Summary of DocGo Conference Call Company Overview - **Company Name**: DocGo - **Industry**: Mobile health and medical transportation services - **Stock Symbol**: DCGO (NASDAQ) - **Geographic Presence**: United States and United Kingdom - **Core Services**: Medical transportation, care in the home, remote patient monitoring, and technology-driven mobile healthcare solutions [1][2][3] Key Points and Arguments Business Model and Services - DocGo operates a tech-driven mobile health platform that includes ambulance services, medical transportation management, and home care services [2][4] - The company aims to deliver healthcare at any address, providing a turnkey solution for hospitals and facilities that prefer to outsource their transportation needs [4][5] - The use of "upskilled clinicians" allows for more efficient care delivery, utilizing qualified personnel for tasks that are often performed by overqualified individuals [5][6] Financial Performance - In 2023, DocGo's revenues peaked at over $600 million, largely due to non-recurring revenue from migrant-related services [15] - Projected revenue for 2025 is approximately $320 million, indicating a significant drop due to the transition away from non-core services [15] - Core medical transportation revenue has grown from $48 million in 2019 to over $200 million in 2023, demonstrating steady growth despite overall revenue fluctuations [16] Recent Developments - The acquisition of SteadyMD enhances DocGo's telehealth capabilities and expands its virtual care network across all 50 states [10][11] - The company has a strong balance sheet, with a cash balance of approximately $95 million and a focus on both organic and inorganic growth strategies [20][46] Market Position and Strategy - DocGo operates in a fragmented market with over 10,000 ambulance providers in the U.S., positioning itself as a scalable solution provider [37] - The company emphasizes vertical integration and a competitive technology advantage, which are critical for maintaining its market position [47][40] - Partnerships with health plan providers allow DocGo to reach patients who are delinquent in receiving necessary care, thereby increasing access and reducing overall healthcare costs [32][25] Challenges and Future Outlook - The company faces challenges related to accounts receivable, particularly from municipal contracts, but has successfully collected 96% of outstanding invoices [49] - The new mayoral administration in New York City may present both opportunities and risks, but DocGo's existing contracts with health and hospital systems are expected to continue [50][51] - The focus remains on closing care gaps and providing efficient healthcare solutions to prevent hospital readmissions and manage chronic diseases [22][24] Additional Important Information - DocGo's mobile health segment is expected to conduct over 150,000 home visits in 2025, reflecting the growing demand for home-based healthcare services [28] - The company is actively looking for acquisition opportunities in the healthcare sector, viewing current market conditions as favorable for growth [44][45] - Leadership includes experienced professionals from both healthcare and general management backgrounds, contributing to a well-rounded management team [47][39]

NEW YORK--(BUSINESS WIRE)--DocGo Inc. (Nasdaq: DCGO) ("DocGo†), a leading provider of technology-enabled mobile health and medical transportation services, announced today that management will be participating in the following investor conferences in November: 17th Annual Southwest Ideas Conference (November 19th) Norm Rosenberg, Chief Financial Officer will participate in 1x1 meetings and deliver a presentation on Wednesday November 19th at 2:20 PM ET. A webcast of the event will be available. ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $70.8 million, down from $138.7 million in Q3 2024, primarily due to the sunset of migrant-related projects [22] - Excluding migrant-related programs, revenue increased by 8% to $62.4 million in Q3 2025 from $58 million in Q3 2024 [22] - Adjusted EBITDA for Q3 2025 was a loss of $7.1 million compared to an Adjusted EBITDA of $17.9 million in Q3 2024 [23] - Adjusted gross margin was 33% in Q3 2025, down from 36% in Q3 2024 [24] Business Line Data and Key Metrics Changes - Medical transportation services revenue increased to $50.1 million in Q3 2025 from $48 million in Q3 2024, driven by gains in nearly all U.S. markets [23] - Mobile health revenue