TALK is no longer listed. Its last trade on record was Aug 18, 2026. The price and figures on this page are from its last trading day and final filings, and are no longer updated.
Revenue growth has slowed to 13.6% in Q2 2026, while gross margin has contracted by 760 basis points over the past ten quarters, indicating structural cost pressures that have contributed to operating losses in two of the last three quarters.
Talkspace, Inc. (TALK) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 245.73M | 228.87M | 187.59M | 150.04M | 119.57M | 113.67M | 76.19M | 38.18M |
| Revenue Growth % | 21.28% | 22% | 25.02% | 25.49% | 5.19% | 49.19% | 99.57% | - |
| Cost of Goods Sold | 143.64M | 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 | 102.09M | 98.35M | 85.84M | 74.38M | 60.34M | 66.77M | 49.84M | 20.14M |
| Gross Margin % | 41.55% | 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 | 105.31M | 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 | 65.09M | 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 | 8.67M | 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 | 4M | 10.08M | 6.54M | 6.16M | 6.59M | 9.37M | 4.33M | 4.67M |
| Operating Income | -3.21M | 3.15M | -4.5M | -23.21M | -77.02M | -93.92M | -21.98M | -29.43M |
| Operating Margin % | -1.31% | 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 | 2.06M | 6.03M | -3.64M | -22.01M | -75.67M | -91.95M | -21.6M | -29.37M |
| EBITDA Margin % | 0.84% | 2.63% | -1.94% | -14.67% | -63.28% | -80.89% | -28.35% | -76.93% |
| EBITDA Growth % | 612.94% | 265.67% | 83.47% | 70.91% | 17.71% | -325.64% | 26.44% | - |
| D&A (Non-Cash Add-back) | 5.28M | 2.88M | 859K | 1.2M | 1.36M | 1.97M | 379K | 59K |
| EBIT | 2.25M | 8.37M | 1.24M | -18.96M | -79.42M | -62.7M | -21.98M | -29.43M |
| Net Interest Income | 1.42M | 5.21M | 5.74M | 4.25M | 3.74M | 31.23M | -364K | 350K |
| Interest Income | 2.36M | 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 | 3.92M | 5.21M | 5.74M | 4.25M | -2.39M | 31.23M | -364K | 350K |
| Pretax Income | 704K | 8.37M | 1.24M | -18.96M | -79.42M | -62.7M | -22.35M | -29.08M |
| Pretax Margin % | 0.29% | 3.66% | 0.66% | -12.64% | -66.42% | -55.15% | -29.33% | -76.16% |
| Income Tax | 510K | 574K | 94K | 218K | 254K | 47K | 24K | 8K |
| Effective Tax Rate % | 72.44% | 6.86% | 7.57% | -1.15% | -0.32% | -0.07% | -0.11% | -0.03% |
| Net Income | 194K | 7.79M | 1.15M | -19.18M | -79.67M | -62.74M | -22.37M | -29.09M |
| Net Margin % | 0.08% | 3.4% | 0.61% | -12.78% | -66.63% | -55.2% | -29.36% | -76.19% |
| Net Income Growth % | 127.32% | 578.83% | 105.98% | 75.92% | -26.98% | -180.47% | 23.09% | - |
| Net Income (Continuing) | 194K | 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) | 0.00 | 0.04 | 0.01 | -0.12 | -0.51 | -0.72 | -0.00 | -0.00 |
| EPS Growth % | -120.5% | - | 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 | 167.49M | 173.75M | 176.5M | 165.04M | 156.89M | 154.08M | 165.18M | 133.59M |
| Basic Shares Outstanding | 167.49M | 168.43M | 168.91M | 165.04M | 156.89M | 154.08M | 152.27M | 133.59M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Margin volatility and inconsistent profitability
Metrics are mathematically derived from official filings.
Growth Decelerates After Peak Quarter
Talkspace's revenue growth has moderated from a peak of 36.2% in Q1 2024 to 13.6% in Q2 2026, suggesting the initial post-pandemic surge is normalizing and the company is entering a more mature, slower-growth phase.
The growth trajectory shows a clear deceleration, with the most recent two quarters (13.6% and 18.2%) significantly below the >25% growth rates seen in mid-2025. This implies the company's addressable market may be becoming saturated or that acquisition-driven growth is becoming harder to sustain, requiring a shift in strategy toward retention or new service lines.
Structural Gross Margin Erosion
Based on reported figures, Talkspace's gross margin has contracted from 47.8% in Q1 2024 to 40.2% in Q2 2026, indicating potential pressure from provider cost inflation, unfavorable payer mix shifts, or rising platform delivery costs.
The steady decline in gross margin is a significant concern, as it has fallen nearly 800 basis points over two years. This trend suggests the company may be sacrificing pricing power to maintain volume or facing higher direct costs per session, which directly undermines the scalability of its business model and profitability path.
Negative Operating Leverage in Recent Quarters
As reported in recent SEC filings, Talkspace's operating margin deteriorated from positive 6.1% in Q4 2025 to negative 11.6% in Q1 2026, highlighting a failure to convert gross profit into operating profit despite revenue scale.
The swing from a profitable Q4 2025 to a deeply negative Q1 2026 operating margin reveals a lack of operating leverage. SG&A expenses ballooned to $26.7M in Q1 2026, consuming over 40% of revenue, which indicates that overhead is not being controlled in line with the growth deceleration, putting the path to sustained profitability at risk.
Earnings Volatility and Non-Core Items
The company's EPS has swung from a positive $0.03 in Q4 2025 to a loss of $0.04 in Q1 2026, driven largely by volatile stock-based compensation and non-operating items that obscure the underlying operational performance.
The erratic EPS figures, including a massive $12.0M negative SBC adjustment in Q2 2025, suggest reported earnings are highly sensitive to non-cash items and accounting adjustments. This volatility makes it difficult to assess core earnings power and indicates that stock-based compensation is a significant and potentially dilutive headwind for shareholders.
SG&A as the Primary Profitability Drag
Talkspace's SG&A expenses as a percentage of revenue have been inconsistent, spiking to 43.3% in Q2 2025 before settling at 34.2% in Q2 2026, pointing to challenges in managing the cost structure efficiently as growth slows.
The variability in SG&A is the key driver of operating losses, far outweighing the impact of R&D spending. The inability to maintain a stable, low SG&A ratio suggests sales, marketing, and administrative expenses are not scaling down efficiently with revenue growth, which is critical for a service-based company to achieve consistent profitability.
The Path to Profitability Appears Fragile
A skeptical view would note that Talkspace achieved profitability in only three of the last ten quarters, with the most recent quarter (Q2 2026) returning to an operating loss, suggesting the Q4 2025 profit may have been an anomaly rather than a sustainable trend.
The repeated pattern of slipping back into operating losses after brief profitable periods indicates structural issues, not temporary ones. With gross margins compressing and operating leverage absent, the base case for sustained profitability requires significant and proven cost control, which has not yet been demonstrated in the financial history.