Talkspace (TALK) Q4 2025 Earnings Call Transcript

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Thursday, February 19, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Jon R. Cohen

• Chief Financial Officer — Ian Harris

• Head of Investor Relations — Jeannine Feyen

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Jon R. Cohen: And convey you for joining the telephone contiguous to reappraisal our 4th fourth and afloat twelvemonth 2025 results. When I joined Talkspace astatine the 2022, the strategical pivot had already begun shifting from our user exemplary to a payer interest for work model. Today, I americium arrogant to look backmost astatine the advancement we've made financially operationally, and towards our ngo to present broad personalized intelligence wellness attraction to all. Since 2022, we person grown gross astatine a CAGR of 24% driven by payer league annualized maturation of astir 56%. During this time, our operating expenses arsenic a percent of gross continued to decline, helping to thrust operating leverage and improved EBITDA margins.

For the afloat twelvemonth of 2025, we delivered gross of astir $229,000,000 an summation of 22% twelvemonth implicit twelvemonth driven by payer maturation of 38%. In addition, we much than doubled adjusted EBITDA increasing from astir $7,000,000 successful 2024 to $15,800,000 successful 2025 which represents an adjusted EBITDA borderline of 7%. Our maturation successful PARE wherever we present screen good implicit 200,000,000 lives done security and leader benefits is driven by 2 factors. One, strategical initiatives we person enactment successful spot to bring radical to Talkspace, including targeted efforts to summation consciousness and thrust precocious intent referrals, arsenic good arsenic deepen partnerships with the payers to amended the diligent travel and marque it easier to find care.

And two, our expanding offerings wrong the payer transmission to cater to caller populations and differing levels of acuity. Both of these initiatives are underpinned by our continuous improvements to the subordinate travel and our objective network. We proceed to thrust accrued user consciousness done our paid media strategies hunt optimization, partnerships, and scaling marque recognition. Our consciousness campaigns person been precise palmy implicit the past 3 years arsenic designation of the Talkspace marque continues to spell up portion our spending connected selling has importantly decreased implicit the aforesaid period. Our initiatives to thrust precocious intent referrals has been successful. With expanding volumes period implicit period from Amazon Zocdoc, our strategical partners.

We're besides seeing a beardown and increasing beingness of Talkspace successful ample connection models owed to the enactment our squad has done to optimize connected and disconnected our website for accrued visibility and citations. In the 4th quarter, wide intent LLMs drove an expanding percent of postulation and checkouts arsenic we proceed to grow this caller and increasing channel. Recognizing that we supply precocious prime objective care, the payers person partnered with america connected respective caller initiatives to further simplify the diligent experience. This includes directory integrations with respective of our payer partners and immoderate utilizing azygous motion connected truthful that patients tin log into some platforms with ease.