Revenue growth reached 18.2% in 2026Q1, yet structural pressure on therapist compensation costs caused gross margins to contract to 41.5% from 49.4% in 2023Q4.
| Sales/Revenue | 238.37M | 228.87M | 187.59M | 150.04M | 119.57M | 113.67M | 76.19M | 38.18M |
| Revenue Growth % | 22.64% | 22% | 25.02% | 25.49% | 5.19% | 49.19% | 99.57% | - |
| Cost of Goods Sold | 137.69M | 130.52M | 101.76M | 75.67M | 59.23M | 46.9M | 26.35M | 18.04M |
| COGS % of Revenue | - | 57.03% | 54.24% | 50.43% | 49.54% | 41.26% | 34.59% | 47.26% |
| Gross Profit | 100.68M | 98.35M | 85.84M | 74.38M | 60.34M | 66.77M | 49.84M | 20.14M |
| Gross Margin % | 42.24% | 42.97% | 45.76% | 49.57% | 50.46% | 58.74% | 65.41% | 52.74% |
| Gross Profit Growth % | - | 14.58% | 15.4% | 23.27% | -9.64% | 33.98% | 147.5% | - |
| Operating Expenses | 103.57M | 95.2M | 90.33M | 97.59M | 137.36M | 160.69M | 71.82M | 49.56M |
| OpEx % of Revenue | - | 41.59% | 48.15% | 65.04% | 114.88% | 141.37% | 94.26% | 129.82% |
| Selling, General & Admin | 83.05M | 75.57M | 73.28M | 73.86M | 109.11M | 135.41M | 57.9M | 32.9M |
| SG&A % of Revenue | - | 33.02% | 39.06% | 49.22% | 91.26% | 119.13% | 76% | 86.16% |
| Research & Development | 11.72M | 9.54M | 10.51M | 17.57M | 21.66M | 15.92M | 9.58M | 12M |
| R&D % of Revenue | - | 4.17% | 5.6% | 11.71% | 18.11% | 14% | 12.58% | 31.42% |
| Other Operating Expenses | 2M | 10.08M | 6.54M | 6.16M | 6.59M | 9.37M | 4.33M | 4.67M |
| Operating Income | -2.89M | 3.15M | -4.5M | -23.21M | -77.02M | -93.92M | -21.98M | -29.43M |
| Operating Margin % | -1.21% | 1.38% | -2.4% | -15.47% | -64.42% | -82.63% | -28.85% | -77.08% |
| Operating Income Growth % | - | 170.09% | 80.62% | 69.87% | 17.99% | -327.27% | 25.3% | - |
| EBITDA | 1.52M | 6.03M | -3.64M | -22.01M | -75.67M | -91.95M | -21.6M | -29.37M |
| EBITDA Margin % | 0.64% | 2.63% | -1.94% | -14.67% | -63.28% | -80.89% | -28.35% | -76.93% |
| EBITDA Growth % | 158.63% | 265.67% | 83.47% | 70.91% | 17.71% | -325.64% | 26.44% | - |
| D&A (Non-Cash Add-back) | 4.41M | 2.88M | 859K | 1.2M | 1.36M | 1.97M | 379K | 59K |
| EBIT | 1.78M | 8.37M | 1.24M | -23.21M | -79.42M | -62.7M | -21.98M | -29.43M |
| Net Interest Income | 2.74M | 5.21M | 5.74M | 4.25M | 3.74M | 31.23M | -364K | 350K |
| Interest Income | 3.69M | 5.21M | 5.74M | 4.25M | 3.74M | 31.23M | 0 | 350K |
| Interest Expense | 945K | 0 | 0 | 0 | 0 | 0 | 364K | 0 |
| Other Income/Expense | 4.63M | 5.21M | 5.74M | 4.25M | -2.39M | 31.23M | -364K | 350K |
| Pretax Income | 1.74M | 8.37M | 1.24M | -18.96M | -79.42M | -62.7M | -22.35M | -29.08M |
| Pretax Margin % | 0.73% | 3.66% | 0.66% | -12.64% | -66.42% | -55.15% | -29.33% | -76.16% |
| Income Tax | 575K | 574K | 94K | 218K | 254K | 47K | 24K | 8K |
| Effective Tax Rate % | 32.97% | 6.86% | 7.57% | -1.15% | -0.32% | -0.07% | -0.11% | -0.03% |
| Net Income | 1.17M | 7.79M | 1.15M | -19.18M | -79.67M | -62.74M | -22.37M | -29.09M |
| Net Margin % | 0.49% | 3.4% | 0.61% | -12.78% | -66.63% | -55.2% | -29.36% | -76.19% |
| Net Income Growth % | 281.8% | 578.83% | 105.98% | 75.92% | -26.98% | -180.47% | 23.09% | - |
| Net Income (Continuing) | 1.17M | 7.79M | 1.15M | -19.18M | -79.67M | -62.74M | -22.37M | -29.09M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.01 | 0.04 | 0.01 | -0.12 | -0.51 | -0.72 | -0.00 | -0.00 |
| EPS Growth % | -78.79% | - | 105.42% | 76.47% | 29.17% | - | - | - |
| EPS (Basic) | - | 0.05 | 0.01 | -0.12 | -0.51 | -0.72 | -0.00 | -0.00 |
| Diluted Shares Outstanding | 173.75M | 173.75M | 176.5M | 165.04M | 156.89M | 154.08M | 165.18M | 133.59M |
