Talkspace (NASDAQ:TALK) Reaches New 1-Year High Following Strong Earnings

Shares of Talkspace, Inc. (NASDAQ:TALK) reached a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $4.95 and last traded at $4.9280, with a volume of 1228056 shares. The stock had previously closed at $3.93.

The company reported $0.03 EPS for the quarter, topping the consensus estimate of $0.02 by $0.01. Talkspace had a net margin of 3.40% and a return on equity of 6.97%. The firm had revenue of $63.00 million for the quarter, compared to analysts’ expectations of $61.91 million.

Key Talkspace News

Here are the key news stories impacting Talkspace this week:

• Positive Sentiment: Q4 results beat consensus — Talkspace reported $0.03 EPS vs. consensus $0.02 and revenue of $63.0M vs. $61.9M, showing underlying top- and bottom-line beats that drove positive market reaction. Talkspace Announces Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Shares jumped in immediate trading after the quarter — media coverage notes a surge following the profit and revenue beat, signaling strong investor reception to the results. Talkspace Shares Surge After 4Q Profit, Revenue Beat Expectations
• Positive Sentiment: Analyst upgrade/price-target lift — Needham raised its price target from $5.00 to $6.00 and kept a buy rating, providing third‑party validation and upside potential that supports the rally. Benzinga: Needham price target raise
• Positive Sentiment: Company is pushing AI-driven offerings alongside 2026 targets — Talkspace outlined plans to advance AI-driven mental-health solutions and set 2026 revenue targets of $275M–$290M, framing growth drivers beyond core subscription revenue. Talkspace targets $275M-$290M revenue in 2026 while advancing AI-driven mental health solutions
• Neutral Sentiment: FY‑2026 revenue guidance roughly in line with Street — the $275M–$290M range centers near the consensus (~$281.5M), so guidance is neither clearly conservative nor aggressive; EPS guidance was not meaningfully updated. Talkspace slide deck / press materials
• Neutral Sentiment: Full earnings call/transcripts available — management discussion (customer metrics, AI roadmap, margin outlook) is posted for investors who want detail; call color can influence sentiment over coming days. Earnings call transcript
• Negative Sentiment: Profitability and valuation still modest/high — net margin was low (~1.98%) and the stock trades at a high PE (~166x reported), leaving the share price sensitive to execution and margin improvement; any slowdown in growth or AI adoption could pressure valuation. Zacks: TALK Tops Q4 Earnings Estimates

Analyst Ratings Changes

Several research analysts have issued reports on the stock. Zacks Research upgraded shares of Talkspace from a “strong sell” rating to a “hold” rating in a research report on Friday, October 31st. Canaccord Genuity Group set a $6.00 price objective on Talkspace in a research note on Tuesday, December 30th. Weiss Ratings restated a “hold (c-)” rating on shares of Talkspace in a report on Monday, December 29th. UBS Group reaffirmed a “buy” rating on shares of Talkspace in a report on Tuesday, December 30th. Finally, Barclays began coverage on Talkspace in a research report on Monday, December 8th. They issued an “equal weight” rating and a $3.50 price target for the company. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $5.13.

Institutional Trading of Talkspace

A number of hedge funds have recently modified their holdings of the business. AQR Capital Management LLC boosted its position in shares of Talkspace by 963.3% in the first quarter. AQR Capital Management LLC now owns 464,599 shares of the company’s stock worth $1,189,000 after buying an additional 420,906 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Talkspace by 2.8% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 142,143 shares of the company’s stock worth $364,000 after acquiring an additional 3,924 shares during the period. Strs Ohio acquired a new stake in Talkspace during the 1st quarter worth about $58,000. International Assets Investment Management LLC purchased a new position in Talkspace during the 2nd quarter valued at about $52,000. Finally, Oppenheimer Asset Management Inc. acquired a new position in shares of Talkspace in the 2nd quarter valued at about $83,000. Hedge funds and other institutional investors own 57.37% of the company’s stock.

Talkspace Trading Up 3.3%

The business has a fifty day moving average price of $3.86 and a two-hundred day moving average price of $3.21. The company has a market cap of $826.64 million, a price-to-earnings ratio of 99.82 and a beta of 1.20.

About Talkspace

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.