Teladoc Health Inc. (TDOC) shares tumbled 5.84% in after-hours trading on Wednesday following the release of its first-quarter 2025 earnings report, which revealed mixed results and disappointing guidance. The telehealth provider's performance raised concerns among investors about its near-term profitability and growth prospects.

For the first quarter, Teladoc reported a loss per share of $0.53, significantly missing the analyst consensus estimate of $0.34. This represents a 55.88% negative surprise and an 8.16% increase in losses compared to the same period last year. The company's bottom line was impacted by a pre-tax goodwill impairment charge of $59.1 million, or $0.34 per share. On the revenue front, Teladoc fared better, posting $629.4 million in sales, which surpassed the consensus estimate of $619.23 million by 1.63%. However, this still marked a 2.59% decrease from the $646.13 million reported in the same quarter of the previous year.

Adding to investor concerns, Teladoc provided weaker-than-expected guidance for both the second quarter and full year 2025. The company forecasts Q2 earnings per share between $(0.40) and $(0.20), falling short of the consensus estimate of $(0.26). For the full year, Teladoc projects EPS in the range of $(1.40) to $(0.90), below the analyst consensus of $(1.03). These projections suggest ongoing challenges in achieving profitability, despite the company's efforts to expand its services and market reach. In a separate announcement, Teladoc revealed the acquisition of Uplift for $30 million plus a $15 million earnout, aiming to expand consumer access to mental health care services through covered benefits. However, this strategic move did not appear to offset the negative sentiment surrounding the earnings report and guidance.