DCGO — DocGo Inc.

Summary of DocGo (DCGO) Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $75.6 million for Q1 2026, down from $96 million in Q1 2025, primarily due to the wind down of migrant-related projects. Excluding these, revenue increased by 24% year-over-year.
• Adjusted EBITDA: Loss of $10.2 million, compared to a loss of $3.9 million in Q1 2025.
• Adjusted Gross Margin: 31.6%, slightly down from 32.1% in Q1 2025. When adjusted for consistent business lines, gross margins improved to 31.9% from 30.4%.
• Cash Position: $59.9 million at the end of Q1 2026, down from $68.3 million at the end of 2025, impacted by delayed collections from migrant-related accounts.

2. Strategic Updates and Business Highlights

• SteadyMD Performance: Generated over $9 million in revenue in Q1, with a total of approximately 1.1 million visits and lab orders, reflecting a 38% increase year-over-year. A new contract with an online pharmacy for weight loss prescriptions is expected to drive further growth.
• Mobile Phlebotomy: Projected to grow by 75% in 2026, with plans to increase home visits from 600 to 900 per day.
• Medical Transportation: Achieved record revenues of $51.9 million, with significant contract renewals and expansions, particularly in New York and Tennessee.
• Care Gap Closure Services: Surpassed 1.6 million lives assigned, with a 46% increase in completed visits year-over-year.

3. Forward Guidance and Outlook

• Revenue Guidance: Increased for 2026 to a range of $300 million to $315 million, up from $290 million to $310 million.
• Adjusted EBITDA Guidance: Remains unchanged, expecting a loss between $5 million and $10 million for the year.
• Growth Expectations: Continued strong performance anticipated across business lines, with a focus on integrating services to enhance margins.

4. Bad News, Challenges, or Points of Concern

• Labor Inefficiencies: Increased labor costs due to rapid growth in SteadyMD and higher-than-expected wages impacted gross margins.
• Fuel Costs: Rising fuel prices due to geopolitical tensions are expected to continue affecting margins, with a significant increase in average fuel costs noted.
• Cash Flow Pressure: Delays in collecting accounts receivable related to migrant services could create working capital pressure in the near term.

5. Notable Q&A Insights

• SteadyMD Growth: Management indicated strong demand from both existing and new customers, particularly in digital health and wellness sectors.
• Payer Relationships: Continued focus on care gap closure services with payers, with expectations to onboard additional payers in the first half of 2026.
• Cost-Cutting Measures: Anticipated benefits from cost reductions are expected to materialize in Q3 2026, with some lag in expense management observed in Q1.
• Revenue Contributions: For 2026, projected contributions include approximately $85 million to $100 million from Mobile Health and $210 million to $215 million from Medical Transportation, with SteadyMD expected to contribute around $35 million to $36 million.

This summary captures the essential financial metrics, strategic initiatives, forward-looking guidance, challenges faced, and insights from the Q&A session, providing a comprehensive overview of DocGo's performance and outlook for Q1 2026.