Talkspace Inc. (TALK) shares tumbled 5.75% in pre-market trading on Tuesday following the release of its first-quarter 2025 financial results. The virtual behavioral healthcare provider reported revenue that fell short of analyst expectations, despite showing year-over-year growth.

Talkspace's Q1 2025 sales came in at $52.18 million, missing the estimated $53.31 million. While this represents a 15% increase from the same period last year, the company's consumer revenue segment saw a significant 32% year-over-year decline. Additionally, Talkspace reported an operating income of -$1.085 million, falling below the estimate of -$962.2 thousand.

Despite these challenges, Talkspace maintained its full-year 2025 revenue guidance of $220 million to $235 million. The company also reported a net income of $318 thousand, surpassing the estimate of -$345.3 thousand, and an adjusted EBITDA of $1.955 million, beating the expected $1.69 million. However, these positive aspects were not enough to offset investor concerns about the revenue miss and the declining consumer segment, leading to the pre-market plunge.