Q3 2025 Teladoc Inc Earnings Call

Speaker #1: Good afternoon , everyone , and thank you for joining today's Teladoc Health . Q3 25 earnings conference call . My name is Regan , and I'll be your moderator today .

Operator: Good afternoon everyone and thank you for joining today's Teladoc Health Q3 2025 earnings conference call. My name is Regan and I'll be your moderator today. All lines will be muted during the presentation portion of today's call, with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad. Additionally, we will be limiting questions to one question for each participant. I would now like to pass the conference over to our host, Mike Minchak, Head of Investor Relations for Teladoc Health. Please proceed.

Speaker #1: All lines will be muted during the presentation portion of today's call, with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad.

Speaker #1: Additionally , we will be limiting questions to one question for each participant . I would now like to pass the conference over to our host Michael Minchak , head of Investor Relations for Teladoc .

Speaker #1: Please proceed .

Speaker #2: Thank you , and good afternoon . Today , after the market closed , we issued a press release announcing our third quarter 2020 financial results .

Chuck Divita: Thank you and good afternoon. Today, after the market close, we issued a press release announcing our third quarter 2025 financial results. This press release and the accompanying slide presentation are available in the Investor Relations section of the teladochealth.com website. On this call to discuss the results are Chuck Divita, Chief Executive Officer, and Mala Murthy, Chief Financial Officer. During this call we will also discuss our outlook and our prepared remarks will be followed by a question and answer session. Please note that we will be discussing certain non-GAAP financial measures that we believe are important in evaluating our performance. Details on the relationship between these non-GAAP measures and the most comparable GAAP measures and reconciliations thereof can be found in the press release that's posted on our website.

Speaker #2: This press release and the accompanying slide presentation are available in the Investor Relations section of the Teladoc Health, Inc. website . On this call to discuss the results are .

Speaker #2: Chuck DeVita , Chief Executive Officer and Mala Murthy chief Financial Officer . During this call , we will also discuss our outlook and our prepared remarks will be followed by a question and answer session .

Speaker #2: Please note that we will be discussing certain non-GAAP financial measures that we believe are important in evaluating our performance . Details on the relationship between these non-GAAP measures and the most comparable GAAP measures can reconciliations thereof can be found in the press release that's posted on our website ?

Speaker #2: Also , please note that certain statements made during this call will be forward looking statements as defined by the Private Securities Litigation Reform Act of 1995 .

Chuck Divita: Also, please note that certain statements made during this call will be forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause our actual results to differ materially from those expressed or implied on this call. For additional information, please refer to our cautionary statement in our press release and our filings with the SEC, all of which are available on our website. I would now like to turn the call over to Chuck. Thanks, Mala. Consistent with our preliminary results released last week, our third quarter consolidated revenue and adjusted EBITDA both came in above the midpoint of our respective guidance ranges. This performance reflects our continued focus on execution. Mala will provide more details on our financial results later in the call, including segment level information and our updated full-year outlook.

Speaker #2: Such forward looking statements are subject to risks , uncertainties and other factors that could cause our actual results to differ materially from those expressed or implied on this call .

Speaker #2: For additional information , please refer to our cautionary statement in our press release and our filings with the SEC . All of which are available on our website .

Speaker #2: I would now like to turn the call over to Chuck . Thanks , Mike . Consistent with our preliminary results released last week , our third quarter consolidated revenue and adjusted EBITDA both came in above the midpoint of our respective guidance ranges .

Speaker #2: This performance reflects our continued focus on execution . Mala will provide more details on our financial results later in the call , including segment level information and our updated full year outlook .

Speaker #2: But first , I would like to provide an update on the business and our strategic priorities with respect to integrated We continue to build on our US market leadership position with an emphasis on performance , innovation and client impact .

Chuck Divita: First, I would like to provide an update on the business and our strategic priorities with respect to integrated care. We continue to build on our U.S. market leadership position with an emphasis on performance, innovation, and client impact. Today, over 100 million people have access to one or more of our services, a testament to the scale and value of our platform. With this reach and vantage point, we're advancing initiatives that expand our service offerings, further connect and orchestrate care, and deliver differentiated outcomes for patients and clients. For example, through enhancements to our PRSM care delivery platform this year, we now have a much greater opportunity to surface important information directly at the point of care. This offering enables our providers and care teams to address gaps in care, manage specialists and other referrals, and activate relevant programs based on the member's eligibility and needs.

Speaker #2: Today , over 100 million people have access to one or more of our services . A testament to the scale and value of our platform .

Speaker #2: With this reach and vantage point , we are advancing initiatives that expand our service offerings further , connect and orchestrate care and deliver differentiated outcomes for patients and clients .

Speaker #2: For example , through enhancements to our Prism Care delivery platform , this year , we now have a much greater opportunity to surface important information directly at the point of care .

Speaker #2: This offering enables our providers and care teams to address gaps in care , manage specialists and other referrals , and activate relevant programs based on a member's eligibility and needs .

Speaker #2: Further , our ability to embed provider to provider specialist consults into the experience improves timely resolution of the member's care needs and drives cost savings and differentiated value client .

Chuck Divita: Further, our ability to embed provider-to-provider specialist consults into the experience improves timely resolution of the member's care needs and drives cost savings and differentiated value for the client. As I have shared previously, having visits and other interactions serve as broader engagement points is essential to our strategy and value proposition, which we believe will ultimately drive overall growth in virtual care revenue. In chronic care, where program enrollment in the third quarter grew 4% on a sequential basis, we also continue to advance important innovations there as well. In addition to new connected devices and new program features, we are developing enhanced clinical intervention models for rising risk and high-risk populations. These models will apply AI-enabled risk evaluation and stratification capabilities and leverage our clinical and care delivery capabilities to identify and activate intervention opportunities.

Speaker #2: As I have shared previously , having visits and other interactions serve as broader engagement points is central to our strategy and value proposition , which we believe will ultimately drive overall growth in virtual care revenues .

Speaker #2: In chronic care , where program enrollment in the third quarter grew 4% on a sequential basis , we also continue to advance important innovations there as well .

Speaker #2: In addition to new connected devices and new program features , we are developing enhanced clinical intervention models for rising risk and high risk populations .

Speaker #2: These models will AI enabled risk evaluation and stratification capabilities , and leverage our clinical and care delivery capabilities to identify and activate intervention opportunities .

Speaker #2: And through these interventions , including engaging with the patient's existing care provider to develop and support the respective care plan , we see additional opportunities to improve clinical outcomes and drive greater client ROI and impact .

Chuck Divita: Through these interventions, including engaging with the patient's existing care provider to develop and support the respective care plan, we see additional opportunities to improve clinical outcomes and drive greater client ROI and impact. We have active pilots underway and expect to bring these new innovations to market in 2026. Through Catapult Health, acquired earlier in the year, we now have a greater ability to engage members earlier in their health journey, including through health screenings at home, diagnostic testing, and clinical support. Our integration with Catapult Health also provides additional opportunities to create awareness of other eligible Teladoc Health services and support member activation. We are seeing strong client interest in Catapult Health both as a standalone offering and as part of a broader health engagement capability.

Speaker #2: We have active pilots underway and expect to bring these new innovations to market in 2026 and through catapult acquired earlier in the year .

Speaker #2: We now have a greater ability to engage members earlier in their health journey , including through health screenings at home , diagnostic testing and clinical support .

Speaker #2: Our integration with catapult also provides additional opportunities to create awareness of other eligible Teladoc services and support member activation . We are seeing strong client interest in catapult standalone offering and as part of a broader health engagement capability .

Speaker #2: We believe that our unique and scaled position at the intersection of technology and clinical care will continue to provide opportunities to expand services and impact over time .

Chuck Divita: We believe that our unique and skilled position at the intersection of technology and clinical care will continue to provide opportunities to expand services and impact over time. As a partner to our clients, we deliver, enable, and orchestrate care across a wide spectrum of needs, meeting members where they are, supporting their health and mental well-being, and driving better outcomes. As we've shared previously, virtual care revenue models continue to move towards fee-for-service visits, and we're leaning into this change with an approach built around engagement, activation, and measurable value. Visit-based revenues in 2025 now comprise over 50% of our U.S. virtual care revenues compared to approximately 40% in 2023.

Speaker #2: As a partner to our clients , we deliver , enable and orchestrate care across a wide spectrum of needs , meeting members where they are supporting their health and mental well-being and driving better outcomes .

Speaker #2: As we've shared previously , virtual care revenue models continue to move towards fee for service visits , and we're leaning into this change with an approach built around engagement , activation and measurable value visit based revenues in 2025 .

Speaker #2: Now comprise over 50% of our U.S. virtual care revenues , compared to approximately 40% in 2023 . While we expect this mix shift to continue , we also expect the level of impact on overall revenues going forward to see some moderation compared to the impact over the past few years and through the strength of our model and ability to serve expanded clinical use cases through our new product enhancements , we look to participate in the value we create , which we believe puts us on a path to sustainable underlying growth in our virtual care business .

Chuck Divita: While we expect this mix shift to continue, we also expect a level of impact on overall revenues going forward to see some moderation compared to the impact over the past few years and through the strength of our model and ability to serve expanded clinical use cases. Through our new product enhancements, we look to participate in the value we create, which we believe puts us on a path to sustainable underlying growth in our virtual care business. Now turning to our second strategic priority, leveraging our scaled mental health position. In the third quarter, we again achieved double-digit growth in B2B mental health visits and remain on track for generating over $150 million in total revenue, excluding BetterHelp's new entry into insurance-covered benefits.

Speaker #2: Now , turning to our second strategic priority leveraging our scaled mental health position . In the third quarter , we again achieved double digit growth in B2B mental health visits and remain on track for generating over $150 million in total revenue , excluding BetterHelp .

Speaker #2: New entry into insurance covered benefits . We're excited about building on this success with our new Employee Assistance Program , offering called Wellbound , which leverages strengths of both care and BetterHelp , including unmatched scale , a robust network , consumer engagement capabilities , and efficient connectivity to a range of services .

