Shares of Teladoc Health Inc. (TDOC) surged 5.98% in after-hours trading on Tuesday following the release of the company's second-quarter 2025 financial results, which exceeded analyst expectations and provided an optimistic outlook for the full year.

The virtual healthcare provider reported a loss of $0.19 per share for Q2, beating the consensus estimate of a $0.25 loss. This represents a significant improvement from the $0.28 per share loss in the same quarter last year. Revenue for the quarter came in at $631.9 million, surpassing analysts' projections of $623.1 million, though slightly down from $642.4 million in Q2 2024.

Teladoc's performance was driven by strong growth in its Integrated Care segment, which saw revenue increase 4% year-over-year to $391.5 million. The company also reported an 11% increase in U.S. Integrated Care Members, reaching 102.4 million at the end of the quarter. Despite a 9% decline in revenue from its BetterHelp segment, Teladoc's overall results appear to have reassured investors about the company's growth trajectory and profitability improvements.

Looking ahead, Teladoc maintained its full-year 2025 revenue guidance of $2.50 billion to $2.55 billion, while narrowing its earnings per share loss forecast to between $1.00 and $1.35. The company's CEO, Chuck Divita, expressed confidence in Teladoc's strategic direction, stating, "We continue to work with focus and urgency to advance our strategic priorities, invest in products and capabilities, and deliver solid financial performance."

Additionally, Teladoc announced it had secured a new five-year, $300 million senior secured revolving credit facility, which the company says will enhance its financial flexibility. This move, coupled with the better-than-expected quarterly results, seems to have bolstered investor confidence in Teladoc's financial stability and future prospects.