for Q3 2025 was $20.7 million, down from $90.7 million in Q3 2024, with non-migrant mobile health revenues increasing by over 20% year-over-year [23] - The payer and provider vertical is expected to generate approximately $50 million in revenue in 2025, growing to $85 million in 2026, including $25 million from the SteadyMD acquisition [11][12] Market Data and Key Metrics Changes - The medical transportation business is expected to generate more than $200 million in revenue in 2025, with a projected Adjusted EBITDA contribution margin of approximately 12% [9] - Remote patient monitoring is operating at an annual run rate of approximately $15 million, with a greater than 10% Adjusted EBITDA contribution margin [12] Company Strategy and Development Direction - The company aims to build a robust, evergreen healthcare business and has a vision of bringing the capabilities of a doctor's office into a patient's living room [7][21] - The acquisition of SteadyMD is expected to enhance the company's virtual care capabilities and expand its clinical capacity [16][17] - The company plans to remain active in M&A to acquire traditional healthcare assets that can benefit from its technology and mobile health capabilities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive substantial value amid increasing healthcare costs and operational challenges [14] - The company anticipates a gradual abatement of investments in early-stage business lines over the course of 2026, aiming for profitability [19] - Management expects to exit 2026 with a cash balance of about $65 million, which will be the low point subject to buybacks or additional acquisitions [30] Other Important Information - The company has improved its balance sheet by paying off $30 million in debt and is now debt-free for the first time since late 2023 [27] - The company has collected approximately 96% of all migrant-related receivables from the inception of those programs [29] Q&A Session Summary Question: Can you help bridge the implied margins for the fourth quarter? - Management indicated that SteadyMD will contribute slightly to Q4 margins but will not have a material impact [33] Question: How does the EBITDA guidance for 2026 improve throughout the year? - Management expects the bulk of negative EBITDA will come in the first half of 2026, with improvements in the second half [37] Question: What is the expected revenue breakdown for 2026? - Management stated that there will be no migrant-related revenues for 2026, with a breakdown of about two-thirds transport and one-third mobile health [39] Question: Can you provide insights on payer-provider revenue growth? - Management confirmed that the $85 million for payer and provider in 2026 includes $25 million from SteadyMD and does not account for new deal closures [44] Question: What is the current view of the hospital spending environment? - Management noted that hospitals are cautious with budgets but are receptive to solutions that help lower costs and improve efficiency [66][69]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $70.8 million, down from $138.7 million in Q3 2024, primarily due to the sunset of migrant-related projects [21] - Excluding migrant-related revenue, revenue increased by 8% to $62.4 million in Q3 2025 from $58 million in Q3 2024 [21] - Adjusted EBITDA for Q3 2025 was a loss of $7.1 million compared to adjusted EBITDA of $17.9 million in Q3 2024 [22] - Adjusted gross margin was 33% in Q3 2025, down from 36% in Q3 2024 [23] Business Line Data and Key Metrics Changes - Medical transportation services revenue increased to $50.1 million in Q3 2025 from $48 million in Q3 2024, driven by gains in nearly all U.S. markets [22] - Mobile health revenue for Q3 2025 was $20.7 million, down from $90.7 million in Q3 2024, with non-migrant mobile health revenues increasing by over 20% year-over-year [22] - Remote patient monitoring is operating at an annual run rate of approximately $15 million, with a greater than 10% adjusted EBITDA contribution margin [12] Market Data and Key Metrics Changes - The medical transportation business is expected to generate more than $200 million of revenue in 2025, indicating strong foundational asset growth [9] - The payer and provider vertical is expected to generate approximately $50 million of revenue in 2025, growing to $85 million in 2026, including $25 million from the SteadyMD acquisition [11][30] Company Strategy and Development Direction - The company aims to build a