These once high-flying stocks no longer seem to have promising prospects.Just because a stock has been battered doesn't make it an automatic buy. That's only the case if it can bounce back, and in some cases, there are few good reasons to believe it can.Take Teladoc Health (TDOC 2.10%) and Sarepta Therapeutics (SRPT 0.65%). These two healthcare companies have lagged the market this year, but even at their current levels, they don't look particularly attractive. Here's why investors should stay away from the ...

Teladoc's stock has taken a nosedive, but is there hope for recovery? Our experts break down the company's performance and future potential in this insightful analysis. Explore the exciting world of Teladoc (TDOC -0.07%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!*Stock prices used were the prices of Jul. 30, 2025. The video was published on Aug. 25, 2025. Anand C ...

Core Viewpoint - Teladoc Health has acquired Telecare, an Australian tech-enabled provider of virtual specialist and allied health care, enhancing its international presence and capabilities in virtual care delivery [1][4][5]. Company Overview - Teladoc Health is a global leader in virtual care, generating over $2.5 billion in revenue in 2024 and employing nearly 5,000 people [3]. - The company provides access to care for more than 100 million people and collaborates with leading healthcare institutions globally, including in the US, UK, Germany, Canada, and France [3]. Acquisition Details - Telecare operates Australia's leading virtual care clinic with over 300 virtual specialists across more than 30 specialties, improving access to specialty care and reducing patient wait times [2]. - The acquisition closed on August 8, 2025, with financial terms undisclosed, but it is expected to have an immaterial impact on Teladoc Health's financial results for the year [6]. Strategic Implications - The acquisition aligns with Teladoc Health's enterprise strategy to expand its international business, particularly in Australia, where it has a 15-year history [4]. - Teladoc Health aims to enhance access to care in regional and remote areas by combining its technological solutions with Telecare's services [5]. Leadership and Brand Continuity - Telecare will continue to operate under its existing brand and leadership team, ensuring continuity in service delivery to the Australian market [6].

Core Insights - Teladoc Health, Inc. (TDOC) shares declined by 4.2% following the release of its second-quarter 2025 results, despite reporting better-than-expected outcomes driven by international revenue growth, an expanding membership base in the Integrated Care segment, and reduced expenses [1][9] Financial Performance - The company reported an adjusted loss of $0.19 per share, which was narrower than the Zacks Consensus Estimate of a loss of $0.27 and the loss of $0.28 from the previous year [2] - Operating revenues totaled $631.9 million, down from $642.4 million year-over-year, but exceeded the consensus estimate by 1.8% [2] - Access fees revenue decreased by 6% year-over-year to $523.7 million, missing the consensus estimate by 2.2% [3] - Other revenues increased by 31% year-over-year to $108.2 million, surpassing the consensus estimate by 24.4% [3] - U.S. revenues were $519.7 million, down 4% year-over-year, but slightly beat the consensus mark by 0.2% [4] - International revenues rose by 10% year-over-year to $112.2 million, exceeding the consensus estimate by 11.3% [4] - Total expenses decreased by 53.7% year-over-year to $686.3 million, lower than the estimated $698.1 million [5] Segment Performance - The Integrated Care segment generated revenues of $391.5 million, a 4% year-over-year increase, surpassing the consensus estimate of $383 million [6] - Adjusted EBITDA for the Integrated Care segment fell by 10% year-over-year to $57.5 million, but was above the consensus mark of $53 million [6] - The BetterHelp segment's revenues declined by 9% year-over-year to $240.4 million, although it beat the consensus estimate of $237 million [7] - Adjusted EBITDA for BetterHelp fell by 53% year-over-year to $11.9 million, exceeding the consensus mark of $9.6 million [7] Membership and Visits - Total visits to Teladoc Health were 4.1 million, a 3% decline year-over-year, falling short of the consensus estimate by 0.8% [8] - U.S. Integrated Care Members reached 102.4 million as of June 30, 2025, an 11% increase year-over-year, beating the consensus mark by 0.3% [8] Cash Flow and Outlook - Cash and cash equivalents stood at $679.6 million, down from $1.3 billion at the end of 2024 [10] - Operating cash flow was $91.4 million, up from $88.7 million in the previous year [11] - Free cash inflow improved to $61.2 million from $60.9 million year-over-year [11] - For Q3, Integrated Care segment revenues are forecasted to decline by 0.5% to 2.25% growth, with an adjusted EBITDA margin expected between 14% and 15.5% [12] - Full-year revenues are projected to be between $2.501 billion and $2.548 billion, with a net loss expected between $1.00 and $1.35 per share [16]

