Key Highlights

  • Revenue of USD 605.1 million fell 3% year over year but topped the USD 588.1 million consensus estimate.
  • Net loss per share narrowed to USD 0.15 from USD 0.28, ahead of the loss of USD 0.22 consensus estimate.
  • Adjusted EBITDA rose 14% to USD 79.4 million, and free cash flow improved to USD 75.9 million.
  • Integrated Care revenue grew 2% to USD 398.5 million while BetterHelp revenue declined 13% to USD 206.6 million.

Teladoc Health, Inc. (NYSE:TDOC) reported third-quarter 2026 revenue of USD 605.1 million, down 3% from USD 626.4 million a year earlier and above a consensus estimate of USD 588.14 million. The net loss was USD 26.9 million, or USD 0.15 per share, compared with USD 49.5 million, or USD 0.28 per share, in the prior-year quarter. That loss per share was narrower than a consensus estimate of a USD 0.22 loss.

Access fees revenue decreased 10% to USD 466.7 million, while other revenue increased 31% to USD 138.4 million. U.S. revenue fell 4% to USD 489.2 million and international revenue slipped 1% to USD 115.9 million. CEO Chuck Divita said revenue landed near the upper end of the guided range and adjusted EBITDA exceeded it.

Segment Split and Cash Generation

Integrated Care posted an adjusted EBITDA margin of 18.8% on revenue of USD 398.5 million. BetterHelp earned a 2.2% margin on USD 206.6 million of revenue, with the decline attributed to the shift toward insurance-covered services and a continuing drop in users paying out of pocket. Average paying users at BetterHelp totaled 336 thousand, down 12% year over year. Insurance revenue at BetterHelp reached USD 32 million, a USD 10 million sequential increase.

Operating cash flow was USD 106.5 million versus USD 99.3 million, and capital spending was USD 30.5 million, leaving free cash flow of USD 75.9 million versus USD 67.9 million. Results included USD 88.3 million of intangible amortization and USD 11.6 million of stock-based compensation. Cash stood at USD 849.9 million, against convertible senior notes of USD 997.6 million now classified as current.

Guidance and Debt Plans

For 2026, Teladoc guided to revenue of USD 2,395 million to USD 2,441 million, adjusted EBITDA of USD 277 million to USD 303 million, a net loss per share of USD 0.75 to USD 0.95, and free cash flow of USD 135 million to USD 165 million. For the fourth quarter, it guided to revenue of USD 569 million to USD 615 million and adjusted EBITDA of USD 74 million to USD 100 million. BetterHelp revenue is guided to fall between 18.5% and 31.5% in the fourth quarter.

Management said it is considering a two-step approach to the convertible notes, starting with repurchasing a large share of them using cash and new debt financing, potentially before year end, and then repaying the rest at the June 2027 maturity. For 2027, management cited a goal of reaching an annualized BetterHelp insurance revenue run rate of at least USD 200 million by the end of the year, with marketing spending projected to decline in the mid-to-high 20% range.

Checkpoints Ahead

Four items stand out. First is BetterHelp insurance revenue, guided to USD 32 million to USD 38 million in the fourth quarter after USD 32 million in the third. Second is the convertible notes balance of USD 997.6 million against USD 849.9 million of cash, with maturity in June 2027. Third is the fourth-quarter Integrated Care adjusted EBITDA margin guide of 14.5% to 16.8% versus 18.8% in the third. Fourth is the full-year free cash flow range of USD 135 million to USD 165 million, with formal 2027 guidance scheduled for the fourth-quarter call.