robust, evergreen healthcare business and has a vision of bringing the capabilities of a doctor's office into a patient's living room [6][21] - The acquisition of SteadyMD is expected to enhance the company's virtual care network and clinical capacity, allowing for more efficient patient care delivery [17][18] - The company plans to remain active in M&A to acquire traditional healthcare assets that can benefit from its technology and mobile health capabilities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive substantial value amid increasing healthcare costs and operational challenges [14] - The company expects to exit 2026 with a cash balance of about $65 million, indicating a positive outlook despite anticipated losses in the first half of the year [30][28] - Management highlighted the importance of their services in helping hospitals manage patient flow and reduce costs, which is timely given current market conditions [46][50] Other Important Information - The company has made significant progress in reducing its debt, paying off $30 million in credit line debt during Q3 2025 [26] - The adjusted gross margin for the medical transportation segment was 31.7% in Q3 2025, the highest since Q1 2024 [23] Q&A Session Summary Question: Can you help bridge the implied margins for the fourth quarter? - Management indicated that SteadyMD's contribution would be around $5 million in revenue for the quarter, slightly EBITDA negative, impacting margin percentages [31] Question: How does the EBITDA guidance for 2026 improve throughout the year? - Management expects the bulk of the negative EBITDA to occur in the first half of 2026, with improvements in gross margins and reduced SG&A expenses anticipated in the latter half [34] Question: What is the expected revenue growth for the payer-provider segment? - The payer-provider revenue for 2026 includes $25 million from SteadyMD, with the remaining $60 million from the current baseline business, not accounting for new contracts or M&A [36] Question: How does the company balance supply and demand in transportation? - Management noted that they are basing hiring plans on the number of trips currently being outsourced, estimating a need for about 700-800 additional staff to meet demand [43] Question: What is the current view on the hospital spending environment? - Management acknowledged concerns about hospital budgets but emphasized their focus on helping hospitals save money and improve efficiency [46][50]

Financial Performance - For the three months ended September 30, 2025, the Company recorded a net loss of $29.7 million, compared to net income of $4.5 million for the same period in 2024[290]. - For the nine months ended September 30, 2025, the Company recorded a net loss of $54.0 million, compared to net income of $21.0 million for the same period in 2024[290]. - For the three months ended September 30, 2025, total revenues were $70.8 million, a decrease of $67.9 million, or 49.0%, compared to the same period in 2024[318]. - For the nine months ended September 30, 2025, total revenues were $247.3 million, a decrease of $248.4 million, or 50.1%, compared to the same period in 2024[338]. - Net loss attributable to stockholders of DocGo Inc. for the nine months ended September 30, 2025, was $48.3 million, compared to a net income of $23.2 million in the same period of 2024[337]. Revenue Breakdown - Mobile Health Services revenues for the same period were $20.7 million, a decrease of $70.0 million, or 77.2%, attributed to the wind-down of migrant-related services[319]. - Mobile Health Services revenues for the nine months ended September 30, 2025, were $96.7 million, a decrease of $254.6 million, or 72.5%, due to the wind-down of migrant-related services[339]. - Transportation Services revenues increased by $2.1 million, or 4.4%, to $50.1 million, driven by a 2.5% increase in U.S. trip volumes[320]. - Transportation Services revenues increased by $6.2 million, or 4.3%, to $150.6 million for the nine months ended September 30, 2025, driven by a 2.2% increase in U.S. trip volumes[340]. Cost and Expenses - Total cost of revenues (exclusive of depreciation and amortization) decreased by 40.7% compared to the same period in 2024, while revenues decreased by approximately 49.0%[321]. - Cost of revenues as a percentage of revenues increased to 74.4% in Q3 2025 from 64.0% in Q3 2024[321]. - For Mobile Health Services, cost of revenues amounted to $17.1 million, down 69.2% from $55.5 million in