Teladoc Health Inc. (TDOC) shares plummeted 5.01% in pre-market trading on Thursday, as investors reacted to the company's disappointing first-quarter 2025 earnings report and subsequent analyst downgrades. The telehealth provider continues to face challenges in its core business segments, prompting concerns about its near-term growth prospects.

According to the Q1 2025 earnings call highlights, Teladoc reported consolidated revenue of $629.4 million, down 3% year-over-year. The company also posted a net loss of $0.53 per share, which included a noncash goodwill impairment charge of $0.34 per share pretax. The BetterHelp segment, in particular, experienced an 11% decline in revenue compared to the prior year, with adjusted EBITDA margin decreasing from 5.7% to 3.2%.

Following the earnings release, several analysts lowered their price targets for Teladoc stock. Leerink Partners cut its target price to $7.50 from $10.00, while Stifel reduced its target to $8 from $9. Canaccord, despite maintaining a Buy rating, lowered its price target to $12 from $14. These downgrades reflect growing concerns about Teladoc's ability to navigate the challenging telehealth landscape and return to profitable growth in the near term.