DocGo Plunges 13.3% on Revenue Guidance Cut

On May 9, 2025, DocGo's stock experienced a significant drop of 13.3% in pre-market trading, reflecting investor concerns and market reactions to recent developments.

DocGo's first-quarter 2025 results revealed a substantial downward revision in full-year revenue guidance, now projected to be between $300 million and $330 million, down from the previous estimate of $410 million to $450 million. This adjustment was attributed to the company's decision to exclude non-migrant Government Population Health revenue from its 2025 financial guidance due to policy changes and shifts in public healthcare spending.

Despite these challenges, DocGo's Hospital and Payer & Provider divisions showed strong performance, achieving a record number of medical transports and securing new contracts. The company also reported nearly triple the volume of care gap closure visits compared to the same period last year, indicating robust growth in key areas.

Looking ahead, DocGo remains optimistic about the potential of its medical transportation and mobile health sectors, which are expected to continue offering substantial value and growth opportunities. The company's investments in care gap closure programs and its broad geographic reach across 31 states in the US and the UK further support its growth prospects.