Chuck Divita: We're excited about building on this success with our new employee assistance program offering called Wellbound, which leverages the strength of both Integrated Care and BetterHelp, including unmatched scale, a robust network, consumer engagement capabilities, and efficient connectivity to a range of services. While early, we're seeing strong interest in Wellbound, and our pipeline continues to build out with respect to BetterHelp's new insurance offering. The UpLift acquisition has brought together important capabilities and payer arrangements. As I shared last quarter, BetterHelp's first state for insurance, District of Columbia, was launched within 60 days of the transaction closing. This initial state demonstrated the strength and effectiveness of our combined technology, operations, and ability to effectively deliver on our user and provider experience objectives. Key metrics at this point are in line with our expectations, including conversion rates, user growth, and sessions per user, among others.

Speaker #2: While early we're seeing strong interest in Wellbound and our pipeline continues to build out with respect to BetterHelp , new insurance offering , the uplift acquisition has brought together important capabilities and payer arrangements .

Speaker #2: As I shared last quarter , BetterHelp first state for insurance , Virginia was launched within 60 days of the transaction closing . This initial state demonstrated the strength and effectiveness of our combined technology , operations , and ability to effectively deliver on our user and provider experience objectives .

Speaker #2: Key metrics at this point are in line with our expectations , including conversion rates , user growth , and sessions per user , among others .

Speaker #2: We're encouraged by the results , and we're continuing to invest to support the broader rollout of this business . We are now live in seven states , including the additions of Florida , Texas and New York , as well as being live in the District of Columbia .

Chuck Divita: We're encouraged by the results, and we're continuing to invest to support the broader rollout of this business. We are now live in seven states including the additions of Florida, Texas, and New York, as well as being live in the District of Columbia. Several more states are planned over the remainder of 2025. We also continue to expand the credentialed therapist network for insurance to support the rollout. With BetterHelp's substantial network of therapists in the U.S. supporting our D2C business, the strong interest we've seen from our network in the new offering, as well as UpLift's existing 1,500 plus credentialed providers, we expect to be able to add the necessary capacity to meet demand. Separately, BetterHelp's non-U.S. business continued to perform well in this quarter, delivering high single-digit user growth aided in part by our localized market launches.

Speaker #2: Several more states are planned over the remainder of 2025 . We also continue to expand the credentialed therapist network for insurance to support the rollout with BetterHelp , substantial network of therapists in the US supporting our DTC business .

Speaker #2: The strong interest we've seen from our network in the new offering , as well as uplifts existing 1500 plus credentialed providers . We expect to be able to add the necessary capacity to meet demand separately .

Speaker #2: BetterHelp non-US business continue to perform well in this quarter , delivering high single digit user growth , aided in part by our localized market launches .

Speaker #2: As we've shared previously , the rollout and scaling of insurance , as well as growth in non-U.S. markets continue to be essential to better health's future , given continued pressure on the US cash pay business .

Chuck Divita: As we've shared previously, the rollout and scaling of insurance as well as growth in non-U.S. markets continue to be essential to BetterHelp's future, given continued pressure on the U.S. cash pay business. Our third strategic priority is driving continued growth in our international Integrated Care business. For the third quarter, revenues grew 14% year over year on a constant currency basis, and we see continued opportunities for growth ahead. This includes in Australia, where we recently acquired Telecare, which operates Australia's leading virtual care clinic and provides software solutions across the healthcare sector. We intend to build on our existing presence in Australia and deepen our penetration in the public health sector. Finally, operational excellence remains a key strategic priority in terms of elevating performance. I'm pleased that we recently achieved ISO 9001 certification for key processes within U.S. Integrated Care.

Speaker #2: Our third strategic priority is driving continued growth in our international integrated care business. For the third quarter, revenues grew 14% year over year on a constant currency basis, and we see continued opportunities for growth ahead.

Speaker #2: This includes an Australia where recently acquired Telecare , which operates Australia's leading virtual care clinic and provides software solutions across the healthcare sector .

Speaker #2: We intend to build on our existing presence in Australia and deepen our penetration in the public health sector . Finally , operational excellence remains a key strategic priority in terms of elevating performance .

Speaker #2: I'm pleased that we recently achieved ISO 9001 certification for key processes within US . Integrated care . This speaks to the great work done by our operations team to deliver a high quality experience for our clients and members .

Chuck Divita: This speaks to the great work done by our operations team to deliver a high-quality experience for our clients and members. We are seeing operational improvements and other client service enhancements reflected in the results of our client survey data, which showed across-the-board strengthening in net promoter scores in our U.S. Integrated Care business. In terms of cost efficiencies, we've driven improvements in a number of areas including technology and development, administrative costs, and share-based compensation. As we close out the year and move into 2026, we will continue to focus on opportunities to further streamline our cost structure across expense categories and capital expenditures. In closing, while we made considerable progress across each of our strategic priorities, we know that we have important work ahead of us.

Speaker #2: We are we seeing operational improvements in other client service enhancements reflected in the results of our client survey data , which showed across the board strengthening in Net Promoter scores in our US Integrated Care business .

Speaker #2: In terms of cost efficiencies , we've driven improvements in a number of areas , including technology and development , administrative costs and share based compensation .

Speaker #2: And as we close out the year and move into 2026 , we will continue to focus on opportunities to further streamline our cost structure across expense categories and capital expenditures .

Speaker #2: In closing , while we've made considerable progress across each of our strategic priorities , we know that we have important work ahead of us .

Speaker #2: The challenges in healthcare are substantial , including affordability and rising costs , prevalence of disease , unmet mental health needs , and intense pressure on providers , among others .

Chuck Divita: The challenges in health care are substantial, including affordability and rising costs, prevalence of chronic disease, unmet mental health needs, and intense pressure on providers, among others. As the market leader, we know that our clients rely on us to help mitigate the impact of these pressures. We remain committed to driving the next evolution of virtual care and believe that our strategic priorities, investments, and product innovations will provide opportunities to drive even greater value and impact going forward. Before I turn it over to Mala to share more on our results, I want to take a moment to recognize her contributions to Teladoc Health. As we announced last week, Mala will be stepping down as Chief Financial Officer next month. Over the past six years, Mala has played a pivotal role in shaping Teladoc Health's financial strategy and strategic growth initiatives through a period of significant transformation.

Speaker #2: And as the market leader , we know that our clients rely on us to help mitigate impact of these pressures . We remain committed to driving the next evolution of virtual care and believe that our strategic priorities , investments and product innovations will provide opportunities to drive even greater value and impact going forward .

Speaker #2: Before I turn it over to Mala to share more on our results , I want to take a moment to recognize her contributions to Teladoc Health .

Speaker #2: As we announced last week, Mala Murthy will be stepping down as Chief Financial Officer next month. Over the past six years, Mala has played a pivotal role in shaping Teladoc's financial strategy and strategic growth initiatives during a period of significant transformation. On behalf of the board, our leadership team, and all of Teladoc, we thank Mala for her outstanding contributions and wish her continued success in her next chapter.

Chuck Divita: On behalf of the board, our leadership team, and all of Teladoc Health, we thank Mala for her outstanding contributions and wish her continued success in her next chapter. With that, let me turn it over to Mala.

Speaker #2: With that , let me turn it over to Mala .

Speaker #3: Thank you , Chuck , and good afternoon , everyone . As Chuck outlined , we are executing well against our strategic priorities and our third quarter results reflect that momentum with consolidated revenue of $626 million above the midpoint of our guidance range , revenue declined 2.2% year over year as growth in our integrated care segment was offset by a decline at better health .

Mala Murthy: Thank you, Chuck, and good afternoon, everyone. As Chuck outlined, we are executing well against our strategic priorities, and our third quarter results reflect that momentum. With consolidated revenue of $626 million above the midpoint of our guidance range, revenue declined 2.2% year over year as growth in our Integrated Care segment was offset by a decline at BetterHelp. Adjusted EBITDA of $70 million was at the high end of our guidance range, representing an 11.2% margin and reflecting disciplined execution across the business. Net loss per share was $0.28, which included a non-cash goodwill impairment charge of $0.07 per share pre-tax, a charge that was not contemplated in our guidance range as it occurred after the guidance was issued. As outlined in our second quarter 10-Q, the carrying value of the Integrated Care Reporting Unit continued to exceed its fair value, which triggered the impairment charge.

Speaker #3: Adjusted EBITDA of $70 million was at the high end of our guidance range , representing an 11.2% margin and reflecting disciplined execution across the business .

Speaker #3: Net loss per share was $0.28 , which included a non-cash goodwill impairment charge of $0.07 per share pretax , a charge that was not contemplated in our guidance range as it occurred after the guidance was issued .

Speaker #3: As outlined in our second quarter 10-Q, the carrying value of the Integrated Care Reporting Unit continues to exceed its fair value, which triggered the impairment charge.

Speaker #3: Net loss per share in the quarter also included amortization of intangibles of $0.48 per share pre-tax and stock based compensation expense of $0.10 per share pre-tax , free cash flow was $68 million in the third quarter , bringing year to date free cash flow to $113 million .

Mala Murthy: Net loss per share in the quarter also included amortization of intangibles of $0.48 per share pre-tax and stock-based compensation expense of $0.10 per share pre-tax. Free cash flow was $68 million in the third quarter, bringing year-to-date free cash flow to $113 million. We ended the quarter with $726 million in cash and cash equivalents, an increase of $47 million sequentially, further reinforcing our strong liquidity position. Turning to our segment results, Integrated Care revenue was $390 million, up 1.5% over the prior year period. As previously discussed, the resolution of a prior period billing adjustment in the third quarter of 2024 created a 115 basis point headwind to revenue growth. This quarter, we see continued strong performance in our international business, which delivered mid-teens growth on a constant currency basis alongside solid growth in visit revenue.

Speaker #3: We ended the quarter with $726 million in cash and cash equivalents , an increase of $47 million sequentially . Further reinforcing our strong liquidity position .

Speaker #3: Turning to our segment results . Integrated care revenue was $390 million , up 1.5% over the prior year period . As previously discussed , the resolution of a prior period billing adjustment in the third quarter of 2024 created a 115 basis point headwind to revenue growth this quarter .

