Talkspace Inc Financials
This page shows Talkspace Inc (TALK) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Talkspace’s turnaround is being driven by cost absorption and spending restraint, while cash is now shaped more by capital allocation than operating losses.
In the latest year, accounting profit and operating cash flow finally agreed at$7.8M and$8.5M , which makes the earnings turnaround look operational rather than purely accounting. Yet cash generation still softened because more revenue sat in receivables, with accounts receivable rising to$16.1M from$9.6M .
Operating leverage came mostly from a leaner overhead base, not from richer unit economics: revenue expanded to
Despite the cash decline, liquidity remains unusually strong: the current ratio was 6.4x and total liabilities were just
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Talkspace Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Talkspace Inc has an operating margin of 1.4%, meaning the company retains $1 of operating profit per $100 of revenue. This results in a moderate score of 31/100, indicating healthy but not exceptional operating efficiency. This is up from -2.4% the prior year.
Talkspace Inc's revenue surged 22.0% year-over-year to $228.9M, reflecting rapid business expansion. This strong growth earns a score of 85/100.
Talkspace Inc carries a low D/E ratio of 0.15, meaning only $0.15 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 78/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 6.38, Talkspace Inc holds $6.38 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 93/100.
Talkspace Inc's ROE of 6.7% shows moderate profitability relative to equity, earning a score of 30/100. This is up from 1.0% the prior year.
Talkspace Inc scores 29.29, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($874.4M) relative to total liabilities ($17.8M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Talkspace Inc passes 6 of 7 computable financial strength tests (2 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Talkspace Inc generates $1.10 in operating cash flow ($8.5M OCF vs $7.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Talkspace Inc generated $228.9M in revenue in fiscal year 2025. This represents an increase of 22.0% from the prior year.
Talkspace Inc's EBITDA was $6.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 265.7% from the prior year.
Talkspace Inc reported $7.8M in net income in fiscal year 2025. This represents an increase of 578.8% from the prior year.
Talkspace Inc earned $0.04 per diluted share (EPS) in fiscal year 2025. This represents an increase of 300.0% from the prior year.
Cash & Balance Sheet
Talkspace Inc held $37.4M in cash against $0 in long-term debt as of fiscal year 2025.
Talkspace Inc had 167M shares outstanding in fiscal year 2025. This represents a decrease of 1.3% from the prior year.
Margins & Returns
Talkspace Inc's operating margin was 1.4% in fiscal year 2025, reflecting core business profitability. This is up 3.8 percentage points from the prior year.
Talkspace Inc's net profit margin was 3.4% in fiscal year 2025, showing the share of revenue converted to profit. This is up 2.8 percentage points from the prior year.
Talkspace Inc's ROE was 6.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 5.7 percentage points from the prior year.
Capital Allocation
Talkspace Inc invested $9.5M in research and development in fiscal year 2025. This represents a decrease of 7.2% from the prior year.
Talkspace Inc spent $17.2M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 56.3% from the prior year.
TALK Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $61.7M-2.1% | $63.0M+6.1% | $59.4M+9.3% | $54.3M+4.1% | $52.2M+7.1% | $48.7M+2.8% | $47.4M+2.9% | $46.1M |
| Cost of Revenue | N/A | N/A | N/A | N/A | $28.9M+6.3% | $27.2M+5.5% | $25.8M+2.7% | $25.1M |
| Gross Profit | N/A | N/A | N/A | N/A | $23.3M+8.1% | $21.5M-0.4% | $21.6M+3.2% | $21.0M |
| R&D Expenses | $2.7M+13.0% | $2.4M+32.1% | $1.8M-30.4% | $2.6M-9.8% | $2.8M+31.8% | $2.2M-6.2% | $2.3M+10.1% | $2.1M |
| SG&A Expenses | $12.8M+123.2% | $5.7M+12.9% | $5.1M-11.2% | $5.7M+10.0% | $5.2M+6.2% | $4.9M-4.4% | $5.1M-30.1% | $7.3M |
| Operating Income | -$7.1M-286.1% | $3.8M+74.2% | $2.2M+222.8% | -$1.8M-65.0% | -$1.1M-290.7% | $569K+474.7% | $99K+102.8% | -$3.5M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $124K-64.6% | $350K+1300.0% | $25K-67.1% | $76K-38.2% | $123K+524.1% | -$29K+60.8% | -$74K-331.3% | $32K |
| Net Income | -$6.3M-232.3% | $4.8M+46.6% | $3.3M+700.9% | -$541K-270.1% | $318K-73.8% | $1.2M-35.2% | $1.9M+495.4% | -$474K |
| EPS (Diluted) | $-0.04 | N/A | $0.02 | $0.00 | $0.00 | N/A | $0.01 | $0.00 |
TALK Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $136.2M+1.0% | $134.9M+4.5% | $129.1M-2.8% | $132.8M-1.1% | $134.2M-3.2% | $138.7M+0.3% | $138.2M+3.3% | $133.8M |
| Current Assets | $110.5M-0.5% | $111.1M-3.0% | $114.5M-5.1% | $120.7M-2.8% | $124.1M-4.7% | $130.2M-1.0% | $131.5M+2.1% | $128.8M |
