Core Insights - The healthcare industry is experiencing significant changes, particularly in home-based care and accessibility for patients [2] - New legislation and changes to Medicaid are expected to impact the healthcare landscape, especially in rural areas [2] Industry Trends - The industry is at the forefront of trends related to home-based care, aiming to provide accessible healthcare to patients who may otherwise fall through the cracks [2] - There is anticipation of substantial changes due to evolving legislation and healthcare policies [2]

Summary of the Conference Call Company and Industry Overview - The conference is part of the 23rd annual Morgan Stanley Healthcare Conference, focusing on the healthcare industry and innovations in home-based care [2][3] - The company discussed is DocGo, a medical transportation and mobile health provider, which has been innovating in the medical transportation space for over 10 years [4][5] Key Points and Arguments Mobile Health Growth - DocGo has seen significant growth in the mobile health segment, particularly in coordinating care for high-utilizing members through partnerships with insurance companies [4][5] - The company has expanded its reach from serving 2,000 patients to nearly a million patients across the New York tri-state area and California [6][8] - On average, DocGo closes almost two care gaps per home visit, with some visits closing up to six gaps [6][8] Technology Integration - The tech stack developed by DocGo is crucial for efficient home-based medical care, allowing licensed practical nurses (LPNs) and medical assistants to provide care under the direction of primary care providers [10][11] - Integration with electronic health record (EHR) systems like Epic enhances coordination and efficiency in patient care [11] Revenue and Contract Stability - DocGo's contracts in the transportation segment typically last three to five years and are described as "sticky," indicating high customer retention [13][14] - The company is transitioning from episodic contracts with municipal governments to more sustainable, population health-focused contracts with payers [15] Labor and Inflation Management - Staffing is a significant challenge, with 800 open roles to fill, but the company maintains a strong reputation as a desirable workplace [16][18] - Inflationary pressures are minimal, with fuel costs decreasing and existing vehicles owned or procured under favorable terms [17] Payer Opportunities - DocGo works primarily with managed care, Medicaid, and Medicare Advantage plans, focusing on the dual special needs population, which shows higher engagement rates [20][21] - The company aims to keep patients out of hospitals, aligning with value-based care models that incentivize health plans to manage costs effectively [23][24] M&A Strategy - DocGo is looking for M&A opportunities that add capabilities or expand geographic reach, particularly in underserved areas [26][27] - The medical transportation market is estimated at $10 billion, with DocGo currently capturing around $225 million, indicating significant growth potential [49] Capital Allocation - The company prioritizes organic growth, staff training, and M&A opportunities while maintaining a strong balance sheet with over $100 million in cash [30][32][33] Market Expansion - DocGo expands into new markets based on demand from existing customers, ensuring they have anchor clients before entering new regions [37][38] Go-to-Market Strategy - The sales cycle for new customers can range from 6 to 18 months, with existing customers typically resulting in faster expansions [42][43] Telehealth Perspective - While telehealth is recognized as a valuable service, DocGo emphasizes the necessity of in-person care for certain medical needs, positioning itself uniquely in the market [54][56] Other Important Insights - The company has a high Net Promoter Score of over 90, indicating strong patient satisfaction [47][48] - The medical transportation segment is increasingly recognized as vital for patient flow management within hospital systems [51][52]

Summary of DocGo (DCGO) 2025 Conference Call Company Overview - **Company**: DocGo - **Industry**: Mobile health and medical transportation - **Key Operations**: Provides medical transportation and home healthcare services across the U.S. and the UK, serving approximately 1 million patients annually [4][5] Core Business Segments Medical Transportation - **Patient Transports**: Expected to provide over 750,000 patient transports in the current year, with a projected growth of 15% year-over-year [33][36] - **Technology Integration**: Utilizes a complex logistics and dispatch management platform integrated with Epic, allowing hospital systems to efficiently manage patient discharges and transport needs [10][12] - **Unique Model**: Employs a hybrid model where licensed practical nurses (LPNs) conduct home visits while remote clinicians provide oversight, enhancing efficiency and patient care [6][14] Home Healthcare - **Growth Potential**: Anticipated growth of 50-100% in home healthcare services, with significant increases in patient visits compared to previous years [37][39] - **Care Gap Closure**: Focuses on addressing care gaps for patients who have not seen a primary care provider, with services including screenings and vaccinations [41][42] Strategic Partnerships and Market Expansion - **Joint Ventures**: Collaborates with major hospital systems, including a joint venture with Jefferson, enhancing service delivery and integration [16][17] - **Market Entry Strategy**: Expands into new markets by partnering with marquee customers, as demonstrated by recent entry into the Dallas Fort Worth area [18][20] Financial Performance and Projections - **Revenue Growth**: Medical transportation revenue projected to exceed $200 million this year, with mobile health services expected to grow significantly [70] - **Contract Durations**: Typical contracts with hospital systems last 3-5 years, contributing to stable revenue streams [27][28] Government Contracts and Services - **Evolving Focus**: Shift towards long-term population health contracts rather than episodic emergency care, with a focus on providing vaccinations and primary care services to underserved communities [48][55] - **Transparency in Reporting**: Plans to break out government-related revenues separately to provide clearer insights to investors [51] Challenges and Market Dynamics - **Hospital Spending Trends**: Noted uncertainty in hospital spending cycles, with health plans under pressure to optimize resources amid potential Medicaid enrollment changes [72][74] - **Quality Scores**: Engages in care gap closure initiatives that directly impact quality scores for health plans, enhancing their operational efficiency [73] Conclusion - **Future Outlook**: DocGo is well-positioned to capitalize on the growing demand for mobile health services and integrated care solutions, with a strong emphasis on technology and patient-centered care [76]

