Talkspace (TALK) AI Stock Analysis

• Market Cap: $669.25M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 165.6
• Beta (1Y): 1.23
• Revenue Growth: 18.37%
• EPS Growth: N/A
• Country: US
• Employees: 521
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.02
• Shares Outstanding: 165,656,130
• 10 Day Avg. Volume: 1,370,589
• 30 Day Avg. Volume: 1,262,630
• PEG Ratio: -4.30
• Price to Book (P/B): 4.45
• Price to Sales (P/S): 2.78
• P/FCF Ratio: 83.36
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 6.85
• Enterprise Value/Ebitda: 86.71
• 1Y Price Target: $5.00
• Price Target Upside: 23.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.13
• Revenue Forecast (FY): $278.52M

• Rating: 65 Neutral
• Price Target: $4.00 ▼(-0.99% Downside)

The score is driven primarily by improving financial performance (return to profitability and a low-risk, no-debt balance sheet) and supportive technical trends. This is tempered by weak free-cash-flow consistency and a stretched valuation (very high P/E), despite a positive earnings call featuring strong growth and EBITDA guidance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Talkspace's services, supporting future expansion and market penetration.

Strategic Partnerships

These partnerships enhance market reach and service accessibility, strengthening Talkspace's competitive position in the mental health sector.

Cash Flow Improvement

Positive cash flow generation enhances financial stability, enabling Talkspace to invest in growth opportunities and manage operations effectively.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight the need for cost management and operational efficiency to ensure sustainable financial health.

Decline in Consumer Revenue

A significant decline in consumer revenue suggests challenges in retaining individual customers, which could impact future revenue streams.

Pressure on Gross Margins

Decreased gross margins indicate increased cost pressures, potentially affecting profitability and requiring strategic adjustments.

Talkspace Business Overview & Revenue Model

Company Description

Talkspace, Inc. operates as a virtual behavior healthcare company. It delivers healthcare through encrypted web and mobile platform. The company offers treatment options for every need, including psychiatry or adolescent, individual, or couples therapy. The members can send text, video, and voice messages to their therapists and engage in live video sessions. Talkspace, Inc. is based in New York, New York.

How the Company Makes Money

Talkspace generates revenue primarily through subscription-based models where users pay for access to therapy services on a weekly, monthly, or quarterly basis. The company offers different subscription tiers that vary based on the type and frequency of therapy sessions, as well as the level of communication with therapists. Additionally, Talkspace partners with employers and health plans to provide mental health services as part of employee assistance programs, which broadens its customer base and revenue streams. These partnerships often involve negotiated contracts that allow companies to offer Talkspace services to their employees as a part of their health benefits. The combination of individual subscriptions and enterprise partnerships forms the backbone of Talkspace's revenue model.

Talkspace Financial Statement Overview

Summary

Financials show a meaningful turnaround with TTM profitability and positive operating cash flow, supported by a no-debt balance sheet. Offsetting this, profitability is still thin and free cash flow has turned negative again, raising questions about the durability of cash generation.

Income Statement

TTM (Trailing-Twelve-Months) results show a clear profitability inflection: revenue grew 5.9% and the company generated positive net income ($4.2M) versus modest profitability in 2024 and sizable losses in 2021–2023. Gross margin remains solid (~43% TTM), but it has compressed from earlier years (mid- to high-40%s in 2022–2024 and higher in 2020–2021). Profitability is still thin (low single-digit net margin), so execution risk remains if costs rise or growth slows.

Balance Sheet

The balance sheet is conservatively positioned with zero debt in 2023–TTM (and effectively minimal debt in 2022), which lowers financial risk and interest-burden sensitivity. Equity remains positive and sizable ($109M TTM), supporting flexibility, and returns have improved to positive in TTM after being negative for several years. The main weakness is that assets and equity have trended down from 2021 levels, indicating some balance sheet shrinkage over time even as profitability improves.

