Teladoc keeps beating earnings estimates and generates positive free cash flow on a non-GAAP basis, but quality metrics sit right at the engine's minimum threshold and value-trap signals around margin compression argue for caution.
Thesis pillars
- Quality Below Floor Value Trap→Stable
- Perfect Earnings Beat Streak→Stable
- Declining Revenue No Moat→Stable
- +1 more pillar — see the Why tab for full reasoning
Teladoc Health, Inc. (TDOC) Stock Analysis
Catalyst-Driven edge
Healthcare · Health Information Services
Sell if holding. Engine safety override at $9.32: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 16%; Below-average business quality; Rich valuation.
Teladoc Health is a global virtual care company operating two segments: Integrated Care, which delivers primary, urgent, chronic, and mental health care to more than 100 million members through employer and health-plan clients, and BetterHelp, a direct-to-consumer mental health... Read more
Sell if holding. Engine safety override at $9.32: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 16%; Below-average business quality; Rich valuation. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.1/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 24d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Teladoc Health, Inc.
About Teladoc Health, Inc.
Teladoc Health completed 17.1 million telehealth visits in 2025 across its Integrated Care segment, which reaches more than 100 million members through employer and health-plan clients, and its BetterHelp segment, a consumer mental-health platform with nearly 35,000 licensed clinicians. Access fees made up 83% of consolidated revenue in 2025, and the company's top five clients accounted for 19% of total revenue and 31% of Integrated Care segment revenue. Teladoc recorded a net loss of $200.3 million in 2025 against a $16.4 billion accumulated deficit, including $71.8 million of goodwill impairment tied to its Telecare Australia and Catapult Health acquisitions.
Integrated Care earns revenue mainly through per-member-per-month, per-employee-per-month, or per-participant-per-month access fees paid by employers, health plans, and health systems, supplemented by per-visit fees and, for hospital and health-system clients, software licenses, implementation fees, and hardware sales; some contracts place a portion of fees at risk against service-level, cost-savings, or clinical-outcome targets. BetterHelp earns revenue from individual paying users who pay weekly or monthly out of pocket or through insurance to access online counseling, though BetterHelp paying users fell 5% to 0.39 million in 2025 as competition and consumer engagement patterns shifted. Teladoc's Prism care-delivery platform and Pulse data-and-AI engine underpin both segments, ingesting clinical, lab, pharmacy-claims, and connected-device data to route members to clinicians and to power AI-driven risk stratification for chronic-care programs. The company also disclosed dependence on a limited number of third-party suppliers for materials used in connected devices such as its cellular blood glucose monitor, exposing it to supply-chain disruption and tariff risk.
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Teladoc's revenue concentration is modest in aggregate but material within its core segment: the top five clients made up only 19% of total 2025 revenue but 31% of Integrated Care segment revenue, and most client contracts allow termination for convenience on roughly three months' notice after the initial term, with no automatic renewal obligation. That contract fragility compounds a financial-reporting risk the company has already realized twice in 2025: goodwill impairments of $59.1 million (Catapult Health) and $12.6 million (Telecare Australia) followed closely on the heels of those acquisitions' closings, and Teladoc discloses that a post-year-end decline in its market capitalization below book value could trigger further impairment testing in the next reporting period.
See also: Healthcare · Health Information Services
From Teladoc Health, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomertop five Clients19%10-K Item 1A: 'our top five Clients by revenue accounted for 19% and 18% of our total revenue, respectively, and 31% of our Integrated Care segment revenue for both years ended December 31, 2025 and 2024'
- MEDIUMSupplierlimited number of third-party suppliers10-K Item 1A: 'our dependence on a limited number of third-party suppliers for timely access to materials, and the risk of supply chain disruptions, imposition or expansion of tariffs or further cost inflation'
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Rating Breakdown
3 floor-breakers
Revenue shrinking — -2.5% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $9.32: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 16%; Below-average business quality; Rich valuation. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $8.64. Score 4.1/10, moderate confidence.
Take-profit target: $9.35 (+0.6% upside). Prior stop was $8.64. Stop-loss: $8.64.
Target reached (-28.3% upside); Quality below floor (4.0 < 4.0).
Teladoc Health, Inc. trades at a P/E of N/A (forward -14.2). TrendMatrix value score: 3.8/10. Verdict: Sell.
32 analysts cover TDOC with a consensus score of 3.5/5. Average price target: $7.
What does Teladoc Health, Inc. do?Teladoc Health is a global virtual care company operating two segments: Integrated Care, which delivers primary,...
Teladoc Health is a global virtual care company operating two segments: Integrated Care, which delivers primary, urgent, chronic, and mental health care to more than 100 million members through employer and health-plan clients, and BetterHelp, a direct-to-consumer mental health platform with nearly 35,000 licensed clinicians. The company completed 17.1 million telehealth visits in 2025 and generated 83% of consolidated revenue from recurring access fees; its top five clients accounted for 19% of total revenue and 31% of Integrated Care segment revenue. Teladoc recorded a $200.3 million net los