DocGo Inc. Q1 FY2026 earnings call

• Core Growth Drivers

  • SteadyMD (acquired Q4 2025) saw accelerating growth, with 1.1 million total visits and lab orders in Q1 2026, up 38% year-over-year, and secured a new contract with a leading online pharmacy for weight loss and general clinical services. Rapid growth required expanded clinician hiring, with the clinical workforce increased by over 45% in Q1 to meet demand. The segment is on a $36 million annual run rate as of Q1.
  • Mobile phlebotomy is exceeding growth expectations, with planned 2026 growth of up to 75% (well above prior forecasts). Daily home visits are projected to increase from 600 currently to 900 by end of 2026, with new territory expansions to upstate New York, Pennsylvania, and upcoming launch in Florida. Technology integrations with major national labs and AI automation for order intake/customer service are underway to improve margins.
  • Care gap closure, PCP, and transition of care services grew 46% year-over-year in completed visits, with the PCP longitudinal care panel now exceeding 1,000 patients (vastly enrolled in Q1). The PCP business targets break-even by late 2026, reducing ongoing investment requirements. Payers consistently report plans to expand partnerships, with 2-4 new payer logos on track to be added in H1 2026.
  • Medical transportation secured multiple key contract renewals and new wins, including 1-year and 2-year renewals with major New York hospital systems (adding Staten Island facilities), new contracts for a Chattanooga long-term acute care hospital, Wisconsin hospice facilities, and Great Western Hospitals NHS Foundation Trust in the U.K. The business development pipeline remains strong for both U.S. and U.K. growth.

• Margin and Cost Updates

  • Q1 gross margin faced two temporary headwinds: 60 basis point drag from temporary labor inefficiencies at SteadyMD during rapid hiring (already correcting in Q2), and fuel cost increases driven by Middle East geopolitical tensions, with every $1 per gallon pump price increase reducing consolidated gross margin by ~35 basis points. Elevated fuel prices have persisted into Q2 and will remain a near-term drag.
  • Adjusted operating expenses (excluding depreciation, stock-based compensation, and non-recurring items) fell to $34.1 million in Q1 2026 from $35.7 million in Q4 2025, reflecting ongoing cost-cutting efforts. Cost reductions implemented in late 2025 and early 2026 have a lagged impact on the income statement, with acceleration in cost savings expected in coming quarters. Full impact of all cost-cutting measures is expected by Q3 2026, with sequential SGA declines expected through the end of the year.

• Strategic Updates

  • The strategic alternatives process announced March 16, 2026 remains ongoing. No updates on potential outcomes are available at this time, with further updates to be shared as appropriate.

Total Q1 2026 consolidated revenue: $75.6 million, down from $96 million in Q1 2025, entirely due to the wind-down of migrant-related projects. Excluding both migrant 2025 revenues and SteadyMD 2026 acquisition revenues, underlying revenue grew 8% year-over-year.

1. Medical Transportation Segment:

• Q1 2026 revenue: $51.9 million, up from $50.8 million in Q1 2025 (the highest quarterly transport revenue in company history)
• Revenue contribution %: ~68.7% of total Q1 2026 consolidated revenue
• Adjusted gross margin: 31.9% in Q1 2026, up from 30.8% in Q1 2025
• U.S. medical transportation revenue grew 17% year-over-year, with strong growth in New York, Texas, and Tennessee markets

1. Mobile Health Segment:

• Q1 2026 revenue: $23.6 million, down from $45.2 million in Q1 2025 due to the wind-down of migrant-related revenues
• Revenue contribution %: ~31.2% of total Q1 2026 consolidated revenue
• Adjusted gross margin: 31% in Q1 2026, flat vs 30.8% in Q1 2025
• Excluding SteadyMD, non-migrant mobile health revenue grew 38% year-over-year; non-migrant mobile health revenues more than doubled including SteadyMD
• Key sub-segment performance within mobile health:
  • SteadyMD (virtual care): $9.5 million in Q1 2026 revenue, >$9 million quarterly revenue, up ~$1 million from Q4 2025; grew 37% year-over-year for virtual care and lab orders
  • Remote patient monitoring: $4.1 million in Q1 2026 revenue, grew 13% year-over-year, with gross margins over 50%
  • Clinical staffing: ~$3.8 million in Q1 2026 revenue
  • Mobile phlebotomy: grew 8% year-over-year, on track for up to 75% full-year 2026 growth
  • Care gap closure/PCP/transition of care: completed visits up 46% year-over-year, with >1.6 million total lives assigned since inception
  • Healthcare in the home: grew 46% year-over-year

Overall adjusted EBITDA for Q1 2026: a loss of $10.2 million, compared to a loss of $3.9 million in Q1 2025. Adjusted gross margin for consolidated operations was 31.6% in Q1 2026, down from 32.1% in Q1 2025; excluding migrant and SteadyMD impacts, underlying adjusted gross margin improved 150 basis points to 31.9% from 30.4% year-over-year.

