Teladoc Health reported a 2% decline in first-quarter revenue, but the telehealth giant touted “meaningful progress” in expanding coverage for its BetterHelp mental health business as a catalyst for future growth.
The virtual care company reported first-quarter revenue of $613.8 million, compared with $629 million in the year-ago period. Access fee revenue decreased 8% to $484.7 million.
U.S. revenue fell 6% to $491.5 million, while revenue from international markets increased 17% to $122.3 million. The company’s Integrated Care segment revenue increased 2% to $395.4 million, while Better Help segment revenue decreased 9% to $218.4 million. Teladoc Health reported a 25% increase in “other revenue” to $129.2 million for the quarter, separate from access fee revenue.
The company reported adjusted EBITDA of $58.2 million, roughly flat year over year, narrowing its loss from a loss of $93 million in the first quarter of 2025 to a net loss of $63.8 million, or $0.36 per share, in the most recent quarter.
Consolidated revenue and adjusted EBITDA for the first quarter were above the midpoint of the company’s guidance range, executives said in a press release. Teladoc also maintained its 2026 financial outlook at the midpoint of sales, adjusted EBITDA, and free cash flow.
“We’re really pleased with our performance. I think we’re really confident in the actions we’re taking and how they’re repositioning the company,” Teladoc Health CEO Chuck Divita told Fierce Healthcare.
Growth in BetterHelp’s coverage sessions is “exceeding expectations,” Divita said.
BetterHelp businesses have traditionally had a cash-pay model. Last year, the company began integrating insurance coverage into its BetterHelp platform by supporting the acquisition of UpLift, a virtual mental health provider with an established payer business. UpLift serves the health insurance marketplace, with arrangements covering more than 100 million lives and a network of more than 1,500 mental health professionals.
“I think this insurance move is probably the biggest catalyst for the business, and I think it’s one of the most important moves the company has made in recent years,” DiVita said in an interview.
“(UpLift’s) integration went well and we were able to expand our position fairly quickly,” he said.
Insurance coverage for BetterHelp’s virtual mental health services is currently in place in 30 states and Washington, D.C., with 6,000 providers certified and enrolled on the platform, Divita said. The company’s subscriber count has grown to more than 150 million, an increase of 30 million from the end of 2025.
BetterHelp’s total covered sessions currently average about 14,000 per week, which equates to a “$75 million annual run rate,” he said.
The company projects its BetterHelp mental health division’s annual revenue run rate from insurance-based services to exceed $125 million by the end of 2026. This exceeds the previous forecast of $100 million ARR for the BetterHelp business.
“So far, we have made more progress than we anticipated and believe we are on a good trajectory to turn this business around,” DiVita told Fierce Healthcare.
“I think also, importantly, we’re seeing some very encouraging indicators of early performance and seeing that once you remove the cost barrier, the product itself becomes more sticky, which is exactly what we expected. The number of transactions has increased by an average of 20% compared to cash payments. In the markets where we have been active since Q3 2025 and earlier, we have seen an improvement of nearly 800 basis points,” said Divita.
Divita also highlighted its efforts to drive innovation in its integrated care business and continued investment in technology and artificial intelligence to improve operational efficiency as examples of how Teladoc Health is addressing its strategic priorities.
“We believe there is a meaningful opportunity to build on the unique strengths of our platform, deliver measurable and differentiated value to our clients and members, and return the business to a growth trajectory. The progress we are seeing strengthens our confidence on that path, and we remain committed to delivering long-term value for all of our stakeholders,” DiVita said in a statement included with the company’s first-quarter earnings call.
Editor’s note: This article will be updated after Teladoc Health’s earnings call with investors on Wednesday night.
