DocGo, Inc. ((DCGO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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During DocGo, Inc.’s recent earnings call, the sentiment was a mix of optimism and caution. The company highlighted strong growth prospects and strategic acquisitions, particularly in the virtual care and transportation sectors. However, there were significant year-over-year revenue declines and adjusted EBITDA losses, mainly due to the sunset of migrant-related projects and investments in new business lines. Despite these challenges, DocGo’s robust balance sheet positions it well for future growth.
Record Volumes in Base Business Offerings
DocGo reported record volumes across all base business offerings in the third quarter of 2025. This achievement reflects the success of their strategy in building a robust evergreen healthcare business, demonstrating the company’s ability to sustain and grow its core operations.
Strong Balance Sheet
The company maintains a strong balance sheet, having paid off $30 million in debt, making it debt-free for the first time since late 2023. This financial strength is intended to fund growth and capitalize on future opportunities, providing a solid foundation for DocGo’s expansion plans.
Acquisition of SteadyMD
DocGo’s acquisition of SteadyMD, a virtual care provider with a 50-state network, is expected to generate approximately $25 million in revenue in 2025. This acquisition enhances DocGo’s scalability and service offerings, positioning it as a more comprehensive healthcare provider.
Revenue Growth in Medical Transportation
Medical transportation revenue increased to $50.1 million in 2025 from $48 million in 2024. This growth is driven by long-term contracts and high utilization rates, indicating strong demand and effective service delivery in this sector.
Expansion of Payer and Provider Services
DocGo’s payer and provider vertical is expected to grow significantly, from $50 million in 2025 to $85 million in 2026. This expansion is supported by substantial contributions from the SteadyMD acquisition and new contracts, highlighting a strategic focus on broadening service offerings.
Year-over-Year Revenue Decline
Total revenue for 2025 was $70.8 million, a decline from $138.7 million in 2024. This decrease is primarily attributed to the sunset of migrant-related projects, which had previously contributed significantly to the company’s revenue.
Adjusted EBITDA Loss
DocGo reported an adjusted EBITDA loss of $7.1 million in 2025, compared to a positive $17.9 million in 2024. This loss reflects ongoing investments in new business areas, as the company seeks to diversify and expand its service offerings.
Decreased Gross Margins in Mobile Health
The Mobile Health segment saw a decrease in adjusted gross margin to 36.2% in 2025 from 38.8% in 2024. This decline is due to investments in Caregap closure and primary care offerings, which are expected to pay off in the long term.
Challenges in Ramp-up of Primary Care Services
The ramp-up of primary care services took longer than anticipated, with revenue expectations of $5 million to $10 million for 2025 not fully realized yet. This delay indicates challenges in scaling up new service lines within the expected timeframe.
Forward-Looking Guidance
Looking ahead, DocGo projects revenue between $280 million and $300 million for 2026, marking a 12% to 20% growth from the base business in 2025. The company anticipates a full-year adjusted EBITDA loss between $15 million and $25 million, with the majority of the loss expected in the first half of the year. CEO Lee Bienstock emphasized the company’s transition to a long-term, integrated healthcare provider, with the SteadyMD acquisition playing a crucial role in this strategy. The guidance is based on existing contracts, with potential for additional growth through new acquisitions or contracts.
In summary, DocGo’s earnings call presented a mixed outlook, with strong growth prospects tempered by current financial challenges. The company’s strategic acquisitions and robust balance sheet provide a foundation for future expansion, while the forward-looking guidance reflects cautious optimism about overcoming current hurdles and achieving long-term growth.