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TALK, Talkspace Inc.

Health Care Providers & Services asset-light Net current asset value

Talkspace, Inc. together with its consolidated subsidiaries is a leading virtual behavioral healthcare company offering its members convenient and affordable access to a fully-credentialed network of highly qualified providers across a wide and growing spectrum of care through virtual psychotherapy and psychiatry.

All care offered at Talkspace is delivered through an easy-to-use, fully-encrypted web and mobile platform that meets HIPAA, federal, and state regulatory requirements.

For the year ended December 31, 2025, our clinicians completed 1,617,000 sessions related to members covered under our Payor customers compared to 1,229,200 completed sessions for the year ended December 31, 2024.

Latest annual: FY2025 10-K

TALK · Talkspace Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$229M

+22.0% YoY · 25% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $238M 5-yr avg $160M

Gross margin 55% 5-yr avg 51%

Operating margin −1.2% 5-yr avg −33.7%

ROIC −2% 5-yr avg −3%

Owner-earnings margin 2% 5-yr avg −40%

Free cash flow margin 2% 5-yr avg −40%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Net current asset value. Current assets alone exceed every liability combined, and the surplus is most of the balance sheet: the shape Graham called a net-net.
What moves the needle: Operating margin has run around −29% through the cycle on a 50% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. The cash cycle has run negative through the cycle (a median of −10 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. Read this kind of business on volume, payer mix and reimbursement. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2019–2025

realized figures from each filing · older years to the left

2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
								Income statement
$38M	$76M	$114M	$120M	$150M	$188M	$229M	$238M	RevenueRevenue
53%	65%	59%	50%	50%	46%	—	55%	Gross marginGross mgn
14%	13%	31%	30%	14%	12%	10%	12%	SG&A / revenueSG&A/rev
31%	13%	14%	18%	11%	5%	4%	4%	R&D / revenueR&D/rev
($29M)	($22M)	($94M)	($83M)	($23M)	($4M)	$3M	($3M)	Operating incomeOp. inc.
−77.1%	−28.9%	−82.6%	−69.5%	−15.5%	−2.4%	1.4%	−1.2%	Operating marginOp. mgn
($29M)	($22M)	($63M)	($80M)	($19M)	$1M	$8M	$1M	Net incomeNet inc.
—	—	—	—	—	8%	7%	33%	Effective tax rateTax rate
								Cash flow & returns
($21M)	($15M)	($66M)	($61M)	($16M)	$11M	$9M	$5M	Operating cash flowOp. cash
$59K	$379K	$2M	$1M	$1M	$859K	$3M	$4M	DepreciationDeprec.
$4M	$4M	($32M)	$5M	($7M)	$107K	($11M)	($9M)	Working capital & otherWC & other
$138K	$126K	$663K	$350K	$151K	—	—	$181K	CapexCapex
0.4%	0.2%	0.6%	0.3%	0.1%	—	—	0.1%	Capex / revenueCapex/rev
($21M)	($15M)	($66M)	($61M)	($17M)	—	—	$5M	Owner earningsOwner earn.
−55.7%	−20.1%	−58.4%	−51.4%	−11.0%	—	—	2.2%	Owner earnings marginOE mgn
($21M)	($15M)	($66M)	($61M)	($17M)	—	—	$5M	Free cash flowFCF
−55.9%	−20.1%	−58.4%	−51.4%	−11.0%	—	—	2.2%	Free cash flow marginFCF mgn
$0	$11M	$0	$0	$0	$0	$5M	$5M	AcquisitionsAcquis.
—	—	—	$0	$0	$11M	$17M	—	BuybacksBuybacks
—	—	—	—	—	-10%	4%	-2%	ROICROIC
—	—	-33%	-62%	-16%	1%	7%	1%	Return on equityROE
—	—	−33%	−62%	−16%	1%	7%	1%	Retained to equityRetained/eq
								Balance sheet
$40M	$13M	$198M	$139M	$124M	$77M	$37M	$31M	Cash & investmentsCash+inv
—	$6M	$6M	$10M	$10M	$10M	$16M	$24M	ReceivablesReceiv.
—	$8M	$7M	$6M	$6M	$8M	$9M	$12M	Accounts payablePayables
—	($2M)	($2M)	$3M	$4M	$2M	$8M	$12M	Operating working capitalOper. WC
—	$21M	$213M	$153M	$140M	$130M	$111M	$110M	Current assetsCur. assets
—	$20M	$27M	$27M	$22M	$19M	$17M	$23M	Current liabilitiesCur. liab.
—	1.0×	7.8×	5.6×	6.5×	6.8×	6.4×	4.8×	Current ratioCurr. ratio
—	$6M	$6M	$0	—	$0	$3M	$3M	GoodwillGoodwill
—	$33M	$224M	$156M	$142M	$139M	$135M	$136M	Total assetsAssets
($80M)	($99M)	$192M	$128M	$119M	$117M	$117M	$113M	Shareholders’ equityEquity
8.9%	3.9%	24.1%	10.1%	5.6%	4.9%	3.7%	3.8%	Stock comp / revenueSBC/rev
								Per share
12.7M	13.4M	86.8M	157M	165M	176M	174M	167M	Shares out (diluted)Shares
$3.00	$5.70	$1.31	$0.76	$0.91	$1.06	$1.32	$1.43	Revenue / shareRev/sh
$-2.29	$-1.67	$-0.72	$-0.51	$-0.12	$0.01	$0.04	$0.01	EPS (diluted)EPS
$-1.67	$-1.15	$-0.76	$-0.39	$-0.10	—	—	$0.03	Owner earnings / shareOE/sh
$-1.68	$-1.15	$-0.76	$-0.39	$-0.10	—	—	$0.03	Free cash flow / shareFCF/sh
$0.01	$0.01	$0.01	$0.00	$0.00	—	—	$0.00	Cap. spending / shareCapex/sh
$-6.26	$-7.40	$2.22	$0.81	$0.72	$0.67	$0.67	$0.68	Book value / shareBVPS

