Talkspace (NASDAQ:TALK) Issues Earnings Results

Talkspace (NASDAQ:TALK) released its earnings results on Thursday. The company reported $0.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.01, FiscalAI reports. The firm had revenue of $63.00 million during the quarter, compared to analyst estimates of $61.91 million. Talkspace had a return on equity of 3.75% and a net margin of 1.98%.

Here are the key takeaways from Talkspace’s conference call:

• Strong payer-driven growth — Talkspace reported ~ $229M revenue for 2025 (+22% YoY) with payer revenue up 38% (Q4 payer +41%), sessions +36% YoY and 124k active payer members in Q4, and it guided 2026 revenue to $275M–$290M (20%–27% growth).
• Improving profitability and operating leverage — adjusted EBITDA more than doubled to $15.8M in 2025 (7% margin), Q4 adj. EBITDA was $6.6M (10.4% margin), and 2026 adj. EBITDA is guided to $30M–$35M with exit margins targeting the mid-teens.
• Payer product and distribution momentum — the company highlighted directory integrations, single sign-on, embedded scheduling, psychiatry expansion (>400 providers) including Amazon Pharmacy integration, growing military and Medicare enrollment, the Wisdo acquisition, and successful TeenSpace scale (45k NYC teens, 66% clinical improvement) to drive utilization and payer adoption.
• Talk AI agent in beta — Talkspace is developing a HIPAA-protected, clinician‑supervised mental‑health LLM with beta engagement described as promising and a planned market rollout late in Q2; commercial impact and regulatory/safety outcomes remain uncertain and are not a material part of 2026 guidance.

Talkspace Trading Up 20.6%

NASDAQ:TALK traded up $0.81 during mid-day trading on Thursday, hitting $4.74. The company’s stock had a trading volume of 6,503,209 shares, compared to its average volume of 1,563,486. The stock has a fifty day moving average of $3.80 and a 200-day moving average of $3.18. Talkspace has a fifty-two week low of $2.22 and a fifty-two week high of $5.13. The company has a market capitalization of $784.90 million, a price-to-earnings ratio of 158.29 and a beta of 1.20.

Talkspace News Summary

Here are the key news stories impacting Talkspace this week:

• Positive Sentiment: Q4 EPS beat — Talkspace reported $0.03 EPS for Q4 vs. the Zacks consensus of $0.02 and $0.01 a year ago, signaling improving profitability per share. Read More.
• Positive Sentiment: Revenue beat and investor materials — Revenue came in at $63.0M vs. ~$61.9M expected; the company released a press release, slide deck and hosted a conference call for details (useful for evaluating growth drivers). Read More.
• Neutral Sentiment: FY2026 revenue guidance range issued — Talkspace gave revenue guidance of $275.0M–$290.0M vs. consensus ~$281.5M; the range overlaps consensus but the midpoint is slightly below, leaving guidance somewhat mixed. (EPS guidance was not clearly specified in the initial release.) Read More.
• Neutral Sentiment: High-volume move — Trading volume is materially above average, indicating strong investor attention; that can amplify price moves in either direction as the story and guidance are digested. Read More.
• Negative Sentiment: Valuation & profitability caveats — Net margin remains low (~1.98%) and ROE modest (3.75%); the stock carries a high trailing P/E (~158x), which means expectations are elevated and could lead to greater downside if growth slows or guidance disappoints.

Analyst Upgrades and Downgrades

Several analysts have recently commented on TALK shares. Wall Street Zen raised shares of Talkspace from a “hold” rating to a “buy” rating in a research note on Saturday, January 10th. Canaccord Genuity Group set a $6.00 price target on shares of Talkspace in a report on Tuesday, December 30th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Talkspace in a report on Monday, December 29th. Zacks Research upgraded Talkspace from a “strong sell” rating to a “hold” rating in a research note on Friday, October 31st. Finally, UBS Group restated a “buy” rating on shares of Talkspace in a research note on Tuesday, December 30th. Four investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $4.88.

Institutional Trading of Talkspace

A number of large investors have recently made changes to their positions in the company. Cerity Partners LLC acquired a new position in Talkspace during the second quarter worth $28,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Talkspace during the 3rd quarter valued at $35,000. Neuberger Berman Group LLC acquired a new stake in Talkspace in the fourth quarter valued at $38,000. Engineers Gate Manager LP bought a new position in shares of Talkspace in the 2nd quarter worth about $39,000. Finally, Vise Technologies Inc. acquired a new stake in shares of Talkspace in the 4th quarter valued at about $40,000. Institutional investors own 57.37% of the company’s stock.

Talkspace Company Profile

Talkspace, Inc (NASDAQ:TALK) is a digital mental health company that provides online therapy and psychiatry services through a secure, cloud-based platform. Headquartered in New York City, Talkspace enables individuals and couples to connect with licensed therapists and psychiatrists via text messaging, live audio, and video sessions. The company’s platform is accessible through web and mobile applications, allowing clients to seek professional support anytime and from any location with an internet connection.

The company’s core offerings include therapy plans that range from unlimited text-based messaging with a dedicated therapist to scheduled live video sessions.