Company Overview - Teladoc (TDOC) shares increased by 6.3% to $9.01 in the last trading session, with a notable trading volume, and have gained 11.1% over the past four weeks [1][2] - The price rise was influenced by Citron Research's bullish stance on Teladoc, highlighting strong performance in its chronic care division, Livongo, which saw a 55% year-over-year increase in usage, marking the highest growth since January 2025 [2] Financial Performance - Teladoc is expected to report a quarterly loss of $0.26 per share, reflecting a year-over-year decline of 36.8%, with revenues projected at $625.56 million, down 2.3% from the previous year [3] - The consensus EPS estimate for Teladoc has remained unchanged over the last 30 days, indicating a lack of upward revisions in earnings estimates, which typically correlates with stock price movements [4] Industry Context - Teladoc is part of the Zacks Medical Services industry, where another company, Strata Critical Medical, Inc. (SRTA), also experienced a price increase of 3.4% to $5.41, with a 25.1% return over the past month [4] - Strata Critical Medical's consensus EPS estimate for the upcoming report has remained unchanged at $0, representing a 100% increase from the previous year [5]

Group 1 - Teladoc Health's shares experienced a significant increase, peaking at a 15.2% rise, following bullish comments from Citron Research, a noted short-seller [1][3] - Citron Research predicts substantial growth in the telehealth industry, driven by advancements in artificial intelligence (AI) and the potential end of the government shutdown, which they see as a catalyst for Teladoc's stock price [3][8] - Despite the recent stock price increase, Teladoc's shares have declined 66% over the past three years, indicating a long-term downward trend since reaching nearly $300 in February 2021 [5][8] Group 2 - Teladoc's current valuation is attractive, with a price-to-sales ratio of 0.66 and strong free cash flow generation of $292 million on $2.54 billion in sales over the last four quarters, suggesting it may be undervalued [6][8] - The stock is trading at just 5.3 times its free cash flow, which is considered a bargain by some analysts [6] - Citron's assertion that the end of the government shutdown will significantly boost Teladoc's stock is viewed as questionable, although the company's valuation merits consideration for potential investment [4][8]

Company Performance - Teladoc (TDOC) ended the recent trading session at $8.37, demonstrating a +2.2% change from the preceding day's closing price, outperforming the S&P 500's daily loss of 0.55% [1] - The shares have seen an increase of 6.78% over the last month, surpassing the Medical sector's loss of 0.2% and the S&P 500's gain of 3.64% [1] Earnings Forecast - The upcoming earnings release is forecasted to report an EPS of -$0.26, showcasing a 36.84% downward movement from the corresponding quarter of the prior year [2] - Revenue is expected to be $625.56 million, showing a 2.33% drop compared to the year-ago quarter [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates anticipate earnings of -$1.17 per share and a revenue of $2.52 billion, signifying shifts of +80.07% and -1.82%, respectively, from the last year [3] - Recent changes to analyst estimates indicate the ever-changing nature of near-term business trends, with positive revisions conveying analysts' confidence in business performance and profit potential [3] Zacks Rank and Industry Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [5] - Teladoc currently holds a Zacks Rank of 3 (Hold), with the Medical Services industry ranking in the top 42% of all industries [5] Industry Evaluation - The Zacks Industry Rank evaluates the power of distinct industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Company Performance - Teladoc's stock closed at $7.49, down 3.97%, underperforming the S&P 500's daily gain of 0.3% [1] - Over the past month, Teladoc shares appreciated by 13.54%, outperforming the Medical sector's gain of 7.07% and the S&P 500's gain of 2.09% [1] Earnings Projections - The upcoming earnings release projects an earnings per share (EPS) of -$0.24, a 26.32% decrease from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is $625.56 million, down 2.33% from the year-ago period [2] Full Year Estimates - For the full year, the Zacks Consensus Estimates project an EPS of -$1.17 and revenue of $2.52 billion, reflecting changes of +80.07% and -1.82% respectively from the preceding year [3] - Recent changes to analyst estimates indicate a shifting business landscape, with positive revisions suggesting optimism about the business outlook [3] Zacks Rank and Industry Position - The Zacks Rank system, which assesses estimate changes, currently ranks Teladoc as 3 (Hold) [5] - The Medical Services industry, part of the Medical sector, holds a Zacks Industry Rank of 146, placing it in the bottom 41% of over 250 industries [6]

Core Viewpoint - The article discusses the declining prospects of Teladoc Health and Sarepta Therapeutics, suggesting that despite their stock price drops, they do not present attractive investment opportunities at this time. Teladoc Health - Teladoc's revenue declined by 2% year over year to $631.9 million in the second quarter, indicating slower growth compared to previous periods [3] - The company reported a net loss per share of $0.19 for the second quarter, an improvement from a loss of $4.92 per share in the same quarter last year, but still reflects ongoing unprofitability [4] - Teladoc has faced goodwill impairment charges related to its BetterHelp segment, contributing to its negative financial performance [6] - A significant portion of Teladoc's expenses is allocated to marketing, which has not resulted in desired revenue growth [7] - The company is expanding its ecosystem and international presence, with a reported 11% year-over-year increase in enrollment to 102.4 million members, but faces uncertainty due to ongoing losses and competition [8] Sarepta Therapeutics - Sarepta's shares have declined by 85% this year, primarily due to two patient deaths linked to liver toxicity from its gene therapy Elevidys for Duchenne muscular dystrophy [9] - In the first quarter, Sarepta generated $744.9 million in revenue, an 80% increase year over year, with Elevidys accounting for $375 million of that total [11] - The second quarter saw revenue drop to $362.9 million, a 51.2% sequential decline, with Elevidys sales falling 67.5% to $121.7 million, indicating reduced demand [12] - The company is working with the FDA to resume shipping Elevidys and has implemented cost-cutting measures, including layoffs, to manage its financial situation [13] - Despite efforts to stabilize, significant uncertainties remain, particularly following another patient death in a clinical trial for a different therapy, making the stock unattractive at its current price [14][15]

Group 1 - Teladoc's stock has experienced a significant decline, raising questions about its potential for recovery [1] - The analysis includes insights from expert analysts regarding Teladoc's performance and future prospects [1] - The video analysis was published on August 25, 2025, providing timely information on market trends and investment opportunities [1] Group 2 - Anand Chokkavelu, CFA, and Travis Hoium hold positions in Teladoc Health, indicating a level of confidence in the company's future [2] - Rick Munarriz does not hold any positions in the mentioned stocks, suggesting a more cautious approach [2] - The Motley Fool has positions in and recommends Teladoc Health, reflecting a positive outlook from the organization [2]

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

Group 1 - The article discusses the potential for investing in undervalued stocks that are mispriced by the market as the third quarter begins [1] - It suggests that investors should consider joining a platform that provides insights on these investment opportunities [1] Group 2 - There are no specific companies or stocks mentioned in the article, and the author has no current positions in any of the companies discussed [2] - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [3]