Needham reiterates Hold rating on Teladoc stock after Q2 results

Investing.com - Needham maintained its Hold rating on Teladoc (NYSE:TDOC), currently trading at $7.53, following the telehealth company’s second-quarter 2025 earnings report. According to InvestingPro data, the company maintains a healthy gross profit margin of 70.5% despite recent challenges.

Teladoc delivered better-than-expected results for both revenue and earnings in the second quarter, but the company did not raise its full-year 2025 guidance despite the quarterly beat. The stock has fallen 12.2% in the past week, with InvestingPro analysis showing 2 analysts revising their earnings expectations downward for the upcoming period.

The research firm identified BetterHelp, Teladoc’s mental health service, as the main factor behind the company’s cautious outlook, noting it faces increasing competition from providers that accept insurance coverage versus BetterHelp’s cash payment model.

Teladoc is attempting to address these challenges through its acquisition of Uplift and by expanding insurance options for BetterHelp therapists, though Needham expressed concerns about execution risks in this transition.

The firm remains neutral on Teladoc until it sees clearer evidence of fundamental improvement, particularly given the potential margin pressure from insurance reimbursements that could limit profitability growth.

In other recent news, Teladoc Inc reported its earnings for the second quarter of 2025, surpassing expectations. The company achieved an earnings per share of -$0.19, beating the forecasted -$0.26. Revenue for the quarter reached $631.9 million, slightly above the anticipated $622.54 million. These results reflect a stronger-than-expected performance for Teladoc. Despite the positive earnings surprise, broader market concerns were noted. The company’s financial results indicate solid revenue growth, which may interest investors. Such developments are crucial as they provide insight into Teladoc’s current financial health.

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