Teladoc Health's Q3 Loss Widens Y/Y on Weak BetterHelp Unit

Core Insights - Teladoc Health, Inc. (TDOC) shares have decreased by 8.9% following the release of its third-quarter 2025 results, primarily due to a decline in access fee revenues, U.S. revenues, and weaker performance in the BetterHelp segment, although this was partially mitigated by strong international revenue growth and reduced expenses [1] Financial Performance - The adjusted loss per share for Q3 2025 was 21 cents, which was narrower than the Zacks Consensus Estimate of a 26-cent loss but wider than the 19-cent loss from the previous year [2] - Operating revenues fell by 2% year over year to $626.4 million, although this figure exceeded the consensus estimate by 0.2% [2] - Access fee revenues decreased by 6% year over year to $520.9 million, missing the Zacks Consensus Estimate of $534 million [3] - Other revenues increased by 24% year over year to $105.5 million, surpassing the consensus estimate of $91 million [3] Geographical Revenue Breakdown - U.S. revenues totaled $509.8 million, down 5% year over year, falling short of the Zacks Consensus Estimate of $521 million [4] - International revenues rose by 12% year over year to $116.7 million, exceeding the consensus estimate of $105 million [4] Expense Management - Total costs and expenses decreased by 1% year over year to $678.4 million, which was lower than the estimate of $691.4 million, driven by reductions in advertising, marketing, technology, and administrative expenses [5] Segment Performance - The Integrated Care segment's revenues grew by 2% year over year to $389.5 million, beating the consensus estimate [6] - The BetterHelp segment's revenues fell by 8% year over year to $236.9 million, missing the consensus estimate [7] Membership and Visits - Total visits to Teladoc Health reached 4.1 million, a 1% increase year over year, surpassing the consensus estimate of 4 million [8] - U.S. Integrated Care Members increased by 9% year over year to 102.5 million, exceeding the consensus estimate [8] Cash Flow and Financial Position - Cash and cash equivalents at the end of Q3 2025 were $726.2 million, down 44.1% from the end of 2024 [10] - Net cash from operations was $99.3 million, a decrease of 9.9% year over year [11] - Free cash flow dropped by 14% year over year to $67.9 million [11] Future Outlook - For Q4 2025, Integrated Care segment revenues are expected to grow by 1-5.2% year over year, while BetterHelp segment revenues are projected to decline by 8.8-3.8% [12] - Total revenues for Q4 are anticipated to be between $622 million and $652 million [13] - For the full year 2025, total revenues are now expected to be between $2.510 billion and $2.539 billion, with an adjusted EBITDA forecast of $270-$287 million [16]