The need for high-quality therapy is rising.
Talkspace is becoming more profitable as it scales its operations.
Shares of Talkspace (NASDAQ: TALK) popped on Thursday after the virtual behavioral health specialist reported strong sales and profit growth.
By the close of trading, Talkspace's stock price was up more than 22%.
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Talkspace's revenue rose 29% year over year to $63 million in the fourth quarter.
The number of unique active payor members, who typically access Talkspace's mental health services via their insurance plans, climbed 30% to 124,100. The number of completed payor sessions, in turn, jumped 36% to 449,700.
"Talkspace concluded 2025 with strong momentum, driven by a record fourth quarter where we successfully prioritized network curation, product innovation, and deeper payor integrations," CEO Jon Cohen said.
All told, Talkspace's earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 147% to $6.6 million.
Looking ahead, Talkspace expects full-year revenue to increase by 20% to 27% to between $275 million and $290 million. The company also guided for adjusted EBITDA to surge by 90% to 122% to between $30 million and $35 million.
"We believe Talkspace is well-positioned for sustainable growth and continued margin expansion, supported by strong momentum in our payer business, improving operating leverage, and increasing visibility into future demand," chief financial officer Ian Harris said.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.