Summary of DocGo (DCGO) FY Conference Call - August 26, 2025 Company Overview - **Company Name**: DocGo (DCGO) - **Industry**: Mobile health services and integrated medical mobility solutions - **Core Business**: Provides last mile mobile health services, medical transport, and care in the home [1][4] Key Points and Arguments Investment Thesis - DocGo is positioned as a leading provider of tech-driven mobile care, with a strong balance sheet and a large total addressable market (TAM) [4][6] - The company aims to deliver healthcare at any address, moving care outside traditional hospital settings [6][7] Business Segments - **Medical Transport**: The foundation of the business, expanding with a focus on non-emergency medical transport [5][43] - **Mobile Health**: Rapidly growing segment providing care in the home, with a broad range of services [5][31] Financial Performance - Revenue for Q2 was approximately $80.4 million, slightly above consensus, with a gross margin of 31.5% [16] - The company has collected about 98% of receivables from New York City and State for migrant services, improving cash flow [14][15] - Book value per share is increasing, and the company is trading at a significant discount to its book value [12][13] Market Dynamics - The U.S. healthcare system spends significantly on treating chronic diseases, with 90% of $4.5 trillion spent on chronic conditions and mental health [21][22] - DocGo aims to assist payers and providers in preventing chronic issues by offering tailored solutions [22][23] Growth Opportunities - The number of patients assigned for care gap closure is projected to exceed 1 million, with a significant increase in completed visits expected [53][54] - The company is focusing on expanding partnerships with health plans and hospital systems to enhance service delivery [62] Competitive Advantages - DocGo has a proprietary logistics platform that allows efficient routing and service delivery, creating a competitive moat [34][60] - The company has vertical integration, combining technology, staffing, and clinical services, which is rare in the industry [58][65] Management and Strategy - The management team includes experienced professionals from various sectors, enhancing operational capabilities [66] - Future M&A activities will focus on filling gaps in service offerings rather than simply acquiring revenue [62] Important but Overlooked Content - The company has pruned underperforming markets to focus on scalable opportunities, which may lead to higher growth rates than previously indicated [52] - The emphasis on care gap closure and mobile health services is critical for improving patient outcomes and reducing overall healthcare costs [40][41] Conclusion - DocGo is strategically positioned in a fragmented healthcare market with a strong focus on mobile health and medical transport services, backed by a solid financial foundation and growth potential through innovative solutions and partnerships [63][66]

分组1 - DocGo Inc. reported a quarterly loss of $0.11 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.06, and a decline from earnings of $0.06 per share a year ago, resulting in an earnings surprise of -83.33% [1] - Motion Acquisition, part of the Zacks Medical Services industry, posted revenues of $80.42 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 4.44%, but down from $164.95 million year-over-year [2] - The stock of Motion Acquisition has decreased by approximately 66.8% since the beginning of the year, contrasting with a 7.9% gain in the S&P 500 [3] 分组2 - The future performance of Motion Acquisition's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The trend of estimate revisions for Motion Acquisition was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $67.57 million, and -$0.24 on revenues of $310.46 million for the current fiscal year [7] 分组3 - The Medical Services industry is currently ranked in the top 40% of over 250 Zacks industries, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - Sonida Senior Living, another company in the same industry, is expected to report a quarterly loss of $0.78 per share, reflecting a year-over-year change of +9.3%, with revenues anticipated to be $82.72 million, up 17.8% from the previous year [9][10]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $80.4 million, down from $164.9 million in Q2 2024, primarily due to the decline in government vertical related to migrant projects [19] - Mobile health revenue decreased to $30.8 million from $116.7 million year-over-year, with approximately $18 million attributed to migrant-related revenues [20] - Medical Transportation Services revenue increased to $49.6 million from $48.2 million year-over-year, reflecting a 7% increase when excluding Colorado's impact [20][21] - Adjusted EBITDA for Q2 2025 was a loss of $6.1 million compared to a profit of $17.2 million in Q2 2024 [21] - Adjusted gross margin for the mobile health segment was 32.5%, down from 35.9% in Q2 2024, but improved from 30.8% in Q1 2025 [21][22] Business Line Data and Key Metrics Changes - The company completed over 176,000 medical transports and more than 28,000 mobile phlebotomy visits in Q2, meeting operational targets [9][10] - The Care Gap Closure Program saw an increase in assigned lives from 900,000 to 1.2 million, indicating growth in patient engagement [11][12] - The medical transportation segment accounted for 62% of total revenue, while mobile health made up the remaining 38% [21] Market Data and Key Metrics Changes - The company is expanding its services in Southern California and anticipates adding services in over a dozen new states by 2026 [10][11] - The demand for proactive healthcare is increasing, particularly in addressing chronic diseases, which presents significant opportunities for the company [9][10] Company Strategy and Development Direction - The company is focused on innovative solutions for payers, providers, and health systems to transform proactive healthcare delivery [6] - There is a strong emphasis on reducing SG&A costs, with an estimated annualized savings of $10 million from workforce reductions [8][24] - The company aims to achieve positive adjusted EBITDA in the latter half of 2026, targeting quarterly revenues in the $80 million to $85 million range [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong market need for their services and the potential for growth in the payer and provider verticals [6][10] - The company is optimistic about the future, citing a robust pipeline and improved cash flow from operations [26][28] - Management highlighted the importance of technology and AI in enhancing patient engagement and operational efficiency [14][22] Other Important Information - The company celebrated its ten-year anniversary and ten millionth patient interaction, marking significant milestones in its journey [17] - Cash and cash equivalents increased to $128.7 million as of June 30, 2025, up from $103.1 million at the end of Q1 2025 [26][27] - The company repurchased 2.5 million shares for approximately $5.1 million during the quarter, with an extension of the buyback program approved until December 31 [28][29] Q&A Session Summary Question: Why did the increase in Care Gap patients not change revenue and EBITDA guidance? - Management clarified that the increase in patients was from existing contracts and emphasized the need to ramp up field teams to meet demand [31][32] Question: What caused the sequential decline in medical transport revenue? - Management explained that the decline was due to seasonality and not related to negative contract repricing, with higher revenues in Q1 leading to a settling in Q2 [34][35] Question: What is the EBITDA margin for the medical transport business? - Management indicated that the EBITDA margin was in the mid-single digits for the quarter, with a long-term target of double-digit margins [40][41] Question: What percentage of annual revenue will medical transport represent this year? - Management projected that medical transport would account for approximately 60% to 65% of annual revenue, with growth expected in the payer and provider business [42]

[DocGo Announces Second Quarter 2025 Results](index=1&type=section&id=DocGo%20Announces%20Second%20Quarter%202025%20Results) DocGo reported Q2 2025 financial results, including revenue decline and net loss, alongside corporate achievements and reiterated full-year guidance [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) DocGo reported a substantial year-over-year decline in total revenue and a shift to net loss and adjusted EBITDA loss for Q2 2025, primarily due to migrant program wind-down Q2 2025 Financial Performance vs. Q2 2024 | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Change | | :-------------------------------- | :-------------- | :-------------- | :--------- | | Total Revenue | $80.4 | $164.9 | -51.2% | | GAAP Gross Margin | 26.7% | 31.3% | -4.6 pts | | Adjusted Gross Margin | 31.6% | 33.9% | -2.3 pts | | Net (Loss) Income | $(13.3) | $5.9 | Shift to loss | | Adjusted EBITDA (Loss) | $(6.1) | $17.2 | Shift to loss | | Mobile Health Services Revenue | $30.8 | $116.7 | -73.6% | | Transportation Services Revenue | $49.6 | $48.2 | +2.9% | | Cash Flow from Operations | $33.6 | $36.9 | -8.9% | | Total Cash Balance (as of period end) | $128.7 (Jun 30, 2025) | $103.1 (Mar 31, 2025) | +24.8% | - The decline in total revenue and Mobile