Talkspace(US:TALK)2025-10-30 12:04Financial Performance - Total revenue for Q3 2025 grew 25% year-over-year to $59.4 million, driven by a 42% increase in Payor revenue[1][5] - Net income for Q3 2025 was $3.3 million, representing a 73% increase compared to the prior year[1][5] - Adjusted EBITDA for Q3 2025 was $5.0 million, up 111% from $2.4 million in Q3 2024[1][5] - Net income for the nine months ended September 30, 2025, was $3,028,000, compared to a net loss of $66,000 for the same period in 2024[20] - Adjusted EBITDA for the nine months ended September 30, 2025, was $9,206,000, up from $4,303,000 in 2024, reflecting an increase of approximately 114%[28] Revenue Breakdown - The company reported a 23% year-over-year decline in Consumer revenue, impacting overall revenue growth[5] - Revenue guidance for 2025 is updated to a range of $226 million to $230 million[5] Operational Metrics - The number of completed Payor sessions increased by 37% year-over-year to 432.2 thousand[2][5] - Unique active Payor members rose by 29% to 120.6 thousand during the quarter[2][5] Costs and Expenses - Total costs and operating expenses for Q3 2025 were $57.2 million, a 21% increase year-over-year[2][5] - Stock-based compensation for the nine months ended September 30, 2025, was $6,529,000, down from $7,290,000 in 2024, a decrease of approximately 10%[28] - The company incurred non-recurring expenses of $1,300,000 for the nine months ended September 30, 2025, primarily related to severance costs and acquisition-related expenses[28] Cash and Assets - Cash and cash equivalents at the end of the period were $43.7 million, with short-term marketable securities at $52.1 million[2][5] - Cash and cash equivalents decreased from $76,692,000 to $39,508,000, representing a decrease of about 48%[18] - Total assets decreased from $138,677,000 on December 31, 2024, to $129,060,000 on September 30, 2025, a decline of approximately 6%[18] - The total stockholders' equity decreased from $117,395,000 to $109,105,000, a decline of about 7%[18] Cash Flow - Cash flows from operating activities provided $3,158,000 for the nine months ended September 30, 2025, compared to $7,623,000 in 2024, a decrease of about 59%[20] - The company reported a net cash used in financing activities of $18,495,000 for the nine months ended September 30, 2025, compared to $8,700,000 in 2024, indicating a significant increase in cash outflow[20] Strategic Initiatives - Talkspace's acquisition of Wisdo Health aims to broaden its mental health service offerings[3][5] Liabilities - Total current liabilities remained relatively stable, increasing slightly from $19,023,000 to $19,378,000[18]