Talkspace (NASDAQ:TALK) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Talkspace (NASDAQ:TALK) posted its quarterly earnings data on Thursday. The company reported $0.03 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.01, FiscalAI reports. The business had revenue of $63.00 million during the quarter, compared to the consensus estimate of $61.91 million. Talkspace had a net margin of 1.98% and a return on equity of 3.75%.

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 Stock Performance

Shares of NASDAQ:TALK traded up $0.83 during mid-day trading on Thursday, hitting $4.76. The stock had a trading volume of 6,703,098 shares, compared to its average volume of 1,571,827. The company’s 50 day moving average is $3.80 and its 200-day moving average is $3.18. Talkspace has a 12-month low of $2.22 and a 12-month high of $5.13. The company has a market cap of $789.20 million, a PE ratio of 158.49 and a beta of 1.20.

Key Stories Impacting Talkspace

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.

Analysts Set New Price Targets

TALK has been the subject of a number of research analyst reports. UBS Group reaffirmed a “buy” rating on shares of Talkspace in a research note on Tuesday, December 30th. Canaccord Genuity Group set a $6.00 target price on Talkspace in a research report on Tuesday, December 30th. Wall Street Zen raised Talkspace from a “hold” rating to a “buy” rating in a research note on Saturday, January 10th. Zacks Research raised Talkspace from a “strong sell” rating to a “hold” rating in a research note on Friday, October 31st. Finally, KeyCorp upped their price objective on Talkspace from $4.00 to $5.00 and gave the company an “overweight” rating in a report on Thursday, January 8th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $4.88.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of TALK. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Talkspace by 2.8% in 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 in the last quarter. Parallel Advisors LLC lifted its position in shares of Talkspace by 25.8% in the third quarter. Parallel Advisors LLC now owns 19,500 shares of the company’s stock worth $54,000 after purchasing an additional 4,000 shares in the last quarter. Intech Investment Management LLC boosted its holdings in shares of Talkspace by 11.9% during the fourth quarter. Intech Investment Management LLC now owns 49,701 shares of the company’s stock worth $180,000 after purchasing an additional 5,277 shares during the period. Cerity Partners LLC purchased a new position in Talkspace during the second quarter valued at approximately $28,000. Finally, Neuberger Berman Group LLC acquired a new position in Talkspace in the 4th quarter valued at approximately $38,000. Hedge funds and other 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.