Teladoc Health reported second quarter results that missed revenue expectations and issued guidance significantly below analyst estimates, sending shares down 17.8% in after-hours trading Wednesday.

The virtual care provider posted revenue of $606.9 million for the second quarter, falling short of the analyst consensus of $615.0 million and down 4% YoY from $631.9 million. Adjusted EPS of -$0.21 beat expectations of -$0.25. The company’s BetterHelp segment faced accelerating pressure on cash pay revenue in late May and June, with revenue declining 12% YoY to $212.6 million, while the Integrated Care segment grew 1% YoY to $394.3 million.

For the third quarter, Teladoc issued revenue guidance of $569 million to $609 million, with a midpoint of $589 million well below the analyst consensus of $629 million. The company expects third quarter adjusted EPS of -$0.30 to -$0.20, compared to the consensus of -$0.20. For full year 2026, Teladoc guided to revenue of $2.362 billion to $2.447 billion, with a midpoint of $2.405 billion significantly below the consensus of $2.51 billion. Full year adjusted EPS guidance of -$1.00 to -$0.75 also came in below the consensus of -$0.79.

"In the BetterHelp segment, insurance revenue came in near the high end of our expectations. However, pressure on cash pay revenue accelerated further in late May and into June, beyond the assumptions underlying our prior outlook," said Chuck Divita, Chief Executive Officer of Teladoc Health. "We saw stronger than anticipated demand for insurance covered services that outpaced available provider capacity, limiting our ability to convert a greater share of that demand into sessions and revenue to offset the cash pay decline."

The company reported adjusted EBITDA of $65.7 million for the second quarter, down 5% YoY from $69.3 million. Net loss totaled $38.9 million, or -$0.21 per share, compared to a net loss of $32.7 million, or -$0.19 per share, in the prior year period.