Health Services revenue was primarily attributed to the planned wind-down of migrant-related programs[5](index=5&type=chunk) [Select Corporate Highlights for the Second Quarter of 2025](index=1&type=section&id=Select%20Corporate%20Highlights%20for%20the%20Second%20Quarter%20of%202025) DocGo achieved operational milestones in Q2 2025, including expanding care gap closure services, launching new programs, and repurchasing shares - Surpassed **1.2 million patients** assigned by payer and provider partners for care gap closure services, an increase from 900,000 last quarter[5](index=5&type=chunk) - Launched a new care gap closure program in Southern California with one of the largest not-for-profit Medicare and Medicaid public health plans in the US[5](index=5&type=chunk) - Expanded care gap closure relationship with a major insurance company in the Northeast to include primary care services[5](index=5&type=chunk) - Repurchased **2.5 million shares** of common stock for approximately **$5.1 million** during the second quarter of 2025[5](index=5&type=chunk) - Launched a project with the Mescalero Apache Tribe and the New Mexico Department of Health to expand access to preventive wellness care, women's health services, chronic disease management, and behavioral health services for rural communities[7](index=7&type=chunk) - Subsequent to quarter end, the Company paid down **$30 million** on its line of credit, bringing the outstanding balance to **$0**[7](index=7&type=chunk) - Subsequent to quarter end, launched services under a multi-year contract with one of the largest academic medical systems in the New York metro area to provide dedicated ambulance services and coordinate all discharge transportation[7](index=7&type=chunk) [2025 Guidance and Management Commentary](index=2&type=section&id=2025%20Guidance) Management reiterated full-year 2025 guidance, highlighting progress in payer/provider business expansion, increased in-home visits, and SG&A reduction efforts Full-Year 2025 Guidance (Unchanged from last quarter) | Metric | Guidance (million USD) | | :---------------- | :--------------- | | Total Revenue | $300 - $330 | | Adjusted EBITDA | $(20) - $(30) loss | - CEO Lee Bienstock noted substantial progress in expanding payer and provider business, surpassing **1.2 million patients** for care gap closure services, and completing more in-home visits in H1 2025 than in all of 2024[6](index=6&type=chunk) - The company anticipates entering more than a half dozen new states in this vertical by the end of 2026[6](index=6&type=chunk) - CFO Norm Rosenberg reported a substantial increase in total cash balance to **$128.7 million**, driven by the collection of migrant-related receivables[6](index=6&type=chunk) - Approximately **$54 million** in migrant-related receivables remains outstanding, expected to be collected over the remainder of the year[6](index=6&type=chunk) - The company made considerable progress reducing SG&A, with corporate overhead cuts expected to result in an estimated **$10 million in annual savings**[6](index=6&type=chunk) - Further steps are planned for Q3 and Q4 to achieve profitability in the second half of 2026[6](index=6&type=chunk) [Company Information & Event Details](index=3&type=section&id=Company%20Information%20%26%20Event%20Details) This section details DocGo's mobile health and medical transportation services and provides Q2 2025 earnings conference call information [About DocGo](index=3&type=section&id=About%20DocGo) DocGo is a leading provider of technology-enabled mobile health and medical transportation services, aiming to reshape traditional healthcare delivery - DocGo leads the proactive healthcare revolution with an innovative care delivery platform that includes mobile health services, remote patient monitoring, and ambulance services[9](index=9&type=chunk) - The company's proprietary technology and dedicated field staff facilitate healthcare treatment in patients' homes or workplaces, bridging the gap between physical and virtual care[9](index=9&type=chunk) [Conference Call and Webcast Details](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Details) DocGo hosted a conference call and webcast on August 7, 2025, to discuss Q2 2025 financial and operating results Conference Call and Webcast Information | Detail | Information | | :---------------- | :--------------------------------------------------- | | Date | Thursday, August 7, 2025 | | Time | 5:00 PM ET | | Investor Dial | 1-800-717-1738 | | Int'l Investors Dial | 1-646-307-1865 | | Conference ID | 75731 | | Webcast Link | https://viavid.webcasts.com/starthere.jsp?ei=1726999&tp_key=80339fb981 | [Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents DocGo's unaudited condensed consolidated balance sheets, statements of operations, and cash flows for Q2 2025 [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, DocGo's total assets and liabilities decreased, primarily due to reduced accounts receivable, alongside a decline in stockholders' equity Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (USD) | December 31, 2024 (USD) | | :-------------------------- | :---------------- | :------------------ | | Total Assets | $408,263,751 | $455,621,132 | | Cash and cash equivalents | $104,164,128 | $89,241,695 | | Accounts receivable, net | $122,756,182 | $210,899,926 | | Total Liabilities | $120,533,019 | $140,442,002 | | Total Stockholders' Equity | $287,730,732 | $315,179,130 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income](index=8&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20(LOSS)%20INCOME) For Q2 2025, DocGo reported a significant year-over-year decline in net revenues and a shift to a net loss, primarily due to migrant program wind-down Condensed Consolidated Statements of Operations Highlights (Three Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :------------------------------------------------ | :-------------- | :-------------- | | Revenues, net | $80,417,622 | $164,949,716 | | (Loss) income from operations | $(17,480,244) | $10,149,149 | | Net (loss) income | $(13,289,893) | $5,858,574 | | Net (loss) income attributable to stockholders - Basic | $(11,155,246) | $6,529,603 | | Net (loss) income per share - Basic | $(0.11) | $0.06 | | Net (loss) income per share - Diluted | $(0.11) | $0.06 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q2 2025, DocGo generated $33.6 million in operating cash flow, with increased cash used in investing activities and substantial financing outflows from stock repurchases Condensed Consolidated Statements of Cash Flows Highlights (Three Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :-------------------------------------------------------------------------------- | :-------------- | :-------------- | | Net cash provided by operating activities | $33,604,751 | $36,887,180 | | Net cash used in investing activities | $(21,377,184) | $(1,919,533) | | Net cash used in financing activities | $(7,382,430) | $(8,066,648) | | Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | $108,554,572 | $85,823,394 | - The increase in net cash used in investing activities was largely driven by the purchase of restricted investments (**$22.2 million**) and the acquisition of a business (**$3.6 million**) during the six months ended June 30, 2025[24](index=24&type=chunk) - Common stock repurchases accounted for **$5.1 million** of cash used in financing activities during Q2 2025[24](index=24&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles non-GAAP financial measures, including Adjusted Gross Margin and Adjusted EBITDA, to their GAAP equivalents [Adjusted Gross Margin Definition and Rationale](index=13&type=section&id=Adjusted%20Gross%20Margin) Adjusted gross margin is a non-GAAP measure excluding depreciation and amortization from GAAP gross profit, used to evaluate core operating performance - Adjusted gross profit is defined as total revenue minus cost of revenue, excluding depreciation and amortization[27](index=27&type=chunk) - Adjusted gross margin is adjusted gross profit as a percentage of total revenue[27](index=27&type=chunk) - Management believes adjusted gross margin is useful for evaluating operating performance as it excludes non-cash