DocGo 2025 Q3 Earnings Net Loss Surges 660% Amid 48.9% Revenue Drop

DocGo (DCGO) reported Q3 2025 earnings marked by a sharp revenue decline and a significant net loss, missing expectations on EPS but beating revenue estimates. The company guided 2026 revenue of $280M–$300M, reflecting a strategic pivot amid operational challenges.

Revenue

DocGo’s total revenue fell 48.9% year-over-year to $70.81 million in Q3 2025, driven by the wind-down of migrant-related programs. Mobile Health Services generated $20.69 million, while Transportation Services contributed $50.12 million, with the Corporate segment reporting $0. Excluding migrant programs, core revenue rose 8% to $62.4 million.

Earnings/Net Income

The company swung to a loss of $0.28 per share, a 660% deterioration from a $0.05 profit in 2024 Q3. Net losses widened to $29.66 million, a 752.4% decline from $4.55 million net income, reflecting the impact of non-cash impairments and operational headwinds. This performance underscores a challenging transition phase for the business.

Post-Earnings Price Action Review

A strategy of buying DocGo shares on revenue raise announcements historically yielded a 9.5% average return over three years. For instance, 2023 Q3 saw a 25.8% total return, while 2024 Q2 delivered 15.0%. However, 2025 Q3 deviated, with a 1.8% drop on the announcement day before a 4.5% rebound. The volatility highlights the strategy’s inconsistency amid broader market and company-specific dynamics.

CEO Commentary

CEO Lee Bienstock emphasized progress in scaling the “doctor’s office in the living room” vision, citing record volumes in Medical Transportation and SteadyMD integration. He noted optimism for Care Gap Closure and RPM, despite slower Primary Care growth. The leadership remains bullish on 2026 EBITDA positivity at the top end of guidance.

Guidance

DocGo targets 2026 revenue of $280M–$300M (12%–20% base growth) and a full-year adjusted EBITDA loss of $15M–$25M, with losses skewed to H1. Transportation Services are projected to contribute $186M–$200M, while Mobile Health Services aim for $93M–$100M. SteadyMD’s $25M contribution and RPM margin expansion are key drivers.

Additional News

1. M&A Activity: DocGo’s acquisition of SteadyMD, a virtual care provider, added 500+ advanced practice providers and a 50-state network, enhancing scalability.

2. Strategic Expansion: The company announced plans to leverage SteadyMD’s technology for chronic care solutions and expand its 50-state footprint.

3. Financial Resilience: Despite cash balances dipping to ~$65M by 2026 exit, leadership emphasized disciplined capital allocation and EBITDA improvement.

Key Risks

• Sustained revenue decline could strain liquidity.

• Execution risks in scaling virtual and mobile services.

• Regulatory and reimbursement pressures in healthcare.

DocGo’s 2026 guidance reflects a strategic shift toward long-term growth, though near-term losses and operational challenges remain critical. Investors should monitor EBITDA trends and SteadyMD integration progress.