[PART I Financial Information](index=3&type=section&id=PART%20I%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Teladoc Health, Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2025, covering balance sheets, operations, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$2.89 billion** from **$3.52 billion** due to reduced cash, while total liabilities fell to **$1.47 billion** from **$2.03 billion** primarily from note repayment Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $679,621 | $1,298,327 | | Total current assets | $1,073,270 | $1,663,907 | | Goodwill | $283,190 | $283,190 | | Intangible assets, net | $1,383,306 | $1,431,360 | | **Total assets** | **$2,894,004** | **$3,516,524** | | **Liabilities & Equity** | | | | Total current liabilities | $401,767 | $941,535 | | Convertible senior notes, net—non-current | $993,165 | $991,418 | | **Total liabilities** | **$1,471,865** | **$2,025,445** | | **Total stockholders' equity** | **$1,422,139** | **$1,491,079** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q2 2025 revenue decreased 2% to **$631.9 million**, while net loss significantly narrowed to **$32.7 million** from **$837.7 million** due to a prior-year goodwill impairment Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $631,900 | $642,444 | $1,261,269 | $1,288,575 | | Loss from operations | ($54,385) | ($841,148) | ($174,996) | ($928,270) | | Goodwill impairment | $0 | $790,000 | $59,138 | $790,000 | | Net loss | ($32,660) | ($837,671) | ($125,672) | ($919,560) | | Net loss per share | ($0.19) | ($4.92) | ($0.72) | ($5.44) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$107.4 million**, while significant cash was used in investing (**$183.0 million**) and financing (**$549.2 million**) due to note repayments, resulting in a **$624.8 million** net cash decrease Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $107,351 | $97,603 | | Net cash used in investing activities | ($182,964) | ($63,260) | | Net cash (used in) provided by financing activities | ($549,164) | $5,556 | | **Net (decrease) increase in cash** | **($624,777)** | **$39,899** | - The significant use of cash in financing activities was due to the repayment of **$550.6 million** in convertible senior notes[16](index=16&type=chunk) - Investing activities included **$65.3 million** for a business combination (Catapult Health), **$29.6 million** for an asset acquisition (Uplift), and **$27.1 million** for other investments[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail revenue breakdown, recent acquisitions, a **$59.1 million** goodwill impairment, repayment of convertible notes, restructuring activities, and segment performance Revenue Breakdown for Six Months Ended June 30 (in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | **By Type** | | | | Access Fees | $1,049,439 | $1,116,822 | | Other | $211,830 | $171,753 | | **By Geography** | | | | U.S. Revenue | $1,044,659 | $1,088,402 | | International Revenue | $216,610 | $200,173 | | **Total Revenue** | **$1,261,269** | **$1,288,575** | - The company acquired Catapult Health for **$65.3 million** (business combination) and Uplift Health Technologies for **$29.6 million** (asset acquisition) in Q1 and Q2 2025, respectively[47](index=47&type=chunk)[49](index=49&type=chunk) - A goodwill impairment charge of **$59.1 million** was recognized in Q1 2025 for the Integrated Care reporting unit after the Catapult Health acquisition[51](index=51&type=chunk)[54](index=54&type=chunk) - The company repaid **$0.6 million** of 2025 Notes and **$550.0 million** of Livongo Notes upon maturity in May and June 2025, leaving only the **$1.0 billion** principal 2027 Notes outstanding[61](index=61&type=chunk) - Subsequent to quarter end, on July 17, 2025, the company established a new five-year, **$300.0 million** senior secured revolving credit facility[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the 2% revenue decrease in Q2 and H1 2025, segment performance, operational metrics, expense changes, liquidity, and cash flows, including note repayments and a new credit facility [Key Factors Affecting Our Performance](index=30&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) Integrated Care saw **11%** U.S. membership growth to **102.4 million**, but chronic care enrollment and average revenue per member declined, while BetterHelp's paying users decreased **5%** in Q2 Key Operating Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | U.S. Integrated Care Members (millions) | 102.4 | 92.4 | +11% | | Chronic Care Program Enrollment (millions) | 1.117 | 1.173 | -5% | | Avg. Monthly Revenue Per U.S. Integrated Care Member | $1.27 | $1.36 | -7% | | BetterHelp Paying Users (millions, avg. for Q) | 0.388 | 0.407 | -5% | [Condensed Consolidated Results of Operations Analysis](index=33&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations%20Analysis) Q2 2025 total revenue decreased **2%** to **$631.9 million**, net loss narrowed significantly to **$32.7 million**, and Adjusted EBITDA fell **23%** to **$69.3 million** - Total revenue for Q2 2025 decreased by **2%** year-over-year, primarily due to lower BetterHelp segment revenue, with acquisitions contributing approximately **2 percentage points** to growth[136](index=136&type=chunk) - Technology and development expenses decreased by **10%** in Q2 2025, mainly due to lower employee compensation costs[141](index=141&type=chunk) - A goodwill impairment of **$59.1 million** was recognized in H1 2025 related to the Catapult Health acquisition within the Integrated Care segment[144](index=144&type=chunk) Adjusted EBITDA Reconciliation Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | ($32,660) | ($837,671) | ($125,672) | ($919,560) | | **Adjusted EBITDA** | **$69,311** | **$89,481** | **$127,404** | **$152,621** | [Segment Information Analysis](index=39&type=section&id=Segment%20Information%20Analysis) Integrated Care revenue grew **4%** to **$391.5 million** but Adjusted EBITDA fell **10%**, while BetterHelp revenue declined **9%** to **$240.4 million** and Adjusted EBITDA dropped **53%** Integrated Care Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $391,510 | $377,421 | +4% | | Adjusted EBITDA | $57,450 | $64,028 | -10% | | Adjusted EBITDA Margin | 14.7% | 17.0% | -230 bps | BetterHelp Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $240,390 | $265,023 | -9% | | Adjusted EBITDA | $11,861 | $25,453 | -53% | | Adjusted EBITDA Margin | 4.9% | 9.6% | -470 bps | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$679.6 million** in cash, generated **$45.5 million** in free cash flow in H1 2025, and established a new **$300 million** revolving credit facility for enhanced flexibility - The company's primary source of liquidity is cash and cash equivalents, totaling **$679.6 million** as of June 30, 2025[166](index=166&type=chunk) Free Cash Flow Reconciliation (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $107,351 | $97,603 | | Capital expenditures | ($3,994) | ($3,061) | | Capitalized software development costs | ($57,824) | ($60,199) | | **Free Cash Flow** | **$45,533** | **$34,343** | - On July 17, 2025, the company established a five-year, **$300.0 million** revolving credit facility to enhance financial and operational flexibility[168](index=168&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate volatility on cash, with a **1%** change impacting interest income by **$7.0 million** annually, alongside significant client concentration in Integrated Care - The company's principal market risk is interest rate volatility on its **$679.6 million** cash and cash equivalents; a **1%** rate change would alter annual interest income by approximately **$7.0 million**[176](index=176&type=chunk) - The Integrated Care segment faces significant client concentration risk, with its five largest customers accounting for **31%** of segment revenue in H1 2025[179](index=179&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls, excluding recent acquisitions - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[182](index=182&type=chunk) - No material changes occurred in internal control over financial reporting during the quarter, with the evaluation excluding the newly acquired Catapult Health and Uplift businesses[183](index=183&type=chunk) [PART II Other Information](index=44&type=section&id=PART%20II%20Other%20Information) [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 15 for details on legal proceedings, including securities class actions, shareholder derivative complaints, and BetterHelp patient data lawsuits - The company is involved in various litigation matters, including securities class action complaints and shareholder derivative suits, with details provided in Note 15 of the financial statements[186](index=186&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K have occurred - There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K[187](index=187&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading plan during the three months ended June 30, 2025[189](index=189&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files

