TenQ

The Teladoc Health story

Teladoc Health provides virtual medical care and therapy, with BetterHelp's shift toward insurance testing whether covered sessions can offset shrinking cash pay revenue while Integrated Care grows slowly.

Teladoc Health stock reportTenQ Score 12/36 · every chart and check from its filings
  • $5.67share price, last close
  • $1.0Bmarket value
  • 12/36TenQ Score checks passed
  • -38.5%growth a year the price assumes

The story in brief

  • Integrated Care holds. In the quarter to June 2026, Integrated Care revenue grew 1% to $394.3 million, with an adjusted EBITDA margin of 16.5%.
  • Insurance meets capacity limits. BetterHelp revenue fell 12% to $212.6 million in the quarter to June 2026 as insurance demand exceeded provider capacity and cash pay revenue declined faster than anticipated.
  • Cash generation weakened. Free cash flow fell to $9.4 million in the first six months of 2026 from $45.5 million in the first six months of 2025.

What drives the business

  • Teladoc's Integrated Care business provides virtual medical services through employers and insurers to more than 100 million members, alongside technology and hardware for hospitals and health systems.
  • Contractually recurring monthly access fees underpin Integrated Care, and access fees across the company accounted for 83% of consolidated revenue in 2025.
  • BetterHelp provides consumer mental health services through nearly 35,000 licensed clinicians, with users paying directly or using insurance coverage, making provider availability and the cost of attracting users central to its business.
  • Teladoc completed 17.1 million telehealth visits in 2025 and launched Teladoc One, its connected care model for the U.S. market, in the quarter to June 2026.
  • International revenue grew 7% to $119.6 million in the quarter to June 2026, but U.S. revenue fell 6% to $487.4 million, leaving consolidated revenue down 4% at $606.9 million.

What the price assumes

At $5.62, the reverse DCF implies annual growth of -39.2% in free cash flow after stock pay for ten years, using a 10.3% discount rate.

That compares with delivered annual growth of 22.3% over the last 2 fiscal years and the TenQ check's bar of 13.2%, which slows that record halfway toward 4%.

The model therefore embeds sustained cash flow contraction rather than continued historical growth, while management's 2026 free cash flow guidance of $130 million to $170 million is below the $254 million generated over the last twelve months.

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What could change the story

  • BetterHelp's insurance expansion may not offset cash pay declines, especially if recruiting, credentialing and retaining providers continues to limit completed sessions.
  • Reduced advertising spending has already contributed to fewer paying users and lower revenue, while higher customer acquisition costs could add pressure.
  • BetterHelp's adjusted EBITDA margin was 0.2% in the quarter to June 2026, leaving little room to absorb additional provider and platform costs.
  • Teladoc failed all Growth checks, with revenue growth of -2.1% over the last twelve months, and its operating margin of -7.5% underscores the gap between positive cash flow and accounting profitability.
  • Cash and short-term investments of $774 million were below total debt of $997 million, while convertible senior notes were classified as current liabilities at June 2026 and the liquidity check failed.

What to watch next

  • For the third quarter of 2026, management expects revenue between $569 million and $609 million and adjusted EBITDA between $62 million and $74 million.
  • BetterHelp's insurance revenue, completed sessions and provider capacity will show whether the accelerated nationwide rollout is offsetting cash pay declines, against guidance for a 2026 revenue decline between 19.0% and 12.7%.
  • Integrated Care's revenue and margins will test its 2026 guidance for growth between 0.8% and 2.4% and an adjusted EBITDA margin of 15.6% to 16.4%.
  • Cash generation in the remaining releases for 2026 will show how Teladoc progresses from $9.4 million in first-half free cash flow toward its full-year guidance of $130 million to $170 million.

Sources

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