Digital medical services platform Teladoc Health (NYSE: TDOC) reported Q2 CY2025 results exceeding the market’s revenue expectations, but sales fell by 1.6% year on year to $631.9 million. The company expects next quarter’s revenue to be around $625 million, close to analysts’ estimates. Its GAAP loss of $0.19 per share was 27.8% above analysts’ consensus estimates.
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Teladoc (TDOC) Q2 CY2025 Highlights:
- Revenue: $631.9 million vs analyst estimates of $622.6 million (1.6% year-on-year decline, 1.5% beat)
- EPS (GAAP): -$0.19 vs analyst estimates of -$0.26 (27.8% beat)
- Adjusted EBITDA: $69.31 million vs analyst estimates of $63.5 million (11% margin, 9.2% beat)
- The company slightly lifted its revenue guidance for the full year to $2.52 billion at the midpoint from $2.52 billion
- EPS (GAAP) guidance for the full year is -$1.18 at the midpoint, missing analyst estimates by 1.2%
- EBITDA guidance for the full year is $278.5 million at the midpoint, below analyst estimates of $280.9 million
- Operating Margin: -8.6%, up from -131% in the same quarter last year
- Free Cash Flow Margin: 9.7%, up from 2.1% in the previous quarter
- U.S. Integrated Care Members: 102.4 million, up 10 million year on year
- Market Capitalization: $1.44 billion
“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. 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,” said Chuck Divita, Chief Executive Officer of Teladoc Health.
Company Overview
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Teladoc’s 4.4% annualized revenue growth over the last three years was sluggish. This fell short of our benchmark for the consumer internet sector and is a tough starting point for our analysis.
This quarter, Teladoc’s revenue fell by 1.6% year on year to $631.9 million but beat Wall Street’s estimates by 1.6%. Company management is currently guiding for a 2.4% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and implies its products and services will see some demand headwinds.
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U.S. Integrated Care Members
User Growth
As an online marketplace, Teladoc generates revenue growth by increasing both the number of users on its platform and the average order size in dollars.
Over the last two years, Teladoc’s u.s. integrated care members, a key performance metric for the company, increased by 8% annually to 102.4 million in the latest quarter. This growth rate is decent for a consumer internet business and indicates people enjoy using its offerings. 
In Q2, Teladoc added 10 million u.s. integrated care members, leading to 10.8% year-on-year growth. The quarterly print was higher than its two-year result, suggesting its new initiatives are accelerating user growth.
Revenue Per User
Average revenue per user (ARPU) is a critical metric to track because it measures how much the company earns in transaction fees from each user. ARPU also gives us unique insights into a user’s average order size and Teladoc’s take rate, or "cut", on each order.
Teladoc’s ARPU fell over the last two years, averaging 7.1% annual declines. This isn’t great, but the increase in u.s. integrated care members is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Teladoc tries boosting ARPU by taking a more aggressive approach to monetization, it’s unclear whether users can continue growing at the current pace. 
This quarter, Teladoc’s ARPU clocked in at $6.17. It declined 11.2% year on year, worse than the change in its u.s. integrated care members.
Key Takeaways from Teladoc’s Q2 Results
We were impressed by how significantly Teladoc blew past analysts’ EPS and EBITDA expectations this quarter. We were also glad it expanded its number of users and slightly raised its full-year revenue guidance. On the other hand, its full-year EPS and EBITDA guidance missed. Overall, this was a decent quarter. The stock traded up 4.8% to $7.88 immediately after reporting.
So should you invest in Teladoc right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
