Teladoc Health shares have climbed 28% so far this year, outpacing the S&P 500's 9% gain, as the telemedicine company shows early signs of a turnaround. First-quarter revenue slipped 2% to $613.8 million, with its BetterHelp virtual therapy unit down 9% to $218.4 million, but the net loss narrowed to $0.36 per share from $0.53 a year earlier. The market is focusing on BetterHelp's new insurance coverage in many U.S. states, which has boosted session volumes by about 20% for insured users, and the company expects an annual run rate of at least $125 million from insurance-covered sessions by the end of 2026, up from $75 million at the end of the first quarter. International revenue grew 17% to $122.3 million, and AI-driven tools are reducing administrative work for therapists. Despite the progress, the company still faces intense competition in virtual therapy, risks from global expansion, and an uncertain path to consistent profitability, making the stock a high-risk proposition.
Teladoc IncBetterHelp's new insurance coverage boosted session volumes by 20% for insured users, with expected annual run rate of $125M by 2026.