Transforming how better health happens J.P. Morgan Healthcare Conference January 2026 Safe Harbor This presentation contains, and the officers of Teladoc Health, Inc. (the "Company" or "Teladoc Health") may make, "forward-looking" statements that are based on management's beliefs and assumptions and on information currently available to management. These forward-looking statements include, without limitation, information concerning possible or assumed future results of operations, including descriptions of ...

Core Insights - Teladoc Health has launched enhancements to its 24/7 Care service, expanding its capabilities to address a broader spectrum of health needs and deliver more value in virtual urgent care visits [1][3] Service Enhancements - The enhanced 24/7 Care service allows Teladoc Health's care teams to treat a wider range of conditions, including back and joint pain, hair loss, sleep issues, and provides support for members with uncontrolled hypertension, diabetes, asthma, and COPD [4] - Care providers can now consult with board-certified specialists during visits, enabling quicker confirmation of care plans and addressing over 95% of member concerns in a single visit, thus avoiding unnecessary follow-ups and ER visits [5] - Integrated claims and Health Information Exchange (HIE) data allow care providers to identify gaps in care and promote preventive care, with 70% of members agreeing to take action on preventive care recommendations made during visits [6] Care Continuity and Access - Care providers can refer members to in-network specialists or connect them to Teladoc Health programs, facilitating care continuity and access to resources such as diabetes, hypertension, and weight management programs [7] - Real-time access to patients' pharmacy benefits enables care providers to identify covered drugs, copay amounts, and preferred alternatives, improving medication adherence and member satisfaction [8] Company Positioning - Teladoc Health has been delivering 24/7 Care virtual visits for over 20 years, with more than 100 million Americans having access to at least one of its services through health plans or employers, positioning the company as a leader in transforming virtual urgent care into a catalyst for better health and cost savings [9][12]

Company Performance - Teladoc (TDOC) closed at $7.57, reflecting a -5.38% change from the previous day, underperforming the S&P 500 which lost 0.34% [1] - Over the past month, Teladoc shares have increased by 3.9%, while the Medical sector and S&P 500 gained 0.82% and 1.19% respectively [1] Earnings Forecast - The upcoming earnings report for Teladoc is expected to show an EPS of -$0.19, which is a 32.14% improvement from the same quarter last year [2] - Revenue is forecasted at $634.53 million, indicating a 0.93% decline compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at -$1.19 per share and revenue at $2.52 billion, representing a 79.73% increase in earnings and no change in revenue from the previous year [3] - Recent analyst estimate revisions suggest optimism regarding Teladoc's business and profitability [3] Zacks Rank and Industry Position - Teladoc currently holds a Zacks Rank of 4 (Sell), with the Medical Services industry ranked 184, placing it in the bottom 25% of over 250 industries [5] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that top-rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Viewpoint - Teladoc Health has experienced a significant decline in stock value, down nearly 92% over the past six years, and is unlikely to recover soon, making it a risky investment choice [1][2]. Group 1: Competition - The pandemic success of Teladoc attracted substantial competition, including from major corporations like Amazon, which has a strong brand and a large customer base [4][5]. - Other companies, including insurance firms, are also entering the telemedicine space, posing further threats to Teladoc's market position [5]. Group 2: Growth Drivers - Teladoc's virtual mental health service, BetterHelp, which was a key growth driver, has been struggling and is now a burden on revenue growth, losing paying members [6]. - Despite attempts to turn around its fortunes through international expansion, the company may face similar challenges abroad as it has in the U.S. [8][9]. Group 3: Financial Performance - Teladoc has not yet achieved profitability, and its sales growth has been slow or nonexistent, leading to a loss of market share [7][8]. - The company has a market capitalization of $1.3 billion, with a gross margin of 55.61%, but consistent net losses raise concerns about its financial health [7].

Core Viewpoint - Teladoc Health has experienced a significant decline in stock value, currently trading about 98% lower than its peak in February 2021, raising questions about whether the shares are undervalued enough to consider a buy [1][2]. Financial Performance - In Q3 2025, Teladoc's revenue decreased by 2% year over year to approximately $626 million, with integrated care revenue rising by 2% to about $390 million, while BetterHelp revenue fell by 8% to around $237 million [4]. - The company reported a net loss of $49.5 million in Q3, which included a $12.6 million non-cash goodwill impairment charge, indicating ongoing struggles despite generating $67.9 million in free cash flow [11][12]. Membership and Growth Metrics - Teladoc's U.S. integrated care membership reached 102.5 million, reflecting a 9% year-over-year increase, while chronic care program enrollment was 1.17 million, showing a slight decline of 1% year over year but a sequential increase of over 4% [5]. - Key metrics for BetterHelp, such as conversion rates and user growth, are reportedly trending as expected, although the direct-to-consumer cash-pay business faces challenges due to competition [7][8]. Future Outlook - The company anticipates Q4 2025 revenue to be between $622 million and $652 million, which is lower than the previous year's Q4 revenue of approximately $640 million [13]. - Management has indicated that 2025 will be a "repositioning year" focused on product changes and improving the value proposition, particularly for BetterHelp [2][6].

