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Talkspace
(NASDAQ:TALK)
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Rating:65Neutral
Price Target:
$5.50
▲(5.57% Upside)
Action:Reiterated
Date:08/07/26
The score is primarily supported by improving fundamentals (growth and turnaround progress) and a strong, debt-free balance sheet, plus a major positive M&A development with shareholder approval. Offsetting these positives are weak cash conversion (negative TTM free cash flow), only near-breakeven TTM profitability, and a very high P/E that makes the valuation unattractive; technicals are neutral with limited momentum.
Positive Factors
Debt-free balance sheet
Zero reported debt and a strong equity base materially reduce financial risk and provide durable flexibility to fund operations, investments, or integration costs. This capital structure supports stability across cycles, lowers bankruptcy risk, and makes strategic options like M&A or reinvestment easier over the next several months.
Negative Factors
Negative free cash flow
Negative free cash flow after accounting for reinvestment indicates the business is not yet consistently generating cash available to shareholders. Persistent FCF deficits can force reliance on equity, parent support, or borrowing for growth initiatives and integration, constraining returns and requiring improvement to sustain long-term stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Zero reported debt and a strong equity base materially reduce financial risk and provide durable flexibility to fund operations, investments, or integration costs. This capital structure supports stability across cycles, lowers bankruptcy risk, and makes strategic options like M&A or reinvestment easier over the next several months.
Read all positive factors
Talkspace (TALK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$870.57M
Dividend YieldN/A
Average Volume (3M)2.23M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth21.28%
EPS Growth-91.18%
CountryUS
Employees598
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding165,823,820
10 Day Avg. Volume1,296,027
30 Day Avg. Volume2,227,757
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)5.22
Price to Sales (P/S)2.67
P/FCF Ratio-290.17
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.13
Revenue Forecast (FY)$281.55M
Talkspace Business Overview & Revenue Model
Company Description
Providing virtual behavioral healthcare services, Talkspace, Inc. operates a digital platform accessible via secure web and mobile applications. It offers a wide array of treatment options, including psychiatry, adolescent counseling, individual t...
How the Company Makes Money
Talkspace primarily makes money by delivering virtual mental health services through reimbursement and contracted arrangements rather than solely through direct-to-consumer subscriptions. A major revenue stream comes from business-to-business rela...
Talkspace Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The earnings call presents strong top-line growth, accelerated Payor traction, significant adjusted EBITDA expansion and operational improvements, supported by product innovation (AI, Talkcast, psychiatry expansion) and M&A (Wisdo). There are manageable execution risks: near-term gross margin pressure from mix, reduced cash after buybacks and acquisition, deliberate de-emphasis of Consumer revenue, and uncertainty around TalkAI commercialization and Medicare penetration. Overall, the positives — recurring Payor growth, margin expansion, and confident 2026 guidance — materially outweigh the listed challenges.Positive Updates
Strong Revenue Growth (FY and Q4)
Full-year 2025 revenue of approximately $229.0M, up 22% year-over-year; Q4 2025 revenue of $63.0M, up 29.3% year-over-year.
Negative Updates
Gross Margin Compression
Q4 gross margin was 42.7%, down 169 basis points year-over-year, primarily reflecting a revenue mix shift toward the Payor channel (which drove growth but compressed gross margin in the quarter).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth (FY and Q4)
Full-year 2025 revenue of approximately $229.0M, up 22% year-over-year; Q4 2025 revenue of $63.0M, up 29.3% year-over-year.
