Company: TALK
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001193125-25-268231
Chunk: 3

Company: Talkspace, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 3
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 6,400 Consumer active members compared to 8,600 Consumer active members as of September 30, 2024. Please refer to the “Key Business Metrics” section below for a description of Consumer active members.

Inflation Risk and Economic Conditions

The demand for our solution is dependent on the general economy, which is in turn affected by geopolitical conditions, the stability of the global credit markets, inflationary pressures, higher interest rates, the industries in which our Payor and DTE customers operate or serve, and other factors. Downturns in the general economy could disproportionately affect the demand for our solution and cause it to decrease.

Our operations could also be impacted by inflation and higher interest rates. Inflation did not have a material effect on our business, financial condition or results of operations for the nine months ended September 30, 2025 and 2024. However, if our costs were to become subject to significant inflationary pressures (such as Provider cost), we may not be able to fully offset such higher costs through price increases or cost savings. Our inability or failure to do so could harm our business, financial condition or results of operations.

One Big Beautiful Bill Act (“OBBBA”)

The U.S. federal income tax legislation, commonly referred to as the OBBBA, was enacted on July 4, 2025. While the Company continues to record a full valuation allowance against its U.S. deferred tax assets, the OBBBA has a positive impact on our liquidity and the duration of our future cash tax shield. The OBBBA permanently reinstates 100% Bonus Depreciation for qualified capital expenditures made after January 19, 2025, and allows the immediate expensing of domestic Research and Development (“R&D”) costs for tax years beginning after December 31, 2024. These provisions increase the amount of tax deductions available in the current and future periods. The permanent nature of R&D expensing and Bonus Depreciation, combined with the permanent extension of post-2017 Net Operating Loss carryforwards, increases the expected longevity of our tax shield.