Teladoc(TDOC) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial and Operational Highlights Financial Performance Summary Q2 2025 revenue declined 2% to $631.9 million, Adjusted EBITDA fell 23%, net loss narrowed to $32.7 million due to no prior impairment Q2 & H1 2025 Key Financial Results ($ in thousands, except per share data) | | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | | :--- | :--- | :--- | :--- | :--- | | | 2025 | 2024 | | 2025 | 2024 | | | Revenue | $631,900 | $642,444 | (2)% | $1,261,269 | $1,288,575 | (2)% | | Net loss | $(32,660) | $(837,671) | 96% | $(125,672) | $(919,560) | 86% | | Net loss per share | $(0.19) | $(4.92) | 96% | $(0.72) | $(5.44) | 87% | | Adjusted EBITDA | $69,311 | $89,481 | (23)% | $127,404 | $152,621 | (17)% | - The significant reduction in net loss for Q2 2025 compared to Q2 2024 was largely due to a $790.0 million non-cash goodwill impairment charge recorded in the prior-year period[10] - The company retired $550.6 million in convertible senior notes using cash on hand and entered into a new five-year, $300.0 million senior secured revolving credit facility to enhance financial flexibility[7][18] Business Segment and Geographic Performance Integrated Care revenue grew 4% to $391.5 million, BetterHelp declined 9% to $240.4 million, showing segment divergence Q2 2025 Performance by Segment ($ in thousands) | Segment | Revenue | YoY Change | Adjusted EBITDA | YoY Change | Adjusted EBITDA Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Integrated Care | $391,510 | 4% | $57,450 | (10)% | 14.7% | | BetterHelp | $240,390 | (9)% | $11,861 | (53)% | 4.9% | Key Operating Metrics (as of June 30, 2025) | 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)% | | BetterHelp Paying Users (avg. millions) | 0.388 | 0.407 | (5)% | - International revenue increased by 10% to $112.2 million, while U.S. revenue decreased by 4% to $519.7 million in Q2 2025[8][30] Cash Flow and Capital Expenditures Q2 2025 operating cash flow was $91.4 million, free cash flow $61.2 million, with H1 free cash flow at $45.5 million Cash Flow Summary ($ in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Cash Flow from Operations | $91.4 | $88.7 | $107.4 | $97.6 | | Capex | $30.2 | $27.7 | $61.8 | $63.3 | | Free Cash Flow | $61.2 | $60.9 | $45.5 | $34.3 | Financial Outlook Full Year 2025 Guidance Full-year 2025 revenue projected $2,501-$2,548 million, Adjusted EBITDA $263-$294 million, anticipating segment growth divergence Full Year 2025 Outlook | Metric | Outlook Range | | :--- | :--- | | Revenue | $2,501 - $2,548 million | | Adjusted EBITDA | $263 - $294 million | | Net loss per share | ($1.35) - ($1.00) | | Free Cash Flow | $170 - $200 million | | Integrated Care Revenue Growth | 1.75% - 3.25% | | BetterHelp Revenue Growth | (9.20%) - (6.80%) | Third Quarter 2025 Guidance Q3 2025 revenue anticipated $614-$636 million, Adjusted EBITDA $56-$70 million, with BetterHelp revenue declining Third Quarter 2025 Outlook | Metric | Outlook Range | | :--- | :--- | | Revenue | $614 - $636 million | | Adjusted EBITDA | $56 - $70 million | | Net loss per share | ($0.35) - ($0.20) | | U.S. Integrated Care Members | 101.5 - 102.5 million | | Integrated Care Revenue Growth | (0.50%) - 2.25% | | BetterHelp Revenue Growth | (9.75%) - (5.00%) | Consolidated Financial Statements Condensed Consolidated Statements of Operations Q2 2025 revenue decreased 2%, total costs significantly lower due to no $790 million goodwill impairment, resulting in a reduced operating loss Q2 2025 Statement of Operations Highlights ($ in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $631,900 | $642,444 | | Total costs and expenses | $686,285 | $1,483,592 | | Goodwill impairment | $0 | $790,000 | | Loss from operations | $(54,385) | $(841,148) | | Net loss | $(32,660) | $(837,671) | | Net loss per share | $(0.19) | $(4.92) | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $2.89 billion, liabilities $1.47 billion, with cash decreasing to $679.6 million Balance Sheet Highlights ($ in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $679,621 | $1,298,327 | | Total current assets | $1,073,270 | $1,663,907 | | Total assets | $2,894,004 | $3,516,524 | | Total current liabilities | $401,767 | $941,535 | | Total liabilities | $1,471,865 | $2,025,445 | | Total stockholders' equity | $1,422,139 | $1,491,079 | Condensed Consolidated Statements of Cash Flows H1 2025 generated $107.4 million from operations, used $183.0 million in investing, and $549.2 million in financing, leading to a net cash decrease Six Months Ended June 30, 2025 Cash Flow Summary ($ in thousands) | Cash Flow Activity | H1 2025 | H1 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 | Non-GAAP Financial Measures and Reconciliations Reconciliation of Net Loss to Adjusted EBITDA Q2 2025 net loss of ($32.7) million is reconciled to Adjusted EBITDA of $69.3 million, after various adjustments Reconciliation of Net Loss to Adjusted EBITDA ($ in thousands) | | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(32,660) | $(837,671) | $(125,672) | $(919,560) | | Total Adjustments | $101,971 | $927,152 | $253,076 | $1,072,181 | | Consolidated Adjusted EBITDA | $69,311 | $89,481 | $127,404 | $152,621 | Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Q2 2025 net cash from operations of $91.4 million is reconciled to free cash flow of $61.2 million, deducting Capex Reconciliation to Free Cash Flow ($ in thousands) | | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $91,432 | $88,683 | $107,351 | $97,603 | | Capex | $(30,233) | $(27,748) | $(61,818) | $(63,260) | | Free Cash Flow | $61,199 | $60,935 | $45,533 | $34,343 |