depreciation and amortization, providing a more complete view of core operations[28](index=28&type=chunk) [Adjusted EBITDA Definition and Rationale](index=14&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is a non-GAAP measure that adjusts GAAP net income by adding back various non-cash and non-recurring items to evaluate operating performance - Adjusted EBITDA is calculated by taking GAAP net income (loss) and adding back net interest expense, income tax provision (benefit), depreciation and amortization, other (income) expense, non-cash equity-based compensation, and certain other non-recurring expenses[30](index=30&type=chunk) - Management uses Adjusted EBITDA to evaluate operating performance by eliminating the effects of financing, income taxes, accounting effects of capital spending and acquisitions, and other non-recurring/non-cash items[31](index=31&type=chunk) [Reconciliation of Non-GAAP Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Detailed tables reconcile GAAP gross margin to adjusted gross margin and GAAP net income (loss) to adjusted EBITDA for Q2 2025 and 2024 Reconciliation of GAAP Gross Margin to Adjusted Gross Margin (Three Months Ended June 30) | Metric | 2025 | 2024 | | :------------------------ | :------ | :------ | | GAAP gross margin | 26.7 % | 31.3 % | | Adjusted gross margin | 31.6 % | 33.9 % | Reconciliation of Net (Loss) Income (GAAP) to Adjusted EBITDA (Three Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :------------------------ | :----- | :----- | | Net (loss) income (GAAP) | $(13.3) | $5.9 | | Adjusted EBITDA | $(6.1) | $17.2 | [Legal & Investor Information](index=3&type=section&id=Legal%20%26%20Investor%20Information) This section provides cautionary forward-looking statements and essential investor contact information [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding forward-looking information, subject to substantial risks and uncertainties that could cause actual results to differ - This earnings release includes forward-looking statements regarding the Company's plans, strategies, outcomes, and prospects, based on management's beliefs and assumptions[10](index=10&type=chunk)[11](index=11&type=chunk) - Forward-looking statements are inherently subject to substantial risks, uncertainties, and assumptions, many beyond the Company's control, and actual results may differ materially[12](index=12&type=chunk) - The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this earnings release, except as required by law[15](index=15&type=chunk) [Contacts](index=15&type=section&id=Contacts) This section provides contact details for investor relations inquiries Investor Contact Information | Name | Company | Phone | Email | | :-------- | :------ | :---------- | :-------------------- | | Mike Cole | DocGo | 949-444-1341 | mike.cole@docgo.com, ir@docgo.com |

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations and comprehensive (loss) income, statements of changes in stockholders' equity, and statements of cash flows, along with detailed notes explaining the company's accounting policies, financial instruments, acquisitions, and other significant financial activities for the periods ended June 30, 2025 and December 31, 2024 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $104,164,128 | $89,241,695 | | Accounts receivable, net | $122,756,182 | $210,899,926 | | Total current assets | $236,574,634 | $304,486,263 | | Total assets | $408,263,751 | $455,621,132 | | Total current liabilities | $100,146,642 | $121,806,577 | | Total liabilities | $120,533,019 | $140,442,002 | | Total stockholders' equity | $287,730,732 | $315,179,130 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | Change ($) | Change (%) | | :------------------------------------------------ | :--------------- | :--------------- | :--------- | :--------- | | Revenues, net | $80,417,622 | $164,949,716 | $(84,532,094) | -51.2% | | Total expenses | $97,897,866 | $154,800,567 | $(56,902,701) | -36.8% | | (Loss) income from operations | $(17,480,244) | $10,149,149 | $(27,629,393) | -272.2% | | Net (loss) income | $(13,289,893) | $5,858,574 | $(19,148,467) | -326.9% | | Net (loss) income attributable to stockholders | $(11,155,246) | $6,529,603 | $(17,684,849) | -270.8% | | Net (loss) income per share - Basic | $(0.11) | $0.06 | $(0.17) | -283.3% | | Net (loss) income per share - Diluted | $(0.11) | $0.06 | $(0.17) | -283.3% | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | Change ($) | Change (%) | | :------------------------------------------------ | :--------------- | :--------------- | :--------- | :--------- | | Revenues, net | $176,450,677 | $357,037,245 | $(180,586,568) | -50.6% | | Total expenses | $207,928,359 | $331,012,729 | $(123,084,370) | -37.2% | | (Loss) income from operations | $(31,477,682) | $26,024,516 | $(57,502,198) | -220.9% | | Net (loss) income | $(24,369,193) | $16,461,953 | $(40,831,146) | -248.0% | | Net (loss) income attributable to stockholders | $(20,560,561) | $17,757,052 | $(38,317,613) | -215.8% | | Net (loss) income per share - Basic | $(0.21) | $0.17 | $(0.38) | -223.5% | | Net (loss) income per share - Diluted | $(0.21) | $0.17 | $(0.38) | -223.5% | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Changes in Stockholders' Equity (Six Months Ended June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------------------------------ | :------------ | :---------------- | | Common stock repurchased (shares) | (4,481,069) | (1,953,169) | | Common stock repurchased (amount) | $(10,828,906) | $(5,751,954) | | Stock-based compensation | $7,590,520 | $4,282,366 | | Net loss attributable to stockholders of DocGo Inc. | $(20,560,561) | $(9,405,315) | | Total stockholders' equity | $287,730,732 | $315,179,130 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Cash Flow Activity | 2025 (Unaudited) | 2024 (Unaudited) | Change ($) | Change (%) | | :-------------------------------- | :--------------- | :--------------- | :--------- | :--------- | | Net cash provided by operating activities | $43,260,218 | $26,247,436 | $17,012,782 | 64.89% | | Net cash used in investing activities | $(27,110,236) | $(3,619,274) | $(23,490,962) | -649.05% | | Net cash used in financing activities | $(15,900,846) | $(8,948,227) | $(6,952,619) | -77.70% | | Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents | $1,217,265 | $13,605,408 | $(12,388,143) | -91.05% | [Notes to Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. Description of Organization and Business Operations](index=14&type=section&id=1.%20Description%20of%20Organization%20and%20Business%20Operations) - DocGo Inc. is a mobile healthcare services company utilizing proprietary dispatch and communication technology to provide in-person medical treatment at non-traditional locations and healthcare transportation in major metropolitan cities in the U.S. and U.K.[27](index=27&type=chunk) - The Company operates in three segments: Mobile Health Services (in-home/event healthcare, underserved populations), Transportation Services (emergency/non-emergency transport), and Corporate (shared services supporting both segments)[28](index=28&type=chunk) [2. Summary of Significant Accounting Policies](index=14&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) - The Company consolidates Variable Interest Entities (VIEs), primarily professional corporations (PCs) providing healthcare services, as it is deemed the primary economic beneficiary due to providing essential administrative services and absorbing losses[34](index=34&type=chunk) Major Customer Revenue Concentration | Period | Customer 1 Revenue (%) | Customer 2 Revenue (%) | | :-------------------------------- | :------------------- | :------------------- | | Three Months Ended June 30, 2025 | 34% | N/A | | Three Months Ended June 30, 2024 | 37% | 31% | | Six Months Ended June 30, 2025 | 42% | N/A | | Six Months Ended June 30, 2024 | 35% | 35% | Restricted Cash Equivalents and Investments (June 30, 2025) | Type | Amortized Cost ($) | Fair Value ($) | | :------------------------ | :------------- | :--------- | | Money market funds | $1,079,249 | $1,079,249 | | Corporate bonds | $994,366 | $999,769 | | U.S. government obligations | $22,334,027 | $22,425,753| | Total | $24,407,642 | $24,504,771| - The Company adopted ASU 2023-07 (Segment Reporting) in Q4 2024, modifying segment disclosures without material impact on financial statements. It is evaluating ASU 2023-09 (Income Tax Disclosures), ASU 2024-03 (Expense Disaggregation), and ASU 2025-03 (Business Combinations/Consolidation) for future impact[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [3. Property and Equipment, Net](index=27&type=section&id=3.