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TALK

Talkspace, Inc.

TALK

Talkspace, Inc. • NASDAQ
$3.38 ▼ -0.88% (-0.03)
Market Cap $567.55 M
52w High $4.36
52w Low $2.22
Dividend Yield 0%
P/E 112.67
Volume 434.11K
Outstanding Shares 167.91M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $59.381M ▲ $22.554M ▼ $3.251M ▲ 5.475% ▲ $0.02 ▲ $4.612M ▲
Q2-2025 $54.31M ▲ $25.183M ▲ $-541K ▼ -0.996% ▼ $-0.003 ▼ $253K ▼
Q1-2025 $52.182M ▲ $24.366M ▲ $318K ▼ 0.609% ▼ $0.002 ▼ $1.09M ▼
Q4-2024 $48.72M ▲ $20.964M ▼ $1.214M ▲ 2.492% ▲ $0.007 ▼ $1.392M ▼
Q3-2024 $47.399M $21.522M $-1.701M -3.589% $0.011 $2.031M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $91.608M ▼ $129.06M ▼ $19.955M ▲ $109.105M ▼
Q2-2025 $102.769M ▼ $132.786M ▼ $19.845M ▼ $112.941M ▼
Q1-2025 $108.351M ▼ $134.245M ▼ $20.827M ▼ $113.418M ▼
Q4-2024 $117.81M ▼ $138.677M ▲ $21.282M ▲ $117.395M ▼
Q3-2024 $118.994M $138.231M $20.643M $117.588M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $3.251M ▲ $4.748M ▲ $-6.316M ▼ $-9.121M ▼ $-10.689M ▼ $1.895M ▲
Q2-2025 $-253.441K ▼ $-351K ▲ $-2.367M ▲ $-3.017M ▲ $-5.735M ▲ $-2.846M ▲
Q1-2025 $318K ▼ $-1.239M ▼ $-9.019M ▲ $-6.357M ▼ $-16.615M ▲ $-3.236M ▼
Q4-2024 $1.214M ▼ $4.081M ▼ $-42.895M ▼ $-3.488M ▼ $-42.302M ▼ $2.406M ▼
Q3-2024 $1.874M $6.205M $-1.687M $-437K $4.081M $4.587M

Five-Year Company Overview

Income Statement

Income Statement Talkspace has shifted from being a money-losing business to roughly break-even at the operating and net income level in its most recent year. Revenue has grown steadily each year since going public, while gross profit has also risen and margins have held up reasonably well. The big story is that operating losses have narrowed consistently and appear to have flipped to about breakeven, showing much tighter cost control and a more disciplined expense structure. Earnings per share have improved sharply from deep losses to around flat, which suggests the business model is starting to scale more efficiently. The key watchpoint is whether the company can keep growing revenue while maintaining this new level of profitability, rather than slipping back into losses if it invests heavily again.

Balance Sheet

Balance Sheet The balance sheet looks relatively clean and conservative. The company holds a solid cash position compared with its overall asset base and has no meaningful financial debt outstanding, which reduces financial risk and gives it flexibility to invest. Shareholders’ equity has moved from negative at the time of the SPAC era to a clearly positive level, reflecting both prior capital raises and the reduction of cumulative losses. Overall, Talkspace appears to be in a healthier financial position than a few years ago, with enough resources to fund operations and strategic initiatives without relying on borrowing in the near term, assuming it stays close to break-even.

Cash Flow

Cash Flow Cash flow has improved markedly. Historically, the company burned cash from operations, but it has recently transitioned to generating positive operating and free cash flow. Capital spending needs have been modest, so most operating cash flows flow directly into free cash flow rather than being tied up in heavy investment. This shift from cash burn to cash generation is important, as it reduces reliance on external funding and suggests the business model is maturing. The main question is whether this positive cash flow is sustainable if the company accelerates growth investments, particularly in AI and distribution partnerships.

Competitive Edge

Competitive Edge Talkspace operates in a crowded digital mental health and teletherapy space but has built several meaningful advantages. Its brand is widely recognized, which matters in a category where trust and awareness drive adoption. A major strategic edge is its deep focus on insurance-based access: being in-network with large insurers, Medicare, and TRICARE gives it exposure to a very large covered population and makes its services more affordable to many users. This payor-centric model can be more stable than relying mainly on direct consumer subscriptions. The company also targets “stickier” segments like military families and older adults, which can support better retention. Its extensive dataset from years of therapy interactions further strengthens its position versus newer entrants. Risks include intense competition from larger telehealth platforms and evolving reimbursement dynamics, but Talkspace has carved out a differentiated, insurance-led niche.

Innovation and R&D

Innovation and R&D Innovation is a core part of Talkspace’s story. The firm was an early mover in asynchronous, text- and message-based therapy, which improves flexibility and accessibility. More recently, it has leaned heavily into artificial intelligence and data-driven tools. Examples include AI systems to flag suicide risk based on language patterns, automated note-taking to reduce therapist paperwork, and a proprietary behavioral health language model trained on a large base of de-identified therapy interactions. The company is also developing AI-powered therapy companions, intake and screening tools, and provider-support features that can improve clinical insight and efficiency. These efforts, along with acquisitions like Wisdo Health and partnerships such as the Novo Nordisk collaboration, show a push to extend beyond pure teletherapy into broader, tech-enabled behavioral and social health solutions. The opportunity is substantial, but there is execution risk, regulatory scrutiny around AI in healthcare, and the need to prove real clinical and economic benefits at scale.

Summary

Talkspace has moved from an early-stage, cash-burning SPAC story toward a more mature, operationally disciplined digital health business. Revenue has grown steadily, operating losses have narrowed to about break-even, and cash flow has turned positive, supported by a strong, debt-free balance sheet with a meaningful cash cushion. Strategically, the firm’s emphasis on insurance partnerships, access to large covered populations, and a recognized consumer brand support a defensible position in a competitive market. Its deep investment in AI and a unique clinical data asset could become a key long-term differentiator if it can convert these tools into better outcomes, stronger payer relationships, and new revenue lines. On the other hand, the company still faces competitive pressure from larger telehealth players, regulatory and ethical complexity around AI in mental health, and the challenge of growing while staying profitable. Overall, Talkspace looks financially sturdier than in its early years, with a business model that appears to be stabilizing, but its long-term success will depend on execution in payor relationships, AI product rollout, and continued proof of clinical and economic value.

NEWS

November 24, 2025 · 9:00 AM UTC

A Place for Mom Releases Dual Reports on the Future of Family Caregiving, Including a New Talkspace Collaboration Highlighting Caregiver Mental Health

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November 19, 2025 · 9:00 AM UTC

Talkspace Awarded Sourcewell Cooperative Contract

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November 10, 2025 · 8:00 AM UTC

Talkspace Launches “Chapters” — A Comprehensive Program Supporting Women's Mental Health Across Every Stage of Life

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October 14, 2025 · 8:00 AM UTC

Talkspace to Report Third Quarter 2025 Results and Host Conference Call

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October 6, 2025 · 8:30 AM UTC

Talkspace Acquires Wisdo Health to Expand AI-Powered Social Health and Peer Support Solutions

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