Teladoc’s third quarter results were met with a negative market reaction, as revenue landed in line with Wall Street’s expectations but continued to decline year-over-year. Management attributed the performance to ongoing challenges in its U.S. direct-to-consumer mental health segment and a mix shift towards visit-based revenues. CEO Charles Divita highlighted the company’s efforts to enhance product offerings and drive greater engagement across its integrated care and mental health platforms. He stated, "We know that we have important work ahead of us," acknowledging that pressures on affordability and rising costs remain substantial across the healthcare landscape.

Is now the time to buy TDOC? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Teladoc’s Q3 Earnings Call

• Lisa Gill (JPMorgan): Asked about traction in the 2026 selling season and evolving client contracting. CEO Charles Divita said conversations are more strategic and result-focused, with a shift toward value-based contracts but ongoing health plan sector pressures.
• Jamie (Goldman Sachs): Questioned BetterHelp margins amid the insurance transition. CFO Mala Murthy said margins will be volatile, and while insurance brings pricing pressure, it offers longer-term efficiency gains and revenue opportunities.
• Jessica Tassan (Piper Sandler): Inquired about customer acquisition costs for BetterHelp as insurance scales. Murthy explained that current margins are largely influenced by direct-to-consumer ad spending, but insurance could lower these costs over time.
• Daniel Grosslight (Citi): Sought details on Catapult’s impact on cross-selling in chronic care. Divita described positive integration and engagement, with Catapult creating new opportunities for early intervention and broader member activation.
• Stanislav Berenshteyn (Wells Fargo): Asked about pricing trends for integrated care subscriptions. Divita responded that pricing remains stable, with mix shift—rather than price pressure—being the more significant factor.

Catalysts in Upcoming Quarters

In the coming quarters, our team will be monitoring (1) the pace and effectiveness of BetterHelp’s insurance rollout and its impact on user growth, (2) adoption and revenue contribution from new integrated care products and chronic care interventions, and (3) continued international expansion, particularly in Australia and other key markets. Progress on cost containment and further product innovation will also be crucial for Teladoc’s profitability trajectory.

Teladoc currently trades at $7.92, down from $8.22 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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