Talkspace Announces Second Quarter 2025 Results
2Q 2025 Total revenue grew 18% year-over-year to $54.3 million
driven by 35% year-over-year growth in Payor revenue
2Q 2025 Net loss of $0.5 million and adjusted EBITDA1 of $2.3 million
2Q 2025 Share repurchases of $1.4 million
NEW YORK, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Talkspace, Inc. ("Talkspace" or the "Company") (NASDAQ:TALK), today reported second quarter 2025 financial results.
Three Months Ended June 30,
Six Months EndedJune 30,
2025
2024
2025
2024
Unaudited
Results
% Variancefrom PriorYear
Results
% Variancefrom PriorYear
(In thousands unless otherwise noted)
Number of completed Payor sessions during the period
385.1
29
%
735.1
26
%
Number of unique active Payor members during the period
111.2
25
%
N/A
N/A
Total revenue
$
54,310
18
%
$
106,492
16
%
Costs and operating expenses
$
56,100
13
%
$
109,367
13
%
Net loss
$
(541
)
(14
)%
$
(223
)
89
%
Adjusted EBITDA (1)
$
2,282
94
%
$
4,238
117
%
Cash and cash equivalents at period end
$
54,342
—
$
54,342
—
Short-term marketable securities
$
48,427
—
$
48,427
—
(1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of the measure and a reconciliation to the most directly comparable GAAP measure, see "Reconciliation of GAAP Results to Non-GAAP Results."
Dr. Jon Cohen, CEO of Talkspace, said, "I'm pleased with the work our team did this quarter to progress several operational initiatives within the business. We exited the quarter with positive momentum from the technology and marketing investments we made in the first half of the year. These investments helped to deliver sequential growth in unique active payor members and completed payor sessions of 10%, respectively, which gives us strong visibility into our trajectory for the second half of the year."
Second Quarter 2025 Key Performance Metrics
Revenue increased 18% over the prior-year period to $54.3 million, driven by a 35% year-over-year increase in Payor revenue, partially offset by a 32% year-over-year decline in Consumer revenue.
Cost of revenue, excluding depreciation and amortization, increased 24% over the prior-year period to $30.9 million, driven by a higher number of completed Payor sessions.
Total costs and operating expenses were $56.1 million, an increase of 13% year-over-year, primarily due to an increase in cost of revenue, excluding depreciation and amortization.
Net loss was $(0.5) million, relatively flat from the second quarter of 2024.
Adjusted EBITDA was $2.3 million, an improvement from $1.2 million adjusted EBITDA in the second quarter of 2024, primarily driven by an increase in revenue, partially offset by an increase in cost of revenue, excluding depreciation and amortization.
Financial Guidance
The following guidance is based on current market conditions and expectations and the information available to the Company today. For 2025 Talkspace continues to expect:
Revenue to be in the range of $220 million to $235 million
Adjusted EBITDA to be in the range of $14 million to $20 million
Conference Call, Presentation Slides, and Webcast Details
The Second Quarter 2025 earnings conference call and webcast will be held Tuesday, August 5, 2025, at 8:30 a.m. E.T. The conference call will be available via audio webcast at investors.talkspace.com and can also be accessed by dialing (888) 596-4144 for U.S. participants, or +1 (646) 968-2525 for international participants, and referencing participant code 8668160. A replay will be available shortly after the call's completion and remain available for approximately 90 days.
About Talkspace
Talkspace (NASDAQ:TALK) is a leading virtual behavioral healthcare provider committed to helping people lead healthier, happier lives through access to high-quality mental healthcare. At Talkspace, we believe that mental healthcare is core to overall health and should be available to everyone.
Talkspace pioneered the ability to text with a licensed therapist from anywhere and now offers a comprehensive suite of mental health services, including therapy for individuals, teens, and couples, as well as psychiatric treatment and medication management (18+). With Talkspace's core therapy offerings, members are matched with one of thousands of licensed therapists within days and can engage in live video, audio, or chat sessions, and/or unlimited asynchronous text messaging sessions.
All care offered at Talkspace is delivered through an easy-to-use, fully-encrypted web and mobile platform that meets HIPAA, federal, and state regulatory requirements. Most Americans have access to Talkspace through their health insurance plans, employee assistance programs, our partnerships with leading healthcare companies, or as a free benefit through their employer, school, or government agency.
For more information, visit www.talkspace.com.
For Investors:ICR
For Media:John KimSKDK(310)
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking, including statements regarding our financial condition, anticipated financial performance, achieving profitability, business strategy and plans, market opportunity and expansion and objectives of our management for future operations. These forward-looking statements generally are identified by the words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "future," "intend," "may," "might," "opportunity," "plan," "possible," "potential," "predict," "project," "should," "strategy," "strive," "target," "will," or "would," the negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many important factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) rapid technological change in our industry; (ii) our ability to secure clients' contract renewals; (iii) our ability to maintain and expand our network of therapists, psychiatrists and other providers; (iv) a decline in the prevalence of enterprise-sponsored healthcare or the emergence of new technologies may adversely impact our DTE business; (v) if our or our vendors' security measures fail or are breached; (vi) changes in healthcare laws, regulations or trends and our ability to operate in the heavily regulated healthcare industry; and (vii) the other factors, risks and uncertainties described under the caption "Risk Factors" in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 12, 2025, subsequent quarterly reports on Form 10-Q and our other documents filed from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise unless required to do so under applicable law. We do not give any assurance that we will achieve our expectations.
Talkspace, Inc.Condensed Consolidated Statements of Operations(Unaudited)
Three Months Ended June 30,
Six Months EndedJune 30,
2025
2024
%Change
2025
2024
%Change
(in thousands, except percentages, share and per share data)
Revenue:
Payor revenue
$
40,501
$
29,945
35.3
$
78,343
$
58,453
34.0
DTE revenue
9,403
9,628
(2.3
)
18,986
19,541
(2.8
)
Consumer revenue
4,406
6,485
(32.1
)
9,163
13,480
(32.0
)
Total revenue
54,310
46,058
17.9
106,492
91,474
16.4
Costs and operating expenses:
Cost of revenue, excluding depreciation and amortization
30,917
24,996
23.7
59,706
48,569
22.9
Research and development
2,563
2,088
22.7
5,403
5,749
(6.0
)
Clinical operations, net
