How behavioral health providers fared in Q3

Publicly-traded behavioral health companies improved their earnings in the third quarter of 2024, but are bracing for challenges ahead. 

Here's how five behavioral health companies fared in the third quarter: 

1. Franklin, Tenn.-based Acadia Healthcare reported $816.5 million in revenue in the third quarter, up 8.7% from the same time period last year. The company reported a net income of $68.1 million, up from a loss of $217.7 million in the third quarter of 2023.
   
   The company expects to add 300 new beds in the fourth quarter of 2024.
   
   
2. LifeStance Health brought in $312.7 million in revenue in the third quarter, up 19% year-over-year. The company reduced its net loss to $6 million, down from a loss of $61.6 million in the third quarter of 2023.
   
   CEO Ken Burdick told investors the company is bracing for a "particularly challenging" 2025 in the face of lower reimbursements from private payers at CMS.
   
   
3. Talkspace reported $47 million in total revenue in the third quarter of 2024, up 23% year-over-year. The company reported $1.9 million in net income, improving on a loss of $4.4 million  in the same period last year.
   
   Talkspace CEO Jon Cohen, MD, said the company has successfully pivoted its strategy from a direct-to-consumer behavioral telehealth platform to contracting with private health plans and Medicare.
   
   
4. Teladoc reported $640.5 million in revenue in the third quarter of 2024, a 3% decline year-over-year. BetterHelp, the company's direct-to-consumer behavioral health business brought in $256.8 million in revenue, down 10% from the same time period last year.
   
   Teladoc reported a net loss of $33.3 million, down from a loss of $57.1 million in the third quarter of 2024.
   
   The company is continuing to pivot BetterHelp to accept insurance coverage, Teladoc CEO Chuck Divita told investors, but will remain a direct-to-consumer business for the foreseeable future. 
   
   
5. King of Prussia, Pa.-based Universal Health Services brought in revenue of $3.96 billion in the third quarter of 2024, an 11.2% increase from the same time period last year.
   
   The company's behavioral health segment brought in $1.7 billion in revenue, and $320 million in net income.