AIG earnings beat by $0.50, revenue topped estimates
Investing.com - Teladoc Health (NYSE:TDOC) received a reiterated Hold rating from Stifel, which maintained its $8.00 price target on the telehealth company following its third-quarter results. The stock currently trades at $8.81, with analyst targets ranging from $7 to $12. InvestingPro analysis indicates Teladoc is currently undervalued based on its Fair Value model.
The company reported in-line third-quarter revenue, which declined approximately 4% on an organic constant currency basis, while expense discipline drove a modest EBITDA beat of approximately $70 million versus consensus expectations of $65 million. This performance comes amid a broader trend of revenue contraction, with Teladoc’s trailing twelve-month revenue at $2.54 billion, representing a 2.57% decline year-over-year.
International operations remained Teladoc’s primary growth driver with 12% growth, while U.S. business continued to contract by 5% as competitive pressures negatively impacted BetterHelp (38% of revenue) and secular dynamics affected the Integrated Care segment (62% of revenue). Despite revenue challenges, InvestingPro data shows the company generated $291.7 million in levered free cash flow over the last twelve months, yielding a strong 17% free cash flow yield.
Management maintained its 2025 guidance, projecting organic revenue to decline 4-5% on a constant currency basis with EBITDA of approximately $280 million, both in line with market expectations.
Stifel highlighted two potential growth initiatives: integrating insurance payments for BetterHelp members to increase penetration and reduce churn, and using technology to transform the Integrated Care segment from a transactional urgent care model to a longitudinal relationship model covering a broader spectrum of care.
In other recent news, Teladoc Health announced its third-quarter 2025 earnings, reporting a consolidated revenue of $626 million. This figure marks a 2.2% decrease compared to the same period last year. The company also reported a net loss per share of $0.28, which includes a non-cash goodwill impairment. Despite the decline in revenue, the market reaction was mixed, as reflected by a slight increase in aftermarket trading. These developments are part of the ongoing financial adjustments Teladoc is navigating. Analyst insights or upgrades and downgrades were not mentioned in the recent news. Investors will be closely watching how Teladoc addresses these financial challenges in the coming quarters.
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