Teladoc Health, Inc. Q4 FY2025 earnings call

• Critical focus on advancing position in US integrated care markets via product and capability innovation, care model across virtual care, chronic condition management, mental health. Launched enhanced 24-7 care offering. Advancing chronic care programs with AI-enabled stratification, clinical interventions, connected devices. • Leveraging scaled position in virtual mental health services, initiatives like launch of Wellbound, scaling BetterHelp's insurance coverage. Live in 20 states + DC, over 4,500 providers, covered lives over 120 million. Partnerships with AARP, Walmart. International expansion continues. • Driving value creation in integrated care through international offerings, deepening partnerships, expanding hybrid care models. • Operational excellence, achieved ISO 9001 certification. Technology and AI advancements central, responsible AI framework, Pulse data and AI platform. AI used to improve outcomes, simplify experience, reduce friction.

Fourth quarter integrated care revenue was $409 million, grew 4.7% y-o-y, near upper end of guidance range. Acquisitions contributed ~260bps to growth. International had double-digit constant currency revenue growth. Chronic care program enrollment was 1.19 million at quarter end, up 2% q-o-q. US integrated care membership was 101.8 million. Fourth quarter integrated care adjusted EBITDA was $65 million, up 23% y-o-y, 16% margin. Full year integrated care segment revenue increased 3.3% to $1.58 billion, acquisitions contributed ~210bps. U.S. virtual care visit revenue grew double digits, offset by lower subscription revenue. International revenue mid-teens constant currency. Adjusted EBITDA increased 2.7% to $239 million, 15.1% margin. Better Health fourth quarter revenue was $233 million, 6.7% lower y-o-y. Average paying users 375,000, down 6% y-o-y. BetterHelp adjusted EBITDA in Q4 was $18 million, up from $4 million in Q3. Full year BetterHelp revenue was $950 million, down 9%, adjusted EBITDA $42 million, 4.4% margin.

• Full year 2026 consolidated revenue $2.47B - $2.59B, midpoint ~level with 2025. Consolidated adjusted EBITDA $266M - $308M, 2% y-o-y growth midpoint. Full year free cash flow $130M - $170M. • First quarter 2026 consolidated revenue $598M - $620M, adjusted EBITDA $50M - $62M. • Integrated care segment 2026 revenue growth 0.4% - 3.9% over 2025, midpoint ~60bps tailwind from recent acquisitions. Adjusted EBITDA margin 15.1% - 16.1%, increase ~45bps midpoint. U.S. integrated care members 97M - 100M. First quarter integrated care revenue -1.2% to +2.0% y-o-y. • BetterHelp segment 2026 revenue -7% to -0.5% y-o-y. Insurance revenue $75M - $90M, annualized run rate >$100M. First quarter BetterHelp segment revenue -11.25% to -7% y-o-y. Adjusted EBITDA margin full year 3% - 4.6%, first quarter 0.75% - 2.75%.

Q: David Roman on stabilizing business and returning to growth.

A: Chuck DeVita discussed integrated care headwind from subscriptions to visits, but visit growth will drive future growth. BetterHelp's turnaround via insurance scaling.

Q: Richard Close on chronic care enrollment cross-sell.

A: Chuck DeVita talked about managing across conditions, good interest in bundled products, going after population health.

Q: Daniel Grosslight on BetterHelp EBITDA ramp.

A: Chuck DeVita and Mike discussed advertising spend, investments to scale insurance as factors.

Q: Sarah James on primary assumptions differentiating guidance ranges.

A: Chuck DeVita and Mike said BetterHelp's wider range due to consumer market and insurance ramp; integrated care's tighter range due to visit-based arrangements and chronic care enrollment.

Q: Jillian Dressing on 2027 RFP discussions.

A: Chuck DeVita said mixed, stronger renewed conversations with health plans, unique solutions resonating.

Q: Jessica Tasson on BetterHelp insurance paid members behavior.

A: Chuck DeVita said directional comments, seeing good data on conversion, sessions.

Q: Sean Dodge on BetterHelp US vs international margin profile.

A: Chuck DeVita said insurance side is predominant, international has different profile but aiming for bottom line margins.

Q: Elizabeth Anderson on BetterHelp insurance footprint and engagement.

A: Chuck DeVita said underlying demand for mental health, patterns consistent with expectations.

Q: George Hill on AARP relationship and BetterHelp marketing spend risk.

A: Chuck DeVita said AARP relationship reflected in guidance, excited about it; ad spend has high correlation but efforts to make it more efficient.

Q: Brian Talquilit on BetterHelp insurance KPIs.

A: Chuck DeVita discussed conversion, user acquisition, sessions, therapist capacity, operating expenses, contracted rates.

Q: Alan Lutz on BetterHelp insurance revenue visibility.

A: Chuck DeVita said 2025 revenues from uplift acquisition, ramping of BetterHelp's revenues with new markets, utilization, payer contracts.

Q: Stan Berenstein on integrated care member guidance.

A: Chuck DeVita said dynamics in marketplace, retention, not related to client loss, but about marketplace dynamics.

Q: Ryan McDonald on CMS Access program.

A: Chuck DeVita said BetterHelp focused on commercial business, evaluating Access program, aligns with value prop.

Q: Jeff Garrow on integrated care business development demand between health plan vs employer.

A: Chuck DeVita said solid footing, good demand in employer channels, strategic conversations in health plan channel to help with medical costs.