DCGO — DocGo Inc.

Summary of DocGo Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 2025 Revenue: $74.9 million, down from $120.8 million in Q4 2024, primarily due to the wind down of migrant-related projects. Excluding these revenues, there was an 11% year-over-year increase.
• Full Year 2025 Revenue: $322.2 million, compared to $616.6 million in 2024.
• Adjusted EBITDA: Loss of $11.3 million in Q4 2025, compared to a profit of $1.1 million in Q4 2024. Full-year adjusted EBITDA loss was $28.6 million.
• Adjusted Gross Margin: 32.5% in Q4 2025, slightly down from 33.5% in Q4 2024. Medical transportation gross margins improved to 32.8%.
• Cash Position: Cash and cash equivalents decreased to $68.3 million from $95.2 million, impacted by the acquisition of SteadyMD and delays in collecting receivables.

2. Strategic Updates and Business Highlights

• Acquisition of SteadyMD: Contributed $6.1 million in Q4 revenue; full-year interactions exceeded 4 million, with significant growth in telehealth services.
• Hiring Improvements: 206 EMT and paramedic roles filled out of 546 open positions, leading to reduced reliance on outsourced rides.
• Care Gap Closure Programs: Expanded partnerships with national insurance payers, increasing assigned lives from 1.3 million to over 1.45 million.
• Efficiency Innovation Portfolio: Launched initiatives expected to save $5-6 million in 2026 and $20-24 million in 2027, focusing on automation and technology integration.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Increased to $290 million to $310 million, up from previous guidance of $280 million to $300 million.
• Adjusted EBITDA Guidance: Expected loss of $5 million to $10 million, improved from a prior forecast of $15 million to $25 million.
• Gross Margin Expectations: Anticipated blended gross margin of approximately 33% for 2026, with improvements expected as hiring stabilizes and migrant-related costs are eliminated.

4. Challenges and Points of Concern

• Revenue Decline: Significant year-over-year revenue drop attributed to the end of migrant-related projects, raising concerns about sustainability and diversification.
• Cash Flow Pressures: Ongoing operating losses and delayed collections from New York City’s Department of Housing Preservation and Development could strain working capital.
• High Overtime Costs: Continued high overtime rates (13% of hourly wages) in the medical transportation segment are impacting gross margins.
• Goodwill and Intangible Asset Write-downs: A total of $72.1 million in impairments due to market cap issues, reflecting accounting-driven challenges rather than operational performance.

5. Notable Q&A Insights

• Strategic Alternatives: Management is exploring strategic alternatives to maximize shareholder value, engaging an investment bank for the process.
• Revenue Drivers: Increased guidance is attributed to improved volumes in medical transportation and growth in SteadyMD, with ongoing focus on staffing and efficiency improvements.
• Cross-Selling Opportunities: Management highlighted the potential for cross-selling services, particularly in care gap closures and mobile health, to enhance patient engagement and revenue.
• Visibility and Growth: The 2026 guidance is based on existing contracts and staffing, with no new wins factored in, indicating a cautious but steady growth outlook.

Overall, while DocGo Inc. is navigating significant challenges, particularly related to revenue declines and cash flow pressures, there are positive signs of growth in specific segments and strategic initiatives aimed at improving efficiency and profitability.