Core Insights - Virtual care is becoming a mainstream healthcare channel, with Hims & Hers Health, Inc. (HIMS) and Teladoc Health, Inc. (TDOC) utilizing digital-first models to enhance access [2][3] Company Overview - HIMS operates as a consumer-first, subscription-based telehealth platform, allowing users to discover treatments online, consult licensed providers, and receive recurring prescriptions through its integrated digital pharmacy [2] - TDOC is a global leader in virtual care, providing services through its Integrated Care segment, which includes virtual medical visits and chronic care programs, as well as BetterHelp, its online therapy platform [2] Stock Performance & Valuation - Over the past three months, HIMS has decreased by 37.4%, while TDOC has declined by 9.7%. However, in the past year, HIMS has increased by 22.1%, contrasting with TDOC's loss of 22.5% [4] - HIMS is trading at a forward 12-month price-to-sales (P/S) ratio of 2.9X, above its three-year median of 2.6X, while TDOC's forward sales multiple is at 0.5X, below its median of 0.7X [6] Growth Strategies - HIMS is expanding into low testosterone care, integrating at-home lab testing with personalized treatment plans, and collaborating with Marius Pharmaceuticals to launch an exclusive branded oral testosterone by 2026 [8][10] - The introduction of Hims & Hers Labs aims to enhance customer engagement through diagnostics and biomarker tracking, supporting a more personalized healthcare model [9] - HIMS is also accelerating international expansion, having entered Canada and launched a Weight Loss Programme in the U.K. [10] Teladoc Health's Positioning - TDOC is focusing on building an integrated enterprise-scale virtual care platform, enhancing its offerings in primary care, chronic condition management, and mental health [11] - The company is expanding its hospital capabilities, introducing new tools for operational support and care-team workflows, with a new workplace safety capability expected to launch in early 2026 [12] - TDOC is working on stabilizing performance and improving execution across its segments, with recent results reflecting steady progress [13] Earnings Projections - The Zacks Consensus Estimate for HIMS' 2025 earnings per share (EPS) suggests a 77.8% improvement from 2024 [15] - For TDOC, the 2025 loss per share is expected to improve by 79.7% from 2024 [17] Price Targets - Analysts project an average price target of $45.92 for HIMS, indicating a potential increase of 31.9% from the last close [19] - For TDOC, the average price target is $9.18, suggesting a 27.3% increase from the last close [20] Investment Recommendation - HIMS is viewed as a more stable and financially sound investment opportunity due to its expanding specialty offerings and international growth strategy [22] - TDOC remains a leading enterprise-focused provider but is more exposed to demand cycles and segment-level volatility [23]

Company Overview - Teladoc Health, Inc. (NYSE:TDOC) is recognized as a leading healthcare AI stock, providing virtual healthcare services across various domains including general medical, chronic condition management, mental health, and specialty care [4] Recent Developments - On December 16, Teladoc announced that board director J. Eric Evans will retire in 2026 and will not stand for reelection at the 2026 Annual Meeting of Stockholders [1] - Barclays initiated coverage on Teladoc with an Equal Weight rating and a price target of $8.50, reflecting a neutral stance on the US healthcare technology and distribution industry [2] - Bank of America Securities analyst Allen Lutz reiterated a Hold rating on Teladoc and lowered the price target to $8, citing mixed results in user growth metrics, with BetterHelp showing a year-over-year decline in monthly active users (MAUs) despite some sequential improvement [3] Performance Metrics - BetterHelp's MAUs experienced a year-over-year decline, while Livongo's MAUs reached their highest levels since early 2024, although these figures remain below the peaks seen in 2022, indicating insufficient growth to drive significant revenue gains in the near term [3]

Core Viewpoint - The company is preparing to provide guidance for 2026 during the upcoming fourth quarter earnings call in February, indicating a cautious approach to growth projections due to macroeconomic uncertainties in the healthcare sector [1] Segment Summaries Integrated Care - The company anticipates potential low single-digit growth for 2026, reflecting a conservative outlook influenced by various factors including the selling season and broader economic conditions [1] BetterHelp - Further details regarding BetterHelp's performance and growth will be discussed later, suggesting that it is a significant area of focus for the company [1]