Speaker #3: We see continued strong performance in our international business , which delivered mid-teens growth on a constant currency basis alongside solid growth in visit revenue .

Speaker #3: The acquisitions of Catapult and Telecare contributed approximately 245 basis points to segment growth . We delivered solid results across key underlying metrics , US integrated care membership ended the quarter at 102.5 million members at the high end of the guidance range , and up 9% year over year .

Mala Murthy: The acquisitions of Catapult Health and Telecare contributed approximately 245 basis points to segment growth. We delivered solid results across key underlying metrics. U.S. Integrated Care membership ended the quarter at 102.5 million members, at the high end of the guidance range and up 9% year over year. As Chuck mentioned, chronic care program enrollment grew 4% on a sequential basis, adding 48,000 lives and reaching 1.17 million and marking a return to sequential growth. Third quarter Integrated Care adjusted EBITDA was $66 million, representing a 17% margin, which was above the high end of our guidance range. Excluding the 95 basis point benefit from the prior period billing adjustment in the third quarter of 2024, adjusted EBITDA margin would have increased modestly year over year. The upside in the quarter reflects the revenue mix and flow through, as well as continued cost discipline, including hiring deferrals.

Speaker #3: And as Chuck mentioned , chronic care program enrollment grew 4% on a sequential basis , adding 48,000 lives and reaching 1.17 million . And marking a return to sequential growth .

Speaker #3: Third quarter integrated care adjusted EBITDA was $66 million , representing a 17% margin , which was above the high end of our guidance range .

Speaker #3: Excluding the 95 basis point benefit from the prior period billing adjustment in the third quarter of 2024 , adjusted EBITDA margin would have increased year over year .

Speaker #3: The upside in the quarter reflects the revenue mix and flow through , as well as continued cost discipline , including hiring deferrals . We saw year over year improvement in both technology and development and G&A expenses .

Mala Murthy: We saw year over year improvement in both technology and development and G&A expenses, two key areas of focus. Moving to the BetterHelp segment, third quarter revenue was $236.9 million, which included approximately $4 million in insurance revenue, the majority of which was from UpLift. As Chuck Divita mentioned, we are still in the early stages of the BetterHelp insurance rollout, and we are encouraged by the initial traction. Average paying users declined 4% year over year to 382,000, with high single digit growth in non-U.S. users only partially offsetting a high single digit decline in U.S. users. The backdrop we discussed last quarter, including weaker consumer sentiment and macroeconomic uncertainty, has remained consistent through the third quarter. Further, while growing consumer willingness to access mental health therapy to cover benefits is a headwind to our cash pay business, it validates our insurance initiative.

Speaker #3: Two key areas of focus moving to the better health segment . Third quarter revenue was $236.9 million , which included approximately $4 million in insurance revenue .

Speaker #3: The majority of which was from uplift . As Chuck mentioned , we are still in the early stages of the BetterHelp insurance rollout , and we are encouraged by the initial traction average paying users declined 4% year over year to 382,000 , with high single digit growth in non-U.S.

Speaker #3: users . Only partially offsetting a high single digit decline in US users . The backdrop we discussed last quarter , including weaker consumer sentiment and macro uncertainty , has remained consistent through the third quarter .

Speaker #3: Further , while growing consumer willingness to access mental health therapy to cover benefits is a headwind to our cash pay business , it validates our insurance initiatives .

Speaker #3: We continue to believe insurance , coupled with non-U.S. growth positions , better health for a return to growth over time . Adjusted EBITDA for better health was $4 million , representing a margin of 1.6% .

Mala Murthy: We continue to believe insurance, coupled with non-U.S. growth, positions BetterHelp for a return to growth over time. Adjusted EBITDA for BetterHelp was $4 million, representing a margin of 1.6%. The year over year decline was primarily driven by lower revenue and investments to support the insurance rollout, partly offset by lower ad spend. Turning to guidance, we now expect 2025 consolidated revenue of $2.510 billion to $2.539 billion and adjusted EBITDA of $270 million to $287 million, with the midpoint of both ranges essentially unchanged versus our previous outlook. Free cash flow is expected to be in the range of $170 million to $185 million. We now expect 2025 stock-based compensation expense of $85 million to $95 million, a $10 million reduction versus our prior outlook. The full year net loss per share guidance range has been narrowed, with the midpoint remaining unchanged.

Speaker #3: The year over year decline was primarily driven by lower revenue and investments to support the rollout , partly offset by lower AD spend .

Speaker #3: Turning to guidance , we now expect 2025 consolidated revenue of $2.510 billion to $2.539 billion and adjusted EBITDA of $270 million to $287 million , with the midpoint of both ranges essentially unchanged versus our previous outlook , free cash flow is expected to be in the range of 170 million to $185 million .

Speaker #3: We now expect 2025 stock based compensation expense of 85 million to $95 million , a $10 million reduction versus our prior outlook . The full year net loss per share guidance range has been narrowed with the midpoint remaining unchanged .

Speaker #3: The third quarter goodwill impairment is expected to be largely offset by the reduction in stock based compensation expense . Our full year guidance implies fourth quarter consolidated revenue in the range of $622 million to $652 million and EBITDA of $73 million to $90 million .

Mala Murthy: The third quarter goodwill impairment is expected to be largely offset by the reduction in stock-based compensation expense. Our full year guidance implies fourth quarter consolidated revenue in the range of $622 million to $652 million and adjusted EBITDA of $73 million to $90 million. Moving to the segments, starting with Integrated Care, we are raising and narrowing our full year 2025 revenue and adjusted EBITDA guidance range. We now expect revenue to be up 2.4% to 3.5% over 2024, an increase of 40 basis points at the midpoint versus our prior range. Roughly half of this increase relates to the Telecare acquisition, with the remainder reflecting strong year-to-date performance and execution. We continue to expect Catapult Health to contribute approximately 200 basis points to full year revenue growth.

Speaker #3: Moving to the segment's starting with integrated care , we are raising and narrowing our full year 2025 revenue and adjusted EBITDA guidance range .

Speaker #3: We now expect revenue to be up 2.4% to 3.5% over 2024 , an increase of 40 basis points at the midpoint versus our prior range .

Speaker #3: Roughly half of this increase relates to the Telecare acquisition , with the remainder reflecting strong year to date performance and execution . We continue to expect catapult to contribute approximately 200 basis points to full year revenue growth .

Speaker #3: We now expect full year 2025 adjusted EBITDA margin of 15% to 15.4% , up by approximately 30 basis points at the midpoint versus prior guidance , reflecting strong three key performance , partially offset by a pull forward of marketing spend in four Q , while the tariff situation remains fluid , we are maintaining our estimate of a roughly $3 million headwind to adjusted EBITDA .

Mala Murthy: We now expect full year 2025 adjusted EBITDA margin of 15% to 15.4%, up by approximately 30 basis points at the midpoint versus prior guidance, reflecting strong Q3 performance partially offset by a pull forward of marketing spend in Q4. While the tariff situation remains fluid, we are maintaining our estimate of a roughly $3 million headwind to adjusted EBITDA. We will continue to monitor tariff-related developments and evaluate mitigation strategies, including alternative sourcing arrangements to diversify our supply chain. For the fourth quarter, Integrated Care segment revenue is expected to increase 1% to 5.2% over the prior year period. Adjusted EBITDA margin is expected to be in the range of 15.3% and 16.8%, up approximately 250 basis points year over year at the midpoint, reflecting cost discipline and a higher level of investment spend in the prior year period.

Speaker #3: We will continue to monitor tariff related developments and evaluate mitigation strategies , including alternative sourcing arrangements , to diversify our supply chain for the fourth quarter , integrated care segment revenue is expected to increase 1% to 5.2% over the prior year period .

Speaker #3: Adjusted EBITDA margin is expected to be in the range of 15.3% and 16.8% , up approximately 250 basis points year over year at the midpoint , reflecting cost , discipline and a higher level of investment spend in the prior year period .

Speaker #3: Moving to better health , we have narrowed our full year revenue outlook to the lower half of the prior guidance range . The expected year over year revenue decline of 8% to 9.2% reflects the ongoing headwinds we have discussed in our US cash pay business , partially offset by our non-U.S.

Mala Murthy: Moving to BetterHelp, we have narrowed our full year revenue outlook to the lower half of the prior guidance range. The expected year-over-year revenue decline of 8% to 9.2% reflects the ongoing headwinds we have discussed in our U.S. CashPay business, partially offset by our non-U.S. business and insurance rollout and growth initiatives. As Chuck Divita outlined, we are encouraged by the early progress of our insurance rollout, and based on early performance from recent state launches, we expect to generate $12 million to $14 million in total insurance revenue in 2025. We now expect BetterHelp adjusted EBITDA margin of 3.8% to 4.6% for the full year, with the midpoint down approximately 55 basis points versus our prior guidance. This largely reflects the flow-through impact from lower revenue as well as accelerated investments to support the insurance initiative based on the successful early launches.

Speaker #3: business and insurance rollout and growth initiatives . As Chuck outlined , we are encouraged by the early progress of our insurance rollout and based on early performance from recent state launches , we expect to generate 12 to $14 million in total insurance revenue in 2025 .

Speaker #3: We now expect better adjusted EBITDA margin of 3.8% to 4.6% for the full year , with a midpoint down approximately 55 basis points versus our prior guidance .

Speaker #3: This largely reflects the flow through impact from lower revenue as well as accelerated investments to support the insurance initiative . Based on the successful early launches , our updated full year outlook implies fourth quarter BetterHelp segment revenue , down 3.8% to 8.8% year over year , and an adjusted EBITDA margin of 5.5% to 8.6% , with a sequential margin improvement driven by the typical seasonal pullback in advertising spend during the holiday period .

Mala Murthy: Our updated full-year outlook implies fourth quarter BetterHelp segment revenue down 3.8% to 8.8% year over year and an adjusted EBITDA margin of 5.5% to 8.6%, with a sequential margin improvement driven by the typical seasonal pullback in advertising spend during the holiday period. Lastly, our balance sheet remains strong. In August, we completed the acquisition of Telecare for $17 million in net cash. We ended the quarter with $726 million in cash and cash equivalents, and net debt to trailing adjusted EBITDA was under 1x at quarter end. We continue to believe our strong cash balance, cash regeneration, and business position provide us with optionality in the future. With that, let me turn the call back to Chuck.