| Cash & Equivalents | $31.4M-15.9% | $37.4M-5.5% | $39.5M-27.3% | $54.3M-9.5% | $60.1M-21.7% | $76.7M-35.5% | $119.0M+3.6% | $114.9M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $23.6M+46.9% | $16.1M+7.6% | $14.9M-3.2% | $15.4M+16.4% | $13.2M+37.4% | $9.6M+0.4% | $9.6M-16.9% | $11.6M |
| Goodwill | $3.4M+3.3% | $3.3M | N/A | N/A | N/A | $0 | N/A | N/A |
| Total Liabilities | $23.1M+29.6% | $17.8M-10.6% | $20.0M+0.6% | $19.8M-4.7% | $20.8M-2.1% | $21.3M+3.1% | $20.6M+4.5% | $19.7M |
| Current Liabilities | $22.8M+31.1% | $17.4M-10.2% | $19.4M+4.5% | $18.5M-3.0% | $19.1M+0.5% | $19.0M-0.2% | $19.1M+7.2% | $17.8M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $113.1M-3.4% | $117.0M+7.2% | $109.1M-3.4% | $112.9M-0.4% | $113.4M-3.4% | $117.4M-0.2% | $117.6M+3.1% | $114.0M |
| Retained Earnings | -$267.7M-2.4% | -$261.4M+1.8% | -$266.2M+1.2% | -$269.5M-0.2% | -$268.9M+0.1% | -$269.2M+0.4% | -$270.4M+0.7% | -$272.3M |
TALK Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$4.4M-182.2% | $5.4M+13.2% | $4.7M+1452.7% | -$351K+71.7% | -$1.2M-133.8% | $3.7M-41.0% | $6.2M+29.0% | $4.8M |
| Capital Expenditures | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -$345K |
| Free Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $4.5M |
| Investing Cash Flow | -$793K+92.9% | -$11.2M-76.9% | -$6.3M-166.8% | -$2.4M+73.8% | -$9.0M+78.8% | -$42.5M-2418.0% | -$1.7M+4.4% | -$1.8M |
| Financing Cash Flow | -$730K-45.4% | -$502K+94.5% | -$9.1M-202.3% | -$3.0M+52.5% | -$6.4M-82.3% | -$3.5M-698.2% | -$437K+94.8% | -$8.4M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $0 | $0-100.0% | $8.8M+353.6% | $1.9M-70.0% | $6.5M+115.5% | $3.0M | $0-100.0% | $8.0M |
TALK Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | 44.6%+0.4pp | 44.2%-1.4pp | 45.6%+0.1pp | 45.5% |
| Operating Margin | -11.6%-17.6pp | 6.1%+2.4pp | 3.7%+7.0pp | -3.3%-1.2pp | -2.1%-3.3pp | 1.2%+1.0pp | 0.2%+7.8pp | -7.6% |
| Net Margin | -10.2%-17.8pp | 7.6%+2.1pp | 5.5%+6.5pp | -1.0%-1.6pp | 0.6%-1.9pp | 2.5%-1.5pp | 4.0%+5.0pp | -1.0% |
| Return on Equity | -5.6%-9.7pp | 4.1%+1.1pp | 3.0%+3.5pp | -0.5%-0.8pp | 0.3%-0.8pp | 1.0%-0.6pp | 1.6%+2.0pp | -0.4% |
| Return on Assets | -4.6%-8.2pp | 3.5%+1.0pp | 2.5%+2.9pp | -0.4%-0.7pp | 0.2%-0.6pp | 0.9%-0.5pp | 1.4%+1.7pp | -0.4% |
| Current Ratio | 4.84-1.5 | 6.38+0.5 | 5.91-0.6 | 6.51+0.0 | 6.49-0.4 | 6.84-0.1 | 6.90-0.3 | 7.24 |
| Debt-to-Equity | 0.20+0.1 | 0.15-0.0 | 0.180.0 | 0.180.0 | 0.180.0 | 0.180.0 | 0.180.0 | 0.17 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 9.7% |
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Frequently Asked Questions
What is Talkspace Inc's annual revenue?
Talkspace Inc (TALK) reported $228.9M in total revenue for fiscal year 2025. This represents a 22.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Talkspace Inc's revenue growing?
Talkspace Inc (TALK) revenue grew by 22% year-over-year, from $187.6M to $228.9M in fiscal year 2025.
Is Talkspace Inc profitable?
Yes, Talkspace Inc (TALK) reported a net income of $7.8M in fiscal year 2025, with a net profit margin of 3.4%.
What is Talkspace Inc's EBITDA?
Talkspace Inc (TALK) had EBITDA of $6.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Talkspace Inc's operating margin?
Talkspace Inc (TALK) had an operating margin of 1.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Talkspace Inc's net profit margin?
Talkspace Inc (TALK) had a net profit margin of 3.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Talkspace Inc's return on equity (ROE)?
Talkspace Inc (TALK) has a return on equity of 6.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Talkspace Inc's operating cash flow?
Talkspace Inc (TALK) generated $8.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Talkspace Inc's total assets?
Talkspace Inc (TALK) had $134.9M in total assets as of fiscal year 2025, including both current and long-term assets.
How much does Talkspace Inc spend on research and development?
Talkspace Inc (TALK) invested $9.5M in research and development during fiscal year 2025.
What is Talkspace Inc's current ratio?
Talkspace Inc (TALK) had a current ratio of 6.38 as of fiscal year 2025, which is generally considered healthy.
What is Talkspace Inc's debt-to-equity ratio?
Talkspace Inc (TALK) had a debt-to-equity ratio of 0.15 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Talkspace Inc's return on assets (ROA)?
Talkspace Inc (TALK) had a return on assets of 5.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Talkspace Inc's Altman Z-Score?
Talkspace Inc (TALK) has an Altman Z-Score of 29.29, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Talkspace Inc's Piotroski F-Score?
Talkspace Inc (TALK) has a Piotroski F-Score of 6 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Talkspace Inc's earnings high quality?
Talkspace Inc (TALK) has an earnings quality ratio of 1.10x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Talkspace Inc?
Talkspace Inc (TALK) scores 55 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.