Summary of Teladoc's Conference Call Company Overview - **Company**: Teladoc Health - **Industry**: Digital Health and Virtual Care - **Segments**: Integrated Care (60% of revenue, 90% of earnings) and BetterHelp Key Points Long-term Growth and Profitability - **Growth Outlook**: Expected low single-digit growth for 2026, influenced by macroeconomic uncertainties and selling season dynamics [4][6] - **Tailwinds**: Growth in virtual visit revenues, operational excellence, new product launches, and international expansion [5][6] - **Headwinds**: Rising medical costs for employers and challenges faced by health plans [6] Revenue Drivers - **Membership Growth**: Transition from subscription-based to visit-based models; focus on service utilization rather than just membership numbers [8][10] - **Chronic Care Management**: Over 1 million enrolled, with significant potential for cross-selling [9][14] - **Integrated Care Revenue**: $1.575 billion with a 3% growth rate and 15% margins expected in 2025 [10] Business Segmentation - **US vs. International**: The US business is the largest segment, followed by a smaller international business and health system services [11][12] - **Chronic Care and Telehealth**: Chronic care and virtual care are the primary revenue drivers, with mental health services integrated into the offerings [14][27] Behavioral Health Services - **Access to Mental Health**: 60 million members have access to mental health services, with a focus on integrated care [27][29] - **BetterHelp Integration**: Plans to launch Wellbound, an employee assistance product that combines Integrated Care with BetterHelp's therapy network [34] BetterHelp Transition - **Direct-to-Consumer Model**: BetterHelp is the largest virtual therapy business, facing challenges with conversion rates due to its cash-pay model [36][37] - **Insurance Integration**: Transitioning to insurance coverage to improve conversion rates and stabilize growth [41][42] Financial Position and Strategy - **Cash and Debt**: $726 million in cash with $1 billion in convertible debt maturing in 2027; potential for tuck-in acquisitions [45][46] - **M&A Strategy**: Open to mergers and acquisitions while focusing on organic growth [46][47] Market Dynamics - **Employer Market**: Increased interest and activity in the employer market channel, while health plan channels face pressure [23][24] - **2026 Selling Season**: Uncertainty in health plans could impact membership roles and enrollment for 2026 [26] Conclusion - Teladoc is navigating a complex healthcare landscape with a focus on integrated care, virtual health services, and strategic growth through both organic development and potential acquisitions. The company aims to enhance its service offerings while addressing market challenges and optimizing its financial structure.

Core Viewpoint - Teladoc Health has experienced a widening loss in Q3 2025, driven by a decline in its BetterHelp unit and overall revenue challenges, leading to a 14.8% drop in share price over the past month, underperforming the S&P 500 [1][2][3]. Financial Performance - The adjusted loss per share for Q3 2025 was 21 cents, which was narrower than the consensus estimate of 26 cents but wider than the previous year's loss of 19 cents [3]. - Operating revenues decreased by 2% year over year to $626.4 million, slightly beating the consensus estimate by 0.2% [3]. - Access fee revenues fell by 6% year over year to $520.9 million, missing the consensus estimate of $534 million [5]. - International revenues increased by 12% year over year to $116.7 million, surpassing the consensus mark of $105 million [6]. - Total costs and expenses decreased by 1% year over year to $678.4 million, lower than the estimate of $691.4 million [7]. Segment Performance - The Integrated Care segment's revenues grew by 2% year over year to $389.5 million, beating the consensus estimate [8]. - The BetterHelp segment saw revenues decline by 8% year over year to $236.9 million, missing the consensus estimate [9]. Operational Metrics - Total visits to Teladoc Health were 4.1 million in Q3, a 1% increase year over year, exceeding the consensus estimate of 4 million [10]. - U.S. Integrated Care members reached 102.5 million as of September 30, 2025, a 9% increase year over year, surpassing the consensus mark [11]. Financial Position - Cash and cash equivalents stood at $726.2 million, down 44.1% from the end of 2024 [12]. - Total assets decreased by 18.1% to $2.9 billion, while total stockholders' equity fell by 6.6% [12]. Future Outlook - For Q4 2025, total revenues are expected to be between $622 million and $652 million, with an adjusted EBITDA forecasted between $73 million and $90 million [15]. - The 2025 revenue outlook has been adjusted to between $2.510 billion and $2.539 billion, with a projected net loss per share between $1.25 and $1.10 [18]. - The Integrated Care segment is expected to see growth of 2.4-3.5% year over year, while the BetterHelp segment anticipates a decline of 9.2-8% [16][17]. Industry Comparison - Teladoc operates within the Zacks Medical Services industry, where Elevance Health reported revenues of $50.09 billion, reflecting a year-over-year increase of 12% [23].