Cash Flow

Cash generation is mixed. TTM (Trailing-Twelve-Months) operating cash flow is positive ($7.2M), but free cash flow is negative (-$1.8M) after being solidly positive in 2024 ($6.3M), implying higher reinvestment or working-capital drag. While net income is now positive, cash conversion is not consistently strong, and the sharp deterioration in free cash flow growth (TTM) highlights volatility versus the improving earnings profile.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	214.59M	187.59M	150.04M	119.57M	113.67M	76.19M
Gross Profit	92.96M	85.84M	74.38M	60.34M	66.77M	49.84M
EBITDA	7.35M	2.10M	-22.01M	-78.06M	-60.72M	-21.60M
Net Income	4.24M	1.15M	-19.18M	-79.67M	-62.74M	-22.37M
Balance Sheet
Total Assets	129.06M	138.68M	142.22M	156.25M	223.61M	32.87M
Cash, Cash Equivalents and Short-Term Investments	91.61M	117.81M	123.91M	138.54M	198.26M	13.25M
Total Debt	0.00	0.00	0.00	500.00K	0.00	111.28M
Total Liabilities	19.95M	21.28M	23.57M	28.72M	31.33M	131.77M
Stockholders Equity	109.11M	117.39M	118.65M	127.54M	192.27M	-98.90M
Cash Flow
Free Cash Flow	-1.78M	6.26M	-16.54M	-61.43M	-66.37M	-15.30M
Operating Cash Flow	7.24M	11.70M	-16.39M	-61.08M	-65.71M	-15.18M
Investing Cash Flow	-60.60M	-46.73M	-141.00K	-317.00K	-663.00K	-11.30M
Financing Cash Flow	-21.98M	-12.19M	1.90M	1.68M	251.38M	94.00K

Talkspace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TALK, the sentiment is Positive. The current price of 4.04 is above the 20-day moving average (MA) of 3.92, above the 50-day MA of 3.59, and above the 200-day MA of 3.01, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 55.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TALK.

Talkspace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MD	76 Outperform	$1.84B	11.29	19.98%	―	-4.21%	―
TALK	65 Neutral	$669.25M	165.57	3.74%	―	18.37%	―
ACHC	62 Neutral	$1.24B	11.40	3.49%	―	4.58%	-61.50%
LFST	61 Neutral	$2.75B	-297.06	-0.62%	―	13.39%	90.55%
CMPS	58 Neutral	$642.25M	-2.50	-205.19%	―	―	-21.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CCRN	48 Neutral	$305.32M	-19.30	-3.76%	―	-22.14%	-787.87%

Talkspace Corporate Events

Talkspace Highlights Growth Strategy at J.P. Morgan Conference

On January 15, 2026, Talkspace presented an investor deck at the 44th Annual J.P. Morgan Healthcare Conference outlining its growth trajectory, market opportunity and evolving product strategy. The company highlighted a large, underpenetrated U.S. behavioral health market, with strong demand across commercial, Medicare, military and teen segments, and reported approximately 24% compound annual revenue growth from 2022 to expected 2025 results, alongside a 115% year-on-year increase in adjusted EBITDA at the midpoint of its 2025 guidance. Management detailed a “systematic formula for growth” centered on diversified marketing, strategic payor and distribution partnerships, and patient journey optimization, which has driven higher checkout conversion and greater early-session engagement. Talkspace also underscored expansion moves including a dedicated psychiatry and medication management program, integration with Amazon Pharmacy, broader coverage for teens in major municipalities and state programs, national Tricare coverage and a direct Navy contract, as well as Medicare-covered services nationwide. Against the backdrop of growing use of general-purpose AI for mental health conversations, the company positioned its proprietary AI agent as a safer, clinically informed alternative designed specifically for mental health support, aiming to differentiate its technology and strengthen its position in the fast-evolving digital mental health landscape.

The most recent analyst rating on (TALK) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Talkspace stock, see the TALK Stock Forecast page.

Talkspace Reports Strong Q3 2025 Financial Results

On October 30, 2025, Talkspace announced its third-quarter financial results, reporting a 25% year-over-year revenue growth to $59.4 million, driven by a 42% increase in Payor revenue. The company achieved a net income of $3.3 million and an adjusted EBITDA of $5.0 million, reflecting significant improvements from the previous year. The results were supported by product enhancements, new marketing strategies, and additional payor partnerships. The acquisition of Wisdo Health and advancements in AI initiatives are expected to further broaden Talkspace’s mental health services, aiming to enhance access to affordable behavioral health care.

The most recent analyst rating on (TALK) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Talkspace stock, see the TALK Stock Forecast page.