Read all positive updates
Company Guidance
Talkspace guided 2026 revenue of $275–$290 million (20–27% YoY) and adjusted EBITDA of $30–$35 million (90–122% YoY), which implies a ~23% 3‑year revenue CAGR at the midpoint; management expects a quarterly cadence with slightly less than 50% of revenue in H1, a Q4 run‑rate above $250 million (which implies ~12% growth at the midpoint), and adjusted EBITDA margins beginning the year in the high‑single digits and exiting in the mid‑teens (toward the high end of their 12–15% target). The outlook assumes Payor growth in line with 2025 (Payor revenue grew ~38% in 2025), D2E growth in the low single digits, continued intentional Consumer decline, and that a material portion (roughly 30–50%) of 2026 Payor revenue will come from members already on the platform, supported by longer Payor retention and ongoing operating‑leverage initiatives.Talkspace Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
83
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 245.73M | 228.87M | 187.59M | 150.04M | 119.57M | 113.67M |
| Gross Profit | 102.09M | 98.35M | 85.84M | 74.38M | 60.34M | 66.77M |
| EBITDA | 5.41M | 11.24M | 2.10M | -17.77M | -78.06M | -60.72M |
| Net Income | 194.00K | 7.79M | 1.15M | -19.18M | -79.67M | -62.74M |
Balance Sheet | ||||||
| Total Assets | 136.45M | 134.86M | 138.68M | 142.22M | 156.25M | 223.61M |
| Cash, Cash Equivalents and Short-Term Investments | 91.00M | 92.59M | 117.81M | 123.91M | 138.54M | 198.26M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 500.00K | 0.00 |
| Total Liabilities | 24.32M | 17.85M | 21.28M | 23.57M | 28.72M | 31.33M |
| Stockholders Equity | 112.13M | 117.02M | 117.39M | 118.65M | 127.54M | 192.27M |
Cash Flow | ||||||
| Free Cash Flow | 4.61M | -2.11M | 5.84M | -16.54M | -61.43M | -66.37M |
| Operating Cash Flow | 17.09M | 8.53M | 11.29M | -16.39M | -61.08M | -65.71M |
| Investing Cash Flow | -20.32M | -28.88M | -46.31M | -141.00K | -317.00K | -663.00K |
| Financing Cash Flow | -11.95M | -19.00M | -12.19M | 1.90M | 1.68M | 251.38M |
Talkspace Technical Analysis
Positive
5.21
Price Trends
5.21
Positive
5.20
Positive
4.54
Positive
Market Momentum
<0.01
Negative
59.17
Neutral
96.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TALK, the sentiment is Positive. The current price of 5.21 is below the 20-day moving average (MA) of 5.22, below the 50-day MA of 5.21, and above the 200-day MA of 4.54, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.17 is Neutral, neither overbought nor oversold. The STOCH value of 96.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TALK.
Talkspace Risk Analysis
Talkspace disclosed 57 risk factors in its most recent earnings report. Talkspace reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Talkspace Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.75B | 95.39 | 3.39% | ― | 20.38% | ― | |
66 Neutral | $4.52B | 22.86 | 47.30% | 0.79% | 14.02% | 31.92% | |
65 Neutral | $870.57M | -4,375.00 | 0.17% | ― | 21.28% | -91.18% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $2.87B | -2.48 | -50.02% | ― | 4.27% | -917.61% | |
48 Neutral | $65.92M | -0.35 | -88.97% | ― | -42.03% | -28904.55% |
* Healthcare Sector Average
TALK
Talkspace
5.25
2.65
101.92%
ACHC
Acadia Healthcare
30.83
9.70
45.91%
DCGO
DocGo
0.67
-1.01
-60.30%
LFST
Lifestance Health Group
12.42
7.01
129.57%
EUDA
EUDA Health Holdings
14.17
-38.63
-73.16%
CON
Concentra Group Holdings Parent, Inc.
35.43
12.75
56.25%
Talkspace Corporate Events
M&A TransactionsShareholder Meetings
Talkspace Shareholders Approve Acquisition by Universal Health Services
Positive
May 29, 2026
On May 29, 2026, Talkspace stockholders held a special meeting at which they voted on the proposed acquisition of the company by Universal Health Services, Inc., via a merger with an indirect UHS subsidiary that would make Talkspace an indirect wh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.