PART I. FINANCIAL INFORMATION Financial Statements (Unaudited) 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 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 revenue9596 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 million114 - As of June 30, 2025, $20.6 million remained available for repurchase under the plan115 Quantitative and Qualitative Disclosures About Market Risk 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 report136 Controls and Procedures 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, 2025137 - No material changes occurred in internal control over financial reporting during Q2 2025138 PART II. OTHER INFORMATION Legal Proceedings 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 litigation14149 Risk Factors 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 report142 Unregistered Sales of Equity Securities and Use of Proceeds 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 No defaults upon senior securities were reported - No defaults upon senior securities occurred145 Mine Safety Disclosures This item is not applicable to the company's operations - Not applicable146 Other Information 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 2025147 Exhibits 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 documents150
TALKSPACE EQUITY WARRANT(TALKW) - 2025 Q2 - Quarterly Report