• Full-year 2026 revenue guidance was revised upward to a range of $300 million to $315 million, from the prior range of $290 million to $310 million (and initial guidance of $280 million to $300 million). This represents 19% to 25% year-over-year growth over 2025 base revenue, excluding any migrant-related project revenues. Approximately $8 million to $9 million of the $12 million midpoint guidance increase is attributed to stronger-than-expected SteadyMD performance, with the remainder from broad-based volume growth across other segments, especially medical transportation and smaller mobile health sub-segments.
• Full-year 2026 adjusted EBITDA guidance was maintained unchanged, with an expected loss in the range of $5 million to $10 million. The upward revenue revision is offset by temporary margin headwinds from elevated fuel prices and higher near-term operating expenses from the lagged impact of cost-cutting.
• Mobile health segment is projected to contribute $85 million to $100 million of 2026 full-year revenue, while medical transportation is projected to contribute $210 million to $215 million. SteadyMD is projected to contribute approximately $35 million to $36 million of full-year 2026 revenue.

• Temporary margin headwinds from elevated fuel prices driven by Middle East geopolitical tensions, with prices remaining elevated through early Q2 2026 and continuing to pressure gross margin in the near term. Most existing transportation contracts do not include automatic fuel cost adjustment clauses, so the company cannot pass these increases through to customers quickly.
• Working capital pressure from delayed collections on outstanding migrant-related accounts receivable from New York City's Department of Housing Preservation and Development. Approximately $13 million remains outstanding as of Q1 end, with uncertain collection timing through the rest of 2026. Cash balances declined more than expected in Q1, and further near-term cash declines are expected from continued operating losses and growth investment, creating short-term working capital pressure expected to ease in H2 2026 as profitability improves.
• Lagged impact of cost-cutting measures means operating expenses remained higher than expected in Q1, with full savings not expected until Q3 2026.
• Forward-looking statements are inherently subject to uncertainties and assumptions beyond the company's control, which could cause actual results to differ materially from guidance. The strategic alternatives process may not result in any transaction or strategic outcome.

Q: What is the breakdown of new vs existing customer growth for SteadyMD, which customer segments are driving demand, and how much of the full-year revenue guidance increase comes from SteadyMD versus other segments?

A: SteadyMD growth comes from both volume expansion with existing customers and consistent new customer additions. Demand comes from online pharmacies (driving weight loss care growth), digital health/wellness/wearable companies, and traditional labs, with broad growth from the consumerization of healthcare. Of the ~$12 million midpoint increase in full-year revenue guidance, $8-$9 million comes from stronger-than-expected SteadyMD performance, with the remainder from solid volume growth across medical transportation and smaller mobile health lines like mobile phlebotomy and remote patient monitoring.

Q: How are payers' needs for care gap closure services changing, and what is the update on the pipeline for new payer customers?

A: Payer demand for core care gap closure services for unattached patients remains consistent, but payers increasingly value the additional longitudinal PCP care the company provides to patients without an existing provider. The company frequently uncovers previously undocumented chronic conditions during in-home visits, which creates significant value for payers, and 60% of visited patients have multiple chronic conditions. The company remains on track to add 2-4 new payer logos in H1 2026, and most existing payers plan to expand their partnerships this year.

Q: Why did management keep adjusted EBITDA guidance unchanged despite raising revenue guidance?

A: The upward revenue revision is offset by two key near-term headwinds: elevated fuel prices in Q2 (expected to reduce gross margin by 0.33-0.5 percentage points, with no automatic fuel price adjustments on most existing contracts) and higher-than-expected near-term operating expenses from the lagged impact of cost-cutting initiatives. Management built in conservatism to account for these factors, resulting in unchanged full-year EBITDA guidance.

Q: What are the key details of SteadyMD's new weight loss partnership with an online pharmacy, and what are 2026 revenue contributions from mobile health and SteadyMD?

A: The company provides clinical visits required for prescribing branded weight loss medications, charging a contracted per-visit rate with no revenue sharing. For full-year 2026, the $300-$315 million total revenue guidance includes $85-$100 million from mobile health (with SteadyMD projected to contribute ~$35-$36 million of that total) and $210-$215 million from medical transportation.