Teladoc Health Q2 Earnings Beat Estimates on Integrated Care Strength

The quarterly results were supported by strength in the Integrated Care segment, higher international revenues and lower operating expenses, which were partially offset by weakness in the BetterHelp segment, particularly pressure on cash pay revenues, and declining access fees revenues.

Teladoc Health, Inc. Price, Consensus and EPS Surprise

Q2 Operational Update of Teladoc Health

Revenues from access fees totaled $474.2 million, down 9% year over year. The figure missed the Zacks Consensus Estimate and our estimate of $499.5 million. Other revenues increased 23% year over year to $132.7 million. The metric beat the Zacks Consensus Estimate and our estimate of $113 million.

On a geographical basis, Teladoc Health generated $487.4 million in revenues from the United States, down 6% year over year. The metric lagged the Zacks Consensus Estimate of $498.3 million. International revenues of $119.6 million advanced 7% year over year and surpassed the consensus mark of $114.2 million.

Adjusted EBITDA declined 5% year over year to $65.7 million and beat our estimate of $56.2 million. Total costs and expenses decreased 6.2% year over year to $644 million and came below our estimate of $661 million. The year-over-year decline was primarily due to lower technology and development, advertising and marketing, and general and administrative expenses.

TDOC Q2 Segmental Update

The Integrated Care segment’s revenues increased 1% year over year to $394.3 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $392.2 million and our estimate of $392 million. Adjusted EBITDA increased 14% year over year to $65.2 million and surpassed the Zacks Consensus Estimate of $59.3 million. The adjusted EBITDA margin expanded 180 basis points (bps) year over year to 16.5%.

The BetterHelp segment generated revenues of $212.6 million, down 12% year over year. The metric missed the Zacks Consensus Estimate of $221.8 million. Adjusted EBITDA declined 96% year over year to $0.47 million. The figure missed the consensus mark of $1.8 million. The adjusted EBITDA margin of 0.2% contracted 470 bps year over year.

Visits & Memberships of Teladoc Health

Total visits to Teladoc Health were 4.1 million in the second quarter, down 2% year over year. The metric beat the Zacks Consensus Estimate by 1.2%

U.S. Integrated Care members totaled 100.3 million, down 2% year over year. However, the figure beat the consensus mark by 0.7%.

TDOC’s Q2 Financial Update

Teladoc Health exited the second quarter of 2026 with cash and cash equivalents of $774.3 million, down from $781.1 million as of 2025-end.

Total assets decreased to $2.76 billion from $2.86 billion at the end of 2025.

Debt totaled $996.7 million, up from $994.9 million as of 2025-end.

Total stockholders’ equity declined to $1.3 billion from $1.4 billion as of Dec. 31, 2025.

In the second quarter of 2026, TDOC generated net cash from operations of $64.7 million, down 29.3% year over year. Free cash flow was $35.7 million, down 41.6% year over year.

Teladoc Health’s Q3 2026 Outlook

Revenues in the Integrated Care segment are forecasted to witness year-over-year growth of 0.0-3.0%. The unit’s adjusted EBITDA margin is anticipated to be in the band of 15.7-17.2%. U.S. Integrated Care members are expected to be between 99.0-100.5 million

Revenues in the BetterHelp segment are estimated to register a 12.3-24.2% year-over-year decline. The segment’s adjusted EBITDA margin is anticipated to be in the band of 0.5-2.5%.

Total revenues are expected to be between $569 million and $609 million. Adjusted EBITDA is anticipated to be between $62 million and $74 million. Net loss per share is estimated to be between 20 cents and 30 cents.

Teladoc Health’s 2026 outlook

Revenues in the Integrated Care segment are expected to grow 0.8-2.4% year over year compared with the prior guidance of 0.8-3.5%. U.S. Integrated Care members are projected to be between 98.5 million and 100.5 million, up from the earlier projection of 97-100 million. The segment's adjusted EBITDA margin is expected to be between 15.6% and 16.4% compared with the previous guidance of 15.1-16.1%.

Revenues in the BetterHelp segment are expected to decline 12.7-19.0% year over year compared with the earlier guidance of 1.0-6.5%. The segment's adjusted EBITDA margin is expected to be between 3.0% and 4.6%, unchanged from the prior guidance.

The company expects 2026 revenues to be in the range of $2.362-$2.447 billion, down from the previous guidance of $2.481-$2.576 billion. Adjusted EBITDA is projected to be between $271 million and $303 million compared with the earlier outlook of $267-$306 million. Net loss per share is expected to be between 75 cents and $1.00 versus the previous guidance of 75 cents-$1.05.

Free cash flow guidance remains unchanged at $130-$170 million.

TDOC’s Zacks Rank

Teladoc Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Other Medical Companies Perform?

Here are some stocks from the broader Medical space that have also reported their quarterly results: Acadia Healthcare Company, Inc. ACHC, Elevance Health, Inc. ELV and UnitedHealth Group Incorporated UNH. Here's how they have performed:

Acadia Healthcare reported adjusted second-quarter earnings of 38 cents per share, which beat the Zacks Consensus Estimate by 15.2%. However, the bottom line declined 54% year over year. Acadia Healthcare’s top line declined 0.4% year over year to $865.8 million and surpassed the Zacks Consensus Estimate by 2.5%. The quarterly results reflected strong patient demand, as admissions increased and same-facility patient days improved. Residential Treatment Facilities also delivered double-digit revenue growth. However, lower revenue per patient day, a shorter average length of stay and higher operating expenses weighed on profitability.

Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. The top line beat the consensus mark by 2.9%. Elevance Health’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses.

UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. The top line beat the consensus mark by 1.7%. UnitedHealth Group’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains.

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