DocGo Q2 Earnings Call Highlights

Key Points

• Q2 revenue fell to $73.4 million from $80.4 million a year earlier as DocGo reduced migrant-related work, though revenue excluding those projects increased 19% year over year. Core service volumes reached records across transportation, in-home healthcare, mobile phlebotomy, monitoring and virtual care.
• DocGo agreed to acquire Hicuity Health, a virtual acute-care provider with approximately $65 million in trailing revenue and $4.5 million in adjusted EBITDA. The deal is intended to expand DocGo’s hospital-to-home platform and includes assumed debt of about $52 million plus up to $50 million in additional financing from Perceptive Advisors.
• Full-year adjusted EBITDA guidance was lowered to a loss of $17 million to $22 million, although revenue guidance was narrowed to $305 million-$310 million. Management cited larger-than-expected first-half losses and slower margin recovery, but expects to exit 2026 at a positive adjusted EBITDA run rate.

DocGo NASDAQ: DCGO reported second-quarter revenue of $73.4 million, down from $80.4 million a year earlier, as the company continued to wind down migrant-related projects. Excluding migrant-related revenue, revenue rose 19% year over year, while revenue from business lines operating in both periods increased about 5% after also excluding contributions from the SteadyMD acquisition.

Chief Executive Officer Lee Bienstock said the quarter marked a “transformational period” for the company, highlighted by a definitive agreement to acquire acute and critical-care telemedicine provider Hicuity Health, new financing commitments and record service volumes across business lines.

Hicuity Deal Adds Virtual Acute-Care Platform

DocGo said it has agreed to acquire St. Louis-based Hicuity Health, which provides Tele-ICU, virtual nursing and telemetry monitoring services through its proprietary clinical monitoring platform, known as The Hub. Hicuity has more than 400 clinical staff and generated approximately $65 million in trailing 12-month revenue and $4.5 million in adjusted EBITDA, according to DocGo.

Chief Financial Officer Norm Rosenberg said Hicuity’s revenue has been growing at a low-double-digit annual rate, which he described as roughly 10% to 12%. The company expects the acquisition to complement its existing virtual-care capabilities, including SteadyMD, acquired in late 2025, and its in-home service offerings.

Bienstock said the combined platform would enable DocGo to serve patients “from the hospital to the home,” with potential opportunities to cross-sell virtual care, mobile phlebotomy, remote monitoring and transitional-care services to health-system customers. He said DocGo and Hicuity have overlapping hospital-system relationships, while each also serves customers that the other does not.

Under the transaction terms, DocGo will acquire Hicuity on a cash-free basis and assume debt held by Perceptive Advisors that is estimated at approximately $52 million at closing and matures in December 2029. Perceptive also committed to provide up to $50 million in additional financing in multiple tranches. The first $12.5 million is expected to be funded through a pre-closing management-services agreement.

DocGo will issue equity representing 2% of its fully diluted common stock at closing to Hicuity’s preferred equity holder. That holder could receive an additional 3.5% equity interest if DocGo reaches a market capitalization of $250 million within three years after closing.

Rosenberg said the deal still requires state regulatory approvals and approvals from certain customers, but management does not view those requirements as particularly problematic beyond potential timing considerations.

Record Service Volumes and Cost Initiatives

Bienstock said DocGo posted record volumes in its core businesses during the quarter. Year-over-year volume growth included a 15% increase in U.S. medical transportation, 26% growth in healthcare in the home, 20% growth in mobile phlebotomy, 13% growth in cardiac and remote patient monitoring, and 58% growth in virtual care and lab orders.

The company also signed a new contract with one of the country’s largest national health plans to provide services to members in Pennsylvania. The number of patients assigned to DocGo’s care-gap-closure services reached 1.7 million since inception, up 100,000 from the prior quarter.

Medical transportation revenue rose to a quarterly record of $52 million, compared with $49.6 million in the prior-year period. Mobile health revenue fell to $21.4 million from $30.8 million because of the decline in migrant-related work, though non-migrant mobile health revenue increased 78%, driven by care-gap closures, remote patient monitoring, mobile phlebotomy and SteadyMD.

DocGo’s adjusted EBITDA loss narrowed sequentially to $6.3 million from $10.3 million in the first quarter, though it compared with a $6.1 million loss in the second quarter of 2025. The company said a corporate reduction in force reduced annual selling, general and administrative expense by approximately $4.5 million.

The company is also deploying artificial intelligence tools across its operations. In mobile phlebotomy, an AI communications tool now handles 60% of inbound patient calls without live-agent involvement and all outbound appointment scheduling calls, or more than 1,000 calls on a typical day, management said. AI data-entry integrations account for 65% of orders received, with DocGo targeting 90% by year-end. The company estimates that more than 10 active efficiency programs could generate about $6 million in annual savings once fully implemented.

Margins, Cash and Updated Outlook

Adjusted gross margin was 30.5%, down from 31.6% a year earlier. Medical transportation adjusted gross margin improved to 32% from 31.1%, but higher field-labor costs and fuel prices remained constraints. Fuel prices averaged $4.27 per gallon during the quarter, compared with $3.16 a year earlier, which DocGo estimated reduced transportation gross margin by about 60 basis points.

Mobile health adjusted gross margin fell to 27% from 32.5%, partly reflecting lower-than-normal SteadyMD margins after hiring to address demand and prepare for expected seasonal volume in the second half. However, Rosenberg said continuing mobile health business lines improved gross margin by more than 500 basis points when excluding migrant-related revenue from the prior-year comparison.

DocGo narrowed its full-year revenue outlook to $305 million to $310 million, within its prior range of $300 million to $315 million. The guidance excludes potential contributions from Hicuity and migrant-related projects. The company now expects a full-year adjusted EBITDA loss of $17 million to $22 million, wider than its prior projected loss of $5 million to $10 million.

Management attributed the revised EBITDA outlook to larger-than-expected first-half losses and a gross-margin recovery that has progressed more slowly than anticipated. Still, DocGo said it expects to exit 2026 at a positive adjusted EBITDA run rate, supported by revenue growth, improving margins and lower SG&A expenses.

At June 30, DocGo had total cash, cash equivalents, restricted cash and investments of $48.1 million, including available cash of $25.2 million. The company said the planned Perceptive financing would replace its existing asset-backed credit line and provide added balance-sheet flexibility.

About DocGo (NASDAQ:DCGO)

DocGo, Inc is a U.S.-based integrated healthcare company that delivers on-demand and mobile healthcare services. The company’s business model centers on deploying customized medical clinics paired with a digital care platform to bring primary and acute care directly to patients. Through a combination of telemedicine and over-the-road medical units, DocGo addresses routine medical exams, chronic disease management, occupational health screenings, specialist consultations and urgent care interventions.

In addition to its mobile clinic fleet, DocGo’s digital platform offers 24/7 virtual care, facilitating remote consultations via video, phone or secure messaging.

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