Key Highlights

  • TDOC shares rose about 13% pre-market to $7.76, from $6.88 prior close.
  • Q3 revenue of $605.1 million beat the roughly $588 million estimate.
  • Adjusted loss was $0.15 per share against an expected loss of about $0.22.
  • Adjusted EBITDA rose 14% to $79.4 million, with margin near 13.1%.
  • 2026 revenue guidance is now $2.39 billion to $2.44 billion.

Smaller Loss and Revenue Beat Lift Teladoc

Teladoc Health, Inc. (NYSE:TDOC) shares climbed in pre-market trading after a third-quarter report that topped expectations on revenue and showed a narrower loss. Revenue of $605.1 million fell about 3% from a year earlier but landed near the high end of company guidance. The adjusted loss of $0.15 per share compared with a loss of $0.28 a year ago.

Adjusted EBITDA rose about 14% to $79.4 million, and margin widened by roughly 200 basis points to 13.1%. Free cash flow was $76 million, and cash stood at $850 million, leaving net debt at about 0.5 times trailing adjusted EBITDA.

Teladoc is a New York-based virtual care provider founded in 2002. It sells 24/7 urgent and primary care, expert medical opinions, chronic condition management and mental health support through two segments, Integrated Care and BetterHelp. It earned about $2.53 billion in revenue in fiscal 2025, down 2%, with a net loss of $200.3 million.

Two Segments, Two Directions

Integrated Care revenue of $398 million grew about 2%, with double-digit international growth and chronic care enrolment up 15% to 1.34 million. Segment adjusted EBITDA margin was 18.8%, up about 180 basis points.

BetterHelp revenue of $207 million fell 12.8% as its cash-pay business declined. Insurance revenue reached $32 million, up $10 million from the prior quarter, with weekly insured sessions near 27,000. Insurance now accounts for about 36% of acquired U.S. users, over 11,000 therapists are credentialed, and advertising spend fell 27%. BetterHelp adjusted EBITDA was $4 million, a 2.2% margin.

Guidance and Balance Sheet

Management raised full-year 2026 adjusted EBITDA and EPS guidance and narrowed its revenue range to $2.39 billion to $2.44 billion. Adjusted EBITDA is guided at $277 million to $303 million, free cash flow at $135 million to $165 million and the net loss per share at $0.75 to $0.95.

The fourth-quarter revenue range of $569 million to $615 million has a midpoint near $592 million, slightly below market consensus. BetterHelp revenue is guided down 18.5% to 31.5% for the quarter. For 2027, the goal is an insurance exit run rate of at least $200 million, with advertising spend down in the mid to high 20% range. The company plans to repurchase a substantial part of its $1 billion convertible notes due June 2027, potentially before year-end.

Teladoc has a market capitalisation of about $1.25 billion and a 52-week range of $4.40 to $9.89. The average analyst price target sits near $7.47, close to the indicated pre-market price, and most ratings are neutral.

What Investors Will Weigh Next

The quarter shows cost discipline and a steadier core business, while BetterHelp's shift from cash pay to insurance is still costing revenue. The pace of insurance growth, the handling of the 2027 convertible notes and the fourth-quarter outlook are the next markers.