | $16,748 | | Operating loss | $(1,679) | $(9,039) | | **Net loss** | **$(1,466)** | **$(8,758)** | | **Net loss per share (Basic & Diluted)** | **$(0.01)** | **$(0.05)** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity saw a slight increase during the first quarter of 2024, rising to $119.6 million. The increase was primarily driven by stock-based compensation and the exercise of stock options, which offset the net loss for the period - Total stockholders' equity increased from **$118.6 million** at the end of 2023 to **$119.6 million** as of March 31, 2024[14](index=14&type=chunk) - Key activities impacting equity included **$2.3 million** in stock-based compensation and **$0.7 million** from the exercise of stock options, which were partially offset by a net loss of **$1.5 million**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company significantly improved its cash flow from operations, using $3.4 million in Q1 2024 compared to $14.0 million in Q1 2023. The quarter ended with a cash and cash equivalents balance of $120.3 million Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,391) | $(14,037) | | Net cash used in investing activities | $(385) | $19 | | Net cash provided by financing activities | $146 | $556 | | **Net decrease in cash and cash equivalents** | **$(3,630)** | **$(13,462)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies, revenue sources (Payor, DTE, Consumer), fair value measurements of financial instruments like warrant liabilities, commitments, capital stock details including a new share repurchase program, and information on variable interest entities (VIEs) Revenue by Source (in thousands) | Revenue Source | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Payor | $28,508 | $14,811 | | DTE | $9,913 | $8,676 | | Consumer | $6,995 | $9,849 | | **Total revenue** | **$45,416** | **$33,336** | - On February 22, 2024, the Board of Directors approved a share repurchase program authorizing the repurchase of up to **$15 million** of common stock over 24 months. No shares were repurchased under this program as of March 31, 2024[44](index=44&type=chunk) - The company consolidates several Variable Interest Entities (VIEs), including Talkspace Provider Network, PA and eight affiliated professional corporations, as it is determined to be the primary beneficiary[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q1 2024, highlighting a 36.2% revenue increase to $45.4 million, driven by a 92.5% surge in Payor revenue. The net loss narrowed significantly to $1.5 million from $8.8 million YoY, and Adjusted EBITDA turned positive at $0.8 million. The discussion covers key business metrics, operational results, liquidity, and the strategic shift towards the Payor market Key Business Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Eligible lives at period end (millions) | 131.4 | 98.0 | | Completed Payor sessions (thousands) | 284.2 | 171.7 | | Unique Payor active members (thousands) | 86.3 | 61.9 | | Consumer active members at period end (thousands) | 11.1 | 15.1 | - Total revenue increased by **36.2%** to **$45.4 million** in Q1 2024, primarily due to a **92.5%** increase in Payor revenue. This reflects the company's intentional strategic decision to focus marketing efforts on attracting payor members, which also led to a **29.0%** decline in Consumer revenue[82](index=82&type=chunk) - Adjusted EBITDA, a non-GAAP measure, was **$774 thousand** for Q1 2024, a significant improvement from an Adjusted EBITDA loss of **$(6.4) million** in Q1 2023[96](index=96&type=chunk) - Net cash used in operating activities decreased to **$(3.4) million** from **$(14.0) million** YoY, driven by a lower net loss and favorable timing of payments[100](index=100&type=chunk)[101](index=101&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there were no material changes to its market risk disclosures during the first quarter of 2024, as detailed in its 2023 Annual Report on Form 10-K - There were no material changes to the market risk information previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023[119](index=119&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024. No material changes to internal controls over financial reporting occurred during the quarter - Management concluded that disclosure controls and procedures were effective as of March 31, 2024[120](index=120&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2024 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[121](index=121&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, and other miscellaneous information, including exhibits [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings as of March 31, 2024 - As of March 31, 2024, the Company has no material pending legal proceedings[125](index=125&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company states there were no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - During the three months ended March 31, 2024, there were no material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023[126](index=126&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the period - The company reported 'None' for this item, indicating no unregistered sales of equity securities[127](index=127&type=chunk) [Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - The company reported 'None' for this item[128](index=128&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company's business[129](index=129&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) The company reports that no directors or Section 16 officers adopted, modified, or terminated any "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the fiscal quarter ended March 31, 2024 - No directors or Section 16 officers adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the quarter ended March 31, 2024[130](index=130&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibit index lists required filings, including certifications from the Chief Executive Officer and Chief Financial Officer, and Inline XBRL documents[133](index=133&type=chunk)