Teladoc Health Q2 Loss Narrower Than Expected on Declining Expenses

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]