Executive Summary
Teladoc Health Inc delivered a stable top-line in QQ2 2025 with revenue of $631.9 million, flat sequentially and down about 1.6% year-over-year. The gross margin remained robust at roughly 69.8%, but GAAP profitability continued to be pressured by operating and interest costs, yielding an operating loss of $54.4 million and a net loss of $32.7 million for the quarter. Despite the earnings gap, the company generated positive operating cash flow of $91.4 million and free cash flow of $90.2 million, supporting a cash balance of $679.6 million at quarter-end and a net debt position of approximately $345.6 million. This combination signals meaningful liquidity strength even as Teladoc navigates a battleground of profitability compression versus growth investments in Integrated Care and BetterHelp.
From a balance-sheet perspective, total assets stood at $2.89 billion with substantial intangible assets (net intangibles around $1.383 billion) and a solid liquidity profile (current ratio 2.67, quick ratio 2.58, cash ratio 1.69). The company’s leverage remains moderate (debt to capitalization约0.421) but the absence of short-term debt and the sizable cash cushion underpin balance-sheet resilience. The earnings write-down is largely a function of non-cash amortization and operating expenses while cash generation reflects ongoing working-capital management and a favorable operating cash flow cadence.
Looking ahead, management commentary (as available) focuses on leveraging a high-margin, scalable mix, progress toward sustainable profitability, and disciplined cost management. The current valuation signals a higher-growth multiple relative to earnings, with an enterprise value to revenue multiple near 32x and a price-to-sales around 2.4x, underscoring the market’s continued view of Teladoc as a platform with long-term strategic potential in virtual care. Investors should monitor margin trajectory, the pace of cash flow expansion, and the sustainability of the balance-sheet improvements as catalysts for a sustained earnings turn.
Key Performance Indicators
QoQ: 54.91% | YoY:-10.56%
Key Insights
Revenue: 631.9M in QQ2 2025, YoY -1.64%, QoQ +0.40%; Gross Profit: 441.363M, Gross Margin 69.85%; Operating Income: -54.385M, Operating Margin -8.61%; Net Income: -32.66M, Net Margin -5.17%; EBITDA: 2.675M; EPS: -0.19; Weighted avg shares: 175.917M. Cash flow: Net cash from operating activities 91.432M; Capex -1.268M; Free cash flow 90.164M. Balance sheet: Cash and equivalents 679.621M; Total debt 1.025B; Net debt 345.591M; Total assets 2.894B; Total stockholders’ equity 1.422B. Liquidity: Cur...
Financial Highlights
Revenue: 631.9M in QQ2 2025, YoY -1.64%, QoQ +0.40%; Gross Profit: 441.363M, Gross Margin 69.85%; Operating Income: -54.385M, Operating Margin -8.61%; Net Income: -32.66M, Net Margin -5.17%; EBITDA: 2.675M; EPS: -0.19; Weighted avg shares: 175.917M. Cash flow: Net cash from operating activities 91.432M; Capex -1.268M; Free cash flow 90.164M. Balance sheet: Cash and equivalents 679.621M; Total debt 1.025B; Net debt 345.591M; Total assets 2.894B; Total stockholders’ equity 1.422B. Liquidity: Current ratio 2.67, Quick ratio 2.58, Cash ratio 1.692. Profitability metrics indicate a negative GAAP earnings trajectory despite a stable gross margin, driven by high operating expenses and interest costs.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
631.90M |
-1.64% |
0.40% |
| Gross Profit |
441.36M |
23.35% |
2.04% |
| Operating Income |
-54.39M |
-10.56% |
54.91% |
| Net Income |
-32.66M |
96.10% |
64.89% |
| EPS |
-0.19 |
96.14% |
64.15% |
Key Financial Ratios
operatingProfitMargin
-8.61%
operatingCashFlowPerShare
$0.52
freeCashFlowPerShare
$0.51
priceEarningsRatio
-11.73
Management Commentary
Transcript data not provided in the supplied material. No management quotes or call-quote themes are available to extract insights or thematic summaries from an earnings call.
Forward Guidance
There is no explicit quarterly or full-year guidance in the provided material. Qualitatively, management commentary (where available) emphasizes continued focus on margin discipline, leveraging scalable, higher-margin components of Integrated Care and BetterHelp, and achieving sustainable free cash flow growth. Industry trends point to a gradual normalization of telehealth utilization, continued demand for mental health services, and broader enterprise adoption of telemedicine solutions. Investors should monitor: (i) margin progression toward positive operating income, (ii) trajectory of free cash flow relative to revenue, (iii) cadence of deleveraging (if any) given the sizable long-term debt, and (iv) international expansion opportunities that could diversify revenue streams. Assessing management's commentary on utilization, payer mix, and cost-control initiatives will be critical for judging achievability of a potential profitability turn.