Teladoc Health, Inc. (TDOC.N): TDOC Model Update

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Teladoc Health, Inc. (TDOC.N): TDOC Model Update

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31 Jul 2026 16:01:00 ET │ 14 pages

Teladoc Health, Inc. (TDOC.N)

TDOC Model Update

CITI'S TAKE

Neutral / High Risk We are updating our model following 2Q earnings and lowering our target

price to $7.50 (from $11), reflecting worse-than-expected DTC BetterHelp Price (30 Jul 26 16:00) US$6.58

results (LINK). Weakness was driven entirely by disappointing Target price US$7.50↓

performance and a guidance reduction for BetterHelp, stemming from a from US$11.00

faster-than-anticipated shift from the DTC cash-pay model to insurance, Expected share price return 14.0%

which was met with a provider capacity bottleneck. This created a revenue Expected dividend yield 0.0%

"air pocket," as the decline in cash-pay users accelerated beyond what the

Expected total return 14.0% nascent insurance business could offset. As such BH revenue fell 11.6% y/y

Market Cap US$1,195M while adj EBITDA fell $11.4M leading to a ~12% reduction in BH revenue for

FY26 (missing our/cons. estimates by 11%) and a ~5% reduction in

enterprise revenue missing our/cons. estimates by 5%/4%. While the IC

remains relatively stable, the focus is now squarely on how quickly TDOC Daniel GrosslightAC

can alleviate the provider bottleneck in its insured network. +1-212-816-9180

daniel.grosslight@citi.com

Remain Neutral/High Risk Rated; Lower Target Price to $7.50 — We are lowering Luismario Higuera

our target price to $7.50 (from $11) reflecting worse-than-expected DTC BetterHelp luismario.higuera@citi.com

results. This contemplates a 5.5x multiple on our FY27 adj. EBITDA estimates (down

from 7.5x). We think multiple compression is justified given the accelerated

deterioration of the BetterHelp cash-pay business. This creates limited visibility into