the prior year, with a cost of revenues percentage of 82.6%[323]. - For Transportation Services, cost of revenues increased by 6.9% to $35.6 million, with a cost of revenues percentage of 71.1%[324]. - Total operating expenses for the nine months ended September 30, 2025, were $147.9 million, an increase of 8.0% from $136.9 million in the same period of 2024[346]. - Operating expenses as a percentage of revenue increased from 27.6% in the first nine months of 2024 to 59.8% in the first nine months of 2025[346]. Operating Results - The Company recorded $60.1 million of operating expenses for the three months ended September 30, 2025, an increase of 51.0% from $39.8 million in the same period of 2024[326]. - Mobile Health Services segment operating expenses were $26.2 million for the three months ended September 30, 2025, up 98.5% from $13.2 million in the same period of 2024[327]. - Mobile Health Services segment operating expenses increased by 0.8% to $48.3 million, with operating expenses as a percentage of revenues rising to 49.9% from 13.6% due to declining revenues[347]. - Transportation Services segment operating expenses rose by 3.0% to $47.5 million, while operating expenses as a percentage of revenues decreased to 31.5% from 31.9% due to increased revenues[348]. - Corporate segment operating expenses surged by 21.4% to $52.1 million, with expenses representing 21.1% of total consolidated revenues, up from 8.7%[349]. Tax and Interest - The Company recorded an income tax benefit of $13.5 million for the three months ended September 30, 2025, compared to an income tax provision of $4.5 million in the same period of 2024[335]. - An income tax benefit of $21.9 million was recorded for the nine months ended September 30, 2025, compared to a provision of $13.3 million in the prior year[354]. - The company recorded a net interest expense of $1.1 million for the nine months ended September 30, 2025, down from $1.4 million in the same period of 2024[350]. Cash Flow and Working Capital - Working capital decreased by 36.2% to $116.6 million as of September 30, 2025, primarily due to a significant drop in accounts receivable and cash[362]. - Net cash provided by operating activities was $44.9 million for the nine months ended September 30, 2025, a decrease of 21.8% from $57.4 million in 2024[363]. - Investing activities used $26.0 million in cash, primarily for the purchase of restricted investments and business acquisitions[366]. - The company anticipates that existing cash balances and future expected cash flows will be sufficient to meet operating requirements for at least the next twelve months[361]. - As of September 30, 2025, available cash totaled $73.4 million, a decrease of $15.9 million compared to December 31, 2024[362]. - Financing activities used $48.9 million of cash during the nine months ended September 30, 2025, primarily for repayment of the Prior Revolving Facility and share repurchase program[368]. Acquisitions and Investments - The Company completed one acquisition for $4.2 million during the nine months ended September 30, 2025, with no acquisitions completed in the same period of 2024[302]. - The Company spent approximately $10.8 million on its share repurchase program during the nine months ended September 30, 2025[368]. Market Conditions - The Company’s financial performance is affected by macroeconomic conditions, including interest rates and inflation rates, which could adversely impact business operations[295]. - The annual inflation rate declined to 2.9% for the full year 2024 from 4.1% in 2023 and 8.0% in 2022[298]. - The Mobile Health Services market is influenced by patient acceptance of services outside traditional healthcare facilities and government funding for underserved populations[293]. - The Transportation Services market is driven by the increase in chronic conditions and the aging population, with a focus on non-emergency medical transport[294]. Future Outlook - The company expects overall Mobile Health Services revenues to be lower in 2026 than in 2025 due to the absence of migrant-related project revenues[306]. - The Company intends to develop and introduce innovative new software services and mobile applications to enhance customer experience and market position[303]. - The company plans to continue investing in technology and development, particularly in areas such as artificial intelligence (AI) to support growth[314]. Accounting and Revenue Recognition - The Company adopted ASC 606 