Teladoc revenue falls 3% to $605.1 million as adjusted earnings rise 14%

Key Facts

Teladoc Health reported results on October 28 for the third quarter ended September 30, with revenue of $605.1 million, down 3% from $626.4 million a year earlier. Revenue was above analysts’ estimate of $588.4 million, while the per-share loss was $0.15, compared with an expected loss of $0.22. CEO Chuck Divita said consolidated revenue came near the top end of the guidance range, while adjusted earnings before interest, taxes, depreciation and amortization exceeded its range. The metric rose 14% to $79.4 million from $69.9 million in the year-ago quarter. Divita said the company delivered “good execution across both segments,” pointing to divergent trends in its businesses despite improved adjusted earnings.

The company remained in the red, but its net loss narrowed to $26.9 million, or $0.15 per share, compared with a loss of $49.5 million, or $0.28 per share, in the third quarter of 2025. Revenue, meanwhile, continued to contract year over year, making the beat of analyst estimates distinct from a return to sales growth. Free cash flow was $75.9 million, versus $67.9 million a year earlier. Cash from operations in the quarter also increased to $106.5 million from $99.3 million. But cash from operations for the first nine months fell to $180.6 million from $206.6 million in the year-ago period, placing the quarterly improvement within a broader picture that was less robust.

The clearest divergence between the company’s two segments was in BetterHelp and Integrated Care. BetterHelp revenue fell 13% to $206.6 million, as the number of users paying out of pocket continued to decline. The company said insurance revenue in the segment exceeded its expectations and that it was working to expand provider capacity and increase access to covered services. This reflects a shift in the business mix: the company described the revenue decline as tied to its continued prioritization of insurance-covered services alongside lower direct cash payments. Even so, insurance revenue above expectations did not prevent an overall contraction in BetterHelp revenue.

By contrast, Integrated Care revenue rose 2% to $398.5 million, and the segment’s adjusted earnings margin was 18.8%. Segment revenue had increased 1% to $394.3 million in the second quarter, pointing to a slight acceleration in its growth rate between the periods. By revenue source, access fees fell 10% to $466.7 million, while other revenue rose 31% to $138.4 million. U.S. revenue also declined 4% to $489.2 million, and international revenue fell 1% to $115.9 million. The figures show that growth in Integrated Care and other revenue did not fully offset the pressures that kept total sales below the year-ago level.

Teladoc updated its fiscal 2026 guidance to revenue of $2.395 billion to $2.441 billion and adjusted earnings of $277 million to $303 million. The previous revenue range was $2.362 billion to $2.447 billion, while the adjusted earnings range remained $271 million to $303 million. The new revenue range therefore narrowed, while the floor for adjusted earnings guidance rose and its ceiling was unchanged. Comparing the ranges alone is not enough to characterize the update as a broad guidance increase, since the direction of change differed between the lower and upper ends of the revenue range. Fourth-quarter guidance calls for revenue of $569 million to $615 million and adjusted earnings of $74 million to $100 million.

The company expects a fourth-quarter net loss per share of $0.23 to $0.03, with U.S. Integrated Care membership remaining between 99.5 million and 100.5 million. In the market, EL7 data showed the stock closing at $6.88 on October 28. Investing.com, citing Reuters, said the stock rose 9% after the results and annual guidance, while another report recorded a regular-session gain to $6.88, followed by after-hours trading activity. The reported beat was based on a smaller loss than analysts estimated and revenue above their expectations, while total sales and BetterHelp remained below year-ago levels. The next comparison will be the fourth-quarter results, for which the company set revenue and adjusted earnings ranges.