DocGo Inc.'s Q2 2025: Unpacking Contradictions in Patient Growth, Revenue Projections, and Margin Expectations

Patient growth impact on revenue and EBITDA, migrant revenue projections, patient volume and revenue impact, and payer provider vertical revenue and margin expectations are the key contradictions discussed in DocGo Inc.'s latest 2025Q2 earnings call.



Cash Flow and Cash Balance Increase:
- DocGo reported a strong cash flow from operations of more than $30 million for Q2, resulting in a total cash balance of $128.7 million, an increase of $25.6 million from the previous quarter.
- The increase was driven by substantial progress in collecting migrant-related receivables, leaving $54 million in migrant-related accounts receivable at the end of Q2, a significant reduction from $120 million last quarter.

Revenue Decline in Mobile Health Segment:
- Mobile Health revenue for Q2 2025 was $30.8 million, down from $116.7 million in the previous year, predominantly due to the wind-down of migrant-related projects.
- The decline was primarily attributed to the completion of migrant-related programs, with no significant replacement in contracted revenue.

Medical Transportation Growth:
- Medical Transportation Services revenue increased to $49.6 million in Q2 2025 from $48.2 million the previous year, with a year-over-year increase of approximately 7% after excluding Colorado, which exited the market.
- Growth was driven by increases in Delaware, Tennessee, Pennsylvania, and New Jersey, and new contract wins in New York and other locations.

Patient Engagement and Payor Expansion:
- DocGo exceeded 1.2 million assigned lives in care gap closure programs, up from 900,000 in Q1, with a 50% increase in patient conversions in Q2.
- The expansion was due to new contract wins, including a major insurance company in the Northeast and a Southern California public health plan, leading to increased demand for gap closure and transitional care services.

Operational Efficiency and Cost Reductions:
- Q2 2025 saw a reduction in SG&A expenses by 7% year-over-year and 5% sequentially, with recurring SG&A costs down by 18% year-over-year.
- This was achieved through a reduction in force, streamlining HR, finance, operations, and IT, and reducing corporate overhead, resulting in an estimated $10 million annualized savings.