Teladoc(US:TDOC)2025-10-30 14:25Membership and Enrollment - U.S. Integrated Care members increased by 8.6 million, or 9%, to 102.5 million at September 30, 2025, compared to the same period in 2024[123] - Chronic care program enrollment decreased by 1% to 1.165 million at September 30, 2025, compared to 1.179 million at September 30, 2024[124] - BetterHelp paying users decreased by 4% to 0.382 million for the three months ended September 30, 2025, compared to 0.398 million for the same period in 2024[126] Revenue Performance - Total revenue for Q3 2025 was $626.4 million, a decrease of $14.1 million, or 2%, compared to Q3 2024[141] - Revenue from the BetterHelp segment decreased, while Integrated Care segment revenue increased, contributing to the overall revenue change[142] - Total revenue for the nine months ended September 30, 2025, was $1,887.7 million, a decrease of $41.4 million, or 2%, compared to the same period in 2024[142] - U.S. revenue for Q3 2025 was $509.8 million, a decrease of $26.4 million, or 5%, compared to Q3 2024[141] - International revenue for Q3 2025 was $116.7 million, an increase of $12.3 million, or 12%, compared to Q3 2024[141] - BetterHelp total revenue decreased by $19.9 million, or 8%, to $236.9 million for the three months ended September 30, 2025, and decreased by $73.7 million, or 9%, to $717.2 million for the nine months ended September 30, 2025[167] Expenses and Costs - Cost of revenue for Q3 2025 was $187.2 million, an increase of $7.4 million, or 4%, compared to Q3 2024[143] - Advertising and marketing expenses for Q3 2025 were $168.0 million, a decrease of $9.5 million, or 5%, compared to Q3 2024[144] - Technology and development expenses for Q3 2025 were $67.6 million, a decrease of $4.8 million, or 7%, compared to Q3 2024[146] - General and administrative expenses decreased by $11.7 million, or 10%, to $102.6 million for the three months ended September 30, 2025, compared to $114.2 million for the same period in 2024[148] - Research and development costs for the three months ended September 30, 2025, were $21.5 million, a decrease from $22.4 million in the same period of 2024[147] - Integrated Care cost of revenue increased by $11.2 million, or 10%, to $124.3 million for the three months ended September 30, 2025[163] - Cost of revenue decreased by $3.2 million, or 5%, to $62.4 million for the three months ended September 30, 2025, primarily due to lower therapist costs[168] - Advertising and marketing expenses decreased by $8.8 million, or 6%, to $134.6 million for the three months ended September 30, 2025, reflecting lower spending on digital and media advertising[169] - Other segment expenses increased by $3.5 million, or 11%, to $36.0 million for the three months ended September 30, 2025, driven by higher employee compensation[170] Profitability and Loss - Net loss for Q3 2025 was $49.5 million, an increase of $16.2 million, or 49%, compared to Q3 2024[140] - Adjusted EBITDA for Q3 2025 was $69.9 million, a decrease of $13.3 million, or 16%, compared to Q3 2024[140] - Adjusted EBITDA for the three months ended September 30, 2025, was $3.8 million, a decrease of $11.4 million or 75% compared to the prior year[167] Cash Flow and Financial Position - Net cash provided by operating activities was $206.6 million for the nine months ended September 30, 2025, compared to $207.8 million for the same period in 2024[176] - Cash used in investing activities was $231.7 million for the nine months ended September 30, 2025, significantly higher than $94.4 million for the same period in 2024[178] - Free cash flow was $113.5 million for the nine months ended September 30, 2025, compared to $113.4 million for the same period in 2024[181] - As of September 30, 2025, the company had cash and cash equivalents totaling $726.2 million, sufficient to meet working capital and capital expenditure needs for at least the next 12 months[172] Strategic Outlook and Risks - The company expects tariffs on imported goods to impact consolidated results of operations, particularly for components used in virtual healthcare devices[121] - The company faces risks from competition as health plans may develop solutions that replicate its services[123] - The company aims to increase membership to drive innovation and enhance member experiences[123] - The company’s business is subject to seasonality, with higher visit and fee revenue typically occurring in the first and fourth quarters[127] Impairments and Costs - Goodwill impairments recognized for the three months ended September 30, 2025, totaled $12.6 million, contributing to a year-to-date total of $71.8 million[149] - Acquisition, integration, and transformation costs were $1.9 million for the three months ended September 30, 2025, compared to $0.5 million for the same period in 2024[150] - Restructuring costs for the three months ended September 30, 2025, were $2.0 million, down from $3.6 million in the same period of 2024[151][152]