Editor’s note: This article has been updated to include Teladoc’s first quarter 2025 earnings results.
New York-based virtual care company Teladoc Health announced it acquired mental health platform UpLift in an all-cash deal with $30 million upfront and up to $15 million in contingent earnout consideration.
The acquisition reinforces Teladoc’s game plan to increase its leadership position in virtual mental health and the ability for consumers served by the company’s BetterHelp segment to get benefits coverage for mental health services.
Teladoc Health’s Integrated Care component offers a range of digital tools, including coaching, therapy, and psychiatry services for employers and health plans.
UpLift provides virtual mental health therapy, psychiatry and medication management services.
BetterHelp is expected to leverage its market-differentiated experience and activation capabilities to give consumers access to their insurance coverage benefits through its relationship with UpLift.
Therapists who serve BetterHelp could be considered for inclusion in the benefits coverage network.
“This transaction aligns with a key priority of advancing our position in virtual mental health, including the ability for our BetterHelp segment to support consumers seeking to use their covered benefits for virtual mental health services,” Chuck DaVita, CEO of Teladoc Health, said in a statement.
“We see significant business synergies with our current BetterHelp segment, which will enable us to serve a broader population seeking virtual mental health care.”
UpLift CEO Kyle Talcott will continue in his position with responsibility for the company’s provider network management, quality and patient outcome oversight, and the acceptance and administration of insurance coverage.
Teladoc reported first quarter 2025 revenue of $629.4 million, down 3% year-over-year.
The company reported a net loss of $93 million including a pre-tax goodwill impairment charge of $59.1 million.
Adjusted EBITDA for first quarter 2025 was $58.1 million, down 8% year-over-year.
Cash flow from operations was $15.9 million in Q1 2025, compared to $8.9 million in the first quarter of 2024.
The company reported revenue from its Integrated Care segment of $389.5 million, up 3% year-over-year, and adjusted EBITDA margin improved to 12.9%.
Teladoc reported BetterHelp segment revenue of $239.9 million, down 11% year-over-year, and adjusted EBITDA margin of 3.2%.
Operating cash flow was $15.9 million in the first quarter 2025, compared to $8.9 million in the first quarter 2024.
The company also reported that free cash flow was $15.7 million in the first quarter of 2025, compared to $26.6 million in Q1 2024.
THE LARGER TREND
In February, Teladoc signed a definitive agreement to acquire virtual preventative care company Catapult Health in an all-cash deal worth $65 million. The deal included an additional $5 million in contingent earnout consideration. Teladoc agreed to pay additional cash or provide equity interests to Catapult should certain events occur after the sale.
In 2023, UpLift acquired women-focused digital psychiatry platform Minded, which increased its women-led offerings and expanded its reach to five additional states.
