Teladoc Health reported a 2% decline in revenue in the first quarter, but the telehealth giant touted "meaningful progress" in scaling insurance coverage for its BetterHelp mental health business as a catalyst for future growth.
The virtual care company reported Q1 revenue of $613.8 million compared to $629 million a year ago. Access fees revenue decreased 8% to $484.7 million.
U.S. revenue dropped 6% to $491.5 million while revenue from international markets rose 17% to $122.3 million. The company's integrated care segment revenue inched up 2% to $395.4 million and its BetterHelp segment saw revenue fall 9% to $218.4 million. Aside from access fee revenue, Teladoc Health reported "other revenue" jumped 25% to $129.2 million during the quarter.
The company reported adjusted EBITDA of $58.2 million, essentially flat year-over-year, and the company narrowed its losses from a loss of $93 million in Q1 2025 to a net loss of $63.8 million, or $0.36 per share, in the most recent quarter.
First quarter consolidated revenue and adjusted EBITDA exceeded the midpoint of the company's guidance ranges, executives said in a press release. Teladoc also maintained its 2026 financial outlook at the midpoint across revenue, adjusted EBITDA and free cash flow.
"We're really pleased with our performance. I think we're really confident with the actions we're taking and how that's repositioning the company," Chuck Divita, Teladoc Health CEO, told Fierce Healthcare.
Growth of BetterHelp insurance-covered sessions is "ahead of expectations," Divita said.
The BetterHelp business was traditionally a cash-pay model. Last year, the company began integrating insurance coverage into its BetterHelp platform supported by its acquisition of UpLift, a virtual mental health provider, which had an established 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.
"I would see this insurance move as probably the biggest catalyst for the business, and I think one of the more consequential moves the company has made in recent years," Divita said in an interview.
"The integration [of UpLift] has gone well, and we've been able to scale our position pretty rapidly," he said.
Insurance coverage availability for BetterHelp's virtual mental health services is now live in 30 states and Washington D.C., with 6,000 providers credentialed and enrolled on the platform, Divita noted. The company has grown contracted lives to more than 150 million, an increase of 30 million since year-end 2025.
BetterHelp’s total insurance-covered sessions are now averaging about 14,000 per week, representing a "$75 million annual run rate," he said.
The company projects its BetterHelp mental health segment to exceed an annualized revenue run rate of $125 million from insurance-based services by the end of 2026, which is higher than its previous estimate of a $100 million ARR for the BetterHelp business.
"We really see the progress so far as ahead of our expectations and really on a good path to turn this business around," Divita told Fierce Healthcare.
"I think what's also important is that we're seeing some really encouraging early indicators on performance and seeing that the product itself is stickier when you take down the cost barrier, which is what we had assumed would happen. For example, when we look at insurance users, they're averaging 20% more sessions during the first 90 days as compared to cash-pay. The markets where we've been live since before the third quarter of 2025, we're seeing a nearly 800 basis point improvement in our revenue performance. So we're seeing improved activation and really stabilizing underlying trends," Divita said.
Divita also highlighted Teladoc Health's work to drive innovation in its integrated care business and ongoing investments in technology and artificial intelligence to boost operational efficiencies as examples of how the company is executing against its strategic priorities.
"We see a meaningful opportunity to build on the unique strengths of our platform to deliver measurable and differentiated value for our clients and members and to return the business to growth. The progress we’re seeing strengthens our conviction in that path and we remain committed to driving long-term value for all stakeholders," Divita said in a statement included in the company's Q1 earning release.
Editor's Note: This story will be updated following Teladoc Health's earnings call with investors Wednesday evening.