GIMBHI: Talkspace (TALK) Q3 2025 Earnings

Sources: Talkspace, Claude

Additional Information: Talkspace (TALK) Q3 FY2025 Earnings Call Transcript

Financial Performance

• Revenue $59.4M (25% YoY, 9% sequential)

• Payer revenue $45.5M (42% YoY, 12% sequential)

• Adjusted EBITDA $5M (111% YoY, 8.4% margin)

• OpEx as % revenue: 34% (down from 41% YoY)

• Gross margin 41.5% (down from 43.1% due to pre-hiring)

• LTM Adjusted EBITDA ~$11.9M vs ~$4M YoY

• $96M cash, $0 debt, $17M buybacks YTD

• 2025 guidance: $226–230M revenue (20–23% growth), $14–16M EBITDA

Unit Economics & Engagement

• 120K active payer members (29% YoY, highest since inception)

• 432K payer sessions (37% YoY)

• ~3.6 sessions/member/quarter

• Third session completion in 30 days up 50%

• Payer members show longer retention than out-of-pocket

• Consumer revenue deliberately declining ($6M→$4.6M YoY) as pushing to insurance

AI/LLM Differentiation

• Trained on “hundreds of millions” anonymized therapy transcripts

• 50% better identifying high-risk behaviors vs general LLMs

• 47% higher therapeutic quality score

• 3x higher user satisfaction

• 30% higher third session booking with AI insights

• 21% more likely to book third session after AI podcast

• Launching behavioral health LLM H1 2026

• Built-in HIPAA compliance + human therapist handoff

Network & Operations

• 6,000 clinicians network

• Psychiatry providers grew 50% in Q2

• Psychiatry initial sessions up 46% quarterly

• Cross-referral therapy↔psychiatry driving sessions/member increase

• 93% of NYC teen program users prefer messaging over video

• 500+ suicide risk incidents identified in teen program

Market Position & Strategy

• 35% brand recognition as insurance-focused mental health brand

• In-network with new BCBS Illinois and Massachusetts

• Won competitive takeaway of major national EAP

• Military/dependents emerging as key growth segment

• Medicare still “work in progress” — different engagement by age cohorts

• DTE launches delayed Q3→Q4 but visibility strong

Strategic Acquisitions & Partnerships

• Acquired WISDO Health (AI peer support, 500K users, 21% loneliness reduction, 10% reduction ER/urgent care visits)

• Novo Nordisk/Wegovy partnership for GLP-1 group coaching

• Fee-for-service model with past cohorts compounding

• Pharma channel entry opportunity

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