Teladoc Health announced its second-quarter earnings Tuesday, which revealed a 2% decline in revenue for the company. The company performed roughly 1% better than Wall Street analysts anticipated.
Teladoc reported $631.9 million in total revenue for the quarter that ended June 30, and a net loss of $32.7 million, or $0.19 per share. In the same quarter a year ago, the company posted a net loss of $838 million after it was hit with a $790 million goodwill impairment charge related to its virtual mental health offering, BetterHelp.
Teladoc’s adjusted EBITDA margin was $69.3 million, down 23% year over year. Citigroup, Goldman Sachs Group, Bank of America and Truist Financial reduced their target prices for Teladoc in early July, MarketBeat noted.
The integrated care portion of the business was the lone division with upside in the second-quarter earnings results. Integrated care brought in $391.5 million, up 4% compared to the same period last year. Its adjusted EBITDA margin was 14.7%.
BetterHelp garnered $240.4 million in revenue, down 9% year over year. The tele-mental health brand had an adjusted EBITDA margin of 4.9%.
Teladoc paid $550.6 million in cash to retire senior convertible notes, which were due in the second quarter of 2025, the company noted in a press release.
July 17, Teladoc took out a five-year, $300 million senior secured revolving credit facility “to preserve and enhance our financial and operational flexibility,” the release said. The loan will allow Teladoc to withdraw the money as needed, and its repayment will be prioritized over other debt.
Cirrus Capital notes that senior secured revolving credit is often used to “[support] long-term investments such as expansion initiatives or significant equipment purchases.”
Teladoc Health CEO Chuck Divita explained at a June investor conference that the company will be pursuing an M&A strategy to grow the company.
The company made investments in mental health and the integrated care segment so far in 2025. In February, it acquired at-home diagnostics company Catapult Health. In May, Teladoc acquired UpLift, a virtual mental health provider that will give BetterHelp customers the ability to get the services covered by insurance.
For the first half of 2025, Teladoc’s revenue also declined by 2% year over year, from $1.29 billion to $1.26 billion.
Divita has now been at the helm of the company for a year, and he’s taken stock of the company’s business strategies and assets and has been pivoting the business, he and Chief Financial Officer Mala Murthy explained during the June investor conference.
“I’m pleased with our performance in the second quarter, with consolidated revenue and adjusted EBITDA both at the higher end of our guidance ranges," Divita said in a statement. "This reflects continued disciplined execution and builds on our solid results from the first quarter. We continue to work with focus and urgency to advance our strategic priorities, invest in products and capabilities, and deliver solid financial performance.”
He added: “We believe virtual care can be a performance multiplier to help address key challenges in an evolving healthcare landscape. We intend to build on our leadership position by delivering and orchestrating care across patients, providers, platforms, and partners, enhancing the patient experience, improving clinical outcomes, and driving greater value for our clients.”
This story will be updated.