Summary of DocGo's Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $73.4 million, down from $80.4 million in Q2 2025, primarily due to the wind-down of migrant-related projects. Excluding these, revenue increased by 19% year-over-year.

Medical Transportation Revenue: Increased to $52 million from $49.6 million in Q2 2025, marking a record high.

Mobile Health Revenue: $21.4 million, down from $30.8 million year-over-year, but non-migrant revenues surged by 78%.

Adjusted EBITDA: Loss of $6.3 million, an improvement from a loss of $10.3 million in Q1 2026, but slightly worse than a loss of $6.1 million in Q2 2025.

Adjusted Gross Margin: 30.5%, down from 31.6% in Q2 2025, with medical transportation margins at 32%.

Cash Position: Total cash and equivalents at $48.1 million, down from $59.9 million at the end of Q1 2026.

2Strategic Updates and Business Highlights

Acquisition of Hicuity Health: DocGo announced a definitive agreement to acquire Hicuity Health, a telemedicine provider, for $65 million in revenue and $4.5 million in adjusted EBITDA. This acquisition aims to enhance DocGo's technology-enabled care delivery model.

Funding Commitment: Secured up to $50 million from Perceptive Advisors to support the acquisition and operational needs.

Record Volumes: Achieved across key verticals, including a 58% increase in virtual care and lab orders year-over-year.

Cost-Cutting Initiatives: A corporate reduction in force has led to an annual SG&A reduction of approximately $4.5 million.

3Forward Guidance and Outlook

Revenue Guidance: Full-year revenue expected to be between $305 million and $310 million, reflecting growth of 21%-23% over 2025's base revenues.

Adjusted EBITDA Loss: Revised guidance for a loss between $17 million and $22 million, wider than previous expectations due to slower-than-anticipated cost-cutting impacts.

Long-term Outlook: Anticipation of achieving a positive adjusted EBITDA run rate by year-end 2026, setting up for a strong 2027.

4Bad News, Challenges, or Points of Concern

Revenue Decline: The overall revenue drop was attributed to the cessation of migrant-related projects, which could indicate vulnerability in revenue streams.

Increased Costs: Rising fuel costs impacted gross margins, with fuel prices averaging $4.27 per gallon, affecting profitability.

Regulatory Risks: Potential changes in Medicare reimbursement for remote patient monitoring (RPM) could pose risks, although management believes their focus on chronic care management will mitigate this.

5Notable Q&A Insights

Customer Overlap with Hicuity: There is significant overlap between DocGo's and Hicuity's hospital system customers, presenting cross-selling opportunities, particularly in transitional care management.

Growth Rate of Hicuity: Hicuity Health is growing at a low double-digit rate (10%-12%).

RPM Concerns: Management expressed confidence that their chronic care management services would remain unaffected by proposed Medicare changes, as they focus on managing patient outcomes rather than just monitoring.

Integration Efficiencies: Plans to streamline clinical functions and reduce operational costs through the merger with Hicuity were discussed, highlighting the potential for combined clinical practice groups and vendor efficiencies. Overall, while DocGo is navigating some challenges, particularly with revenue declines and rising costs, the strategic acquisition of Hicuity Health and ongoing operational improvements position the company for future growth.