What Teladoc Health, Inc. told the SEC could break it.

Teladoc's Integrated Care segment derives a significant share of revenue from a few large enterprise clients — primarily health plans — with the five largest Clients accounting for 31% of total Integrated Care segment revenue in both fiscal 2025 and 2024. No single Client exceeded 10% of consolidated revenue, and 83% of consolidated revenue is recurring access fees, but the segment-level concentration means the loss or non-renewal of one or two major health-plan contracts (which are competitively bid and can be terminated) could meaningfully reduce revenue. Clients are unnamed, so an aggregate concentration risk rather than an edge. Severity medium.

“Revenue from the five largest Clients accounted for 31% of total Integrated Care segment revenue for each of the years ended December 31, 2025 and 2024.”

Teladoc's care-delivery model depends on a complex regulatory structure: to comply with state corporate-practice-of-medicine (CPOM) doctrines, it contracts with affiliated professional/medical groups (the THMG Association and the Uplift Association) that employ the physicians, while Teladoc provides administrative services. CPOM doctrines often penalize physicians for aiding the corporate practice of medicine, and Teladoc's inability to maintain or restructure its relationships with these provider associations to comply with state statutes could hinder its ability to serve Clients or members in certain states — a material adverse effect. Layered on top are telehealth licensure, prescribing (controlled-substances), reimbursement, and privacy (GDPR/HIPAA) regimes that continue to expand. A sector-defining, structural policy exposure. Severity medium.

“our inability to successfully restructure our relationships with the THMG Association's or the Uplift Association's providers to comply with these statutes, could hinder our ability to provide services to Clients or members located in certain states”

Teladoc depends on a limited number of third-party suppliers for certain components of its medical devices and uses sole-source contract manufacturing vendors to build and assemble those device products (e.g., chronic-care/Livongo blood glucose meters and virtual-care devices, plus welcome/refill kits). Depending on a limited number of suppliers — or a sole supplier — exposes it to limited control over pricing, availability, quality and delivery, and to obligations like timely replacement of defective glucose meters that, if missed, could prompt channel partners, resellers or Clients to terminate. It also imports components for assembling kits and devices, so tariffs on goods from Canada, Mexico and China add cost and supply risk. Suppliers/manufacturers are unnamed, so a sole-source risk rather than an edge. Severity medium.

“We utilize sole source contract manufacturing vendors to build and assemble our medical device products.”