Talkspace, Inc.

Q4 2025 total revenue was $63.0 million, up 29.3% year over year. Payor revenue was $47.7 million, up 41% year over year; sessions were 450,000, up 36.3%; and unique active Payor members were 124,000, up 29.7%. Gross profit was $26.9 million, up 24.4%, and gross margin was 42.7%, down 169 basis points year over year. Operating expenses were $23.1 million, up 9.6%, or 36.7% of revenue, down 660 basis points year over year. Adjusted EBITDA was $6.6 million, up 147.1%, with a 10.4% margin. For full-year 2025, revenue was approximately $229 million, up 22% year over year, and adjusted EBITDA was $15.8 million, versus about $7 million in 2024, with a 7% margin. For 2026, Talkspace guided to revenue of $275 million to $290 million and adjusted EBITDA of $30 million to $35 million; management said Payor growth should be in line with 2025, D2E should grow in the low single digits, Consumer revenue will continue to decline by design, and margins should exit 2026 in the mid-teens.

Jon Cohen framed the quarter as proof that Talkspace’s pivot toward the Payor model is working, citing 24% revenue CAGR since 2022, strong Payor session growth, and better operating leverage. He emphasized expanding access through awareness, partner integrations, Medicare and military programs, psychiatry, and the Wisdo acquisition, while also highlighting the clinical success of Teenspace. His tone was confident and optimistic, especially around AI, describing TalkAI as a specialized, clinically supervised product intended to be a safer mental health alternative to general-purpose LLMs.

Ian Harris focused on the financial operating model: Q4 revenue growth, Payor-led mix, margin expansion, and a balance sheet that ended with $92.6 million in cash. He said the cash balance declined by $25.2 million year over year, mainly due to $17.2 million of share repurchases in 2025 and the Wisdo acquisition. On 2026, he laid out revenue guidance of $275 million to $290 million and adjusted EBITDA of $30 million to $35 million, noting that the company expects a cadence of revenue growth through the year, high-single-digit EBITDA margins early in 2026, and mid-teens margins by year-end. He also said Wisdo’s contribution would be modest, at a single-digit millions level in 2026.

Analysts pressed on how Talkspace will compete for users in a world where people increasingly start with ChatGPT-like tools; management said it is working on generative engine optimization and sees TalkAI as a separate, protected environment for users who want a more serious, confidential conversation. Questions also focused on 2026 growth drivers, with management saying Payor upside will come from existing members already on the platform, more directory integrations, paid and organic marketing, and better member conversion. On Medicare Advantage and CMS’s access program, Jon Cohen said Talkspace has submitted and wants to participate, and he sees continued interest from Payors even as the MA market remains difficult. Analysts also asked about utilization management and pricing; management said mental health remains attractive to Payors, single-digit reimbursement increases are expected, and Talkspace’s outcomes and curated clinician network should help in value-based arrangements.