Teladoc Health Reports Revenue Decline, Shifts Focus to AI-Driven Solutions

Teladoc Health, a leading telehealth provider, has reported a 2% year-over-year decline in revenue for the third quarter of 2025, signaling ongoing challenges in the virtual care market. Despite this setback, the company is actively pursuing artificial intelligence (AI) initiatives to enhance its service offerings and improve operational efficiency.

Q3 Financial Performance and Leadership Changes

Teladoc Health's third-quarter results revealed a revenue of $626.4 million, down 2% compared to the same period last year. The company reported a net loss of $49.5 million, or 28 cents per share, for the quarter ending September 30. Adjusted EBITDA also saw a 16% year-over-year decrease, falling to $69.9 million.

In a significant leadership change, Chief Financial Officer Mala Murthy announced her departure from the company to pursue opportunities outside the healthcare sector. Murthy, who had been with Teladoc since 2019, played a crucial role in supporting the transition between former CEO Jason Gorevic and current CEO Chuck Divita.

Segment Performance and AI Strategy

The company's financial results revealed mixed performance across its business segments:

• BetterHelp, Teladoc's tele-mental health offering, continued its downward trend with an 8% revenue decline in Q3, following 9% and 11% drops in Q2 and Q1, respectively.
• The integrated care segment showed modest growth, with revenue increasing by 2% year-over-year.

Despite these challenges, Teladoc is placing a strong emphasis on AI-driven solutions to drive future growth. At the recent HLTH 2025 conference in Las Vegas, Tim Wright, SVP of Partnerships, and Dave Ross, the newly appointed Chief Technology Officer, outlined the company's AI strategy. This approach focuses on leveraging existing technology in healthcare settings to create novel solutions.

AI Initiatives and Future Outlook

Teladoc has launched several AI-powered products aimed at improving patient care and safety:

1. A workplace violence detection system, announced on October 14, uses video and audio equipment in hospital rooms to identify early warning signs of aggression against clinicians and staff.
2. A fall risk prediction tool, launched in 2024, analyzes patient body movements to assess the likelihood of falls in hospitalized patients.

Dave Ross, who recently joined Teladoc from Health Catalyst, emphasized the company's commitment to AI: "It's about giving people superpowers, and that includes the patients, their families, the caregivers around them, and yes, providers."

As Teladoc navigates a challenging financial landscape, its focus on AI-driven innovation may prove crucial in maintaining its position as a leader in the virtual care market.