Speaker #3: Lastly , our balance sheet remains strong in August , we completed the acquisition of Telecare for $17 million in net cash . We ended the quarter with $726 million in cash and equivalents and net debt to trailing adjusted EBITDA was under one time at quarter end .

Speaker #3: We continue to believe our strong cash balance , cash flow generation and business position provide us with optionality in the future . With that , let me turn the call back to .

Speaker #2: Thanks , Marla . Before we open up for questions , I also wanted to share that we were recently named one of time magazine's Top healthtech Companies of 2025 .

Chuck Divita: Thanks, Mala. Before we open up for questions, I also wanted to share that we were recently named one of Time magazine's top health tech companies of 2025. The list honors the most innovative and impactful organizations transforming healthcare through technology. Our company was recognized with the top ranking of outstanding in the telehealth and treatment category, reflecting our high marks across the key evaluation areas of financial performance, reputation analysis, and online engagement. I couldn't be more proud of our colleagues whose dedication and contributions made this recognition possible. Operator, we're now ready for questions.

Speaker #2: The list most and impactful organizations transforming health care through technology . Our company was recognized with the top ranking of outstanding in the telehealth and Treatment category , reflecting our high marks across the key evaluation areas of financial performance , reputation analysis , and online engagement .

Speaker #2: I couldn't be more proud of our colleagues whose dedication and contributions made this recognition possible . Operator we're now ready for questions .

Speaker #1: Thank you so much . We'll now begin our Q&A session . So if you would like to ask a question , you can do so by pressing Star one on your telephone keypad .

Operator: Thank you so much. We will now begin our Q&A session. If you'd like to ask a question, you can do so by pressing star 1 on your telephone keypad. If you'd like to remove your question for any reason, you can do so by pressing star 2. Once again, to ask a question, please press star 1. As a reminder, if you're using a

Speaker #1: Or if you'd like to remove your question for any reason , you can do so by pressing star two once again to ask a question , please press star one .

Speaker #1: As a reminder . If you are using a speakerphone , please remember to pick up your handset before asking your question . Additionally , as another reminder , it is going to be a one question limit for our Q&A session .

Mala Murthy: Speakerphone, please remember to pick up your phone.

Operator: Handset before asking your question. Additionally, as another reminder, it is going to be a one question limit for our Q&A session. We'll briefly pause here as questions are registered. Our first question comes from the line of Lisa Christine Gill of J.P. Morgan. Your line is now open.

Speaker #1: We'll briefly pause here as questions are registered . Our first question comes from the line of Lisa Gill of JP Morgan . Your line is now open .

Speaker #4: Thanks . Thanks very much . Good afternoon . First half I want to wish you the very best in your next endeavor . It's been great working with you the last .

Chuck Divita: Thanks.

Mala Murthy: Thanks very much. Good afternoon. Mala, I want to wish you the best.

Operator: Very best in your next endeavor.

Mala Murthy: It's been great working with you.

Operator: Last, I guess now six years.

Speaker #4: I guess . Now six years . And on to my question , Chuck . I just really , maybe better understand , you know , in the last year or so , you've talked about , it's going to take time for these initiatives to gain traction .

Mala Murthy: I just want to really maybe better understand, you know, in the last year or so you've talked about, it's going to take time for these initiatives to gain traction. As we sit here today, I would anticipate that you've had most of your conversations for the 2026 selling season. Two things I want to better understand. One, how are you feeling about things that you're selling for 2026? One of the things that stood out to me in your prepared comments is you want to participate in the value you create. Should we be assuming that the way that you're contracting is changing in any way? What the plan sponsor is buying in any way. Any color you can give us around that, the timeline of gaining that traction and what you're actually seeing come to fruition for this year's selling season.

Speaker #4: As we sit here today , I would anticipate that you've of your conversations for the 2026 selling season . So really two things I want to better understand .

Speaker #4: One , how are you feeling about things that you're selling for 2026 ? And one of the things that stood out to me in your prepared comments is you want to participate in the value you create .

Speaker #4: So should we be assuming that the way that you're contracting is changing in any way , what you know , the plan sponsor is buying in anyway , so any color you us around that , you know , the timeline of gaining that traction and what you're actually seeing come to fruition for this year's selling season .

Speaker #4: can give

Speaker #2: Yeah ,

Chuck Divita: Yeah, I appreciate that. A few comments, I mean, as I mentioned before, really coming into 2025, really characterizing the year as a repositioning year in many respects and included in that was really driving higher levels of performance. We've done that across a number of levers and also driving product innovation, which we needed to do in terms of advancing our value proposition. We've talked about making our visits and member touch points more valuable using our clinical strength and product breadth and so forth and making a number of important investments. I think that is really starting to take hold both in terms of the discussions that we're having with our client base, as well as the new products and enhancements that we're rolling out across virtual care, chronic care, and mental health.

Speaker #2: know , a few comments . I mean , as I mentioned before , really coming into 2025 , really characterizing the year as a as a repositioning year in many respects .

Speaker #2: And , and included in that was really driving , you know , higher levels of performance . And we've done that across a number of levers .

Speaker #2: And also driving product innovation , which we needed to do in terms of , you advancing our value proposition . We've talked about making our visits and member touchpoints more valuable using our clinical strength and product breadth and so forth .

Speaker #2: And and making a number of important investments . And I think that is really starting to take , take hold , both in terms of the discussions that we're having with our client base as well as the new products and enhancements that we're , you know , rolling out , you know , virtual care , chronic care and mental health .

Speaker #2: And we've talked about wellbound , but there's a number of other pilots we have underway and things that we're going to be bringing live in 2026 .

Chuck Divita: We've talked about Wellbound, but there's a number of other pilots we have underway and things that we're going to be bringing live in 2026. From my perspective, I think we've made good progress on all of those fronts. I'm excited about the new products and services we're going to be bringing to market for the 2026 selling season and happy to talk more about those. I think in terms of the selling season right now, we continue to work on a number of opportunities, obviously to close out the year, but the environment's in line with what we've spoken about previously. Solid overall results in the employer channels, really across the solutions and ongoing challenges in the health plan sector. We've had some nice wins and some service expansions, but some pressure there as well.

Speaker #2: So from my perspective , I think we've made good progress on all of those fronts . I'm excited about the new products and services .

Speaker #2: That we'll be bringing to market for the 2026 selling season , and happy to talk more about those . I think in terms of the selling season right now , I think the , you know , we continue to work on a number of opportunities , obviously , to close out the year , but the environment is in line with what we've spoken about previously .

Speaker #2: You know , solid overall results in the employer channels really across the solutions and ongoing challenges in the health plan sector . You know , we've had some nice wins and some service expansions , but but some pressures there as well .

Speaker #2: And I think to your point , the actions we've taken to innovate and to drive greater value as resonating , I think the conversations we're having there , I feel are much more strategic in nature in terms of understanding the problems they're trying to solve and how Teladoc can uniquely go after those .

Chuck Divita: To your point, the actions we've taken to innovate and to drive greater value is resonating. I think the conversations we're having there, I feel, are much more strategic in nature in terms of understanding the problems they're trying to solve and how Teladoc Health can uniquely go after those. Inclusive of that is they are looking for more and more, not just the value that our services can provide, but putting skin in the game in terms of levels of performance that they expect. In return, as we do that we should be able to participate in that value if we hit those measures and drive the outcome. Over time, while we already have contracting that reflects that kind of nature, you're going to see more and more of that. I think it's going to differentiate us because we have an ability to deliver on it.

Speaker #2: And I think inclusive of that is , you know , they're looking for more and more , you know , not just the value that our services can provide , but putting skin in the game in terms of levels of performance that they expect .

Speaker #2: And in return , as we do that , we should be able to participate in that value . If we hit those measures and drive drive the outcomes .

Speaker #2: So I think over time , while we already have contracting , that reflects that kind of nature , you're going to see more and more of that .

Speaker #2: And I think it's going to differentiate us because we have an ability to deliver on it .

Speaker #1: Thank you. Our next question comes from the line of David Roman of Goldman Sachs. Your line is now open.

Operator: Thank you. Our next question comes from the line of David Harrison Roman of Goldman Sachs. Your line is now open.

Speaker #5: Hey , thanks . Good afternoon . This is Jamie on for David . I wanted to ask about BetterHelp margins . They were 1.6% in the third quarter , just as you start to gain , you know , some traction shifting some of your visits away from cash pay towards the insurance offering .

Chuck Divita: Hey, thanks. Good afternoon. This is Jamie on for David. I wanted to ask about BetterHelp margins. They were 1.6% in the third quarter. Just as you start to gain some traction, shifting some of your visits away from cash pay towards the insurance offering, it would seem like that would come with some pricing pressure, offset maybe by lower customer acquisition costs. Is that thinking appropriate? Any other dynamics to consider as that process happens? Just, you know, as this transition occurs, it would seem like there could be some lumpiness in overall margin for BetterHelp. I know we have the guidance for the fourth quarter, but could you frame how this process should impact the profitability of that business on a longer term basis?

Speaker #5: It would seem like that would come with some pricing pressure offset , maybe by lower customer acquisition costs . Is that thinking appropriate ?

Speaker #5: And any other dynamics to consider as that process happens ? And then just , you know , as , as this transition occurs , it would seem like there could be some lumpiness in overall margin for for better help .

Speaker #5: I know we have the guidance for the fourth quarter , but could you frame how this this process should impact the profitability of that business on a longer term basis ?

Speaker #3: Yeah . Thanks , Jamie . We obviously will not go into the details of 2026 . That'll margin guidance or any guidance . But let me frame the way we expect to see this directionally .

Mala Murthy: Yeah, thanks Jamie. We obviously will not go into the details of 2026. That will help margin guidance on any guidance. Let me frame the way we expect to see this directionally. As you said, we have given the guidance for Q4. You know, as we think about the BetterHelp business, think of it in three different ways. One is our U.S. cash pay business. The second is our BetterHelp International business, which is cash pay, to be clear. Third is the insurance business, including UpLift. We remain excited about the growth in our BetterHelp International business. It grew nicely, high single digit user growth for BetterHelp International in the third quarter.

