DocGo Inc (DCGO) (Q2 2026) Earnings Call Highlights: Record Volumes and Strategic Hicuity ...

Negative Points

• DocGo Inc ( NASDAQ:DCGO ) widened its full-year 2026 adjusted EBITDA loss guidance to $17 million-$22 million, up from the previous $5 million-$10 million, due to slower-than-expected cost cuts and lower gross margins.

• Total revenue declined year-over-year to $73.4 million from $80.4 million, driven by the wind-down of migrant-related projects, which also impacted Mobile Health segment revenue.

• Adjusted gross margin decreased to 30.5% in Q2 from 31.6% in the prior year, with Mobile Health segment margins falling to 27% from 32.5% due to lower SteadyMD margins and higher fuel costs.

• The company's cash position declined to $48.1 million from $59.9 million at the end of Q1, with available cash down to $25.2 million, and collections of migrant-related receivables remain unpredictable.

• Medical Transportation gross margins are still restrained by higher-than-planned effective hourly wages and increased fuel costs, which strained margins by about 60 basis points year-over-year.

• The company faces potential regulatory and customer approval hurdles for the Hicuity acquisition, which could delay closing and impact the timing of expected synergies.

Q & A Highlights

Q: Can you discuss the customer overlap between DocGo and Hicuity Health, the cross-sell opportunities, and the growth rate of Hicuity's business? Also, what are the gating factors to closing the acquisition? A: Lee Bienstock (CEO) noted significant overlap with hospital and health system partners, creating cross-selling opportunities for virtual care, transitional care management, and in-home services like mobile phlebotomy. Norman Rosenberg (CFO) added that Hicuity's revenue is growing at a low double-digit rate (10%-12%). Regarding closing hurdles, Rosenberg stated there are no particularly troubling issues, only standard state regulatory approvals and a few customer consents that are already in progress.

Q: What is the potential risk to your remote patient monitoring (RPM) business from the proposed CMS rule that may limit Medicare reimbursement for RPM in 2027? Does Hicuity have exposure? A: Lee Bienstock (CEO) clarified that the proposed changes target RPM specifically, but DocGo's model is centered on chronic care management (CCM) and transitional care management (TCM), which are not under discussion. He distinguished that DocGo manages patients, not just monitors data. Of the ~55,000 patients monitored, the vast majority are cardiac implantable device patients (pacemakers, loop recorders), which are unaffected. Only ~2,000 patients are in the RPM program that could be at risk. He believes the industry will increasingly reward managing chronic conditions over mere data collection.

Q: Can you provide more detail on the $65 million trailing 12-month revenue for Hicuity? Is the business growing? A: Norman Rosenberg (CFO) confirmed that Hicuity's revenue is growing at approximately 10% to 12% on average. While some service lines are shrinking as they pivot away, the overall business is growing at that rate, and projections for 2027 align with this low double-digit growth trajectory.

Q: Have you had conversations with customers from either DocGo or Hicuity about cross-selling services once the transaction closes? A: Lee Bienstock (CEO) stated that due to confidentiality, conversations have been limited, but they have engaged with customers requiring consent for the transaction. He highlighted a recent meeting with a large hospital system president where the need for virtual staffing support was discussed. He emphasized that DocGo's strong, long-standing relationships and reputation for execution and innovation will facilitate deeper partnerships and the introduction of new solutions, including combining virtual care with in-home services like mobile phlebotomy and wound care.

Q: What exactly do you mean by streamlining clinical functions to achieve cost savings after the Hicuity deal closes? A: Lee Bienstock (CEO) explained that both companies operate multistate clinical practice groups. Following the SteadyMD acquisition, DocGo integrated its practice groups into a single 50-state licensed group. Similarly, Hicuity operates in 30 states, and there is an opportunity to merge their 400-plus clinicians with DocGo's 500-600 clinicians into one integrated team. This consolidation, along with leveraging shared vendors and IT systems, will create operational efficiencies and reduce costs for both organizations.

Q: What was the organic revenue growth rate for the quarter? A: Norman Rosenberg (CFO) defined organic growth as business lines that existed in both Q2 2025 and Q2 2026, which means removing migrant-related revenue from last year and SteadyMD revenue from this year. On that basis, organic revenue grew approximately 5% year-over-year.

Q: How will you achieve adjusted EBITDA breakeven by the end of 2026, given the significant loss in Q2? A: Norman Rosenberg (CFO) outlined a three-pronged approach: (1) incremental revenue growth, particularly from seasonal increases in SteadyMD and care gap closure services; (2) improved gross margins, noting that the current trajectory is moving higher but was restrained by ~1.5 points due to fuel costs and temporarily lower SteadyMD margins, which are expected to normalize; and (3) continued sequential declines in SG&A as severance costs roll off and vendor repricing takes effect. These factors combined are expected to bring the company to a breakeven run rate.

Q: Can you size the revenue for the high-growth areas like mobile phlebotomy, health care in the home, cardiac and remote patient monitoring, and virtual care? A: Norman Rosenberg (CFO) provided quarterly figures: cardiac and remote patient monitoring (CRMS) generated ~$4.5 million (an ~$18 million annualized run rate, up ~20% year-over-year); SteadyMD (virtual care) generated $8.9 million, down from $9.5 million in Q1 due to seasonality but expected to rebound in H2; mobile phlebotomy (PTI) generated ~$1.4-$1.5 million (a ~$6 million run rate, up from ~$4 million at acquisition); and care gap closure services ran between $1 million and $2 million in the quarter.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .