Talkspace reported Q3 2025 revenue of $59.4 million, a 25% year‑over‑year increase. Payor‑segment revenue rose to $45.5 million, up 42% from $26.5 million in Q3 2024. Direct‑to‑enterprise revenue fell to $4.6 million from $6.0 million, while consumer revenue was $9.3 million, slightly down from $9.4 million. Net income for the quarter was $3.25 million, and adjusted EBITDA reached $5.0 million, compared with $2.4 million in Q3 2024. Share repurchases totaled $9 million.
Prior‑period comparisons show that Q3 2024 revenue was $47.4 million, net income $1.9 million, and adjusted EBITDA $2.4 million. Q2 2025 revenue was $54.3 million and adjusted EBITDA $2.3 million, indicating sequential growth.
The growth was driven by expansion of the in‑network payer model, new Blues plans in Illinois and Massachusetts, a national EAP contract, and the relaunch of the psychiatry business. Improvements in the matching algorithm, scheduling, and provider capacity also contributed. Gross margin contracted slightly due to a mix shift toward payer revenue and selective network hiring in anticipation of demand.
Management narrowed full‑year 2025 revenue guidance to $226‑$230 million and adjusted EBITDA guidance to $14‑$16 million. The company cited investments in AI and technology that are impacting near‑term profitability but are intended to support sustainable growth.
Strategic moves include the acquisition of Wisdo Health, an AI‑powered social health platform, and the development of proprietary risk algorithms and a behavioral‑health large language model slated for launch in early 2026. The direct‑to‑consumer segment is experiencing a decline, prompting a focus on payer relationships.
CEO Jon Cohen highlighted record revenue and adjusted EBITDA, accelerated payer member growth and session volume, and improvements in matching, scheduling, and provider capacity. CFO Ian Harris noted progress embedding Talkspace into payer partner ecosystems and the strength of the psychiatry business.
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