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 ...

Core Points - DocGo Inc. will release its financial results for the third quarter ended September 30, 2025, after the markets close on November 10, 2025 [1] - Management will host a conference call to discuss these results at 5:00 p.m. ET on the same day [1]

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]