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.

Company Overview - DocGo is a leading provider of technology-enabled mobile healthcare[14] - The company delivers healthcare at any address[14] - DocGo has a proprietary technology backbone and visionary leadership team[9, 11] Financial Performance & Metrics - Total cash was $103.1 million as of March 31, 2025, up from $58.9 million on March 31, 2024[27] - Total revenue for Q1 2025 was $96.0 million[88] - Adjusted EBITDA loss for Q1 2025 was $3.9 million[87] - Adjusted gross margin for Q1 2025 was 32.1%[88] Market & Services - The total addressable market for at-home care in the U S is $265 billion[42] - The company's mobile health segment revenue for Q1 2025 was $45.2 million[88] - The company's medical transportation segment revenue for Q1 2025 was $50.8 million[88]

Financial Data and Key Metrics Changes - The company celebrated its ten-year anniversary and reported facilitating care across its ten millionth patient interaction, indicating significant growth in scale and impact [12][13] - The company achieved record levels in medical transportation trip volume in Q1 2025 and anticipates continued growth with new customers [16][17] Business Line Data and Key Metrics Changes - In the Care Gap closure program, total assigned lives increased to over 900,000, up from 700,000 just a quarter ago [20] - Visit volumes in the Care Gap program scaled from 2,500 visits in Q4 2023 to over 4,400 in Q4 2024, with projections of more than 11,500 visits in Q4 2025, representing a fourfold increase in two years [20] Market Data and Key Metrics Changes - The company provided services across 31 states in the US and the UK, with its proprietary tech platform calculating over 15 million estimated arrival times for customers [14] - The company’s care gap closure program achieved a net promoter score of 86, significantly higher than the healthcare industry benchmark of 58 [15] Company Strategy and Development Direction - The company aims to build a long-term sustainable business by focusing on its core medical transportation and mobile health services, which are expected to grow in 2025 and 2026 [16][26] - The strategic decision to enhance operations and technology is intended to support the growing needs of the customer base and ensure predictable long-term growth [15][26] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing demand for services due to chronic diseases and the need for proactive care, which aligns with the company's offerings [22][23] - The company is positioned to address significant challenges in the US healthcare system, including high costs and clinician burnout, by providing accessible care [23][27] Other Important Information - The company acquired PTI Health, a mobile lab collection and phlebotomy business, which is expected to complete 125,000 blood draws in 2025 and over 200,000 in 2026 [21] - The company is actively managing SG&A expenses and believes it has the financial strength to fund its next growth phase [26] Q&A Session Summary Question: What are the key milestones achieved by the company recently? - The company recently facilitated care for its ten millionth patient and achieved record trip volumes in medical transportation [12][16] Question: How does the company plan to address the challenges in the healthcare system? - The company aims to provide proactive care to manage chronic diseases and reduce costs, thereby benefiting the overall healthcare ecosystem [23][27]

Summary of DocGo (DCGO) FY Conference Call - June 09, 2025 Company Overview - **Company**: DocGo (DCGO) - **Industry**: Mobile healthcare and medical transportation - **Core Business**: Provides medical transportation and mobile healthcare services, focusing on bringing care to patients where needed and transporting patients to care locations [4][5] Key Points and Arguments Business Model and Growth - **Medical Transportation**: The company has a robust medical transportation platform, which includes a tech platform that calculates estimated times of arrival (ETAs) for medical transport, having calculated 15 million ETAs last year [5][6] - **Crisis Response**: The company played a significant role during the COVID-19 pandemic and the migrant crisis in New York City, which helped establish its reputation and capabilities [6][7] - **Patient Care**: Over the past ten years, DocGo has cared for 10 million patients, focusing on expanding capabilities in home healthcare and medical transportation [8] - **Revenue Guidance**: The medical transit business is projected to generate $315 million at the midpoint, with growth driven by partnerships with large hospital systems [9][10] Growth Drivers - **Hospital Partnerships**: The company partners with major hospital systems, utilizing its tech platform to manage patient flow and transportation, which has led to organic growth [10][12] - **Market Expansion**: DocGo is expanding geographically, with recent expansions into Chattanooga and Dallas-Fort Worth, and is targeting a growth trajectory of 20% by increasing transit numbers from 575,000 to 700,000 [16][18] - **Service Expansion**: There is potential to deepen relationships with existing hospital systems by offering additional services beyond medical transportation, such as cardiac monitoring and transitional care management [15][19] Market Dynamics - **Fragmented Industry**: The medical transportation industry is highly fragmented, and DocGo's investment in technology allows it to capture market share by providing a more efficient service compared to traditional methods [21][22] - **Predictability in Operations**: The company’s model provides predictability for hospital systems, allowing them to manage patient flow more effectively, which is a significant value proposition [29][27] Financial Performance and Guidance - **Accounts Receivable**: The company has made progress in collecting outstanding receivables, reducing the balance from $150 million to $100 million [67] - **Municipal Revenue**: The company has removed municipal revenue from guidance due to unpredictability but expects to report it separately as it comes in [70][71] Payer-Facing Business - **Care Gap Services**: The company is expanding its payer-facing business by addressing care gaps for patients who are chronically ill and have difficulty accessing care [35][36] - **Patient Engagement**: DocGo has successfully engaged with a growing list of patients, now totaling 900,000, to close care gaps, which is a significant growth opportunity [39][43] - **Revenue Model**: Currently, the company operates on a fee-for-service model, with plans to transition to value-based payments as it establishes a primary care practice [46][44] Operational Efficiency - **Labor Model**: The company employs a unique model where licensed practical nurses (LPNs) are dispatched to patients' homes, directed by centralized healthcare providers, optimizing resource use [61][62] - **Cost Management**: DocGo is rationalizing its SG&A expenses while maintaining capabilities for future growth, particularly in the payer and provider verticals [79][80] Additional Important Insights - **Patient Management**: The company emphasizes the importance of patient bed management for hospitals, which can save significant costs associated with building new capacity [28][29] - **Long-Term Relationships**: DocGo aims to fill the void for patients without primary care providers, establishing long-term relationships where necessary [56][57] - **Future Outlook**: The company is optimistic about its growth trajectory, with plans to expand services and geographic reach while maintaining a focus on operational efficiency and patient care [54][55]