%20Property%20and%20Equipment,%20Net) Property and Equipment, Net (June 30, 2025 vs. December 31, 2024) | Asset Category | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------ | :------------ | :---------------- | | Vehicles | $16,797,338 | $17,300,595 | | Medical equipment | $9,923,242 | $9,210,203 | | Office equipment and furniture | $4,623,566 | $4,293,100 | | Leasehold improvements | $1,974,963 | $1,239,089 | | Buildings | $527,283 | $527,283 | | Land | $37,800 | $37,800 | | Less: Accumulated depreciation | $(19,461,894) | $(17,726,659) | | Property and equipment, net | $14,422,298 | $14,881,411 | - Depreciation expense for the six months ended June 30, 2025, was **$2,432,577**, a decrease from **$2,907,965** in the same period of 2024[122](index=122&type=chunk) [4. Acquisitions](index=27&type=section&id=4.%20Acquisitions) - During the six months ended June 30, 2025, the Company acquired Professional Technicians, LLC (PTI) for **$4.2 million**, including **$3.8 million cash** and **$240,000** in contingent consideration, for mobile phlebotomy services[135](index=135&type=chunk)[140](index=140&type=chunk) - The Company also acquired the remaining noncontrolling interest in Ambulnz CO, LLC for **$1,848,000** in cash on July 1, 2024[134](index=134&type=chunk)[140](index=140&type=chunk) - Contingent consideration for prior acquisitions (Exceptional, Ryan Bros., LMS) was fully paid or had no remaining balance as of June 30, 2025, except for CRMS with an estimated **$4,707,614** payable[125](index=125&type=chunk)[129](index=129&type=chunk)[131](index=131&type=chunk)[133](index=133&type=chunk) [5. Goodwill](index=30&type=section&id=5.%20Goodwill) Goodwill Carrying Value Changes (Six Months Ended June 30, 2025) | Metric | Amount ($) | | :------------------------------ | :------------- | | Balance as of December 31, 2024 | $47,432,550 | | Goodwill acquired during the period | $1,915,010 | | Foreign currency translation adjustment | $606,875 | | Balance as of June 30, 2025 | $49,954,435 | [6. Intangibles](index=30&type=section&id=6.%20Intangibles) Intangible Assets, Net (June 30, 2025) | Asset Category | Estimated Useful Life (years) | Gross Carrying Amount ($) | Net Carrying Amount ($) | | :------------------------ | :-------------------- | :-------------------- | :------------------ | | Computer software | 5 | $247,828 | $4,655 | | Operating licenses | Indefinite | $9,399,004 | $9,399,004 | | Internally developed software | 4-5 | $12,129,913 | $587,455 | | Material contracts | Indefinite | $62,550 | $62,550 | | Customer relationships | 8-14 | $19,993,533 | $13,723,935 | | Trademark | 8-15 | $405,532 | $859,460 | | Non-compete agreements | 5 | $100,000 | $55,000 | | Domain names | 10 | — | $15,324 | | Software license agreement | Indefinite | — | $500,000 | | Trade credits | 5 | $1,500,000 | $1,500,000 | | Total | | $43,838,360 | $26,707,383 | - Amortization expense for intangible assets was **$2,751,441** for the six months ended June 30, 2025, down from **$3,278,854** in the prior year period[148](index=148&type=chunk) - The Company recognized an **$8,306,591** non-cash impairment charge on customer relationships in CRMS during 2024 due to reduced growth expectations and decreased future cash flows[147](index=147&type=chunk) [7. Investments](index=33&type=section&id=7.%20Investments) Investments (June 30, 2025 vs. December 31, 2024) | Investment Type | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------------------------- | :------------ | :---------------- | | Equity investment without readily determinable fair value | $5,000,000 | $5,000,000 | | Equity method investments | $468,464 | $547,979 | | Total investments | $5,468,464 | $5,547,979 | - The Company acquired non-marketable equity securities in Firefly Health, Inc. for **$5,000,000** on October 25, 2024, measured at cost less impairment, with no impairment or upward adjustments recognized in the current period[151](index=151&type=chunk) [8. Accrued Liabilities](index=33&type=section&id=8.%20Accrued%20Liabilities) Accrued Liabilities (June 30, 2025 vs. December 31, 2024) | Accrued Liability Category | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------------------ | :------------ | :---------------- | | Accrued workers' compensation and other insurance liabilities | $19,871,471 | $16,738,835 | | Accrued general expenses | $13,208,644 | $16,530,363 | | Accrued payroll | $6,026,464 | $4,374,654 | | Accrued subcontractors | $3,798,065 | $9,174,499 | | Accrued bonus | $1,717,639 | $3,078,445 | | Total accrued liabilities | $44,622,283 | $49,896,796 | [9. Line of Credit](index=34&type=section&id=9.%20Line%20of%20Credit) - The Company maintained a **$30,000,000** outstanding balance on its revolving credit facility as of June 30, 2025, with **$60,000,000** unused[157](index=157&type=chunk) - Interest charges on the revolving facility were **$441,282** for Q2 2025 and **$852,799** for H1 2025[157](index=157&type=chunk) - The Company holds two standby letters of credit totaling **$1,213,303**, with no amounts drawn as of June 30, 2025[158](index=158&type=chunk)[159](index=159&type=chunk) [10. Notes Payable](index=34&type=section&id=10.%20Notes%20Payable) Notes Payable (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------------------------------ | :------------ | :---------------- | | Equipment and financing loans payable (2.50% interest, maturing May 2026) | $12,592 | $17,730 | | Total notes payable | $12,592 | $17,730 | | Less: current portion of notes payable | $(12,592) | $(12,515) | | Total non-current portion of notes payable | $0 | $5,215 | - Interest expense on notes payable was **$91** for Q2 2025 and **$196** for H1 2025, significantly lower than the prior year[161](index=161&type=chunk)[163](index=163&type=chunk) [11. Business Segment Information](index=35&type=section&id=11.%20Business%20Segment%20Information) Segment Revenues (Three Months Ended June 30) | Segment | 2025 (Unaudited) ($) | 2024 (Unaudited) ($) | Change ($) | Change (%) | | :-------------------- | :--------------- | :--------------- | :--------- | :--------- | | Mobile Health Services | $30,780,993 | $116,742,328 | $(85,961,335) | -73.6% | | Transportation Services | $49,636,629 | $48,207,388 | $1,429,241 | 2.9% | | Total revenues | $80,417,622 | $164,949,716 | $(84,532,094) | -51.2% | Segment (Loss) Income from Operations (Three Months Ended June 30) | Segment | 2025 (Unaudited) ($) | 2024 (Unaudited) ($) | | :-------------------- | :--------------- | :--------------- | | Mobile Health Services | $(615,354) | $26,024,243 | | Transportation Services | $(716,242) | $(2,094,964) | | Corporate | $(16,148,648) | $(13,780,130) | | Total | $(17,480,244) | $10,149,149 | Segment Revenues (Six Months Ended June 30) | Segment | 2025 (Unaudited) ($) | 2024 (Unaudited) ($) | Change ($) | Change (%) | | :-------------------- | :--------------- | :--------------- | :--------- | :--------- | | Mobile Health Services | $75,990,537 | $260,683,486 | $(184,692,949) | -70.8% | | Transportation Services | $100,460,140 | $96,353,759 | $4,106,381 | 4.3% | | Total revenues | $176,450,677 | $357,037,245 | $(180,586,568) | -50.6% | Segment (Loss) Income from Operations (Six Months Ended June 30) | Segment | 2025 (Unaudited) ($) | 2024 (Unaudited) ($) | | :-------------------- | :--------------- | :--------------- | | Mobile Health Services | $1,870,522 | $58,236,268 | | Transportation Services | $475,125 | $(1,078,666) | | Corporate | $(33,823,329) | $(31,133,086) | | Total | $(31,477,682) | $26,024,516 | Long-Lived Assets by Geographic Location | Geographic Location | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------ | :------------ | :---------------- | | U.S. | $102,543,049 | $96,380,597 | | U.K. | $18,816,482 | $18,958,174 | | Total | $121,359,531 | $115,338,771 | [12. Equity](index=39&type=section&id=12.