DocGo Q2 Earnings Call Highlights

DocGo reported second-quarter revenue of $73.4 million, down from $80.4 million a year earlier, as the company continued to wind down migrant-related projects. Excluding migrant-related revenue, revenue rose 19% year over year, while revenue from business lines operating in both periods increased about 5% after also excluding contributions from the SteadyMD acquisition. The quarter marked a transformational period for the company, highlighted by a definitive agreement to acquire acute and critical-care telemedicine provider Hicuity Health, new financing commitments and record service volumes across business lines. DocGo has agreed to acquire St. Louis-based Hicuity Health, which provides Tele-ICU, virtual nursing and telemetry monitoring services through its proprietary clinical monitoring platform, known as The Hub. Hicuity has more than 400 clinical staff and generated approximately $65 million in trailing 12-month revenue and $4.5 million in adjusted EBITDA. Hicuity’s revenue has been growing at a low-double-digit annual rate, which is roughly 10% to 12%. The company expects the acquisition to complement its existing virtual-care capabilities, including SteadyMD, acquired in late 2025, and its in-home service offerings. The combined platform would enable DocGo to serve patients from the hospital to the home, with potential opportunities to cross-sell virtual care, mobile phlebotomy, remote monitoring and transitional-care services to health-system customers. DocGo and Hicuity have overlapping hospital-system relationships, while each also serves customers that the other does not. Under the transaction terms, DocGo will acquire Hicuity on a cash-free basis and assume debt held by Perceptive Advisors that is estimated at approximately $52 million at closing and matures in December 2029. Perceptive also committed to provide up to $50 million in additional financing in multiple tranches. The first $12.5 million is expected to be funded through a pre-closing management-services agreement. DocGo will issue equity representing 2% of its fully diluted common stock at closing to Hicuity’s preferred equity holder. That holder could receive an additional 3.5% equity interest if DocGo reaches a market capitalization of $250 million within three years after closing. The deal still requires state regulatory approvals and approvals from certain customers, but management does not view those requirements as particularly problematic beyond potential timing. Full-year adjusted EBITDA guidance was lowered to a loss of $17 million to $22 million, although revenue guidance was narrowed to $305 million-$310 million. Management cited larger-than-expected first-half losses and slower margin recovery, but expects to exit 2026 at a positive adjusted EBITDA run rate.