Oct 28, 2026 earnings call — BetterHelp insurance growth and Teladoc 1 launch
BetterHelp insurance revenue was $32 million and weekly insurance sessions hit 27 thousand, implying an annualized revenue run rate of over $140 million.
Revenue $0.6B (est $0.6B) · EPS $-0.15 (est $-0.22)
Key quotes
"Insurance revenue for the quarter was $32 million, which exceeded the high end of the range of our expectations."
"In July, we announced Teladoc 1, a first of its kind offering, a comprehensive care model that goes beyond condition specific programs to help detect health risk earlier engage individuals more comprehensively, and scale outcomes across populations."
"These and other initiatives are helping us deliver strong adjusted EBITDA margin despite the gross margin pressure we have seen over recent years."
Analyst Q&A 11
BetterHelp insurance onboarding
Q (Allen Lutz · BofA): He asked why the number of therapists taking insurance is accelerating, where they are succeeding or struggling, and how the therapist growth may trend in coming quarters.
A: Management said the team is accelerating credentialing and onboarding, gaining scale benefits, adjusting compensation and platform tools, and investing to reduce administrative burden to make it easier for therapists and patients.
"We have been very encouraged by the progress we are making in insurance." — Charles Divita (CEO)
cash-pay performance and Q4 drivers
Q (Richard Close · Canaccord Genuity): He asked why cash-pay did better than expected in Q3 and how much Q4 BetterHelp guidance reflects company actions versus external factors like the economy.
A: Management said Q3 cash-pay beat expectations due to actions taken (lower customer acquisition costs and metric improvements) but they still see downward pressure. For Q4, reduced advertising is a major driver of lower cash-pay acquisition and they factored insurance scale and uncertainty into guidance.
"I think the team has done a nice job of implementing the actions we talked about in the second quarter and really looking to balance our approach, to balance the demand for insurance in terms of capacity, but also manage the cash pay side." — Charles Divita (CEO)
Teladoc 1’s role in sales talks
Q (Lisa Gill · JPMorgan): She asked what clients are buying for 2027 bookings and how meaningful Teladoc 1 will be in the 2027 selling season.
A: Management said clients want comprehensive solutions that show outcomes and ROI. They moved from announcement to execution for Teladoc 1, have initial launch partners, are engaging patients in the new model, and expect some benefit in 2027 with broader availability in 2027.
"We are starting to engage patients in the new model." — Charles Divita (CEO)
Integrated care EBITDA bridge to Q4
Q (Sarah James · Cantor Fitzgerald): She asked how much of the ~315 bps margin pressure to Q4 is seasonal (like flu) versus incremental investments, and whether investments continue into 2027.
A: Management said they outperformed in Q3 and kept full-year guidance; Q4 has FX pressures, infectious disease assumptions similar to 2025, and a small acquisition with limited Q4 impact. They also used Q3 outperformance to make targeted investments for 2027.
"We did outperform in the third quarter, as you mentioned, in integrated care." — Charles Divita (CEO)
BetterHelp reimbursement, mix, SG&A
Q (Jessica Tassan · Piper Sandler): She asked if the ~$100 per insurance paid visit run rate is stable into 2027, whether the insurance mix is mostly large payers, and how SG&A supports insurance credentialing and conversions.
A: Management said reimbursements vary by market, payer, session type, but recent run-rate metrics have been relatively consistent. They are scaling credentialing and operations, expect operating leverage as insurance scales, and adjusted advertising to favor insurance uptake.
"the reimbursements are gonna vary you know, depending on the market, the payer, and the mix of sessions and types of sessions and things like that." — Charles Divita (CEO)
visibility to $200m insurance run rate
Q (Deutsche Bank): He asked how much visibility they have to the $200 million BetterHelp insurance exit run-rate target and how much growth is from utilization vs new payers and provider capacity sales pipeline.
A: Management said they have directional visibility: they are already seeing 27 thousand sessions a week and a significant run rate of $140 million, plan sequential growth each quarter, and have over 150 million lives under payer contracts to activate.
"We are already seeing 27 thousand sessions a week, as I referenced earlier." — Charles Divita (CEO)
BetterHelp revenue and margin direction
Q (Jailendra Singh · Truist): He asked if BetterHelp revenue will decline next year but exit growing, and whether insurance mix and lower advertising offset to expand EBITDA margins.
A: Management said they will give full 2027 guidance in Q4 but reiterated they are focusing on growing insurance, evolving advertising, and balancing cash-pay. They expect insurance to have lower gross margin than cash-pay and will balance top-line and bottom-line during the pivot.
"From a margin perspective, as we talked about earlier, you know, the insurance business, we do expect lower gross margin than what we have seen in cash pay." — Charles Divita (CEO)
Converting insured lives to sessions
Q (Elizabeth Anderson · Evercore): She asked how they convert national-plan lives into completed sessions and what therapist network bottlenecks remain as they scale insurance.
A: Management said first they contract the lives (150 million-plus), then create awareness so insured people know BetterHelp is in-network via brand and acquisition channels, then match and book sessions. They are optimizing a platform built for cash-pay to be more efficient and pursuing delegated credentialing and NCQA to speed provider enrollment.
"And third is really creating that awareness through the strong brand recognition and the customer acquisition channels that we built to better help over time through the consumer lens." — Charles Divita (CEO)
Marketing differences and cash-pay future
Q (Charles Rhyee · TD Cowen): He asked for examples of how marketing differs for insurance versus cash-pay and what exiting cash-pay says about that market’s future.
A: Management said prior to insurance BetterHelp used national consumer campaigns; state-by-state insurance required tailored marketing, but the national footprint now allows synergies and lower ad spend tied to capacity. They still expect a cash-pay market but see in-network insurance as a more durable position while offering both.
"So that is been key as well as just lowering the overall advertising expenditures so that we can you know, more connect the demand generation to the capacity we have" — Charles Divita (CEO)
Internal referrals between products
Q (Ryan Daniels · William Blair): He asked whether integrated care or Teladoc 1 can refer patients into insured BetterHelp for warm handoffs and if that will be a big future growth driver.
A: Management said integrated care already has scaled therapy and psychiatry to treat patients holistically and prioritize cross physical-mental care. They are focused on executing BetterHelp’s insurance pivot and integrated care’s holistic care first, and may explore synergies and referrals over the longer term.
"I think if you look at integrated care, we have a pretty scaled mental health capability inside integrated care." — Charles Divita (CEO)
Teladoc 1 revenue and customer mix
Q (Scott Schoenhaus · KeyBanc): He asked about incremental revenue opportunity from Teladoc 1, outcome-based versus visit fees, and whether interest comes from new employers or converting legacy customers.
A: Management said Teladoc 1 brings full clinical breadth and technology to members rather than single-condition products. They have initial launch partners, are engaging patients and getting good early feedback, and expect some 2027 impact with broader availability and both retention and new-client opportunities over time.
"We have got the initial launch partners underway, like I mentioned, starting to engage with patients, getting really good early feedback on that." — Charles Divita (CEO)