| Basic Shares Outstanding | 168.43M | 168.43M | 168.91M | 165.04M | 156.89M | 154.08M | 152.27M | 133.59M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Telehealth regulatory parity shifts
As reported in recent financial filings, Talkspace achieved a 18.2% year-over-year revenue growth in 2026Q1, signaling that the strategic transition toward enterprise and payer-led contracts is successfully offsetting the inherent volatility associated with the company's legacy direct-to-consumer business model and broader market fluctuations.
The consistent top-line expansion suggests that the company's focus on 'covered lives' is gaining traction within the healthcare ecosystem. Investors should monitor whether this growth remains sustainable as the company scales its B2B footprint, as reliance on insurance reimbursement rates may limit future pricing power compared to retail models.
Based on the latest income statement data, Talkspace's gross margin has compressed from 49.4% in 2023Q4 to 41.5% in 2026Q1, reflecting the ongoing challenge of managing therapist compensation costs within a highly competitive labor market for licensed mental health professionals.
The downward trend in gross margins appears to indicate that the company is struggling to achieve economies of scale in its provider network. This suggests that the cost of clinical labor is rising faster than the company's ability to optimize reimbursement rates, which may necessitate a shift toward more asynchronous, lower-cost care delivery models.
According to quarterly income statements, Talkspace's operating margin fluctuated significantly, reaching a peak of 6.1% in 2025Q4 before reverting to -11.6% in 2026Q1, which highlights the company's continued sensitivity to administrative overhead and the difficulty of maintaining consistent profitability at this scale.
The inability to sustain positive operating income suggests that the company's current cost structure is not yet optimized for long-term profitability. Analysts should investigate whether the recent volatility in operating expenses is a result of one-time investments or a structural inability to control SG&A as the business expands.
Based on reported figures, the company's net income has shown extreme inconsistency, swinging from a $4.8M profit in 2025Q4 to a $6.3M loss in 2026Q1, a trend that warrants further investigation into the impact of non-operating items and potential accounting adjustments on bottom-line results.
The erratic nature of net income suggests that investors should look past headline EPS to understand the underlying cash-generating capability of the business. The presence of significant fluctuations in stock-based compensation and other non-cash items may be obscuring the true operational health of the firm.
Quick answers to the most common questions about buying TALK stock.
For fiscal year 2025, Talkspace, Inc. (TALK) reported total revenue of $228.9M. This represents a 499.5% increase compared to $38.2M in 2019.
Talkspace, Inc. (TALK) is profitable, generating $7.8M in net income for the fiscal year ending 2025 with a net profit margin of 3.4%.
Talkspace, Inc. (TALK) reported an operating income of $3.2M, resulting in an operating profit margin of 1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Talkspace, Inc. (TALK) generated $98.3M in gross profit for the year, representing a gross profit margin of 43.0%. This demonstrates the company's core pricing power and production efficiency.