Teladoc revenue falls 3% to $605.1 million despite improvement in adjusted earnings
Key Facts
Teladoc Health reported revenue of $605.1 million for the third quarter ended September 30, 2026, down 3% from $626.4 million in the same period last year. Its net loss narrowed to $26.9 million, or $0.15 per share, from $49.5 million, or $0.28 per share, a year earlier. Meanwhile, adjusted EBITDA rose 14% to $79.4 million, compared with $69.9 million. Chief Executive Chuck Divita said consolidated revenue came near the high end of the company's range, while adjusted earnings exceeded its expected range. He attributed this to execution across the company's two segments, according to the results statement.
The improvement in adjusted earnings came alongside a decline in revenue, reflecting different performance across the company's businesses. Integrated Care segment revenue rose 2% to $398.5 million, and the segment's adjusted earnings margin was 18.8%. By revenue source, access fees fell 10% to $466.7 million, while other revenue rose 31% to $138.4 million. Revenue in the United States fell 4% to $489.2 million, and revenue in international markets declined 1% to $115.9 million. The results show that growth in some revenue lines and in one segment did not prevent an overall revenue decline during the quarter.
At BetterHelp, the company said revenue declined as it continued to prioritize insurance-covered services, while the number of users paying out of pocket continued to fall. Average paying users were 336,000 in the quarter, down 12% from 382,000 in the corresponding period of 2025. Divita said the segment's revenue from insurance services exceeded the company's expectations and that it was making progress in expanding provider capacity and increasing access to covered services. But the company expects BetterHelp revenue to decline by between 12.9% and 16.1% year over year in 2026. It also projects the segment's adjusted earnings margin at between 2.7% and 4.3% for the year, according to its published guidance.
Chronic care programs showed a positive operating indicator: enrollment rose 15% to 1.344 million participants as of September 30, 2026, compared with 1.165 million a year earlier. Cash flow from operations rose to $106.5 million in the quarter, from $99.3 million in the corresponding period. Free cash flow was also $75.9 million, compared with $67.9 million a year earlier. These indicators offer a counterpoint to some of the revenue pressures, with enrollment in care programs growing and cash flows improving. The company reported the figures in its third-quarter results.
Teladoc shares rose to $6.88 at the close on October 28, after closing at $6.32 on October 22, $6.34 on October 23, $6.24 on October 26 and $6.45 on October 27. According to Investing.com, the shares rose 6.7% in regular trading on October 28, then gained a further 8.9% after the close to $7.49. The company's statement does not support the 26% increase cited in the previous draft; the official results also do not include a confirmed comparison with analyst consensus. The company said quarterly results came near the high end of its revenue outlook and above its range for adjusted earnings. The documented share move was thus tied to the quarterly results and new guidance, amid continued revenue declines.
For the remainder of the year, Teladoc expects fourth-quarter revenue of between $569 million and $615 million and adjusted EBITDA of between $74 million and $100 million. For fiscal 2026, the expected revenue range is $2.395 billion to $2.441 billion, while adjusted earnings are expected to range from $277 million to $303 million. These estimates place the fourth quarter on the path the company set out for the full year. BetterHelp's performance will remain part of the outlook, as the company expects the segment's revenue to decline within the annual range it announced. Chronic care programs, meanwhile, showed enrollment growth through the end of September compared with the prior period.