$TALK

Talkspace, Inc.

CIK:0001803901|SEC Filings

Condensed Consolidated Income Statements (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues	$ 61,672	$ 54,310	$ 123,351	$ 106,492
Costs and operating expenses:
Cost of revenue, excluding depreciation and amortization	36,869	30,917	72,933	59,706
Research and development	2,343	2,563	5,007	5,403
Clinical operations	1,873	1,921	3,747	3,777
Sales and marketing	14,661	14,253	28,510	28,178
General and administrative	6,458	5,728	19,276	10,935
Depreciation and amortization	1,581	718	3,118	1,368
Total costs and operating expenses	63,785	56,100	132,591	109,367
Loss from operations	(2,113)	(1,790)	(9,240)	(2,875)
Financial income, net	(608)	(1,325)	(1,553)	(2,851)
Loss before income taxes	(1,505)	(465)	(7,687)	(24)
Income tax expense	11	76	135	199
Net loss	$ (1,516)	$ (541)	$ (7,822)	$ (223)
Net loss per share:
Basic	$ (0.01)	$ (0)	$ (0.05)	$ (0)
Diluted	$ (0.01)	$ (0)	$ (0.05)	$ (0)
Weighted average shares used to compute net (loss) income per share:
Basic	167,486,050	167,532,721	167,281,977	168,098,647
Diluted	167,486,050	167,532,721	167,281,977	168,098,647

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net (loss) income	$ (7,822)	$ (223)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	3,118	1,368
Accretion of discount on marketable securities, net	(132)	(457)
Stock-based compensation	5,031	4,688
Remeasurement of warrant liabilities	(199)	(828)
Decrease (increase) in accounts receivable, net	617	(5,779)
(Increase) decrease in other current assets	(158)	253
Increase in accounts payable	2,436	908
Increase (decrease) in deferred revenue	490	(416)
Increase (decrease) in accrued expenses and other current liabilities	3,995	(975)
Other	(409)	(129)
Net cash provided by (used in) operating activities	6,967	(1,590)
Cash flows from investing activities:
Purchases of marketable securities	(32,471)	(20,557)
Proceeds from maturities of marketable securities	35,998	13,705
Capitalized internal-use software costs	(6,332)	(4,492)
Other	(24)	(42)
Net cash used in investing activities	(2,829)	(11,386)
Cash flows from financing activities:
Proceeds from exercise of stock options	119	727
Payments for employee taxes withheld related to vested stock-based awards	(2,450)	(1,697)
Repurchase of common stock for retirement	0	(8,404)
Net cash used in financing activities	(2,331)	(9,374)
Net increase (decrease) in cash and cash equivalents	1,807	(22,350)
Cash and cash equivalents at the beginning of the period	37,352	76,692
Cash and cash equivalents at the end of the period	39,159	54,342
Supplemental cash flow data:
Cash paid during the period for income taxes, net	788	79
Non-cash investing activity:
Stock-based compensation capitalized as part of capitalization of internal-use software costs	$ 390	$ 438

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

CURRENT ASSETS:

Cash and cash equivalents

^[1]

$ 39,159

$ 37,352

Marketable securities

51,839

55,234

Accounts receivable, net

^[1]

15,444

16,061

Other current assets

2,573

2,415

Total current assets

109,015

111,062

Fixed assets, net

20,053

15,794

Goodwill

3,427

3,318

Other long-term assets

3,951

4,689

Total assets

136,446

134,863

CURRENT LIABILITIES:

Accounts payable

10,937

8,501

Accrued expenses and other current liabilities

^[1]

10,468

6,672

Deferred revenues

2,713

2,223

Total current liabilities

24,118

17,396

Other long-term liabilities

197

452

Total liabilities

24,315

17,848

Commitments and contingencies (Note 6)

STOCKHOLDERS' EQUITY:

Common stock of $0.0001 par value per share: Shares authorized: 1,000,000,000 as of June 30, 2026 (unaudited) and December 31, 2025; shares issued and outstanding: 165,823,816 and 166,718,150 as of June 30, 2026 (unaudited) and December 31, 2025, respectively.

Additional paid-in capital

381,474

378,384

Accumulated deficit

(269,265)

(261,443)

Accumulated other comprehensive (loss) income

(95)

Total stockholders' equity

112,131

117,015

Total liabilities and stockholders' equity

$ 136,446

$ 134,863

[1]

Talkspace, Inc's condensed consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors may have recourse to Talkspace, Inc. or its affiliates. At June 30, 2026 (unaudited) and December 31, 2025, assets of these consolidated VIEs totaled $13,443 and $13,562, respectively. At June 30, 2026 (unaudited) and December 31, 2025, liabilities of these consolidated VIEs totaled $4,835 and $3,755, respectively. See Note 11, “Variable Interest Entities,” in the notes to the condensed consolidated financial statements for further details.