Speaker #3: So as you said , we have given the guidance for for Q you know , as we think about the BetterHelp business , think of it in three different ways .

Speaker #3: One is our US cash business . The second is our better health international business , which is cash pay to be clear . And third is the insurance business , including uplift .

Speaker #3: So we remain excited about the growth in our BetterHelp international business . It grew nicely high single digit user growth for BetterHelp international in the third quarter .

Speaker #3: You know , the efforts and the investments we have made in providing localized experiences in various countries . France , Germany , etc. and we are seeing the results of those investments now beginning to bear fruit in terms of user acquisition , growth and and you know that what goes along with that is revenue growth .

Mala Murthy: The efforts and the investments we have made in providing localized experiences in various countries, France, Germany, et cetera, and we are seeing the results of those investments now beginning to bear fruit in terms of user acquisition growth and what goes along with that is revenue growth. That is on the BetterHelp International side. On the insurance, the BetterHelp insurance side, based on the prepared remarks we gave, we are seeing good early signs of progress. We have launched in seven states and the District of Columbia. We expect to launch in more states by the end of this year and we expect to be largely national by the end of 2026. Think of the ramp from a revenue perspective for BetterHelp insurance along those lines. You are right in the way you're thinking about margins for BetterHelp insurance.

Speaker #3: So that is on the international BetterHelp international side . On the insurance , the BetterHelp insurance side , if you you know , based on the prepared remarks , we gave , we are seeing good early signs of progress , early .

Speaker #3: We have launched in seven states and D.C. We expect to launch in more states by the end of this year, and then we expect to be largely national by the end of 2026.

Speaker #3: So think of the ramp from a revenue perspective for better health insurance in that along those lines , you are right in the way you're thinking about margins for better health insurance , right ?

Operator: Right.

Speaker #3: It is certainly it is something that we are going to have to monitor , carefully , observe carefully . But I will say .

Mala Murthy: It is certainly something that we are going to have to monitor carefully, observe carefully. I will say the metrics that we are looking to see in the BetterHelp insurance rollout, whether it be conversion rates, whether it be number of sessions, whether it be user growth, those are trending in line with what we were expecting. Still early days, yes, but we are beginning to see the operating metrics in line with our expectations. The U.S. direct-to-consumer cash pay business, I would say, continues to be challenged. One of the reasons for it being challenged, by the way, is we are seeing heavy competition on that one from other participants in the market who offer insurance. It validates and reinforces the pivot that we are making in BetterHelp in offering insurance as an option. We expect that to continue to play out in the months ahead.

Speaker #3: The metrics that we are looking to see in the BetterHelp Insurance rollout , you know , whether it be conversion rates , whether it be number of sessions , whether it be user growth , those are trending in line with what we were expecting .

Speaker #3: Still , early days , yes , but we are beginning to see the sort of the operating metrics in line with our expectations .

Speaker #3: The US direct to consumer cash pay business , I would say , continues to be challenged . One of the reasons for it being challenged , by the way , is we are seeing heavy competition on that one from other .

Speaker #3: Are participants in the market who offer insurance . So , you know , it's validates and reinforces the pivot that we are making in better health , in offering insurance as an option .

Speaker #3: And , you know , we expect that to continue to play out in the ahead . So I would think about better health progress along these lines between now and the end of 2026 .

Mala Murthy: I would think about BetterHelp progress along these lines between now and the end of 2026.

Speaker #5: Great . Thank you .

Chuck Divita: Great. Thank you.

Speaker #1: Thank you. Our next question comes from the line of Jessica Tyson of Piper Sandler. Your line is now open.

Operator: Thank you. Our next question comes from the line of Jessica Elizabeth Tassan of Piper Sandler. Your line is now open.

Speaker #6: Hi , guys . Thanks so much for taking the question . And Marla , thank you for all the help over the last few years .

Mala Murthy: Hi guys. Thanks so much for taking the question. Mala, thank you for all the help over the last few years. I appreciate it. Good luck when you leave us here. My question is, we appreciate the commentary on BetterHelp margins in Q3, but should we conclude that BetterHelp margins today reflect basically a DTC ad customer acquisition cost on commercial reimbursement, and then does that present an opportunity heading into 2026 as you can potentially pare back DTC ad spend because you've got full insurance coverage and customer acquisition cost starts to kind of more closely resemble that.

Speaker #6: I appreciate it and good luck when you leave us , us , us here . So my question is just we appreciate the commentary on BetterHelp margins in three .

Speaker #6: Q but should we conclude that BetterHelp margins today reflect basically a DTC ad customer acquisition cost on commercial reimbursement , and then , you know , does present an opportunity heading into 26 , as you can potentially pare back DTC ad spend because you've got full insurance coverage and customer acquisition costs , starts to kind of more closely resemble that of an integrated care member .

Operator: Of an Integrated Care member.

Speaker #6: Thanks .

Mala Murthy: Thanks. Yeah, thank you, Jess. Look, BetterHelp is a scale player with over 4 million users coming to the top of the funnel. The aspect that we have in BetterHelp is what drives that amount of traffic to the top of the funnel. The challenge we have had is converting that into paying users. The progress we are making on insurance is certainly going to help drive greater conversion over time, and with that will help gain efficiencies in cost of acquisition. The thing that I would say is we don't expect BetterHelp to be solely an insurance business. It will always be a mix of direct to consumer, a cash pay business. It's a direct to consumer business. It'll be a mix of cash pay and insurance as a payment option.

Speaker #3: Yeah . Thank you Jess , look , we are a BetterHelp is a scale player with over 4 million users that coming to the top of the .

Speaker #3: The ad spend that we have in BetterHelp is what drives that amount of traffic to the top of the funnel . The challenge we have had is converting that into paying funnel users , and the the the progress we are making on insurance is certainly going to help drive greater conversion over time .

Speaker #3: And with that , will help gain efficiencies in cost of acquisition . The thing that I would say is we don't expect BetterHelp to be solely an insurance business .

Speaker #3: It will always be a mix of direct to consumer , a cash pay business . It's a direct to consumer business . It will be a mix of cash pay and insurance as an as a payment option .

Speaker #3: So there's certainly will be over time potential efficiencies to be gained on on our tack on our cost of acquisition . That is something that we will see , have to see play out over time .

Mala Murthy: There certainly will be over time potential efficiencies to be gained on our CAC, on our cost of acquisition. That is something that we will have to see play out over time. In the near term though, just to remind you, all insurance, as we said in our prepared remarks, is between $12 million to $14 million. It is small compared to the rest of the BetterHelp business. The economics you see and the margins you see today are almost entirely cash pay.

Speaker #3: In the near term , though , just to remind you all , insurance , as we said in our prepared remarks , is between 12 to 14 million .

Speaker #3: It is small compared to the rest of the BetterHelp business. So the economics you see and the margins you see today are almost entirely cash pay.

Speaker #1: Thank you . Our next question comes from the line of Daniel Grosslight of Citi . Your line is now open .

Operator: Thank you. Our next question comes from the line of Daniel R. Grosslight of Citi. Your line is now open.

Speaker #7: Hi guys . Thanks for taking the question . You noted you've previously noted that one of the reasons for the catapult acquisition was to create a larger funnel , which I suppose is is most relevant for your chronic care solutions .

Chuck Divita: Hi guys, thanks for taking the question. You've previously noted that one of the reasons for the Catapult Health acquisition was to create a larger funnel, which I suppose is most relevant for your chronic care solutions and P360 enrollment. I'm wondering if you can share any qualitative or quantitative data around any of those cross sales that have materialized or I guess I should put it cross references that have materialized between Catapult Health and other areas of the Integrated Care business. Thank you. Yeah, appreciate the question. I think I would maybe categorize it in three areas. One is the Catapult Health standalone offering, which continues to have a solid pipeline and grow as it was prior to us acquiring it. That continues.

Speaker #7: And p360 enrollment . I'm wondering if you can share any qualitative or quantitative data around any of those cross sales that have materialized , or I should , I guess I should put it cross references that have materialized between catapult and other areas of the integrated care business .

Speaker #7: Thank you .

Speaker #2: Yeah , yeah , I appreciate the question . I think I would maybe categorize it in three areas . One is , you know , the catapult standalone offering , which continues have a solid pipeline and and grow as it was prior to us acquiring it .

Speaker #2: And that continues a second , as we have members come through the catapult experience , the ability to present and activate , as appropriate , additional solutions of Teladoc that may be relevant for that member .

Chuck Divita: Second, as we have members come through the Catapult Health experience, the ability to present and activate as appropriate additional solutions of Teladoc Health that may be relevant for that member, that is live and integrated into the experience and going well in terms of being able to meet those members' needs. I think third, to the main point of your question, the ability to, you know, bundle doesn't do it justice. It's really to, you know, collaborate and integrate the offering in a way that can capture more lives from an engagement standpoint. That is what's really resonating with the customer base substantially, including with the health plans.

Speaker #2: That is live and integrated into the experience . And and going well in terms of being able to meet those members needs . And I think third , to your to the main point of your question , the ability to , you know , bundle doesn't do it justice .

Speaker #2: It's really to , you know , collaborate and integrate the the offering in a way that can capture more lives from an engagement standpoint .

Speaker #2: And that is what's really resonating with the customer base substantially , including with the health plans I mentioned before . The strategic conversations we're having with them .

Chuck Divita: I mentioned before, the strategic conversations we're having with them, with Catapult Health pretty heavily featured, because you think the populations that are giving them challenges, they're typically unengaged or they have conditions that aren't being managed effectively and they're challenged with their access in terms of their delivery system strategy. The ability for us to use Catapult Health and other techniques to reach people, get them aware of their conditions. As I mentioned, when we acquired Catapult Health, not an insignificant percentage of people that come through Catapult Health are newly diagnosed with conditions that they weren't aware of, meaning they weren't in the health plan's claims data, they weren't on anyone's radar, including the patient. Somewhat ticking time bombs, if you will, in terms of having high pressure and high sugar.

