Executive Summary
Teladoc Health reported a mixed Q1 2025, underscoring the ongoing challenge of translating scale and platform breadth into recurring profitability while maintaining strong liquidity. Revenue totaled $629.4 million, down 2.6% year over year and 1.7% quarter over quarter, reflecting a normalization of utilization and payer mix dynamics in a competitive telehealth environment. Gross profit reached $432.5 million, delivering a robust gross margin of 68.7%, suggesting the core virtual care offerings maintain favorable margin characteristics even as the company absorbs higher operating costs.
Key Performance Indicators
QoQ: -150.15% | YoY:-56.48%
QoQ: -92.14% | YoY:-13.58%
QoQ: -89.29% | YoY:-8.16%
Key Insights
Revenue: $629.4M, YoY change -2.6%, QoQ change -1.7%; Gross Profit: $432.54M, Gross Margin ~68.7%, YoY +22.3%, QoQ -4.2%; Operating Income: -$120.61M, Operating Margin -19.16%, YoY -56.5%, QoQ -150.1%; Net Income: -$93.01M, Net Margin -14.78%, YoY -13.6%, QoQ -92.1%; EPS: -$0.53, YoY -8.16%, QoQ -89.29%; EBITDA: -$8.96M, EBITDA Margin -1.42%; Cash Flow: Operating Cash Flow $15.92M; Free Cash Flow $13.19M; Capex $-2.73M; Net Change in Cash -$105.0M; Cash and Cash Equivalents $1.19B; Total Debt $1...
Financial Highlights
Revenue: $629.4M, YoY change -2.6%, QoQ change -1.7%; Gross Profit: $432.54M, Gross Margin ~68.7%, YoY +22.3%, QoQ -4.2%; Operating Income: -$120.61M, Operating Margin -19.16%, YoY -56.5%, QoQ -150.1%; Net Income: -$93.01M, Net Margin -14.78%, YoY -13.6%, QoQ -92.1%; EPS: -$0.53, YoY -8.16%, QoQ -89.29%; EBITDA: -$8.96M, EBITDA Margin -1.42%; Cash Flow: Operating Cash Flow $15.92M; Free Cash Flow $13.19M; Capex $-2.73M; Net Change in Cash -$105.0M; Cash and Cash Equivalents $1.19B; Total Debt $1.587B; Net Debt $393.44M; Current Ratio 1.68x; Quick Ratio 1.64x; Cash Ratio 1.25x; Revenue Mix Not Disclosed by Segment in the data; P/S 2.20x; P/BV ~0.97x; EV Multiple negative (-14.76x) due to substantial cash balance versus enterprise value.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
629.37M |
-2.59% |
-1.74% |
| Gross Profit |
432.54M |
22.29% |
-4.21% |
| Operating Income |
-120.61M |
-56.48% |
-150.15% |
| Net Income |
-93.01M |
-13.58% |
-92.14% |
| EPS |
-0.53 |
-8.16% |
-89.29% |
Key Financial Ratios
operatingProfitMargin
-19.2%
operatingCashFlowPerShare
$0.09
freeCashFlowPerShare
$0.08
Management Commentary
Note: No earnings-call transcript excerpts are provided in the data set. transcriptHighlights is thus not populated. Stakeholders should seek management commentary on BetterHelp growth, enterprise telehealth adoption, and ongoing cost optimization in the next call for color on the margin trajectory.
Forward Guidance
No explicit forward-looking targets or guidance were included in the provided data. Given the QQ1 2025 results, management likely faces pressure to improve operating leverage and accelerate profitability while sustaining topline growth through BetterHelp and Integrated Care platforms. Investors should monitor: (i) progression toward positive EBITDA and improved operating margin as fixed costs scale with revenue, (ii) continued growth in higher-margin services and enterprise deals, (iii) cash-flow generation efficiency (CFO, FCF) and the pace of debt reduction or refinancing, and (iv) any changes in reimbursement, regulatory environment, and payer mix that could impact utilization and pricing.