DocGo (DCGO) - 2025 Q2 - Quarterly Results

DocGo Announces Second Quarter 2025 Results 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 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] Select Corporate Highlights for the Second Quarter of 2025 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] - 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] - Expanded care gap closure relationship with a major insurance company in the Northeast to include primary care services[5] - Repurchased 2.5 million shares of common stock for approximately $5.1 million during the second quarter of 2025[5] - 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] - Subsequent to quarter end, the Company paid down $30 million on its line of credit, bringing the outstanding balance to $0[7] - 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] 2025 Guidance and Management Commentary 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] - The company anticipates entering more than a half dozen new states in this vertical by the end of 2026[6] - CFO Norm Rosenberg reported a substantial increase in total cash balance to $128.7 million, driven by the collection of migrant-related receivables[6] - Approximately $54 million in migrant-related receivables remains outstanding, expected to be collected over the remainder of the year[6] - The company made considerable progress reducing SG&A, with corporate overhead cuts expected to result in an estimated $10 million in annual savings[6] - Further steps are planned for Q3 and Q4 to achieve profitability in the second half of 2026[6] Company Information & Event Details This section details DocGo's mobile health and medical transportation services and provides Q2 2025 earnings conference call information About DocGo 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] - 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] Conference Call and Webcast Details 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 This section presents DocGo's unaudited condensed consolidated balance sheets, statements of operations, and cash flows for Q2 2025 Unaudited Condensed Consolidated Balance Sheets 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 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 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] - Common stock repurchases accounted for $5.1 million of cash used in financing activities during Q2 2025[24] Non-GAAP Financial Measures and Reconciliations 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 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] - Adjusted gross margin is adjusted gross profit as a percentage of total revenue[27] - 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] Adjusted EBITDA Definition and Rationale 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] - 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] Reconciliation of Non-GAAP Measures 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 This section provides cautionary forward-looking statements and essential investor contact information Forward-Looking Statements 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][11] - 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] - 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] 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 |