Start here if you're new
what it is
Teladoc sells online doctor visits and therapy to employers, health plans, hospitals, and consumers.
how it gets paid
Last year Teladoc Health made $2.5B in revenue. Integrated Care was the main engine at $1.62B, or 64% of sales.
why growth slowed
Revenue fell 1.5% last year. To wit, competition in the online health services space and broader healthcare affordability challenges have plagued the segment.
what just happened
Teladoc's latest quarter beat EPS by 41.7%, even though revenue was flat at $642.3M.
At a glance
C++ balance sheet — some cracks in the foundation
40/100 earnings predictability — expect surprises
2.0% return on capital — nothing to write home about
xvary composite: 28/100 — weak
-$0.70 fy2027 eps est
What they do
Teladoc sells online doctor visits and therapy to employers, health plans, hospitals, and consumers.
You are not using a casual app here. Teladoc serves more than 12,000 clients, so leaving means ripping out workflows, benefits, and habits at once. Subscription access fees → recurring fees paid to stay enrolled → 83% of 2025 revenue, so most of the cash arrives before the visit starts.
How they make money
$2.5B
annual revenue · their business grew -1.5% last year
Integrated Care
$1.62B
+5.0%
BetterHelp
$0.70B
6.0%
Other services
$0.21B
flat
The products that matter
delivers remote care visits
B2B telehealth platform
$2.5B company revenue
it's the engine of the entire $2.5B business, sold through contracts with more than 12,000 clients.
12,000+ clients
sells care access to employers
Employer channel
part of 12,000+ clients
employers are a core customer group, but companywide revenue still slipped 1.5% last year. adoption alone isn't enough anymore.
growth under pressure
serves health plans and hospitals
Health system channel
2.8% net margin
this customer base helps keep the model recurring, but a 2.8% net margin says the economics are still thin for a $2.5B platform.
profitability test
Key numbers
10.4%
operating margin
Plain English: Teladoc lost 10.4 cents on every sales dollar before taxes and interest. So what: growth is still being bought with losses.
2.0%
return on capital
Plain English: $100 put into the business earned about $2 back. So what: that is weak use of money.
$5.30
share price
Plain English: the stock is trading near the floor. So what: the market already expects a lot of bad news.
1.85
beta
Plain English: the stock moves about 85% more than the market. So what: your swings are bigger than the index.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- net profit margin 2.8% — keeps 3 cents of every dollar in revenue
- return on equity 2% — $0.02 profit for every $1 investors have put in
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
You invested $10,000 in TDOC 3 years ago → it's now worth $2,200.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Teladoc's latest quarter beat EPS by 41.7%, even though revenue was flat at $642.3M.
The beat came from a smaller-than-feared loss. Revenue was flat vs. prior year, so the business still needs growth, not just better math.
$642.3M
revenue
-$0.14
eps
n/a
n/a
the number that mattered
The key number was EPS of -$0.14, which beat the -$0.24 estimate by 41.67%.
-
teladoc’s stock price recently hit a new all-time low price.
-
indeed, these shares have fallen more than 30% in the past three months, touching a price of $4.47 on february 12th.the stock price sold off following management’s cautious outlook for 2026 (see below) and broader market pressure across healthcare technology stocks.
-
while the core integrated care unit (64% of total) saw a 5% revenue gain from a strong flu season, many of the challenges in the betterhelp segment continued to linger, as sales declined 7% in the december quarter and 9% in 2025.to wit, competition in the online health services space and broader healthcare affordability challenges have plagued the segment.
-
paid users in the betterhelp unit declined 6% in the fourth quarter.consequently, management has pulled back media spend to focus its investments in a national insurance-based model. too, heavy investments in expanding its global footprint and enhancing its services and chronic care programs across the integrated care unit have made it difficult for teladoc to turn a profit.
-
the near-term outlook is bleak.a focus on ai (artificial intelligence)-enabled innovations in chronic care programs and growth-related expenses ought to constrain the bottom line. this includes the launch of the wellbound employee assistance program and national insurance rollout to advance payment options in the betterhelp unit. specifically, management forecasts 2026 sales of $2.47 billion to $2.59 billion, which represents a flat comp from the $2.53 billion logged in 2025.
source: company earnings report, 2026
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What could go wrong
the top risk is betterhelp weakness and a still-unproven path to profitability.
med
betterhelp underperformance
the current risk data explicitly flags underperformance and profitability challenges in BetterHelp. when one of your most visible businesses stops helping the story, it starts hurting the stock.
flagged in current risk data as the most significant operating issue
med
growth stays stuck below expectations
revenue was $2.5B last year and declined 1.5%. if a telehealth platform of this size still can't grow, the market will keep treating it like a melting asset, not a platform winner.
direct exposure: the full $2.5B revenue base depends on growth returning
high
thin margins meet weak balance-sheet flexibility
a 2.8% net margin, 2.0% return on capital, and a C++ balance sheet is not a forgiving mix. small misses can matter a lot when the underlying economics are already this tight.
pressure point: only about 3 cents of profit per $1 of revenue
med
the market may stop giving credit for future recovery
the 3–5 year target range runs from $16 to $30, but the midpoint is only $6 versus a $5.30 stock price today. that spread tells you confidence is thin and outcomes are wide.
valuation signal: high target optimism, low midpoint conviction
with $2.5B in revenue, a 2.8% net margin, and a $950M market cap, this is a business where operational slippage can overwhelm the valuation argument fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth has to turn positive
last year came in at $2.5B, down 1.5%. if that number is still shrinking next, the turnaround case gets much harder to tell with a straight face.
risk
betterhelp needs to stop being the headline risk
current risk data points straight at BetterHelp underperformance and profitability challenges. until that changes, investors will assume the business mix is working against them.
calendar
next earnings update
you want two things at once: sales stabilization and a more believable path than a -$0.70 fy2027 EPS estimate.
trend
institutional selling needs to break
94 buyers versus 112 sellers in 4q2025 made it two straight quarters of net selling. when that flips, sentiment may finally have a pulse.
Analyst rankings
earnings predictability
40 / 100
earnings are hard to model here. in human-speak, analysts do not trust this business to deliver smooth results.
3–5 year target midpoint
$6
the midpoint is only about 13% above the current price. translation: the street sees possibility, not conviction.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 94 buyers vs. 112 sellers in 4q2025. total institutional holdings: 0.1B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$3
$10
$5
current price
$6
target midpoint · +13% from current · 3-5yr high: $30 (+465% · 55% ann'l return)
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