for revenue recognition on January 1, 2019, following a five-step model for determining revenue[394]. - The Company generates revenues from Mobile Health Services and Transportation Services, recognizing revenue immediately upon fulfilling performance obligations[396]. - The transaction price for contracts is based on fixed and variable considerations, with revenues recorded net of estimated contractual allowances[397]. - The Company estimates variable consideration based on historical collections and reevaluates it at each reporting period[397]. Foreign Exchange and Credit Risk - For the three months ended September 30, 2025, foreign exchange loss was $(319,851), compared to a gain of $934,774 for the same period in 2024[402]. - A hypothetical 10% change in foreign exchange rates would have resulted in a 1.8% change in total revenues for the three months ended September 30, 2025[402]. - Two customers accounted for approximately 21% and 19% of net accounts receivable as of September 30, 2025[404]. - For the nine months ended September 30, 2025, one customer accounted for approximately 37% of revenues[404]. - The Company has not utilized interest rate hedging strategies to mitigate interest rate risk[401]. Assets and Liabilities - The Company recorded a $1,052,394 loss on the change in fair value of contingent consideration for the three months ended September 30, 2025, compared to a loss of $44,520 in the same period of 2024[331]. - Total assets of the Company's VIEs amounted to $6,985,326 as of September 30, 2025, up from $3,122,209 as of December 31, 2024[376]. - The allowance for credit losses on accounts receivable was $5,698,547 as of September 30, 2025, after recognizing an additional provision of $1,255,945 for the three months ended September 30, 2025[387]. - Future minimum lease payments under finance leases total $18.2 million, with a present value of $16.4 million as of September 30, 2025[371]. - The Company has future minimum annual maturities of notes payable totaling $249.9 million, with a long-term portion of $195.7 million[371]. - The Company recognized a total stockholders' deficit of $6,895,553 for its VIEs as of September 30, 2025, compared to $679,535 as of December 31, 2024[376]. - The Company evaluates the recoverability of long-lived assets whenever events indicate that the recorded amount may not be fully recoverable[391].

Financial Performance - Total revenue for Q3 2025 was $70.8 million, down from $138.7 million in Q3 2024, primarily due to the wind-down of migrant-related programs[4] - Excluding migrant-related revenue, revenue increased by 8% to $62.4 million in Q3 2025 from $58.0 million in Q3 2024[4] - Net loss for Q3 2025 was $29.7 million, compared to net income of $4.5 million in Q3 2024, including $16.7 million of non-cash impairments[4] - Adjusted EBITDA loss was $7.2 million for Q3 2025, compared to adjusted EBITDA of $17.9 million for Q3 2024[4] - Mobile Health Services revenue decreased to $20.7 million in Q3 2025 from $90.7 million in Q3 2024, but increased by 23% excluding migrant-related programs[4] - Total revenues for the three months ended September 30, 2025, were $70,809,635, a decrease of 48.9% compared to $138,684,814 for the same period in 2024[19] - Net loss for Q3 2025 was $29.66 million compared to a net income of $4.55 million in Q3 2024, representing a significant decline[20] - GAAP gross margin for Q3 2025 was 20.0%, down from 33.0% in Q3 2024, while adjusted gross margin was 33.0% compared to 36.0% in the same period[30] - Adjusted EBITDA for Q3 2025 was $(7.2) million, significantly lower than $17.9 million in Q3 2024[31] - The adjusted EBITDA margin for Q3 2025 was (10.2)%, compared to 12.9% in Q3 2024[31] - The company reported a pretax income margin of (61.0)% for Q3 2025, compared to 6.5% in Q3 2024[31] Revenue Guidance - Full-year 2025 revenue is expected to be between $315 million and $320 million, including $68 million to $70 million of migrant-related revenue[7] - Full-year 2026 revenue guidance is projected to be between $280 million and $300 million, with no migrant-related revenue included[7] - The company expects a base business revenue increase of 12%-20% for 2026, which does not include potential acquisitions or new contracts[6] Asset and Liability Management - Total current assets decreased to $190,226,013 as of September 30, 2025, down 37.5% from $304,486,263 as of December 31, 2024[17] - Total liabilities decreased to $93,120,992 as of September 30, 