Latest Ratios: P/E Ratio 131.3x · EV/EBITDA 139.7x · ROE 6.6%. (2019–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $879M | $631M | $545M | $419M | $96M | $304M | $1.8B | — |
| Enterprise Value | $842M | $593M | $469M | $295M | $-42297928 | $105M | $1.9B | — |
| P/E Ratio → | 131.25 | 90.75 | 475.38 | — | — | — | — | — |
| P/S Ratio | 3.84 | 2.76 | 2.91 | 2.79 | 0.80 | 2.67 | 23.44 | — |
| P/B Ratio | 7.80 | 5.39 | 4.65 | 3.53 | 0.75 | 1.58 | — | — |
| P/FCF | — | — | 87.11 | — | — | — | — | — |
| P/OCF | 103.05 | 73.91 | 46.60 | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.59 | 2.50 | 1.97 | -0.35 | 0.93 | 24.72 | — |
| EV / EBITDA | 139.72 | 98.45 | — | — | — | — | — | — |
| EV / EBIT | 267.16 | 70.92 | 377.36 | — | — | — | — | — |
| EV / FCF | — | — | 74.86 | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.0% | 43.0% | 45.8% | 49.6% | 50.5% | 58.7% | 65.4% | 52.7% |
| Operating Margin | 1.4% | 1.4% | -2.4% | -15.5% | -64.4% | -82.6% | -28.9% | -77.1% |
| Net Profit Margin | 3.4% | 3.4% | 0.6% | -12.8% | -66.6% | -55.2% | -29.4% | -76.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 6.6% | 6.6% | 1.0% | -15.6% | -49.8% | -134.4% | — | — |
| ROA | 5.7% | 5.7% | 0.8% | -12.9% | -41.9% | -48.9% | -59.8% | -69.4% |
| ROIC | 3.9% | 3.9% | -19.0% | — | — | — | — | — |
| ROCE | 2.7% | 2.7% | -3.7% | -18.6% | -47.3% | -90.0% | -99.8% | -92.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | 0.00 | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.32 | -0.65 | -1.04 | -1.08 | -1.03 | — | — |
| Net Debt / EBITDA | -6.20 | -6.20 | — | — | — | — | — | — |
| Debt / FCF | — | — | -12.25 | — | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | -60.39 | — |
Net cash position: cash ($37M) exceeds total debt ($0)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 6.38 | 6.38 | 6.84 | 6.46 | 5.58 | 7.85 | 1.01 | 4.04 |
| Quick Ratio | 6.38 | 6.38 | 6.84 | 6.46 | 5.58 | 7.85 | 1.01 | 4.04 |
| Cash Ratio | 5.32 | 5.32 | 6.19 | 5.72 | 5.07 | 7.29 | 0.65 | 3.87 |
| Asset Turnover | — | 1.70 | 1.35 | 1.06 | 0.77 | 0.51 | 2.32 | 0.91 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 25.61 | 18.76 | 24.75 | 29.43 | 17.70 | 28.33 | 8.58 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.8% | 1.1% | 0.2% | — | — | — | — | — |
| FCF Yield | — | — | 1.1% | — | — | — | — | — |
| Buyback Yield | 2.0% | 2.7% | 2.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 2.0% | 2.7% | 2.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Shares Outstanding | — | $174M | $176M | $165M | $157M | $154M | $165M | $134M |
Includes 30+ ratios · 7 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TALK stock.
Talkspace, Inc.'s current P/E ratio is 131.3x. The historical average is 90.8x. This places it at the 100th percentile of its historical range.
Talkspace, Inc.'s current EV/EBITDA is 139.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 98.5x.
Talkspace, Inc.'s return on equity (ROE) is 6.6%. The historical average is -38.4%.
Based on historical data, Talkspace, Inc. is trading at a P/E of 131.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Talkspace, Inc. has 43.0% gross margin and 1.4% operating margin.