Speaker #2: We're catapult us pretty heavily featured because if you think the the populations that are giving them challenges , they're typically unengaged or they have they have conditions that aren't being managed effectively .

Speaker #2: And their challenge with their access in terms of their delivery system strategy. So the ability for us to use catapult and other techniques to reach people and get them aware of their conditions.

Speaker #2: As I mentioned , when we acquired catapult , you know , and not an insignificant percentage of people that come through catapult are newly diagnosed with conditions that they weren't aware of , meaning they weren't in the health plans , claims , data .

Speaker #2: They weren't on anyone's radar , including the the . And so somewhat ticking time bombs , if you will , in terms of having high pressure and high sugar .

Speaker #2: So it's really resonating across all three as a standalone offering , ability to cross engage members . And third , as part of Teladoc , being able to use as a broader engagement capability .

Chuck Divita: It's really resonating across all three: as a standalone offering, ability to cross engage members, and third, as part of Teladoc Health, being able to use as a broader engagement capability.

Speaker #1: Thank you . Our next question comes from the line of Jailendra Singh of Truist . Your line is now open .

Operator: Thank you. Our next question comes from the line of Jailendra P. Singh of Truist. Your line is now open.

Speaker #8: Hi , guys . This is Eduardo on for Jailendra Mala , again , thanks for all the help over the years . Maybe just to follow up on one of the remarks you had about the top of the funnel .

Chuck Divita: Hi guys, this is Eduardo Ron on for Jailendra P. Singh. Again, thanks for all the help over the years. Maybe just to follow up on one of the remarks you had about the top of the funnel. You guys are now live in seven states and the District of Columbia coming off the pilot. Just curious what share of new signups that you're seeing come in are choosing insurance versus the cash pay in those states. I guess maybe our main question was if you could provide an update on your expectations for the 2027 converts and whether you guys anticipate refinancing those or using cash to pay it down. Thanks.

Speaker #8: I mean , you guys are now live in seven states in DC coming off the pilot , you know , just curious what share of new sign ups that you're seeing come in , are insurance versus the cash pay in those states .

Speaker #8: And I guess maybe our main question was just , you know , if you can provide an update on your expectations for the 2027 converts and whether you guys anticipate refinancing those or , you know , using cash to pay it down , thanks .

Speaker #3: Yeah . So I don't want to go into details , metrics on the conversion . We are seeing . There's , you know , here's why .

Mala Murthy: Yeah, so I don't want to go into detailed metrics on the conversion we are seeing. There's, you know, here's why. At this point in time, Virginia, which is the first state that launched, has achieved some level of seasoning enough for us to look at the data and feel confident that there is some stability in the data. It is one state. We have launched, as I said, in six other states and in the District of Columbia. We just need to give it a little bit of time for all of the other states to season out to make sure that there is stability in the conversion metrics we are seeing, the session metrics we are seeing. What I would say to you is it is our intent along the way as this scales and seasons, we will provide updates along the way.

Speaker #3: At this point in time, Virginia, which is the first state that launched, has achieved some level of seasoning enough for us to look at the data and feel confident that there is some stability in the data.

Speaker #3: But it is one state we have launched . As I said , in six other states in DC , we just need to give it a little bit of time for all of the other states to season out to make sure that there is stability in the conversion metrics .

Speaker #3: We are seeing the session metrics . We are seeing what I would say to you is it is our intent along the way , as this scale and seasons , we will provide updates along the way .

Speaker #3: This is an important initiative for us and we will give the appropriate milestones along the way . It's just too early for us to be public with specific details on it .

Mala Murthy: This is an important initiative for us and, you know, we will give the appropriate milestones along the way. It's just too early for us to be public with specific details on it, even though, as I said, it is in line with our initial expectations. On the 2027 convert, you saw the cash and cash equivalents that we have. At the end of the third quarter, we will continue to obviously generate free cash flow that will add to our cash balance. We have a strong balance sheet. We have our overall leverage metrics well in hand. Our specific plans on 2027 are really going to be an outcome of the things that we will do next year in terms of organic investments and inorganic.

Speaker #3: Even though , as I said , it is in line with our initial expectations on the 27 convert . You you saw the cash and equivalents that we have at the end of the third quarter .

Speaker #3: We will continue to obviously generate free cash flow that will add to our cash balance . We have a strong balance sheet . You know , we have our overall leverage metrics .

Speaker #3: Well in hand . Our specific plans on 2027 is really going to be in outcome of the things that we will do next year in terms of organic investments and inorganic .

Speaker #3: You know , it's that as we have shared before , we are in the of getting a lot of inbounds on various M&A and we will continue to evaluate them .

Mala Murthy: As we have shared before, we are in the position of getting a lot of inbounds on various M&A and we will continue to evaluate them. Hopefully we have proved out this year the three acquisitions that we have done, Uplift, Catapult Health, and now Telecare in Australia, are in line with the strategic priorities that Chuck Divita has laid out, right? Catapult Health for integrated care, Uplift for BetterHelp insurance and healthcare for international growth. We have been disciplined in terms of our investment in these inorganic opportunities. Our specific plans on the 2027 note will be a factor of things we do through the year next year on organic investments and inorganic. We have some amount of time. We are actively planning already in terms of various options to refinance the note in 2027.

Speaker #3: But hopefully we have proved out this year . The three acquisitions that we have done uplift , catapult , and now Telecare in Australia are in line with the strategic priorities that Chuck has laid out right .

Speaker #3: Catapult for Integrated Care, uplift for better health insurance, and health care for international growth. We have been disciplined in terms of our investment in these inorganic.

Speaker #3: So our specific plans on the 27 note will be a factor of things we do through the year . Next year on organic investments and inorganic .

Speaker #3: And we have we have some amount of time . We are actively planning already in terms of various options to refinance the note in 27 , but we'll you we'll obviously continue to look at our plans and make the right decisions and trigger it at the right moment , looking at what the rate environment looks like and what our internal needs are .

Mala Murthy: We will obviously continue to look at our plans and make the right decisions and trigger it at the right moment, looking at what the rate environment looks like and what our internal needs are.

Speaker #8: Thanks .

Speaker #1: Thank you . Our next question comes from the line of Elizabeth Anderson of Evercore ISI . Your line is now open .

Operator: Thank you. Our next question comes from the line of Elizabeth Hammell Anderson of Evercore ISI. Your line is now open.

Speaker #9: Hey guys . Thank you for the question . This is a on for Elizabeth . As we think about for Q 25 and the setup for 2026 , how should we view the spending cadence across both sales and marketing expenses ?

Chuck Divita: Hey guys, thank you for the question. This is Ayush Anfre. Elizabeth, as we think about Q4 2025 and the setup for 2026, how should we view the spending cadence across both sales and marketing expenses? Should we think that you are planning on typical Q4 spending patterns as we have seen in recent years, and anything to call out in terms of how you guys expect that to impact the growth cadence in Q4 and Q1 2026?

Speaker #9: Should we think that you are planning on typical for Q spending patterns , as we have seen in recent years , and anything to call out in terms of , you know , how you guys expect that to impact the growth cadence in four ?

Speaker #9: Q and one Q 26.

Speaker #3: Yeah . So I'll take it by segment . As you know , most of our marketing spend really is in better health . And you will see we do expect a step down in marketing spend in four Q sequentially relative to three Q in 2025 .

Mala Murthy: Yeah. I'll take it by segment. As you know, most of our marketing spend really is in BetterHelp. You will see we do expect a step down in marketing spend in Q4 sequentially relative to Q3 in 2025, very similar to past years. The one additional comment I would make is we do expect the step down in Q4 2025 to be slightly higher than the step down between Q3 and Q4 marketing spend in BetterHelp in 2024, but the pattern will be the same. On the Integrated Care side, we did make a decision, given the profitability delivery that we had in Q3 for Integrated Care, to pull forward a modest amount of marketing spend into Q4 to just get going in terms of our key priorities for next year, in terms of key client launches, et cetera.

Speaker #3: Very similar to past years . The one additional comment I would make is we do expect the step down in for Q 25 to be slightly higher than the step down between 3 and 4 Q marketing spend in BetterHelp in 2024 .

Speaker #3: But the the pattern will be the same on the integrated care side . We did make a decision given the . The the profitability delivery that we had in three Q for integrated care , we did make a decision to pull forward a modest amount of marketing spend into four Q to just get going in terms of our key priorities for next year , you know , in terms of key client launches , etc.

Speaker #3: . So I would say to you , the pattern and the cadence will largely be the same . The one other thing to note is last year in four Q , we did actually have a fairly significant marketing spend that we had done .

Mala Murthy: I would say to you the pattern and the cadence will largely be the same. The one other thing to note is last year in Q4 we did actually have a fairly significant marketing spend that we had done. Our Q4 investment in marketing for Integrated Care is not going to be that significant a step up as it was in 2024.

Speaker #3: We don't expect our investment in marketing for integrated care is not going to be that significant . A step up as it was in 2024 .

Speaker #9: Thank you .

Chuck Divita: Thank you.

Speaker #1: Thank you . Our next question is from the line of Stan . Stan Bearsden of Wells Fargo Securities . Your line is now open .

Operator: Thank you. Our next question is from the line of Stan Barristan of Wells Fargo Securities. Your line is now open.

Speaker #10: Thanks . That's close enough . I guess I want to first echo my well-wishes to her next role . As for my question , just want to circle back to integrated care so you mentioned , you know , you're seeing continued mix shift towards fee for service .

Chuck Divita: Thanks. That's close enough, I guess. I want to first echo my well wishes to Mala in her next role. As for my question, just want to circle back to Integrated Care. You mentioned you're seeing continued mix shift towards fee-for-service, but I'm curious, what are you seeing in terms of pricing trends for customers that are renewing their PMPM subscriptions? Thanks. I think generally speaking the pricing is in line. I think it's more of the mix shift, that's the factor there. I haven't seen that much pressure in that area, but obviously in a highly competitive market, that could be a factor. If we're expanding services and other things, we take all of that into consideration.

Speaker #10: But I'm curious, what are you seeing in terms of pricing trends for customers that are renewing their PMPM subscriptions? Thanks.

