Teladoc Surges Up to 26% After Q3 Revenue and Profit Beat, Full Year Guidance Raised

Teladoc Health shares surged as much as 26% on October 29 after the virtual care company posted third-quarter results that beat Wall Street estimates on both the top and bottom lines and lifted its full-year guidance. Revenue came in at $605.1 million, down 3% year over year but ahead of the FactSet consensus estimate of $588.1 million. Adjusted EBITDA rose 14% to $79.4 million, above the company's own guidance range, while the net loss narrowed to $0.15 per share from $0.28 per share a year earlier.

The strongest signal for investors came from BetterHelp, Teladoc's mental health platform. Although BetterHelp segment revenue fell 13% to $206.6 million as cash-pay users continued to decline, insurance-covered revenue reached $32 million in the quarter, up $10 million sequentially, with weekly insurance-covered sessions recently hitting 27,000, implying an annualized run rate above $140 million. Insurance now accounts for 36% of newly acquired U.S. users, up roughly 8 percentage points from the second quarter. The company added more than 3,000 therapists to its network during the quarter, bringing its credentialed total above 11,000. The Integrated Care segment continued to grow, with revenue rising 2% to $398.5 million and adjusted EBITDA margin expanding to 18.8%.

Teladoc raised its 2026 full-year revenue outlook to $2.395 billion to $2.441 billion, increasing the midpoint by $13 million. It now guides for adjusted EBITDA of $277 million to $303 million and a net loss per share of $0.95 to $0.75, a meaningful improvement on prior GAAP EPS guidance. Free cash flow guidance was set at $135 million to $165 million. For the fourth quarter, the company expects revenue of $569 million to $615 million, adjusted EBITDA of $74 million to $100 million, and BetterHelp insurance revenue of $32 million to $38 million. Peers Hims and Hers Health and American Well also ticked higher on the news.