%20Equity) - On July 19, 2024, the Company issued **578,350 shares** of Common Stock valued at **$1,814,345** as the remainder of a True-up Payment for the CRMS acquisition[174](index=174&type=chunk) - The Board extended the share repurchase program (New Repurchase Program) to December 31, 2025, authorizing up to **$26,000,000** in shares[176](index=176&type=chunk) Common Stock Repurchases (Six Months Ended June 30) | Period | Shares Repurchased (shares) | Amount Spent ($) | | :-------------------------------- | :----------------- | :------------- | | Three Months Ended June 30, 2025 | 2,527,900 | $5,076,952 | | Three Months Ended June 30, 2024 | 1,395,957 | $4,904,452 | | Six Months Ended June 30, 2025 | 4,481,069 | $10,828,906 | | Six Months Ended June 30, 2024 | 2,651,571 | $9,782,011 | [13. Stock-Based Compensation](index=39&type=section&id=13.%20Stock-Based%20Compensation) - Total recorded stock-based compensation for stock option awards was **$2,946,749** for the six months ended June 30, 2025, down from **$3,240,846** in the prior year period[186](index=186&type=chunk) - Unrecognized compensation for unvested stock options was **$8,200,989** as of June 30, 2025, expected to be recognized over **1.24 years**[187](index=187&type=chunk) - Stock-based compensation expense for RSUs was **$3,523,749** for H1 2025, up from **$2,815,794** for H1 2024. Unrecognized RSU compensation was **$14,052,438** as of June 30, 2025, to be recognized over **2.75 years**[191](index=191&type=chunk)[192](index=192&type=chunk) - Stock-based compensation expense for PSUs was **$3,185,947** for H1 2025, significantly up from **$543,629** for H1 2024. Unrecognized PSU compensation was **$8,661,394** as of June 30, 2025, to be recognized over **2.50 years**[194](index=194&type=chunk) [14. Leases](index=42&type=section&id=14.%20Leases) Total Lease Cost (Six Months Ended June 30) | Lease Cost Component | 2025 (Unaudited) ($) | 2024 (Unaudited) ($) | | :------------------- | :--------------- | :--------------- | | Operating lease expense | $2,671,618 | $1,766,779 | | Finance lease expense | $3,029,130 | $2,564,447 | | Short-term lease expense | $582,205 | $889,457 | | Total lease cost | $6,282,953 | $5,220,683 | Lease Position (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------------- | :------------ | :---------------- | | Operating lease right-of-use assets | $12,611,145 | $11,958,698 | | Operating lease liability | $13,463,499 | $12,443,633 | | Finance lease right-of-use assets | $17,664,270 | $15,337,299 | | Finance lease liability | $16,976,239 | $14,725,605 | - Weighted average remaining lease term for operating leases is **3.42 years** with a **5.90%** discount rate; for finance leases, it is **3.48 years** with a **5.79%** discount rate[216](index=216&type=chunk)[223](index=223&type=chunk) [15. Other Expense](index=49&type=section&id=15.%20Other%20Expense) Total Other Expense (Six Months Ended June 30) | Other Expense Category | 2025 (Unaudited) ($) | 2024 (Unaudited) ($) | | :--------------------- | :--------------- | :--------------- | | Interest expense, net | $869,946 | $882,658 | | Change in fair value of contingent liability | — | $326,192 | | Loss on equity method investments | $79,515 | $147,181 | | Loss on remeasurement of operating and finance leases | $47,444 | $25,889 | | Loss (gain) on disposal of fixed assets | $33,215 | $(65,398) | | Other income (expense) | $(211,823) | $581,883 | | Total other expense | $1,241,943 | $734,639 | [16. Related Party Transactions](index=49&type=section&id=16.%20Related%20Party%20Transactions) Related Party Payments (Six Months Ended June 30) | Related Party Service | 2025 (Unaudited) ($) | 2024 (Unaudited) ($) | | :-------------------- | :--------------- | :--------------- | | Legal Services (EDTSLS) | $567,545 | $620,920 | | Subcontractor Services (PrideStaff) | $56,319 | $140,619 | | Transition Services (Anthony Capone) | $0 | $180,000 | | Consulting (Steven Katz) | $2,500 | $0 | - The Company entered into a consulting agreement with Stan Vashovsky (former director/Chair) for advisory services and equity grants, and a separation agreement with Rosario Manco Jr. (former VP of Finance) for transition consulting fees[238](index=238&type=chunk)[244](index=244&type=chunk) [17. Income Taxes](index=51&type=section&id=17.%20Income%20Taxes) Income Tax Benefit (Provision) (Six Months Ended June 30) | Period | Income Tax Benefit (Provision) ($) | | :-------------------------------- | :----------------------------- | | Three Months Ended June 30, 2025 | $4,626,745 | | Three Months Ended June 30, 2024 | $(3,708,920) | | Six Months Ended June 30, 2025 | $8,350,432 | | Six Months Ended June 30, 2024 | $(8,827,924) | - The shift from an income tax provision in 2024 to a benefit in 2025 is primarily due to the Company recording a pretax loss in the current period compared to pretax income in the prior year[246](index=246&type=chunk)[340](index=340&type=chunk) [18. 401(k) Plan](index=51&type=section&id=18.%20401(k)%20Plan) - The Company did not make any employer contributions to its 401(k) plan as of June 30, 2025[247](index=247&type=chunk) [19. Legal Proceedings](index=51&type=section&id=19.%20Legal%20Proceedings) - The Company reached a settlement in principle for the California Labor Actions (wage and hour claims, PAGA) and is finalizing settlement documents[252](index=252&type=chunk) - A securities class action lawsuit against the Company and its officers had a motion to dismiss partially granted on March 28, 2025, with remaining defendants answering the complaint[253](index=253&type=chunk) - Two derivative actions, based on similar allegations as the securities class action, were consolidated in Delaware Court of Chancery, with a motion to dismiss briefing schedule set[254](index=254&type=chunk) - A cybersecurity action related to an April 2024 data breach resulted in a settlement in principle, with preliminary court approval granted on May 2, 2025, and a final fairness hearing scheduled for August 22, 2025[255](index=255&type=chunk)[256](index=256&type=chunk) [20. Risk and Uncertainties](index=53&type=section&id=20.%20Risk%20and%20Uncertainties) - The Company's business plan relies on increased demand for Mobile Health Services, driven by patient preference for out-of-traditional-setting treatments and government funding for population health programs[258](index=258&type=chunk) - Government contract work, a substantial portion of past revenue, is expected to decline due to the wind-down of large migrant-related projects in New York, posing a material adverse effect if not offset by new customers[259](index=259&type=chunk) [21. Subsequent Events](index=53&type=section&id=21.%20Subsequent%20Events) - Effective August 6, 2025, Holdings agreed to acquire assets and assume liabilities of Primary Care Ambulance Corporation for **$1,600,000** in cash consideration[260](index=260&type=chunk) - On August 1, 2025, the Company repaid the entire **$30,320,173** outstanding balance on its revolving credit facility[261](index=261&type=chunk) - On August 7, 2025, the Company amended its credit agreement, establishing a new revolving credit facility up to **$55,000,000** (with an option to increase by **$20,000,000**), maturing November 1, 2027, and subject to a minimum liquidity covenant[262](index=262&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and future outlook, analyzing key factors influencing results, segment performance, liquidity, and critical accounting policies. It highlights the significant decline in revenues and shift to a net loss, primarily due to the wind-down of migrant-related services, while also noting growth in Transportation Services [Cautionary Note Regarding Forward-Looking Statements](index=55&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) - The report contains forward-looking statements about the Company's plans, strategies, and financial prospects, which are subject to substantial risks and uncertainties beyond management's control[267](index=267&type=chunk)[268](index=268&type=chunk) - Investors are cautioned not to unduly rely on these