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Core Insights - Teladoc reported revenue of $631.9 million for the quarter ended June 2025, reflecting a year-over-year decline of 1.6% and an EPS of -$0.19, an improvement from -$0.28 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $620.91 million by 1.77%, while the EPS surprised by 29.63% against the consensus estimate of -$0.27 [1] Financial Performance Metrics - U.S. Integrated Care Members reached 102.4 million, slightly above the estimated 102.12 million [4] - Average Revenue Per U.S. Integrated Care Member was $1.27, surpassing the estimated $1.25 [4] - BetterHelp Paying Users totaled 0.39 million, exceeding the average estimate of 0.38 million [4] - Chronic Care Program Enrollment matched the average estimate of 1.12 million [4] Revenue by Segment - BetterHelp generated $240.39 million in revenue, compared to the estimated $236.78 million, marking a year-over-year decline of 9.3% [4] - Integrated Care revenue was $391.51 million, exceeding the estimated $382.52 million, with a year-over-year increase of 3.7% [4] - BetterHelp's Therapy Services revenue was $235.4 million, above the average estimate of $232.77 million, reflecting a year-over-year decline of 9.1% [4] - BetterHelp's Other Wellness Services revenue was $4.99 million, below the average estimate of $5.75 million, showing a year-over-year decline of 16.2% [4] Revenue by Type - Access fees generated $523.7 million, below the average estimate of $535.21 million, representing a year-over-year decline of 6.4% [4] - Other revenue reached $108.2 million, exceeding the average estimate of $87 million, with a year-over-year increase of 30.7% [4] Adjusted EBITDA - BetterHelp's Adjusted EBITDA was $11.86 million, surpassing the average estimate of $9.58 million [4] - Integrated Care's Adjusted EBITDA was $57.45 million, exceeding the average estimate of $52.92 million [4]

