DocGo's Q1 2025 Earnings Call: Unpacking Contradictions in Revenue Growth and Market Expectations

Government revenue expectations, migrant revenue expectations, government population health revenue expectations, payer segment demand, and revenue growth expectations are the key contradictions discussed in DocGo's latest 2025Q1 earnings call.



Revenue and Segment Performance:
- DocGo reported total revenue of $96 million for the first quarter of 2025, down from $192.1 million in Q1 2024.
- Medical Transportation services revenue increased to $50.8 million from $48.2 million in the same period, while Mobile Health revenue declined to $45.2 million from $143.9 million.
- The decline in total revenue was primarily due to the winding down of government vertical, particularly migrant-related projects.

Government Population Health Vertical Challenges:
- DocGo revised its 2025 guidance to exclude revenues from its Government Population Health vertical, impacting the revised 2025 guidance of $300 million to $330 million with an expected adjusted EBITDA loss of $20 million to $30 million.
- Delays and uncertainty in municipal decision-making and project launches led to this strategic decision, affecting the expected revenue from this vertical.

Payer & Provider Vertical Growth:
- The Payer & Provider vertical is expected to generate $50 million in revenue, unchanged from previous expectations, with plans to exceed 900,000 assigned lives by the end of 2025, up from 700,000 in Q1.
- Growth is attributed to increased demand for care gap closure programs and the signing of significant agreements, such as a substantial PCP agreement with a major payer.

Cost Management and SG&A Reduction:
- DocGo plans to aggressively cut SG&A expenses to improve efficiency, having already reduced SG&A by approximately $3.1 million on a sequential basis in Q1 2025.
- This initiative is part of a broader strategy to optimize costs amid elevated SG&A levels and to focus resources on growing Medical Transportation and Payer Provider verticals.