Teladoc Health Q2 revenue misses estimates as BetterHelp cash pay declined

Overview

• Virtual care provider's Q2 revenue fell 4% yr/yr, missing analyst expectations

• Q2 adjusted EBITDA beat analyst expectations despite a 5% yr/yr decline

• Company cites BetterHelp cash pay decline and insurance shift as key revenue drivers

Outlook

• Teladoc Health sees full-year 2026 revenue between $2.36 bln and $2.45 bln

• Company expects BetterHelp segment revenue to decline 13% to 19% in 2026

• Teladoc Health anticipates 3Q 2026 revenue between $569 mln and $609 mln

Result Drivers

• BETTERHELP CASH PAY DECLINE - Co said accelerated decline in BetterHelp cash pay revenue weighed on overall results

• INSURANCE DEMAND AND PROVIDER CAPACITY - Co said stronger than anticipated demand for insurance-covered BetterHelp services outpaced available provider capacity, limiting revenue conversion

• INTEGRATED CARE GROWTH - Integrated Care segment posted modest revenue growth and improved adjusted EBITDA margin

Company press release: ID:nGNX1F8wqd

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 19 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities services peer group is "buy."

• Wall Street's median 12-month price target for Teladoc Health Inc is $7.00, about 25.2% below its July 28 closing price of $9.36

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)