statements, as actual results may differ materially due to factors like the wind-down of migrant services, ability to expand programs, economic conditions, and regulatory changes[268](index=268&type=chunk)[269](index=269&type=chunk)[271](index=271&type=chunk) [Overview](index=56&type=section&id=Overview) - DocGo Inc. is a mobile healthcare services company providing in-person medical treatment and healthcare transportation in the U.S. and U.K., leveraging proprietary dispatch and communication technology[273](index=273&type=chunk) Net (Loss) Income Overview | Period | 2025 (Unaudited) | 2024 (Unaudited) | | :-------------------------------- | :--------------- | :--------------- | | Three Months Ended June 30, 2025 | Net loss of $13.3 million | Net income of $5.8 million | | Six Months Ended June 30, 2025 | Net loss of $24.3 million | Net income of $16.5 million | [Factors Affecting Our Results of Operations](index=57&type=section&id=Factors%20Affecting%20Our%20Results%20of%20Operations) - The Mobile Health Services market is influenced by patient acceptance of non-traditional care, healthcare coverage, and government funding for population health programs, with emerging uncertainty in municipal healthcare budgets[277](index=277&type=chunk) - The Transportation Services market is driven by demand for post-surgery/treatment transport, increasing chronic conditions, an aging population, and outsourcing by healthcare facilities[278](index=278&type=chunk) - Inflation, particularly in wages, fuel, and medical supplies, has compressed gross profit margins as the Company is generally unable to pass these higher costs to customers[282](index=282&type=chunk) - Government contract work, previously substantial, is expected to significantly decline in 2025 due to the wind-down of large migrant-related projects in New York, posing a material adverse effect if not offset by new customers[289](index=289&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk) [Components of Results of Operations](index=59&type=section&id=Components%20of%20Results%20of%20Operations) - Revenues are generated from Mobile Health Services and Transportation Services, while cost of revenues includes wages, subcontractor fees, medical supplies, and vehicle-related costs[293](index=293&type=chunk)[294](index=294&type=chunk) - General and administrative expenses have declined in absolute terms but increased as a percentage of revenue due to the wind-down of migrant-related projects, a trend expected to continue in 2025[295](index=295&type=chunk) - Technology and development expenses are expected to increase to support growth, including investments in AI and platform optimization[298](index=298&type=chunk) [Results of Operations](index=61&type=section&id=Results%20of%20Operations) [Comparison of the Three Months Ended June 30, 2025 and 2024](index=61&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) Key Financial Highlights (Three Months Ended June 30) | Metric | 2025 (Actual) | 2024 (Actual) | Change ($) | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :--------- | | Revenues, net | $80.4 million | $164.9 million | $(84.5) million | -51.2% | | Mobile Health Services revenues | $30.8 million | $116.7 million | $(85.9) million | -73.6% | | Transportation Services revenues | $49.6 million | $48.2 million | $1.4 million | 2.9% | | (Loss) income from operations | $(17.5) million | $10.1 million | $(27.6) million | -273.3% | | Net (loss) income | $(13.3) million | $5.8 million | $(19.1) million | -329.3% | - The significant decline in Mobile Health Services revenue was primarily due to the ongoing wind-down of migrant-related services[304](index=304&type=chunk) - Transportation Services revenue increased despite a **1.5%** decrease in U.S. trip volumes, driven by a shift towards higher-priced transports, increasing the average trip price to **$410** from **$393**[305](index=305&type=chunk) - Cost of revenues decreased by **49.6%**, less than the revenue decline, leading to an increase as a percentage of revenues (**68.4%** vs. **66.2%**), mainly due to lower compensation, subcontracted labor, and medical supplies in Mobile Health Services[306](index=306&type=chunk)[307](index=307&type=chunk)[308](index=308&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=64&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Key Financial Highlights (Six Months Ended June 30) | Metric | 2025 (Actual) | 2024 (Actual) | Change ($) | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :--------- | | Revenues, net | $176.5 million | $357.0 million | $(180.5) million | -50.6% | | Mobile Health Services revenues | $76.0 million | $260.7 million | $(184.7) million | -70.8% | | Transportation Services revenues | $100.5 million | $96.4 million | $4.1 million | 4.3% | | (Loss) income from operations | $(31.5) million | $26.0 million | $(57.5) million | -221.2% | | Net (loss) income | $(24.3) million | $16.5 million | $(40.8) million | -247.3% | - Mobile Health Services revenue decreased by **70.8%** due to the ongoing wind-down of migrant-related services, which peaked in Q1 2024[324](index=324&type=chunk) - Transportation Services revenue increased by **4.3%** due to a **2.1%** increase in U.S. trip volumes, despite a slight decrease in average trip price to **$394** from **$396**[325](index=325&type=chunk) - Cost of revenues decreased by **48.6%**, less than the revenue decline, resulting in an increase as a percentage of revenues (**68.1%** vs. **65.5%**), driven by reduced compensation and subcontractor costs in Mobile Health Services[326](index=326&type=chunk)[327](index=327&type=chunk)[328](index=328&type=chunk) [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) - Operating activities provided **$43.2 million** in cash for H1 2025, despite a net loss, primarily due to an **$86.2 million** decrease in accounts receivable from municipal customer collections[350](index=350&type=chunk) - Investing activities used **$27.1 million** in H1 2025, mainly for restricted investments (**$22.2 million**) and business acquisitions (**$3.6 million**)[351](index=351&type=chunk) - Financing activities used **$15.9 million** in H1 2025, primarily due to **$10.8 million** in share repurchases and **$2.7 million** in finance lease payments[353](index=353&type=chunk) - The Company anticipates existing cash, future operating cash flows, and the new **$55 million** revolving credit facility will be sufficient to meet operating requirements for at least the next twelve months[347](index=347&type=chunk) [Critical Accounting Policies](index=70&type=section&id=Critical%20Accounting%20Policies) - The Company consolidates Variable Interest Entities (VIEs) where it is the primary beneficiary, providing administrative services and absorbing losses for professional corporations (PCs) that deliver healthcare services[359](index=359&type=chunk) - The allowance for credit losses on accounts receivable is determined quarterly based on historical collection, aging, customer-specific risk, and economic conditions, with a balance of **$6,092,588** as of June 30, 2025[370](index=370&type=chunk)[371](index=371&type=chunk) - Revenue recognition follows a five-step model, primarily from Mobile Health and Transportation Services, with performance obligations satisfied immediately and transaction prices based on fixed rates or estimated variable consideration[377](index=377&type=chunk)[378](index=378&type=chunk)[379](index=379&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, specifically interest rate risk and foreign exchange risk, and discusses concentrations of credit risk. It notes that the company does not use hedging strategies and provides hypothetical impacts of rate changes - The Company is exposed to interest rate risk from cash equivalents and its revolving credit facility, but a hypothetical **10%** change in interest rates would have had a neutral net impact on H1 2025 financial statements[384](index=384&type=chunk) - Limited foreign exchange risk exists due to U.K. operations; a hypothetical **10%** change in exchange rates would impact H1 2025 revenues by approximately **0.9%** and total assets by **0.3%**[385](index=385&type=chunk) - The Company has significant customer concentration, with two customers accounting for **28%** and **25%** of net accounts receivable as of June 30, 2025, and one customer accounting for **42%** of H1 2025 revenues[388](index=388&type=chunk) [Item 4. Controls and Procedures](index=76&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, and reported no material changes in internal control over financial reporting during the quarter - Management, including the principal executive and financial officers, concluded that disclosure controls and procedures were effective as of June 30, 2025[390](index=390&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2025[391](index=391&type=chunk) [PART II - OTHER INFORMATION](index=77&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the detailed descriptions of legal proceedings from Note 19 of the unaudited Condensed Consolidated Financial Statements, covering various lawsuits and investigations - Descriptions of legal proceedings are incorporated from Note 19 of the unaudited Condensed Consolidated Financial Statements[395](index=395&type=chunk) [Item 1A. Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors detailed in the Annual Report on Form 10-K for 2024, stating that no material changes have occurred as of the current report's filing date - No material changes to the risk factors disclosed in the 2024 Form 10-K have occurred as of the date of this Quarterly Report[397](index=397&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=77&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase program, including its extension, discretionary nature, funding sources, and the number of shares repurchased during the quarter, along with the remaining authorization - The Board extended the New Repurchase Program to December 31, 2025, authorizing the purchase of up to **$26,000,000** in Common Stock[399](index=399&type=chunk) Common Stock Repurchases (Three Months Ended June 30, 2025) | Month | Total Number of Shares Purchased (shares) | Average Price Paid per Share | | :---------------------- | :----------------------------- | :--------------------------- | | April 1 through 30, 2025 | 1,145,700 | $2.52 | | May 1 through 31, 2025 | 382,200 | $1.33 | | June 1 through 30, 2025 | 1,000,000 | $1.63 | | Total | 2,527,900 | $1.99 | - As of June 30, 2025, approximately **$11.3 million** remained available for share repurchases under the New Repurchase Program[403](index=403&type=chunk)[405](index=405&type=chunk) [Item 3. Defaults Upon Senior Securities](index=78&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities[406](index=406&type=chunk) [Item 4. Mine Safety Disclosures](index=78&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable[407](index=407&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) This section discloses the amendment and restatement of the company's credit agreement, establishing new terms for its revolving credit facility, and confirms no changes in Rule 10b5-1 trading arrangements by directors or officers - On August 7, 2025, the Company amended and restated its credit agreement, providing for a revolving credit facility up to **$55,000,000** (with an option for an additional **$20,000,000**) and subject to a minimum liquidity covenant[408](index=408&type=chunk) - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[410](index=410&type=chunk) [Item 6. Exhibits](index=79&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or furnished with the Quarterly Report on Form 10-Q, including corporate documents, the amended credit agreement, and certifications - The report includes exhibits such as the Second Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Amended and Restated Credit Agreement, and certifications from the Principal Executive and Financial Officers[411](index=411&type=chunk) [Signatures](index=80&type=section&id=Signatures) This section contains the duly authorized signatures of the registrant's Chief Executive Officer and Chief Financial Officer, affirming the filing of the report - The report is signed by Lee Bienstock, Chief Executive Officer, and Norman Rosenberg, Chief Financial Officer and Treasurer, on August 7, 2025[416](index=416&type=chunk)

Core Viewpoint - DocGo Inc. is facing legal scrutiny due to allegations of false statements regarding the educational background of its former CEO and misleading claims about its business operations, leading to significant insider stock sales and a subsequent drop in stock price [2][3]. Group 1: Legal Issues - Schubert Jonckheer & Kolbe LLP is investigating potential legal claims against DocGo related to alleged false statements about the former CEO's educational qualifications and the company's business development efforts [1]. - A U.S. District Court ruling allows a securities fraud lawsuit against DocGo and its former CEO to proceed, citing "indisputably false" statements made with intent to defraud [2]. - The lawsuit claims that DocGo misled investors about the former CEO's graduate degree, its Medicaid enrollment efforts, and its relationship with UnitedHealthcare [2]. Group 2: Financial Impact - During the period of alleged misconduct, insiders sold approximately $4 million worth of DocGo stock [2]. - Following the revelation that the former CEO did not have a graduate degree and that DocGo failed to enroll anyone in Medicaid, the company's stock price fell by 25% [2].

Summary of Dotco Inc. (DocGo) Conference Call Company Overview - **Company Name**: Dotco Inc. (Ticker: DCGO) - **Industry**: Mobile healthcare and medical transportation - **Core Mission**: Deliver healthcare at any address, improving health outcomes by meeting patients where they are [3][9] Key Points and Arguments 1. **Service Model**: Dotco provides tech-driven mobile care, focusing on bringing healthcare to patients in their homes, offices, or community settings [6][10] 2. **Market Opportunity**: The total addressable market (TAM) for home healthcare is estimated at $265 billion, with a significant shift towards non-traditional providers [33] 3. **Patient Engagement**: The company has a high patient net promoter score of 87, indicating strong satisfaction among patients [11] 4. **Cost Savings**: Dotco has saved partners over $265 million through emergency department diversion programs, reducing unnecessary hospital visits [12] 5. **Growth Metrics**: In the last year, Dotco provided care across 31 states and the UK, with over 1.5 million patient interactions and 8.8 million miles traveled [12][13] 6. **Financial Performance**: The company reported $96 million in revenue for Q1, with an adjusted gross margin of 32.1% [20][21] 7. **Cash Position**: Dotco has over $100 million in cash on the balance sheet, up from approximately $58.9 million the previous year [20][22] 8. **Strategic Partnerships**: The company has signed contracts with major health plans, increasing the number of patients assigned to their services from 500,000 to over 900,000 [23] 9. **Chronic Disease Focus**: The CDC estimates that 90% of the $4.5 trillion in annual healthcare spending is for individuals with chronic diseases, highlighting the need for Dotco's services [24][25] 10. **Technology Integration**: Dotco's proprietary technology platform enhances efficiency in patient care delivery and integrates with hospital systems for better patient management [42][43] Additional Important Insights - **Emergency Response**: Dotco played a significant role during the COVID-19 pandemic and the migrant crisis, providing testing, vaccinations, and medical care [16][17] - **Vertical Integration**: The company has a vertically integrated model, combining technology, staffing, and clinical services to enhance patient care [47] - **Future Outlook**: Dotco is optimistic about the growth potential in mobile health and medical transportation, even as they wind down emergency services related to COVID-19 [44][45] - **Healthcare System Efficiency**: The company aims to reduce hospital readmissions and improve bed management through efficient medical transportation services [30][42] This summary encapsulates the key points discussed during the Dotco Inc. conference call, highlighting the company's innovative approach to healthcare delivery and its significant market potential.