MeritValue

Talkspace, Inc.

TALKdata completeness 75%7 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Talkspace, Inc. earns about -21% on equity, but has diluted owners by 100% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$113.7M1$119.6M2$150M3$187.6M3$228.9M3
Net income−$62.7M4−$79.7M4−$19.2M4$1.15M4$7.79M4
Operating cash flow−$65.7M5−$61.1M6−$16.4M7$11.3M7$8.53M7
Capital expenditure$663,0008$350,0008$151,0008——
Free cash flow (derived)−$66.4M5−$61.4M6−$16.5M7——
Total debt—————
Cash & equivalents$198.3M9$138.5M10$123.9M11$76.7M12$37.4M12
Diluted shares86.8M156.9M165.0M176.5M173.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$6.74
your share of equity
Profit it earned you last year
$0.45
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $6.74 of net worth that earned you $0.45 last year.

iii. Is this a good business?
Moat signal · return on equity
-21% avg · 5y
FY21 -33%FY22 -62%FY23 -16%FY24 1%FY25 7%

It earned an average -21% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+100% shares · 5y

Share count is up 100% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$0.78
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-24-030872 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-25-038107 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001193125-26-105146 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K/A · period ending 2021-12-31 · accession 0001193125-26-197712 (NetIncomeLoss)
  5. 10-K · period ending 2021-12-31 · accession 0000950170-24-030872 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2022-12-31 · accession 0000950170-25-038107 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-12-31 · accession 0001193125-26-105146 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2021-12-31 · accession 0000950170-24-030872 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2021-12-31 · accession 0000950170-23-007147 (CashAndCashEquivalentsAtCarryingValue)
  10. 10-K · period ending 2022-12-31 · accession 0000950170-24-030872 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2023-12-31 · accession 0000950170-25-038107 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2024-12-31 · accession 0001193125-26-105146 (CashAndCashEquivalentsAtCarryingValue)