Company Performance - DocGo Inc. reported a quarterly loss of $0.09 per share, missing the Zacks Consensus Estimate of a loss of $0.01, and compared to earnings of $0.09 per share a year ago, representing an earnings surprise of -800% [1] - Motion Acquisition posted revenues of $96.03 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.90%, and down from year-ago revenues of $192.09 million [2] - Over the last four quarters, Motion Acquisition has surpassed consensus EPS estimates just once and has not been able to beat consensus revenue estimates [2] Stock Performance - Motion Acquisition shares have lost approximately 43.4% since the beginning of the year, while the S&P 500 has declined by -4.3% [3] - The current consensus EPS estimate for the coming quarter is $0.01 on $92.8 million in revenues, and $0.07 on $401.83 million in revenues for the current fiscal year [7] Industry Outlook - The Medical Services industry is currently in the top 22% of over 250 Zacks industries, indicating a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for Motion Acquisition is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $96 million, down from $192.1 million in Q1 2024, primarily due to the decline in the government vertical, especially in migrant-related projects [18] - The company recorded a net loss of $11.1 million in Q1 2025 compared to a net income of $10.6 million in Q1 2024, reflecting the drop in revenues [19] - Adjusted EBITDA for Q1 2025 was a loss of $3.9 million, down from adjusted EBITDA of $24.1 million in Q1 2024 [20] - SG&A as a percentage of total revenues was 46.7% in Q1 2025, compared to 26.8% in Q1 2024, indicating a significant increase due to the decline in migrant revenues [23] Business Line Data and Key Metrics Changes - Mobile health revenue for Q1 2025 was $45.2 million, down from $143.9 million in Q1 2024, driven by the anticipated wind down of migrant revenues [19] - Medical transportation services revenue increased to $50.8 million in Q1 2025 from $48.2 million in Q1 2024, supported by growth in several markets [19] - The medical transportation business is expected to generate $225 million in revenue for 2025, while the payer and provider business is projected to generate $50 million [17] Market Data and Key Metrics Changes - The company has seen growth in medical transportation services in markets including Delaware, Tennessee, Pennsylvania, New Jersey, Wisconsin, Upstate New York, and the UK [19] - The payer and provider vertical has exceeded 900,000 assigned lives, up from 700,000 just a quarter ago, indicating strong demand [10] Company Strategy and Development Direction - The company has removed its government population health vertical from its 2025 guidance due to ongoing policy changes and budget cuts, leading to substantial uncertainty [5][7] - The focus is on building the company around innovative solutions for payers, providers, and health systems, particularly in mobile health and medical transportation [8] - The company is undertaking cost-cutting measures while investing in growing segments, aiming for positive adjusted EBITDA in 2026 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the medical transportation and payer/provider verticals despite the challenges in the government sector [8][17] - The anticipated adjusted EBITDA loss for 2025 is primarily due to elevated SG&A levels during the transition period [15] - Management highlighted the importance of patient satisfaction and the positive impact of their services on healthcare outcomes, which is expected to drive future growth [40][70] Other Important Information - The company plans to report any significant non-migrant municipal work as upside revenue in future quarters [17] - The balance sheet remains healthy, with expectations of positive cash flow from operations despite projected losses [16][25] - The company has initiated a stock buyback program, repurchasing nearly 2 million shares for approximately $5.8 million [26] Q&A Session Summary Question: What is the expected government revenue for the remainder of the year? - Management clarified that government population health revenues have been removed from guidance, and any new deployments will be reported separately as upside [30][31] Question: How is the payer business performing? - The payer business is experiencing healthy demand, with plans focused on reducing medical loss ratios and improving quality metrics [38][40] Question: What caused the revenue miss in Q1? - The revenue miss was attributed to the government vertical, with delays in contract launches and RFP responses impacting expected revenues [46][51] Question: What is the margin profile of the migrant-related revenue? - The margin for the migrant program was about 34%, consistent with previous quarters, while the non-migrant mobile health segment had higher margins [75] Question: Are there risks from tariffs on medical equipment? - Management indicated that tariffs could impact the cost of maintaining the fleet and procuring new vehicles, but they are well-positioned to manage these costs [77][78]