Speaker #2: I think generally speaking , the pricing is in line . I think it's more of the mix shift . That's the that's the factor .

Speaker #2: There . So I haven't seen , you know , that much pressure in that area . But obviously in highly competitive market , that could be a factor .

Speaker #2: And if we're expanding services and other things, you know, we take all that into consideration.

Speaker #1: Thank you. Our next question is from the line of Scott Stonehouse of KeyBanc. Your line is now open.

Operator: Thank you. Our next question is from the line of Scott Schoenhaus of KeyBank. Your line is now open.

Speaker #11: Thanks , guys , for taking my question . And congrats on the new role . And opportunity . I guess , on switching back to BetterHelp , can you give us a sense of what the payers are talking about for the reimbursement side ?

Chuck Divita: Thanks, guys, for taking my question. Congrats, Mala, on the new role and opportunity. I guess switching back to BetterHelp, can you give us a sense of what the payers are talking about for the reimbursement side? Several of the other players that participate on the payer side have always seen low single digit, maybe even mid single digit increases on the reimbursement side. What are your discussions like with the payers? As you credential your therapists, maybe you can talk about the margin, upfront margin headwinds that turn into tailwinds. Thank you.

Speaker #11: Several of the other players that participate on the payer side have always seen , you know , low single digit , maybe even mid single digit increases on the reimbursement side .

Speaker #11: What are your discussions like with payers? And then, as you credential your therapists, maybe you can talk about the margin upfront headwinds that turn into tailwinds.

Speaker #11: Thank you .

Speaker #3: I don't want to go into details on the reimbursement. The thing I will point out is that since we announced the acquisition and over the past few months, we have actually added several new payers to our book of business.

Mala Murthy: I don't want to go into details on the reimbursement. The thing I will point out is since we announced the UpLift acquisition and over the past few months we have actually added several new payers to our book of business and, you know, it's several millions of incremental additional lives that we have now on the BetterHelp side with insurance. That's all I will be. That's as far as I would go on your first question. On the second question I would say yes, this is certainly going to be the insurance business. There are well known public proxies for insurance margins in that space. That is going to be something that we are going to monitor and, to be clear, that is something from a unit economic standpoint we had factored in as we thought about the strategic pivot into insurance.

Speaker #3: And , you know , it's several millions of incremental additional lives that we have now on the BetterHelp side with insurance . So that's all I will be .

Speaker #3: That's as far as I would go on . On your first question , on the second question , I would say , yes , this is certainly going to be the insurance business .

Speaker #3: You know , there are well-known public proxies for , you know , margins in that space that is going to be something that we are going to monitor and to be clear , that is something from a unit economics standpoint .

Speaker #3: We had factored in, as we thought about the strategic pivot into insurance, the thing that we are focused on certainly is margins.

Mala Murthy: The thing that we are focused on certainly is margin. What is exciting is the fact that this is going to allow us to capture incremental paying users, more sessions, and therefore more LTV. All of that is about revenue growth and therefore profit dollar growth. That is what we are looking to grow in the months ahead. As we ramp, as you said, this is something that is certainly going to take time. We need to see the revenue ramp. We are making disciplined investments in the backend capabilities, in our revenue cycle management capabilities, et cetera. As you can see, we are scaling relatively quickly and feel good about that. The revenue does need to ramp, and, you know, through the year, next year for us to be able to get to the dollar profitability growth that is in our thesis.

Speaker #3: But what is exciting is the fact that this is going to allow us to capture incremental pain users, more sessions, and therefore more LTV. All of that is about revenue growth and, therefore, profit dollar growth.

Speaker #3: So, that is what we are looking to grow in the months ahead. As we ramp up, as you said, this is something that is certainly going to take time.

Speaker #3: We need to see the revenue ramp. We are making disciplined investments in the back end, capabilities in our revenue cycle, management capabilities, etc.

Speaker #3: And as you can see, we are scaling relatively quickly and feel good about that. But the revenue does need to ramp.

Speaker #3: And , you know , through the year next year for us to be able to get to the dollar , profitability growth that is in our thesis .

Speaker #2: Yeah. Well said. And I think the only thing I would add is, clearly, as we are ramping up the credentialed network and you know what that takes.

Chuck Divita: Yeah, well said, Mo. I think the only thing I would add is clearly as we are ramping up the credentialed network and what that takes, the revenue will follow in terms of acquired users and sessions and so forth. I think the way that BetterHelp is approaching this is quite unique too in terms of how they're not just approaching the credentialing but how they're again with the significant network that they have already. We are putting into the experience, the therapist part of the experience, the ability to indicate interest and move along that. I think they're approaching it in a way that will give us that scale benefit, you know, as we grow those revenues. Clearly as we're ramping up the therapist network, there's an investment that's happening there.

Speaker #2: You know , the revenue , you know , will follow in in terms of acquired users and sessions and so forth . And I think the way that BetterHelp is approaching this is quite unique to in terms of how they are not just approaching the credentialing , but how they're , again , with the with the significant network that they have already , how we're putting into the experience , the therapists part of the experience , the ability to indicate interest .

Speaker #2: And move along that . So I think they're approaching it in a way that will give us that scale benefit , you know , as we as we grow those revenues .

Speaker #2: But clearly , as we're ramping up , the therapist network , there's an investment that's happening there .

Speaker #1: Thank you. Our next question comes from the line of Brian Tanquilut of Jefferies. Your line is now open.

Operator: Thank you. Our next question comes from the line of Brian Tanquillet of Jefferies. The line is now open.

Speaker #12: Hey . Good afternoon . Maybe kind of along the same lines of the last question , but slightly different here , as I think about integrated care and seeing how the the utilization based revenue there is starting to grow , are there any conversations happening with payers , whether that's rate driven or just trying to figure out how to manage on their side ?

Chuck Divita: Hey, good afternoon. Maybe kind of along the same lines of the last question, but slightly different here. As I think about integrated care and seeing how the utilization-based revenue there is starting to grow, are there any conversations happening with payers, whether that's rate driven or just trying to figure out how to manage on their side the utilization of that service? Yeah, it's a great question. There's a couple of things there. Clearly, the customer base has seen and continues to see the value of having a virtual capability in visit, and we have good utilization relative to other market players and drive savings. Think about ER avoidance and those kinds of things. Where, and going back to the comments I made earlier about these strategic conversations, these are not just visits but they are engagement points.

Speaker #12: The utilization of that service ?

Speaker #2: Yeah , it's a great question . There's a couple of things there . Clearly , you know , the customer base has seen and continues to see the value of having a virtual capability and visit .

Speaker #2: And we we have good utilization relative to , you know , other market players and , and drive savings . You know , think about er avoidance and those kinds of things .

Speaker #2: I think where and you know kind of going back to the comments I made earlier about the strategic conversations , these are not just visits , but they are , you know , they are engagement points .

Speaker #2: And as we've expanded and will be expanding 2026 , the capabilities we have in what we call our 24 over seven care offering , being able to address more care needs for the member , the ability to reduce unnecessary specials referrals by bringing a specialist consult to the table , closing care gaps , navigating the member , doing follow up , ordering labs , those kinds of things .

Chuck Divita: As we've expanded and will be expanding in 2026, the capabilities we have in what we call our 24/7 care offering, being able to address more care needs for the member, the ability to reduce unnecessary specialist referrals by bringing a specialist consult to the table, closing care gaps, navigating the member, doing follow-up, ordering labs, those kinds of things, the clients will see even more value in what we're driving. I think that's where we're going to see both additional opportunities for activation but also, back to the earlier question, opportunities to participate in that value as we drive stronger outcomes. As we migrate to this visit-based environment, like I said in my prepared remarks, we're leaning into that. The good news is we have millions and millions of visits each year.

Speaker #2: The clients will see even more value in what we're driving , and I think that's where we're going to see both , you know , additional opportunities for activation , but also back to the earlier question , opportunities to participate in that value as we drive stronger outcomes .

Speaker #2: So , you know , as we migrate to this , you know , visit based environment , like I said in my prepared remarks , we're leaning into that .

Speaker #2: And the good news is , is we have millions and millions of visits each year with the largest by far . And I think it's an important strategic lever in that broader integrated care strategy .

Chuck Divita: We're the largest by far, and I think it's an important strategic lever in that broader integrated care strategy. All of that is in play in the virtual care side.

Speaker #2: So yeah, I think all of that is in play in the virtual care side.

Speaker #1: Thank you. Our next question comes from the line of Kevin Caliendo of UBS. Your line is now open.

Operator: Thank you. Our next question comes from the line of Kevin Caliendo of UBS. Your line is now open.

Speaker #13: Hey guys, this is Jack on for Kevin. Thanks for taking the questions, and I also want to wish you the best of luck in your next endeavor.

Chuck Divita: Hey guys, this is Jack Sempton for Kevin. Thanks for taking the questions and Mala, also want to wish you the best of luck in your next endeavor. In your prepared remarks, you guys mentioned that you expect to add necessary capacity to meet demand in the BetterHelp business just as you take it in network. I mean the BetterHelp users have been declining. What does the supply demand imbalance look like now for the insurance offering? I guess like how do you expect that to change going forward? Maybe just the second part to that, like how much supply or I guess like how many clinicians do you need to add to meet the extended demand there? Just kind of interested to hear how like clinicians are viewing the offering versus staying cash pay. Hope that makes sense. Thanks. Yeah, it did make sense.

Speaker #13: In your prepared remarks, you guys mentioned that you expect to add necessary capacity to meet demand in the Better Health business.

Speaker #13: Just as you take it in network, I mean, the BetterHelp users have been declining. What does this demand imbalance look like now for the insurance offering?

Speaker #13: And I guess, how do you expect that to change going forward? And maybe just a second part to that: how much supply, or how many clinicians, do you need to add to meet the demand there?

Speaker #13: Just kind of interested to hear how clinicians are viewing the offering versus staying staying cash pay . Hope that makes sense . Thanks .

Speaker #2: Yeah, it did make sense at this point. We are, you know, keeping up with the demand in the states that we've launched in.