The diluted share count moved ×6.5 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1.81 into 2022 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	6-yr	5-yr
Revenue / share	−12.8%/yr	−25.4%/yr
Capital spending / share	−46.1%/yr (4-yr)	−46.1%/yr (4-yr)

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Revenue+22.0%
“Total revenue increased by $41.3 million, or 22.0%, to $228.9 million for the year ended December 31, 2025 from $187.6 million for the year ended December 31, 2024, primarily due to a 37.9% increase in Payor revenue, which was driven by a 31.5% increase in the number of completed Payor sessions, partially offset by a 29.5% decline in Consumer revenue.”
✓ figure matches the filed record

The record, charted

FY2019–2025

Each measure over its full record; the current point and the worst year marked.

Share count

174Mpeak FY2024

Gross margin

46%low FY2024

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($17M)owner earningsvs.($19M)net incomelow FY2021

Owner-earnings bridge

FY2019–FY2023cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2023 the business turned a $19M loss into ($17M) of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2023	FY2022	FY2021	FY2020	FY2019
Reported net income	($19M)	($80M)	($63M)	($22M)	($29M)
Depreciation & amortizationnon-cash charge added back	+$1M	+$1M	+$2M	+$379K	+$59K
Stock-based compensationreal costnon-cash, but a real cost	+$8M	+$12M	+$27M	+$3M	+$3M
Working capital & othertiming of cash in and out, other non-cash items	−$7M	+$5M	−$32M	+$4M	+$4M
Cash from operations	($16M)	($61M)	($66M)	($15M)	($21M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$151K	−$350K	−$663K	−$126K	−$59K
Owner earnings	($17M)	($61M)	($66M)	($15M)	($21M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	—	−$79K
Free cash flow	($17M)	($61M)	($66M)	($15M)	($21M)
Owner-earnings marginowner earnings ÷ revenue	-11%	-51%	-58%	-20%	-56%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $8M), owner earnings is nearer ($25M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$37M

Net cash

Cash $37M − debt $300K

What this means
Cash and short-term investments exceed every dollar of debt by $37M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? -5d

Negative, funded by others

DSO 26 + DIO 0 − DPO 30 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)

Is it a good business?

