Talkspace (TALK) Q4 2025 earnings summary

Executive summary

• Achieved full-year 2025 revenue of $229 million, up 22% year-over-year, with payer growth of 38% and adjusted EBITDA of $15.8 million, up 127% year-over-year.

• Q4 2025 revenue was $63.0 million, up 29% year-over-year, with payer revenue up 41% and sessions reaching 450,000.

• Strategic shift to payer fee-for-service model, network curation, and product innovation drove growth and operating leverage.

• Expanded payer coverage to over 200 million lives, launched national Tricare coverage, and acquired Wisdo to enhance AI-powered offerings.

• Proprietary AI agent in beta, with launch planned for 2026 to support future growth.

Financial highlights

• 2025 revenue reached $229 million, up from $187.6 million in 2024; adjusted EBITDA was $15.8 million, up 127% year-over-year.

• Q4 2025 adjusted EBITDA was $6.6 million (10.4% margin), up 147% year-over-year; Q4 gross profit was $26.9 million (42.7% margin).

• Full-year payer revenue grew 38% to $171.5 million; consumer revenue declined 30% to $17.5 million.

• Ended 2025 with $92.6 million in cash and $55.2 million in marketable securities; no debt.

• Repurchased ~$17 million in shares under the buyback plan in 2025.

Outlook and guidance

• 2026 revenue guidance: $275–$290 million (20–27% growth); adjusted EBITDA: $30–$35 million (90–122% growth).

• Expect to exit 2026 with EBITDA margins in the mid-teens, at the high end of the 12–15% target range.

• Payer revenue growth expected to match 2025 rates; DTE to grow low single digits; consumer revenue to decline.

• Q1 DTE revenue expected to be sequentially lower due to Q4 implementation revenue.