2025, down 33.7% from $140,442,002 as of December 31, 2024[17] - The accumulated deficit increased to $(49,731,114) as of September 30, 2025, compared to $(1,402,167) as of December 31, 2024[18] - Total stockholders' equity attributable to DocGo Inc. decreased to $270,532,470 as of September 30, 2025, down 15.7% from $320,917,476 as of December 31, 2024[18] Cash Flow and Financing Activities - Operating cash flow for the nine months ended September 30, 2025, was $44.92 million, down from $57.40 million in the same period of 2024, a decrease of approximately 21.7%[20] - Cash and cash equivalents decreased to $73,355,638 as of September 30, 2025, down 17.8% from $89,241,695 as of December 31, 2024[17] - Cash used in financing activities for the nine months ended September 30, 2025, was $48.95 million, compared to $16.30 million in the same period of 2024, indicating increased financial strain[22] - Total cash and cash equivalents at the end of Q3 2025 were $77.61 million, down from $108.58 million at the end of Q3 2024, a decrease of about 28.6%[22] Impairments and Expenses - The company incurred a finite-lived intangible asset impairment of $8,020,343 for the three months ended September 30, 2025[19] - The company reported a significant impairment charge of $8.72 million related to goodwill in Q3 2025, reflecting challenges in asset valuation[20] - Stock-based compensation expenses increased to $14.31 million for the nine months ended September 30, 2025, compared to $9.76 million in the same period of 2024, an increase of approximately 46.1%[20] - Non-recurring expenses included in adjusted EBITDA for Q3 2025 amounted to $26.1 million, compared to $0.4 million in Q3 2024[31] Strategic Initiatives - The company entered into an agreement to acquire virtual care platform SteadyMD, expanding telehealth services across all 50 states[7] - The company made a significant purchase of restricted investments totaling $24.74 million during the nine months ended September 30, 2025[20]

"Company†), a leading provider of technology-enabled mobile health and medical transportation services, today announced plans to launch Longitudinal Care Services in partnership with a California-based insurance provider. Leveraging the Company's primary care capabilities, this program will provide preventative care, chronic care management and transitions of care services, targeting 10,000 plan members who are under- engaged i. NEW YORK--(BUSINESS WIRE)--DocGo Inc. (Nasdaq: DCGO) ("DocGo†or the ...

"Company†), a leading provider of technology-enabled mobile health and medical transportation services, announced today that the Company will release its financial results for the third quarter ended September 30, 2025 after the markets close on Monday, November 10, 2025. Management will also host a conference call to discuss these results at 5:00 p.m. ET on that day. Conference call and webcast details: Monday, November 10, 2. NEW YORK--(BUSINESS WIRE)--DocGo Inc. (Nasdaq: DCGO) ("DocGo†or the ...

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of DocGo Inc. (NASDAQ: DCGO) towards shareholders [1] Group 1 - The investigation pertains to whether the actions of DocGo's management have harmed shareholder interests [1] - Shareholders who acquired DocGo stock on or before November 5, 2021, may seek various forms of relief, including corporate governance reforms and financial incentives [1] - The law firm is encouraging affected shareholders to learn more about their rights and potential actions [1]

Core Points - DocGo has acquired SteadyMD, indicating a strategic move to enhance its service offerings in the healthcare sector [1] - The conference call is being led by Mike Cole, Vice President of Investor Relations, who emphasizes the importance of forward-looking statements [2] - The company acknowledges that forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties [3][4] Company Overview - The acquisition of SteadyMD is part of DocGo's strategy to expand its capabilities and market presence in the healthcare industry [1] - The management team is expected to provide insights into the implications of this acquisition during the call [2] Industry Context - The healthcare sector is experiencing significant changes, with companies like DocGo seeking to innovate and adapt through strategic acquisitions [1] - The emphasis on forward-looking statements reflects the dynamic nature of the industry, where outcomes can be influenced by numerous external factors [3][4]