Digital medical services platform Teladoc Health (NYSE: TDOC) reported Q4 CY2025 results exceeding the market’s revenue expectations, but sales were flat year on year at $642.3 million. On the other hand, next quarter’s revenue guidance of $609 million was less impressive, coming in 3.8% below analysts’ estimates. Its GAAP loss of $0.14 per share was 24% above analysts’ consensus estimates.
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Teladoc (TDOC) Q4 CY2025 Highlights:
- Revenue: $642.3 million vs analyst estimates of $635.9 million (flat year on year, 1% beat)
- EPS (GAAP): -$0.14 vs analyst estimates of -$0.18 (24% beat)
- Adjusted EBITDA: $83.78 million vs analyst estimates of $80.61 million (13% margin, 3.9% beat)
- Revenue Guidance for Q1 CY2026 is $609 million at the midpoint, below analyst estimates of $633.2 million
- EPS (GAAP) guidance for the upcoming financial year 2026 is -$0.90 at the midpoint, missing analyst estimates by 16.6%
- EBITDA guidance for the upcoming financial year 2026 is $287 million at the midpoint, below analyst estimates of $294.8 million
- Operating Margin: -5.6%, up from -7.5% in the same quarter last year
- Free Cash Flow Margin: 8.3%, down from 15.5% in the previous quarter
- U.S. Integrated Care Members: 101.8 million, up 8 million year on year
- Market Capitalization: $805.7 million
Company Overview
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Teladoc grew its sales at a weak 1.7% compounded annual growth rate. This was below our standards and is a tough starting point for our analysis.
This quarter, Teladoc’s $642.3 million of revenue was flat year on year but beat Wall Street’s estimates by 1%. Company management is currently guiding for a 3.2% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection is underwhelming and indicates its newer products and services will not accelerate its top-line performance yet.
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U.S. Integrated Care Members
User Growth
As an online marketplace, Teladoc generates revenue growth by increasing both the number of users on its platform and the average order size in dollars.
Over the last two years, Teladoc’s u.s. integrated care members, a key performance metric for the company, increased by 7.9% annually to 101.8 million in the latest quarter. This growth rate is decent for a consumer internet business and indicates people enjoy using its offerings. 
In Q4, Teladoc added 8 million u.s. integrated care members, leading to 8.5% year-on-year growth. The quarterly print isn’t too different from its two-year result, suggesting its new initiatives aren’t accelerating user growth just yet.
Revenue Per User
Average revenue per user (ARPU) is a critical metric to track because it measures how much the company earns in transaction fees from each user. ARPU also gives us unique insights into a user’s average order size and Teladoc’s take rate, or "cut", on each order.
Teladoc’s ARPU fell over the last two years, averaging 8.5% annual declines. This isn’t great, but the increase in u.s. integrated care members is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Teladoc tries boosting ARPU by taking a more aggressive approach to monetization, it’s unclear whether users can continue growing at the current pace. 
This quarter, Teladoc’s ARPU clocked in at $6.31. It declined 7.6% year on year, worse than the change in its u.s. integrated care members.
Key Takeaways from Teladoc’s Q4 Results
We enjoyed seeing Teladoc beat analysts’ EBITDA expectations this quarter. We were also glad it expanded its number of users. On the other hand, its revenue guidance for next quarter missed and its EBITDA guidance for next quarter fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $4.64 immediately after reporting.
Teladoc’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
