DocGo, Inc. ((DCGO)) has held its Q2 earnings call. Read on for the main highlights of the call.
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DocGo, Inc.’s recent earnings call presented a mixed sentiment, highlighting both achievements and challenges. The company reported strong operational cash flow and significant reductions in accounts receivable, demonstrating robust financial management. However, these positives were tempered by challenges such as a decline in overall revenue and adjusted EBITDA losses, primarily due to the wind-down of migrant-related programs.
Strong Cash Flow and Balance Sheet Improvements
DocGo reported impressive cash flow from operations, totaling more than $30 million for Q2 2025. This financial strength was further evidenced by a cash increase of $25.6 million from the previous quarter, ending Q2 with a total of $128.7 million.
Significant Reduction in Accounts Receivable
The company successfully reduced accounts receivable from migrant-related programs, decreasing from $120 million to approximately $54 million by the end of Q2 2025. This reduction marks a significant improvement in financial efficiency.
Operational Achievements in Medical Transport
DocGo completed over 176,000 medical transports in Q2 and launched a major new customer in New York. This expansion is expected to drive record volumes in the second half of the year, showcasing the company’s operational capabilities.
Expansion in Payer and Provider Vertical
The care gap closure program expanded significantly, with assigned lives increasing to 1.2 million from 900,000 in the previous quarter. Patient conversions also saw a 50% increase in Q2, highlighting growth in this vertical.
Technology and AI Integration
DocGo introduced a text-based AI agent to automate appointment reminders and rescheduling, saving approximately 10% of live operators’ time. This integration reflects the company’s commitment to leveraging technology for operational efficiency.
Stock Buyback Program
During Q2 2025, DocGo repurchased 2.5 million shares for approximately $5.1 million, indicating confidence in the company’s future prospects and a commitment to returning value to shareholders.
Revenue Decline Due to Wind Down of Migrant Programs
The company’s total revenue for Q2 2025 was $80.4 million, a significant decrease from $164.9 million in Q2 2024. This decline was primarily due to reduced revenues from government verticals related to migrant projects.
Decrease in Mobile Health Revenue
Mobile Health revenue also saw a decline, dropping to $30.8 million from $116.7 million in the same period last year, driven by the wind-down of migrant-related revenues.
Negative Adjusted EBITDA
DocGo reported an adjusted EBITDA loss of $6.1 million in Q2 2025, compared to a positive adjusted EBITDA of $17.2 million in Q2 2024, reflecting financial challenges faced during the quarter.
Decreased Gross Margins
The adjusted gross margin for Mobile Health was 32.5% in Q2 2025, down from 35.9% in Q2 2024, indicating pressure on profitability.
Forward-Looking Guidance
Looking ahead, DocGo remains optimistic despite the revenue decline. The company anticipates achieving positive adjusted EBITDA in the latter half of 2026, with projected quarterly revenues ranging from $80 million to $85 million. They also plan to increase care gap visits to over 54,000 by the end of 2026, reflecting a strategic focus on growth and operational milestones.
In summary, DocGo’s earnings call painted a picture of both progress and challenges. While the company demonstrated strong cash flow and operational achievements, it faced significant revenue declines and adjusted EBITDA losses. However, with strategic initiatives and optimistic guidance, DocGo aims to navigate these challenges and achieve growth in the coming years.