Teladoc, a virtual healthcare provider, saw its shares fall more than 20% after trimming its annual revenue forecast and flagging challenges at its mental health services unit BetterHelp.
BetterHelp Challenges
BetterHelp, Teladoc’s direct-to-consumer mental health business, has been a key focus for investors as the company shifts to offer insurance-covered services on the platform. However, demand for insurance-covered services among customers exceeded expectations and outpaced available provider capacity, limiting the number of sessions it could offer and restricting its revenue growth.
Chief Executive Officer Chuck Divita stated that pressure on cash pay revenue accelerated further in late May and into June, beyond the assumptions underlying the company’s prior outlook. Despite this, insurance revenue in the BetterHelp segment nearly hit the high end of Teladoc’s expectations.
Teladoc now expects 2026 revenue to be between $2.36 billion and $2.45 billion, below its previous estimate of $2.48 billion to $2.58 billion. The company expects 2026 BetterHelp revenue to decline 19.0% to 12.7%, compared with its previous estimate of a 6.50% to 1% decline.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
