Teladoc Health reported better-than-expected fourth-quarter financial results with both revenue and earnings exceeding analysts’ expectations, driving a 15% jump in the company’s stock Thursday.
But the telehealth giant continues to face headwinds as it works to shift from subscription to visit-based revenue models. Teladoc also is transitioning its virtual mental health business, BetterHelp, to accept insurance, moving from a cash-pay model to an in-network, insurance-covered model.
The company’s revenue growth has slowed, and it provided a cautious outlook for 2026. In the fourth quarter, Teladoc reported revenue of $642 million, flat year over year, and full-year 2025 revenue reached $2.5 billion, down 2% year over year. The company reported a fourth-quarter net loss of $25.1 million, or a loss of 14 cents per share, and a net loss of $200.3 million for the full year, or a loss of $1.14 per share.
The company narrowed its losses as compared to a year ago when it posted a loss of $5.87 per share for 2024. And its fourth-quarter results beat analysts’ expectations. Revenue was slightly above Wall Street’s estimate of $635 million for the quarter and a consensus estimate of a loss of 19 cents in the fourth quarter.
Chronic care program enrollment reached 1.19 million individuals at the end of the fourth quarter, about flat from last year. U.S. integrated care membership finished the quarter at 101.8 million members, up 9% year over year.
For the current quarter ending in March, Teladoc said it expects revenue in the range of $598 million to $620 million$620 million and earnings per share of a loss of 45 cents to a loss of 35 cents, below Street estimates.
The company expects a full-year loss of $1.10 to 70 cents$1.10 70 centsper share, with revenue ranging from $2.47 billion $2.47 billionto $2.59 billion, basically flat compared to 2025 and also below Street estimates.
Teladoc CEO Chuck Divita told investors on Wednesday’s fourth-quarter earnings call that the company is strengthening its product portfolio, building out innovation across its integrated care and BetterHelp business and investing in artificial intelligence to improve efficiency and engagement.
“This approach positions Teladoc Health to continue leading the evolution of virtual care and to help our clients bring forward the next generation of AI-enabled healthcare in a safe, integrated, compliant and clinically grounded way. Stepping back, the macro challenges across the healthcare industry remains significant, and our clients are focused on affordability and rising medical costs, the prevalence of chronic disease, unmet mental health needs and other needs,” he said.
“And, as a strong partner and leader in virtual care, we believe we’re well positioned to drive outcomes, leverage advancements in technology and deepen our impact, and the work we are doing across our strategic priorities further enhances that position. We entered 2026 on a stronger foundation and renewed underlying momentum driven by new innovations in integrated care products and capabilities, strong progress towards scaling BetterHelp insurance, growth in international markets and continued focus on execution and business fundamentals,” Divita said.
For the full year, the company’s integrated care segment—its virtual care business aimed at health plans, employers and health systems—brought in revenue of $1.58 billion, up 3.3%. For that business segment, Teladoc expects full-year 2026 revenue to grow in the range of 0.4% to 3.9% over 2025.
The shift from subscription to visit-based revenue models impacted revenue growth, particularly in the U.S. virtual care segment.
“Segment revenues continue to be impacted by the migration of U.S. virtual care subscriptions towards visit-oriented models which are more reflective of the U.S. healthcare fee-for-service construct. However, with visit revenue now comprising more than half of U.S. virtual care revenue, we expect the impact of this shift on our top line to moderate going forward relative to prior years and as we move towards the later stages of this transition,” Divita said.
And, over the long term, executives expect to see visit revenue growth outpace the decline in subscription revenue with virtual care being a net positive contributor to growth, he noted.
Teladoc expects a $5 million to $7 million headwind from tariffs in 2026, up from $3 million in 2025. And it expects U.S. integrated care membership to decline modestly due to reductions related to government programs and the expiration of enhanced subsidies on Affordable Care Act business.
William Blair analyst Ryan Daniels wrote in a research note that Teladoc continues to face major headwinds with the continued shift from subscription to visit-based fees in the virtual visit segment and overall uncertainty regarding the buying cycles for new clients in integrated care delivery, given industry cost pressures.
“Teladoc remains in the midst of a transitional phase—navigating slower growth and a difficult end-market with an increased emphasis on profitability, product enhancements and capital deployment into new growth avenues,” Daniels wrote. “Looking forward, we anticipate a sharper operating focus, particularly within BetterHelp, which could help stabilize the stock and unlock value through strategic actions, such as focusing more on international markets and moving BetterHelp toward a B2B model.”
The company continues to feel pressures in the BetterHelp business as revenue declined 9% year over year, with a 6% decline in average paying users. For the full year, BetterHelp revenue was $950 million, including insurance revenue of $13 million.
Teladoc is transitioning BetterHelp to an in-network model and is rapidly scaling its insurance coverage offering, Divita told investors. Last year, the company acquired UpLift, a virtual mental health provider, to grow its payer business. UpLift serves the health plan market and has arrangements covering more than 100 million lives and a network of over 1,500 mental health professionals.
“We are making considerable progress, and we are now live in 20 states plus Washington, D.C., and have more than 4,500 credentialed and enrolled providers at this point,” he said. “Additional network arrangements have also been secured bringing covered lives to more than 120 million. Early trends are encouraging, including strong growth in insurance sessions, which now exceed 1,200 sessions on average per day, an annualized revenue run rate of over $40 million, which further informs our approach to 2026 for both the consumer cash-pay and emerging insurance market.”
Divita took on the CEO role at Teladoc in June 2024 to execute a turnaround of the business. In response to an investor question about the company’s future growth prospects as it faces another challenging year, Divita said he sees opportunities to build out more virtual care capabilities and enhance its chronic care management services.
Earlier this year, it launched an enhanced 24/7 virtual urgent care service to treat more conditions.
“We’re also advancing innovations in our chronic care programs to support and improve the health of people living with chronic conditions,” he said. “The human toll and the cost of chronic illness are major issues facing the healthcare system, and we intend to deepen our role in this area. In 2026, we’re leveraging our extensive data in new AI-enabled stratification capabilities together with additional targeted clinical interventions to address the needs of rising and high-risk members, including coordination with primary and specialty care when appropriate and manage care more holistically. These AI models align and efficiently activate care teams for personalized action.”
Teladoc is rolling out new connected devices, in-home testing and other features to support its comprehensive approach, he noted. Last year, the company bought Catapult Health to bolster the early detection of health conditions and expand into at-home diagnostic testing.
In April, the company launched its next-generation cardiometabolic health program to improve population health and prevent the progression of diabetes, hypertension and obesity.
“We entered 2025 with a very similar product portfolio that we had in 2024. And now with these enhancements and the foundations that we’ve been building, we think there’s a bigger opportunity for us to go after,” Divita said. “In BetterHelp, it’s really about the insurance scaling. We were excited to enter the market mid last year. We’ve been scaling it pretty materially over that time period. And, as I mentioned also in my prepared remarks and in the guidance, we’re going to see some significant growth in 2026 from that.”
He also noted, “In chronic care, we continue to see opportunities in terms of both the bundled products we have there and the level of recruitables. But, more importantly, what we’ve been building over the last year in terms of the clinical foundations, I mentioned the data and AI capabilities and our ability to really drive stronger ROI across populations for our clients, and in turn, that’s going to drive growth for us.”