Key Metrics
Top Statement Risk
Margin volatility and cash burn
Metrics are mathematically derived from official filings.
Premium Valuation Amid Unprofitable Growth
Talkspace trades at a P/E of 131.25 and an EV/EBITDA of 139.72, multiples that appear to price in a significant future profitability inflection not yet evident in its recent operating losses, according to current market data.
The extreme valuation multiples suggest the market is pricing in a substantial improvement in earnings power, a view not supported by the company's recent quarterly losses and volatile margins. The P/B of 7.80 is particularly elevated for a firm with a persistent retained earnings deficit, indicating investors are paying for future growth potential rather than current book value. This valuation requires the company to achieve and sustain profitability levels far above its recent historical performance.
Gross Margin Erosion Undermines Path to Profit
Talkspace's gross margin has contracted from 47.8% in Q1 2024 to 40.2% in Q2 2026, while the operating margin has swung from a 6.1% profit in Q4 2025 to an 11.6% loss in Q1 2026, highlighting deep structural cost pressures.
The consistent decline in gross margin suggests fundamental issues with cost structure, possibly related to provider reimbursement rates or platform delivery costs, which cannot be offset by operating leverage. The extreme volatility in operating margin, which turned sharply negative in the most recent quarters despite positive revenue growth, indicates a failure to control SG&A and other operating expenses relative to sales. This suggests the company's core business model is not yet demonstrating scalable, profitable unit economics.
Negative Returns Signal Value Destruction
Talkspace's ROIC and ROA have been persistently negative over the last ten quarters, with ROIC at -2.0% in Q2 2026 and -6.6% in Q1 2026, indicating the company is failing to generate returns above its cost of capital on invested assets.
The inability to generate a positive return on invested capital is a critical red flag, as it means the company is destroying shareholder value with each dollar invested. The negative ROIC is driven by the combination of negative operating margins and a capital base that has grown through asset accumulation, not through profitable reinvestment. Until the company can consistently produce a positive spread between ROIC and its weighted average cost of capital, its growth spending is dilutive to equity value.
Stable Working Capital, Weak Asset Turnover
While Talkspace maintains a stable cash conversion cycle with days sales outstanding of 29 and days payable outstanding of 28, its asset turnover of 0.45 in Q2 2026 indicates inefficient use of its asset base to generate revenue.
The company's working capital management appears relatively stable, with DSO and DPO hovering in narrow ranges, suggesting predictable collection and payment terms. However, the low asset turnover, which has only modestly improved from 0.32 to 0.45 over two years, reveals that revenue growth has not been achieved with corresponding efficiency gains in asset utilization. This sluggish turnover, combined with the balance sheet's growing asset base from capitalized costs, compounds the pressure on return metrics.
Diminishing Liquidity Cushion Amid Cash Burn
Talkspace's current ratio has fallen from 8.65 in Q1 2024 to 4.52 in Q2 2026, driven by a 67% decline in cash reserves to $39.2 million, a trend that significantly reduces its financial buffer against operational shocks.
The steady erosion of liquidity is a direct consequence of persistent operating cash burn, as highlighted in the prior balance sheet analysis. While a current ratio above 4.5 is still technically adequate, the trajectory is concerning because it provides less runway for the company to reach profitability. The absence of inventory makes the quick ratio identical, so the entire liquidity cushion is dependent on cash and receivables, which are both shrinking.
The Misleading Nature of Current Ratio
The most commonly misapplied ratio to Talkspace is likely the current ratio, which at 4.52 appears strong but obscures the rapid cash burn and the lack of any meaningful long-term revenue backlog in deferred revenue.
Investors often use the current ratio as a primary liquidity indicator, but for a cash-burning subscription business like Talkspace, it is misleading. The ratio remains high due to low current liabilities, but it does not reflect the operational reality of negative free cash flow and a shrinking cash balance. A more appropriate metric is the quarterly cash burn rate relative to remaining cash, which would provide a clearer picture of the company's true financial runway and impending need for additional capital.