Consolidated Revenue and EBITDA Beat
Q1 consolidated revenue of $614M and adjusted EBITDA of $58M (9.5% margin) both exceeded the midpoint of guidance, demonstrating better-than-expected execution.
Teladoc
· TDOC
April 29th, 2026
Summary
- Earnings Call Date:
- 2026-04-29
- Change Since:
- +31.26%
- Next Earnings Date:
- 2026-07-28
Earnings Call Sentiment
PositiveThe call balanced clear progress on strategic priorities—Integrated Care growth and margin improvement, meaningful BetterHelp insurance momentum, AI-driven efficiency gains, and affirmed full-year guidance—against notable near-term challenges including a weakening BetterHelp cash-pay business, margin pressure, implementation timing shifts, free cash flow seasonality and lingering gross debt/convertible note risk. Execution on the insurance rollout and the transition from subscription to visit-based models are key catalysts that underpin upside; therapist capacity and near-term mix effects are the main risks to monitor.
Company Guidance
The company reiterated 2026 consolidated guidance of $2.48B–$2.58B revenue, $267M–$306M adjusted EBITDA and $130M–$170M free cash flow (midpoints unchanged), with net loss per share roughly $0.75–$1.05 and full‑year stock‑based compensation expected below $55M (down >30% vs. 2025 and >70% since 2023). Q2 consolidated guidance is $597M–$626M revenue and $55M–$67M adjusted EBITDA. Integrated Care is guided to +0.8%–+3.5% revenue growth for the year (including ~65 bps inorganic and ~60 bps FX benefit), full‑year adjusted EBITDA margin 15.1%–16.1% (midpoint ≈ +45 bps vs. 2025), and Q2 revenue -1.75% to +1.75% (including ~70 bps from prior acquisitions) with Q2 margin 14.7%–16.0% (midpoint ≈ +65 bps YoY); Q1 Integrated Care was $395M (+1.5% YoY) with $56M adjusted EBITDA (14.2% margin), membership of 101.2M and Chronic Care enrollment of 1.2M. BetterHelp 2026 revenue is guided down 6.5% to down 1.0% versus 2025, with full‑year insurance revenue $90M–$105M (up $15M from prior) and an expected exit run‑rate ≥$125M; Q2 BetterHelp revenue is guided down 11.75% to down 5.25% with Q2 insurance revenue $18M–$22M (≈+50%+ sequentially), full‑year adjusted EBITDA margin 3.0%–4.6% and Q2 margin -0.5% to +1.5% (Q1 BetterHelp: $218M revenue, -9% YoY, $2M adj. EBITDA, 0.9% margin; average paying users 361k, -9%). Q1 consolidated results were $614M revenue, $58M adjusted EBITDA (9.5% margin), net cash outflow in FCF of $26M, $751M cash on hand and net debt to trailing adjusted EBITDA <0.9x (3.6x gross debt).
Integrated Care Growth and Margin Expansion
Integrated Care Q1 revenue of $395M, up 1.5% year-over-year (acquisitions contributed ~170 bps). Adjusted EBITDA rose 12% YoY to $56M, with a 14.2% margin (up ~130 bps YoY) driven by revenue upside and disciplined cost management.
Membership and Chronic Care Traction
U.S. Integrated Care membership finished at 101.2M (above guidance). Chronic Care enrollment reached 1.2M, up ~1% sequentially and ~4% YoY, with multi-condition bundles adoption increasing.
BetterHelp Insurance Rollout Momentum
BetterHelp is live in 30 states + DC, credentialed/enrolled >6,000 providers, insurance contracted lives >150M (increase of 30M since year-end 2025). Insurance-covered users average ~20% more sessions in first 90 days vs cash-pay, and states live by Q3'25 show ~800 bps improvement vs cash-only markets.
BetterHelp Insurance Revenue Acceleration
BetterHelp insurance revenue was $13M in Q1 (up $6M sequentially). Total insurance-covered sessions run >14,000/week (annualized revenue run rate >$75M); company expects exit-2026 run rate of $125M+ and raised full-year insurance revenue expectation to $90M–$105M.
Operational and AI-Driven Efficiency Gains
Investments in AI and data (Pulse engine, Prism Care) delivered operational gains: AI-assisted clinical documentation produced >300,000 notes, used by >2,000 therapists across ~30,000 insurance sessions, saving ~15 minutes per session (~4M minutes saved to date). BetterHelp ad spend down 12% YoY.
Financial Position and Cost Reduction Targets
Q1 cash balance $751M; net debt to trailing adjusted EBITDA under 0.9x (gross debt 3.6x). Full-year stock-based compensation now expected below $55M (decline >30% vs 2025 and >70% since 2023). Company affirmed full-year guidance (revenue, adjusted EBITDA, free cash flow midpoints unchanged).
Operator
Ladies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I would like to welcome you to the Teladoc Health Q1 '26 Earnings Conference Call. [Operator Instructions] I'll now turn the call over to Michael Minchak. You may begin.
Michael Minchak
Thank you, and good afternoon. Today, after the market closed, we issued a press release announcing our first quarter 2026 financial results. This press release and the accompanying slide presentation are available in the Investor Relations section of the teladochealth.com website. On this call to discuss the results will be Chuck Divita, Chief Executive Officer. During the call, we will also discuss our outlook, and our prepared remarks will be followed by a question-and-answer session. Please note that we will be discussing certain non-GAAP financial measures that we believe are important in evaluating our performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release that is posted on our website. Also, please note that certain statements made during this call will be forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from those expressed or implied on this call. For additional information, please refer to our cautionary statement in our press release and our filings with the SEC, all of whi...
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