Chuck Divita: At this point we are keeping up with the demand in the states that we've launched in. In fact, that's a key criteria before we launch is that we have the adequate therapist capacity because we want to make sure that that user experience and access is strong. We've been able to do that. Again, that's part of our scaling plan, importantly the ability to match the therapist network to meet the demand. We believe with the interest that has been shown and our ability to credential those therapists that we'll be able to keep up with that. Again, I think we've been able to meet demand both on the direct to consumer side quite well. The ability to match a therapist with the consumer over 90% of the time in less than 48 hours. It's because this is a consumer oriented business.

Speaker #2: In fact, that's a key criterion. Before we launch, we need to ensure that we have the adequate therapist capacity because we want to make sure that the user experience and access are strong.

Speaker #2: So we've been able to to do that . And again , we've we that's part of our scaling plan is . Importantly the ability to match the therapist network to meet the demand .

Speaker #2: And we believe with the interest that has been shown and our ability to credential those therapists, we will be able to keep up with that.

Speaker #2: So again , I think , you know , we've been able to meet demand both on the direct to consumer side quite well .

Speaker #2: You know , the ability to match a therapist with the with the consumer . Not over 90% of the time in less than 48 hours .

Speaker #2: And it's because this is a consumer-oriented business, regardless of whether it's cash pay or the insurance is paying. We want to make sure we maintain that strong Net Promoter Score and experience.

Chuck Divita: Regardless of whether it's cash pay or the insurance is paying, we want to make sure we maintain that strong net promoter score and experience. Right now as we speak, it's a critical part of our rollout plan. We don't go live in a state unless we feel like we have adequate capacity to support the demand.

Speaker #2: So right now , as we speak , it's a critical part of our rollout plan . And again , we don't go live in a state unless we feel like we have adequate capacity to support the demand .

Speaker #1: Thank you. Our next questions are from the line of Jeff Garro of Stephens. Your line is now open.

Operator: Thank you. Our next questions are from the line of Jeff Garro of Stephens.

Speaker #7: Yeah .

Speaker #13: Good afternoon , and .

Chuck Divita: Yeah, good afternoon and thanks for taking the question. I want to hit on chronic care enrollment trends. Nice to see that rebound sequentially in Q3, but curious how that played out relative to expect, how we should think about the ability to ramp from here, and any comments you could give on kind of the built-in growth opportunity there versus the need to sell additional solutions into the client base before converting potential members. Thanks. Yeah, I'll make a few comments and Mala can add. I want to steer away from sort of 2026 in that question. We were pleased to see the sequential growth in the quarter. We expected to see that and we communicated that and it delivered.

Speaker #14: Thanks for taking the question. I want to focus on chronic care enrollment trends. It's nice to see that rebound sequentially in Q3, but I'm curious how that played out relative to expectations and how we should think about the ability to ramp from here.

Speaker #14: And any comments you could give on the kind of the built-in growth opportunity there versus the need to sell additional solutions into the client base before converting potential members.

Speaker #14: Thanks .

Speaker #2: Yeah , I'll make a few comments . And Malik add , you know , I want to steer away from , you know , sort of 2026 in that in that , in that question .

Speaker #2: But we were pleased to see the sequential growth in the quarter . We expected to see that . And we we communicated that and and it delivered .

Speaker #2: We were excited to see that we have, you know, many more millions of recruitable individuals in our chronic care programs. And we have had a lot of interest in the bundling of programs.

Chuck Divita: We were excited to see that we have many more millions of recruitables in our chronic care programs and we have had a lot of interest in the bundling of programs. There is a lot of opportunity for us to go after within what we've already sold. I think importantly, and I alluded to this earlier, the new innovations we're bringing to market, again, we entered 2025 largely with the product portfolio we had in 2024. We've got a number of innovations, we've got new devices, new connected devices, which I think are going to be streamlined and helpful, new features with our programs and all of that. Importantly, we are working on things to drive additional clinical interventions for rising risk populations and high risk populations because we have the ability to deliver care.

Speaker #2: So there's a lot of opportunity for us to go after within what we've already sold . And I think importantly , and I alluded to this earlier , but , you know , the new innovations we're bringing to market , again , we entered 2025 largely with the product portfolio we had in 2024 .

Speaker #2: We've got a number of innovations. We've got new devices, new connected devices, which I think are going to be streamlined and helpful.

Speaker #2: New new features with our programs and all of that . But importantly , we are working on things to drive additional clinical interventions for rising risk populations and high risk populations .

Speaker #2: Because we have the ability to deliver care because of the unique nature of Teladoc, we believe there's an opportunity for us to engage people who are having challenges getting their health under control, understand their needs, and ascertain if they have an existing care provider. Great.

Chuck Divita: Because of the unique nature of Teladoc Health, we believe there's an opportunity for us to engage people that are having challenges getting under control, understand their needs, understand if they have an existing care provider, great. If they do, we want to be a complementary part of that. If they don't, we want to make sure we intervene and get the conditions under control and improve their health outcomes. I think that will not only drive greater clinical outcomes, which is critical, but greater financial ROI for our customers as those patients are better served. That will also create an opportunity for us with those customers to activate more engagement strategies as a result. There are a number of levers that we can pull to continue to build upon the progress we saw in the field. Mala, anything you want to add?

Speaker #2: If they do , we want to be a complementary part of that . If they don't , we want to make sure that we intervene and get the get the conditions under control and improve their health outcomes .

Speaker #2: And I think that will not only drive greater clinical outcomes, which is critical, but greater financial ROI for our customers as those patients are better served.

Speaker #2: And that will also create an opportunity for us with those customers to activate more engagement strategies . As a result . So there's a number of levers that we can pull to continue to build upon the progress we saw in the third quarter .

Speaker #2: Molly, is there anything you want to add?

Speaker #3: I think that's really well said . The only thing I would add is we are also investing in connecting all of the data that we have to be able to , you know , when Chuck talks about clinical intervention to be able to enable our providers at the point of care with the right data , with the right pre 60 view .

Mala Murthy: I think that's really well said. The only thing I would add is we are also investing in connecting all of the data that we have to be able to, you know, when Chuck Divita talks about clinical intervention, to be able to enable our providers at the point of care with the right data, with the right 360 view, so that they are not only treating and helping the very sick, but most importantly, they are also helping and treating the emerging sick. That is, you know, when Chuck Divita talks about being able to participate in the value, being able to drive greater ROI, it's really on the back of both.

Speaker #3: So they are not only treating and helping the very sick, but most importantly, they are also helping and treating the emerging sick.

Speaker #3: And that is , you know , when Chuck talks about being able to participate in the value , being able to drive greater ROI , it is it's really on the back of both .

Speaker #1: Thank you. Our next question comes from the line of David Larson of BTIG. Your line is now open.

Operator: Thank you. Our next question comes from the line of David Harrison Roman of BTIG. Your line is open.

Speaker #15: Hi . Can you talk a little bit about BetterHelp ? So , like after one year , what percentage of patients are still on therapy ?

Chuck Divita: Hi, can you talk a little bit about BetterHelp. After one year, what % of patients are still on therapy? Can you talk a little bit about continuity of care? My view is, if somebody's taking insurance and the patient doesn't have to actually pay for it out of pocket, they're more likely to stay on therapy. Any thoughts there? Also, what portion of BetterHelp members are also part of the integrated care platform? I would think if you're serving employer groups or plans and you can basically refer them to BetterHelp, there would be an immediate opportunity to cover the mental health visit with insurance. Any color there would be helpful. Thank you. Yeah, I'll make some general comments and see if Mala wants to add anything. Yes, I do.

Speaker #15: Can you talk a little bit about continuity of care? My view is that if somebody is taking insurance and the patient doesn’t have to actually pay for it out of pocket, they're more likely to stay on therapy.

Speaker #15: Just any thoughts there . And then also what portion of BetterHelp members are also part of the integrated care platform ? I would think if you're serving employer groups or plans and you could basically , you know , refer them to BetterHelp , there would be sort of an immediate opportunity to to cover the mental health visit with insurance .

Speaker #15: It's any color; that would be helpful. Thank you.

Speaker #2: Yeah , I'll make some general comments and see if Mala wants to add anything . Yes , I do , we do very much expect and believe that as people are able to activate insurance , that if they need more therapy , that they're able to access it right now from a BetterHelp standpoint , you know , those consumers are making decisions and trade off decisions in terms of their priorities around their wallet .

Chuck Divita: We do very much expect and believe that as people are able to activate insurance, if they need more therapy, they're able to access it. Right now, from a BetterHelp standpoint, those consumers are making decisions and trade-off decisions in terms of their priorities around their wallet, and it's typically probably not because they've fully addressed their mental health needs and they've got some challenges. I think we do a great job there. We have great clinical outcomes on the BetterHelp side, but having the ability to access their insurance should be a benefit.

Speaker #2: And it's typically probably not because they've fully addressed their mental health needs, and they've got some challenges. So I think, you know, we do a great job there.

Speaker #2: We have great clinical outcomes on BetterHelp side . But having the ability to access their insurance should be a benefit . Now to your to your second point , our real entree in terms of overlap between integrated care and BetterHelp is the launch of our new Wellbound product that really is bringing together both really the best of both in the ability to support , you know , those people with a range of needs , mental health needs , other kinds of support that they have .

Chuck Divita: To your second point, our real entree in terms of overlap between integrated care and BetterHelp is the launch of our new Wellbound product that really is bringing together both, really the best of both in the ability to support those people with a range of needs, mental health needs, other kinds of support that they have. I think that's where we're going to see the ability to bring BetterHelp into that arena in terms of serving integrated care. Mala, would you add anything?

Speaker #2: And I think that's where we're going to see the ability to bring better help into that arena . In terms of serving integrated care .

Speaker #2: Mala , would you add anything ?

Speaker #3: I think that's well put .

Mala Murthy: I think that's well put.

Speaker #2: Okay . Thank you .

Chuck Divita: Okay, thanks very much.

Speaker #15: Thanks very much .

Speaker #1: Thank you. That was all the time we have for questions for today's call, so that will be the conclusion for today's call.

Operator: Thank you. That was all the time we have for questions for today's call. That will be the conclusion for today's call. Thank you for your participation. You may now disconnect your line.