Company Performance - Teladoc reported a quarterly loss of $0.19 per share, better than the Zacks Consensus Estimate of a loss of $0.27, and an improvement from a loss of $0.28 per share a year ago, representing an earnings surprise of +29.63% [1] - The company posted revenues of $631.9 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.77%, although this is a decrease from year-ago revenues of $642.44 million [2] - Over the last four quarters, Teladoc has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - Teladoc shares have underperformed the market, losing about 9.8% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current consensus EPS estimate for the coming quarter is -$0.21 on revenues of $627.2 million, and for the current fiscal year, it is -$1.21 on revenues of $2.51 billion [7] Industry Context - The Medical Services industry, to which Teladoc belongs, is currently in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially impact stock performance [5][8]

Financial Data and Key Metrics Changes - The second quarter consolidated revenue was $631.9 million, down 1.6% year over year, but near the high end of the guidance range [22] - Adjusted EBITDA was $69.3 million, representing a margin of 11%, also at the upper end of the guidance range [22] - Net loss per share was $0.19 compared to a net loss of $4.92 in the previous year, which included a significant goodwill impairment charge [22] - Free cash flow was $61 million in the second quarter, slightly ahead of the prior year period [23] Business Line Data and Key Metrics Changes - Integrated Care segment revenue increased by 3.7% year over year to $391.5 million, exceeding guidance [25] - U.S. Integrated Care segment membership reached 102.4 million, up 11% year over year, while virtual visit volume increased by 6% [26] - Better Health segment revenue was $240.4 million, slightly above the midpoint of guidance, but average paying users declined by 5% year over year [27][28] Market Data and Key Metrics Changes - The international integrated care business delivered mid-teens growth on a constant currency basis, contributing to overall revenue growth [25] - The U.S. cash pay users saw a high single-digit percentage decline compared to the previous year, reflecting softening consumer sentiment [29] Company Strategy and Development Direction - The company is focused on enhancing integrated care offerings, particularly in the U.S., to drive clinical outcomes and cost efficiency [12][13] - There is an emphasis on product innovation, including the launch of WellBound and enhancements to the cardiometabolic health program [6][7] - The company aims to leverage its scale in mental health and expand insurance capabilities through BetterHelp [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to return to a growth trajectory despite broader market dynamics impacting healthcare [21] - The company is committed to maintaining a balanced approach between financial performance and investments in strategic priorities [21] - Management highlighted the importance of virtual care in addressing healthcare challenges, including affordability and access [11][12] Other Important Information - The company has retired $551 million in convertible senior notes and has a strong cash position of $618 million [23][41] - The company is making strategic investments to scale its insurance business and enhance operational capabilities [73][74] Q&A Session Summary Question: Transition from subscription to pay-per-visit model - Management indicated that over 50% of revenues in virtual care are now from visit-based arrangements, with a significant portion in mental health being around 70% [46][47] Question: Margin differences between cash pay and insurance - Management acknowledged that insurance margins would be lower than the cash pay business, but the scale of consumer demand is expected to drive conversion rates [50][51] Question: Opportunities to drive cost in healthcare - Management emphasized the importance of access to care and the potential for virtual care to complement local delivery systems [58][60] Question: Chronic Care Solutions selling season and competition - Management noted good interest in chronic care solutions, with ongoing pressure in the health plan channel but positive activity in employer channels [64][66] Question: Revenue contribution from Better Health Insurance in 2026 - Management expects insurance revenue to scale over a 6 to 12 month period, with ongoing investments needed to support this growth [72][75] Question: Overall readiness for revenue and EBITDA growth - Management believes considerable progress has been made, but acknowledges that ongoing investments and innovations are necessary to sustain growth [78][82]