Summary of DocGo FY Conference Call Company Overview - **Company**: DocGo (NasdaqCM:DCGO) - **Business Model**: A tech-driven provider of mobile health services, focusing on non-emergency medical transportation and various mobile health services including care gap closures, mobile phlebotomy, and remote patient monitoring, primarily for cardiac patients - **Operations**: Operates a fleet of approximately 900 vehicles and employs around 3,000 healthcare professionals, providing services across 50 states and the U.K. [5][6] Macro Environment and Regulatory Concerns - **Regulatory Shifts**: Ongoing discussions regarding Medicaid eligibility and administration could impact the care gap closure business if fewer individuals are covered [8][9] - **Demand Pressure**: A potential reduction in Medicaid coverage may increase demand for mobile health services as the existing healthcare system is already under pressure [9] - **AI Integration**: DocGo is leveraging AI to enhance efficiency in patient outreach and clinician operations [10] Business Segments and Growth Opportunities - **Revenue Segmentation**: Revenue is derived from two main segments: medical transportation (70% of revenue) and mobile health services, with the latter expected to grow rapidly [15][16] - **Care Gap Closure Business**: Currently working with six payers, with a cumulative assignment of 1.3 million lives. Revenue from this segment has quadrupled from 2024 to 2025, although it has lower margins compared to other mobile health services [18][19] - **Growth Focus**: The company is prioritizing investments in mobile health lines, particularly care gap closures and mobile phlebotomy, which are expected to yield higher margins in the future [19][20] Staffing and Operational Challenges - **Staffing Issues**: In 2025, DocGo had to outsource 26,000 transports due to staffing shortages, resulting in an estimated opportunity cost of $8-$9 million in revenue [40][41] - **Retention Strategies**: The company is focusing on improving recruitment and retention of EMTs and paramedics, which are critical to operations [42][49] - **Capacity Utilization**: The company aims to maintain a capacity utilization rate of 0.35 to 0.4 trips per 10-hour shift to optimize operations [45][48] Financial Guidance and M&A Strategy - **Revenue Guidance**: Projected revenue for 2026 is between $280 million and $300 million, reflecting organic growth without accounting for new contracts or M&A [54][55] - **M&A Opportunities**: DocGo is looking for tuck-in acquisitions to enhance mobile health capabilities and bolster operations in existing markets. The current market conditions present favorable opportunities for acquisitions [56][60] - **Balance Sheet Management**: The company has a solid balance sheet but is cautious about using equity for acquisitions. Recent cash collections from previous contracts are expected to support ongoing operations [61][62] Government Relations and Future Outlook - **Government Contracts**: The company is cautious about engaging in new government contracts due to working capital intensity but sees potential in population health programs under the new administration [63][66] - **Guidance Approach**: The company aims to provide conservative guidance to ensure that it can meet expectations without relying on uncertain factors [68][74] Conclusion DocGo is positioned to capitalize on growth opportunities in mobile health services while navigating regulatory challenges and operational hurdles. The focus on improving staffing, leveraging technology, and pursuing strategic acquisitions will be critical for achieving its financial targets in the coming years.

Summary of DocGo Inc. Conference Call Company Overview - **Company**: DocGo Inc. - **Industry**: Mobile healthcare - **Core Idea**: Delivering medical care to patients where and when it is needed, aiming to improve health outcomes and reduce strain on the healthcare system [2][3] Key Business Segments - **Medical Transportation**: - Tech-driven platform providing medical transportation services, akin to an Uber-like experience [3][4] - Revenue projected to exceed $200 million this year, up from less than $100 million five years ago [8] - **Care-in-the-Home**: - Rapidly growing segment providing healthcare services directly in patients' homes [3][4] - Expected to serve over 150,000 patients this year [7][15] - **Remote Patient Monitoring**: - Monitoring over 50,000 patients, primarily in cardiac care [5][12] Financial Performance - **Q3 Revenue**: Approximately $71 million, with an adjusted gross margin of 33% [10][11] - **Adjusted EBITDA Loss**: Approximately $7.2 million [10] - **Cash Position**: Total cash on the balance sheet is $95.2 million, with no debt [11] - **Growth Guidance**: Projected revenue for next year is between $280 million to $300 million, indicating significant growth potential [9][38] Market Dynamics - **Total Addressable Market (TAM)**: Significant growth expected in home healthcare delivery, with CMS predicting a shift towards home-based care [3][18] - **Chronic Disease Management**: Addressing chronic diseases, which account for 90% of the U.S. healthcare spending, is a key focus [13][14] Competitive Advantages - **Tech Integration**: Proprietary tech platform integrated with hospital systems (e.g., Epic) to streamline patient flow and improve service delivery [24][25] - **Vertical Integration**: Combining technology, clinical staff, and transportation services to provide a seamless healthcare experience [28][30] - **Strategic Partnerships**: Collaborations with major hospital systems and health insurance companies to enhance service delivery and patient engagement [4][23][27] Growth Strategy - **Expansion Plans**: Focus on increasing patient density in existing markets and expanding to new markets through existing payer relationships [36][37] - **M&A Activity**: Recent acquisition of SteadyMD to enhance telehealth capabilities and expand clinical provider network [20][21][36] - **Patient-Centric Approach**: Emphasis on keeping patients out of hospitals and managing chronic conditions effectively [31][33] Additional Insights - **Patient Engagement**: High patient satisfaction reported, leading to better health outcomes [6][12] - **Service Offerings**: Over 40 different care services provided in-home, including screenings and vaccinations [15][22] - **Market Trends**: Anticipated shift of 30% of primary care market to non-traditional providers, indicating a growing opportunity for mobile healthcare [17][18] Conclusion DocGo Inc. is positioned as a leading provider in the mobile healthcare space, leveraging technology and strategic partnerships to deliver comprehensive care solutions. The company is on a growth trajectory with a strong financial foundation and a clear strategy to address the evolving needs of the healthcare market.

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]