4Q 2025 net income of $4.8 million and adjusted EBITDA1 of $6.6 million
Full-year 2025 total revenue grew 22% year-over-year to $228.9 million
Full-year 2025 net income of $7.8 million
Full-year 2025 adjusted EBITDA1 grew 127% year-over-year to $15.8 million
NEW YORK, Feb. 19, 2026 (GLOBE NEWSWIRE) -- Talkspace, Inc. ("Talkspace" or the "Company") (NASDAQ:TALK), today reported fourth quarter and full year 2025 financial results.
Three Months EndedDecember 31,
Year EndedDecember 31,
2025
2024
2025
2024
Results
% Variancefrom PriorYear
Results
% Variancefrom PriorYear
(In thousands unless otherwise noted)
Unaudited
Unaudited
Number of completed Payor sessions
449.7
36
%
1,617.0
32
%
Number of unique active Payor members
124.1
30
%
N/A
N/A
Total revenue
$
62,998
29
%
$
228,871
22
%
Total costs and operating expenses
$
59,169
23
%
$
225,719
18
%
Net income
$
4,765
293
%
$
7,793
579
%
Adjusted EBITDA (1)
$
6,566
147
%
$
15,772
127
%
Cash and cash equivalents at year-end
$
37,352
—
$
37,352
—
Short-term marketable securities at year-end
$
55,234
—
$
55,234
—
(1)
Adjusted EBITDA is a non-GAAP financial measure. For a definition of the measure and a reconciliation to the most directly comparable GAAP measure, see "Reconciliation of GAAP Results to Non-GAAP Results."
Dr. Jon Cohen, CEO of Talkspace, said, "Talkspace concluded 2025 with strong momentum, driven by a record fourth quarter where we successfully prioritized network curation, product innovation, and deeper payor integrations. These strategic initiatives delivered 29% year-over-year growth with $63.0 million quarterly revenue and a 22% year-over-year increase in total annual revenue to $228.9 million. With our proprietary AI agent now in active beta and set to launch later this year, we are well-positioned to deliver sustainable growth and long-term value in 2026."
Fourth Quarter 2025 Key Performance Metrics
Revenue increased 29% over the prior-year period to $63.0 million, driven by a 41% year-over-year increase in Payor revenue, partially offset by a 30% year-over-year decline in Consumer revenue.
Cost of revenue, excluding depreciation and amortization, increased 33% over the prior-year period to $36.1 million, driven by a higher number of completed Payor sessions.
Total costs and operating expenses were $59.2 million, an increase of 23% year-over-year, primarily due to an increase in cost of revenue, excluding depreciation and amortization.
Net income was $4.8 million, an increase of 293% over the prior-year period, primarily driven by an increase in revenue, partially offset by an increase in cost of revenue, excluding depreciation and amortization.
Adjusted EBITDA was $6.6 million, an improvement from $2.7 million adjusted EBITDA in the fourth quarter of 2024, primarily driven by an increase in revenue, partially offset by an increase in cost of revenue, excluding depreciation and amortization.
Full Year 2025 Key Performance Metrics
Revenue increased 22% over the prior-year to $228.9 million, driven by a 38% year-over-year increase in Payor revenue, partially offset by a 30% year-over-year decline in Consumer revenue.
Cost of revenue, excluding depreciation and amortization, increased 29% over the prior-year to $130.5 million, driven by a higher number of completed Payor sessions.
Total costs and operating expenses were $225.7 million, an increase of 18% year-over-year, primarily due to an increase in cost of revenue, excluding depreciation and amortization.
Net income was $7.8 million, an increase of 579% over the prior-year, primarily driven by an increase in revenue, partially offset by an increase in cost of revenue, excluding depreciation and amortization.
Adjusted EBITDA was $15.8 million, an improvement from $7.0 million adjusted EBITDA in 2024, primarily driven by an increase in revenue, partially offset by an increase in cost of revenue, excluding depreciation and amortization.
Financial Guidance
The following guidance is based on current market conditions and expectations, and the information available to the Company today. For 2026 Talkspace expects:
Revenue to be in the range of $275 million to $290 million
Adjusted EBITDA to be in the range of $30 million to $35 million
Conference Call, Presentation Slides, and Webcast Details
The Fourth Quarter 2025 earnings conference call and webcast will be held Thursday, February 19, 2026, at 8:30 a.m. E.T. The conference call will be available via audio webcast at investors.talkspace.com and can also be accessed by dialing (800) 225-9448 for U.S. participants, or +1 (203) 518-9708 for international participants, and referencing conference code ID: TALKQ425. A replay will be available shortly after the call's completion and remain available for approximately 90 days.
About Talkspace
Talkspace (NASDAQ:TALK) is a leading virtual behavioral healthcare provider committed to helping people lead healthier, happier lives through access to high-quality mental healthcare. At Talkspace, we believe that mental healthcare is core to overall health and should be available to everyone.
Talkspace pioneered the ability to text with a licensed therapist from anywhere and now offers a comprehensive suite of mental health services, including therapy for individuals, teens, and couples, as well as psychiatric treatment and medication management (18+). With Talkspace's core therapy offerings, members are matched with one of thousands of licensed therapists within days and can engage in live video, audio, or chat sessions, and/or unlimited asynchronous text messaging sessions.
All care offered at Talkspace is delivered through an easy-to-use, fully-encrypted web and mobile platform that meets HIPAA, federal, and state regulatory requirements. Most Americans have access to Talkspace through their health insurance plans, employee assistance programs, our partnerships with leading healthcare companies, or as a free benefit through their employer, school, or government agency.
For more information, visit www.talkspace.com.
For Investors:ICR Westwicke[email protected]
For Media:[email protected]
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking, including statements regarding our financial condition, anticipated financial performance, business strategy and plans, market opportunity and expansion and objectives of our management for future operations. These forward-looking statements generally are identified by the words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "future," "intend," "may," "might," "opportunity," "plan," "possible," "potential," "predict," "project," "should," "strategy," "strive," "target," "will," or "would," the negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many important factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) rapid technological change in our industry; (ii) our ability to secure clients' contract renewals; (iii) our ability to maintain and expand our network of therapists, psychiatrists and other providers; (iv) a decline in the prevalence of enterprise-sponsored healthcare or the emergence of new technologies may adversely impact our DTE business; (v) if our or our vendors' security measures fail or are breached; (vi) changes in healthcare laws, regulations or trends and our ability to operate in the heavily regulated healthcare industry; and (vii) the other factors, risks and uncertainties described under the caption "Risk Factors" in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 12, 2025, subsequent quarterly reports on Form 10-Q and our other documents filed from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise unless required to do so under applicable law. We do not give any assurance that we will achieve our expectations.
Talkspace, Inc.Consolidated Income Statements
Three Months EndedDecember 31,
Year EndedDecember 31,
2025
2024
% Change
2025
2024
% Change
(in thousands, except percentages, share and pershare data)
Unaudited
Unaudited
Unaudited
Revenue:
Payor revenue
$
47,663
$
33,847
40.8
$
171,518
$
124,339
37.9
DTE revenue
11,634
9,555
21.8
39,880
38,466
3.7
Consumer revenue
3,701
5,318
(30.4
)
17,473
24,788
(29.5
)
Total revenue
62,998
48,720
29.3
228,871
187,593
22.0
Costs and operating expenses:
Cost of revenue, excludingdepreciation and amortization
36,075
27,075
33.2
130,522
101,311
28.8
Research and development
2,357
2,232
5.6
9,544
10,280
(7.2
)
Clinical operations, net
1,793
1,740
3.0
7,208
6,542
10.2
Sales and marketing
12,380
11,990
