DocGo — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q2 2026 was $73.4 million, a decrease from $80.4 million in Q2 2025; excluding wind-down of migrant-related programs (which generated $18.8 million in Q2 2025 and zero in Q2 2026), revenue increased 19% year-over-year.
• GAAP gross margin was 26.9% in Q2 2026 compared to 26.7% in Q2 2025.
• Adjusted gross margin was 30.5% in Q2 2026 compared to 31.6% in Q2 2025.
• Net loss was $18.0 million in Q2 2026 compared to a net loss of $13.3 million in Q2 2025.
• Adjusted EBITDA was ($6.3) million in Q2 2026 compared to ($6.1) million in Q2 2025.
• Medical Transportation Services revenue was $52.0 million in Q2 2026 versus $49.6 million in Q2 2025.
• Mobile Health Services revenue was $21.4 million in Q2 2026 versus $30.8 million in Q2 2025; excluding migrant programs, this segment increased 78% to $21.4 million from $12.0 million in Q2 2025.
• Total cash, cash equivalents, restricted cash, and investments were approximately $48.1 million as of June 30, 2026, down from $59.9 million as of March 31, 2026.
• Unrestricted cash was $25.2 million as of June 30, 2026, down from $35.7 million as of March 31, 2026.
• Net cash used in operating activities for the six months ended June 30, 2026, was $13.9 million.

Guidance and Future Outlook

• Full-year 2026 revenue guidance narrowed to $305-$310 million from a prior range of $300-$315 million; guidance excludes Hicuity Health acquisition contributions.
• Full-year 2026 adjusted EBITDA guidance lowered to ($17-$22) million from a prior range of ($5-$10) million.
• Management expects to exit the year at a profitable run rate and achieve positive adjusted EBITDA as the company heads into 2027.

Business Segments and Product Lines

• US medical transportation volumes increased 15% year-over-year.
• Healthcare in the home volumes increased 26% year-over-year.
• Mobile phlebotomy volumes increased 20% year-over-year.
• Cardiac and remote patient monitoring volumes increased 13% year-over-year.
• Virtual care and lab orders volumes increased 58% year-over-year.
• Launched mobile phlebotomy services in Southern Florida, expanding a relationship with a major national clinical laboratory.
• Signed a new contract with one of the largest national health plans to offer care gap closure services in Pennsylvania.
• Surpassed 1.7 million patients assigned to care gap closure services since inception, an increase of 100,000 patients from the previous quarter.

Market and Competitive Landscape

• The company positions itself as a leading provider of technology-enabled mobile health and medical transportation services, bridging the gap between physical and virtual care.
• The pending acquisition of Hicuity Health is expected to create one of the most innovative healthcare delivery platforms in the industry.

Risks and Challenges

• Revenue decline was driven by the wind-down of migrant-related programs.
• The company faces risks related to its ability to continue as a going concern and maintain its Nasdaq listing.
• Risks include reliance on government contracts, changes in government spending, and potential impacts from federal government shutdowns.
• The company faces competition in the healthcare transportation and mobile health services markets.
• Risks include the ability to maintain existing contracts, retain workforce, and manage growth effectively.
• Potential risks include cyber incidents, data privacy compliance issues, and volatility in stock price.

Management Commentary and Tone

• CEO Lee Bienstock stated the acquisition of Hicuity Health is a major leap forward, enabling a holistic tech-powered solution to match clinicians with patients across the care continuum.
• CFO Norm Rosenberg noted the acquisition creates a combined entity with greater financial liquidity and significant cost synergies.
• Management highlighted that cost-cutting initiatives removed more than $4 million in estimated annual SG&A costs during the quarter.
• Management expressed confidence in achieving a positive adjusted EBITDA run rate by the end of 2026 and into 2027.

Other Key Points

• DocGo entered a definitive agreement to acquire 100% of virtual care provider Hicuity Health.
• Hicuity generated approximately $65 million in revenue and $4.5 million in adjusted EBITDA on a trailing 12-month basis.
• The acquisition involves the assumption of Hicuity's existing indebtedness held by Perceptive Advisors, estimated at approximately $52 million at closing, maturing in December 2029.
• Hicuity's preferred shareholder will receive equity representing approximately 2.0% of DocGo's outstanding common stock, with a potential additional 3.5% if DocGo achieves a $250 million market capitalization within three years of closing.
• Perceptive Advisors committed to providing up to an additional $50 million in debt financing to DocGo, with the first $12.5 million tranche available upon entering a pre-closing services agreement.
• TD Cowen acted as exclusive financial advisor to Hicuity Health; Norton Rose Fulbright acted as legal counsel for DocGo; Stradling Yocca Carlson & Rauth acted as legal counsel for Hicuity Health.