How to Play Teladoc Health Stock Post Q3 Results: Buy, Hold or Sell?

Teladoc Health TDOC reported decent third-quarter 2025 results, wherein the top line and the bottom line beat the Zacks Consensus Estimate. However, loss widened year over year and revenues too declined. Teladoc is a top player in the telehealth market, and its memberships are consistently growing. It boasts the largest breadth of integrated products and services in the virtual care industry and strives to be the “front door” to the healthcare system for its members. Teladoc is going after a $261-billion U.S. total addressable market.A Sneak Peek Into Q3 ResultsIts revenues of $626.4 million declined 2.2% year over year as growth in the Integrated Care segment was offset by a decline at BetterHelp. However, the top line beat the consensus estimate by 0.2%.Though adjusted EBITDA of $70 million declined 16% year over year, it was at the high end of its guidance range owing to disciplined execution across the business. Adjusted EBITDA margin was 11.2%.Integrated Care segment revenues of $389.5 million increased 2% year over year, and the adjusted EBITDA margin was 17%. BetterHelp segment revenues of $236.9 million declined 8% year over year. Adjusted EBITDA margin was 1.6%.Geographically, U.S. revenues decreased 5% to $509.8 million. International revenues increased 12% to $116.7 million.Total costs and expenses decreased 1% year over year to $678.4 million.Loss of 21 cents per share was wider than the 19 cents loss incurred in the year-ago quarter. However, the bottom line beat the consensus estimate by 19.2%.TDOC expects 2025 consolidated revenues of $2.510 billion to $2.539 billion and adjusted EBITDA of $270 million to $287 million. Net loss per share is expected to be between $1.10 and $1.25.Free cash flow is expected to be in the range of $170 million to $185 million.The Case of TeladocTeladoc continues to strengthen its leadership in integrated care within the United States by expanding its service offerings, deepening care coordination and delivering improved patient and client outcomes. The company’s key initiative, the Prism care delivery platform—designed to enhance clinical intervention models for rising-risk and high-risk populations—is progressing well, with active pilots expected to go live in 2026, signaling solid growth prospects.Teladoc’s acquisition-driven growth strategy has significantly broadened its distribution capabilities, enriched its service portfolio and strengthened its global presence. The company focuses on acquiring scalable and high-growth products, technologies, clinical specialties and distribution channels to accelerate expansion and innovation.Its international operations provide crucial diversification as competition intensifies in the U.S. market. With a broad platform and an extensive global network, Teladoc is well-positioned to expand its international footprint across Europe, South America and Asia.Leveraging advanced technology, Teladoc ensures seamless healthcare delivery. Its comprehensive suite of services spans hundreds of medical subspecialties, supported by cutting-edge artificial intelligence (AI), machine learning and clinical expertise—positioning it as a leader in digital health innovation.It has a strong liquidity position with $726 million in cash and cash equivalents and free cash flow $113 million.Yet Teladoc has been incurring losses since its inception and has accumulated a deficit. These losses and accumulated deficits stemmed from substantial investments made by the company to acquire new clients, build its proprietary network of healthcare providers and develop its technology platform.TDOC's Price PerformanceShares of Teladoc have lost 12.2% year to date against the industry’s increase of 2.8%.Image Source: Zacks Investment ResearchTDOC vs. IndustryShares of medical service providers like HCA Healthcare HCA and CVS Health Corporation CVS have gained 57.1% and 73.9%, respectively, year to date.HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. Its numerous acquisitions, rising admissions, diversified business and capital deployment position it well for growth.CVS Health is a pharmacy innovation company with integrated offerings across the entire spectrum of pharmacy care. CVS is advancing its digital strategy and investing in emerging technologies to drive simplicity and efficiency and deliver better customer experiences. The growing adoption and shift of commercial scripts to the CVS CostVantage model is highly promising.Estimate Revision TrendEarnings estimates for 2025 witnessed no movement, while that of 2026 has improved by 2 cents in the past seven days. The expected long-term earnings growth is pegged at 52.3%, better than the industry average of 15.3%. TDOC has a Growth Score of B.Image Source: Zacks Investment ResearchTDOC Stock's Expensive ValuationTDOC is currently expensive. It is trading at a forward 12-month price-to-sales multiple of 0.56, higher than the industry average of 0.46. Image Source: Zacks Investment ResearchWhile TDOC is cheaper than HCA, it is expensive when compared with CVS.To ConcludeTelemedicine is significantly enhancing healthcare access, with expanded telehealth services temporarily supported by the 1135 waiver and the Coronavirus Preparedness Act. Rising demand for remote medical expertise is boosting the telehealth market. Teladoc, being the leading player in this industry, is poised to gain from this trend. Its VGM Score of B instills confidence. Yet, price erosion, its inability to achieve profits this year and probably the next, and a premium valuation keep us cautious on this Zacks Rank #3 (Hold) company.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVS Health Corporation (CVS): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Teladoc Health, Inc. (TDOC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks