Talkspace (NASDAQ:TALK) Issues Earnings Results, Beats Estimates By $0.01 EPS

Talkspace (NASDAQ:TALK) posted its quarterly earnings results on Thursday. The company reported $0.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.01, FiscalAI reports. The firm had revenue of $63.00 million for the quarter, compared to analyst estimates of $61.91 million. Talkspace had a net margin of 3.40% and a return on equity of 6.97%.

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 3.3%

Talkspace stock opened at $4.99 on Friday. The company has a market capitalization of $826.64 million, a price-to-earnings ratio of 99.82 and a beta of 1.20. Talkspace has a 12 month low of $2.22 and a 12 month high of $5.18. The stock’s 50 day moving average is $3.86 and its 200-day moving average is $3.21.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Wall Street Zen raised shares of Talkspace from a “hold” rating to a “buy” rating in a report on Saturday, January 10th. Zacks Research raised Talkspace from a “strong sell” rating to a “hold” rating in a research report on Friday, October 31st. Barclays began coverage on Talkspace in a research note on Monday, December 8th. They issued an “equal weight” rating and a $3.50 price objective on the stock. UBS Group reiterated a “buy” rating on shares of Talkspace in a research note on Tuesday, December 30th. Finally, Needham & Company LLC boosted their target price on Talkspace from $5.00 to $6.00 and gave the stock a “buy” rating in a report on Thursday. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Talkspace currently has a consensus rating of “Moderate Buy” and an average price target of $5.13.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TALK. Cerity Partners LLC bought a new position in Talkspace during the 2nd quarter worth $28,000. Neuberger Berman Group LLC acquired a new stake in shares of Talkspace during the fourth quarter worth $38,000. Vise Technologies Inc. bought a new stake in shares of Talkspace in the fourth quarter valued at about $40,000. Jump Financial LLC acquired a new position in shares of Talkspace in the fourth quarter valued at about $41,000. Finally, Dynamic Technology Lab Private Ltd acquired a new position in shares of Talkspace in the third quarter valued at about $35,000. 57.37% of the stock is owned by institutional investors and hedge funds.

Talkspace News Summary

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

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.