Return on invested capital 4%

Below average

NOPAT $3M ÷ invested capital $80M (debt + equity − cash)

Industry peers: median -28%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 4%

Positive this year, negative across the cycle

latest $8M = operating cash $9M − maintenance capex $151K (positive this year), after an earlier loss stretch (5-yr median -51%)

Industry peers: median -8%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 4% of revenue this year, a -51% median across 5 years. Treating stock comp as the real expense it is (less $8M of SBC) leaves ($62K).
Are earnings backed by cash? 1.10×

Cash-backed

Cash from ops $9M ÷ net income $8M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 205%

Returned more than it generated

Dividends + buybacks $17M ÷ Owner Earnings $8M

What this means
The company returned more than it generated: against $8M of Owner Earnings, $17M (205%) went back to shareholders, $0 dividends, $17M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $8M stock comp, the real buyback was about $9M. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.05×

Harvesting

Capex $151K ÷ depreciation $3M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $229M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 6.38×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $300K vs $94M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (7-yr record) · 5 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.02/share (latest year $0.05), the averaged base the calculator's gate runs on, and book value is $0.70/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2019–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 2 of 7

What this means
Lost money in 5 year(s), look at what happened there before trusting the average.
Operating margin −63% → −5% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −63% early to −5% lately, median −29% — pricing power intact or improving.
Worst year 2021 · −82.6% op. margin

What this means
Operations went underwater in 2021, understand why before trusting the good years.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“Furthermore, if the AI-generated outputs fail to meet clinical or regulatory standards, it could result in increased liability or decreased user trust, reputational harm, additional regulatory scrutiny, and reduced demand for our services.”

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$110M

Cash & short-term investments$31M
Receivables$24M
Other current assets$55M

Current liabilities$23M

Accounts payable$12M
Other current liabilities$11M

Current ratio4.84×all current assets ÷ what's due · Graham looked for 2×

Quick ratio4.84×stricter: inventory excluded

Cash ratio1.38×strictest: cash alone against what's due

Working capital$88Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+18.2%the freshest read on whether the business is still growing

Current ratio, recent quarters7.2× → 4.8×

Deeper floors

Tangible book value$106Mequity stripped of goodwill & intangibles

Net current asset value$87MGraham's net-net: current assets less all liabilities

Deferred revenue$3Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Acquisitions & goodwill

from the balance sheet & the 7-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$7M5% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity3%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$16Mover 7 years buying other businesses, against $1M of capital spent building

$6M written down across 1 year (2022): goodwill the company has already conceded it overpaid for, charged against earnings. That is roughly 39% of the cash it put into acquisitions over the span. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 7-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2022	$2.7M	$1.9M	($61M)
2022	$2.7M	$2.6M	($61M)
2023	$1.3M	$7.3M	($17M)
2024	$1.9M	$3.1M	—

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership23.5%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$8M
The slice of the business handed to employees in shares this year, 4% of revenue, equal to 268% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Peers, Health Care Providers & Services

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
SGRYSurgery Partners Inc.	$3.3B	26%	12.4%	6%	6%
TDOCTeladoc Health Inc.	$2.5B	69%	-24.6%	-8%	6%
NTRANatera Inc.	$2.3B	37%	-46.0%	-62%	-33%
VCYTVeracyte Inc.	$517M	62%	-24.0%	-11%	-8%
WGSGeneDx Holdings Corp.	$428M	42%	-89.2%	-44%	-58%
OMDAOmada Health Inc.	$260M	61%	-25.7%	-124%	-20%
TALKTalkspace Inc.	$229M	52%	-28.9%	4%	-51%
LFMDPLifemd, Inc.	$194M	80%	-23.9%	—	4%
Group median	—	56%	-25.2%	-11%	-14%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Talkspace Inc. has delivered.

Today’s price $

Base Normalize · through-cycle (($48M)) Net of stock comp (−$9M) Steady-state · maintenance capex ($5M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $5M on 168M shares outstanding, per the 10-Q cover, as of 2026-05-07; net cash $31M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($181K) runs well above depreciation ($4M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $5M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh TALK against another business →

Cite: Owner Scorecard, "Talkspace Inc. (TALK), the owner's record," https://ownerscorecard.com/c/TALK, data as of 2026-07-09.

Manual order: ← T its page in the Manual TALO →

Industry order: ← SRTA the Health Care Providers & Services chapter TDOC →