DocGo (DCGO 12.23%), a company specializing in technology-enabled mobile health services and medical transportation, released its second quarter 2025 earnings report on August 7, 2025. The headline news was a marked year-over-year revenue drop, driven by the planned exit from high-margin government and migrant service contracts. Revenue (GAAP) was $80.4 million in Q2 2025, surpassing the consensus GAAP estimate of $77.6 million, while the bottom-line result was a net loss of $13.3 million (GAAP), yielding a loss per share of $(0.11) (GAAP) compared to the expected $(0.10) EPS. Overall, margins and profitability declined as the business transitioned toward more stable but lower-margin segments. Despite these challenges, management reaffirmed its full-year guidance, underscoring efforts to ramp up transportation and payer/provider partnerships, and reported an increase in cash balances to $128.7 million as of Q2 2025, up from $103.1 million at the end of Q1 2025 as receivables continued to be collected.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.11) | $(0.10) | $0.06 | (283.3%) |
| Revenue (GAAP) | $80.4 million | $77.6 million | $164.9 million | (51.2%) |
| Adjusted Gross Margin | 31.6% | 33.9% | (2.3 pp) | |
| Adjusted EBITDA | $(6.1 million) | $17.2 million | -135.5% | |
| Cash Flow from Operations | $33.6 million | $36.9 million | (9.0%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About DocGo and Its Business Focus
DocGo operates in the healthcare sector, delivering on-demand mobile health services, including in-home care and paramedic support, as well as non-emergency medical transportation. The company's platform combines technology, healthcare providers, and logistics to deliver care at patients' locations, streamlining healthcare access and cost.
In recent years, DocGo relied heavily on large government and migrant-related contracts, which contributed high-margin, short-term revenue. With these winding down, DocGo’s focus shifted to building out longer-term partnerships with health insurance payers and healthcare providers, and to expanding its transportation service contracts. Success in these areas will depend on the company’s ability to scale up new business verticals, improve efficiency using its technology platform, and maintain compliance with complex healthcare regulations.
Quarterly Review: Key Developments and Trends
DocGo’s second quarter results reflected a transitional phase. Total revenue (GAAP) fell 51.2% year over year, outpacing analyst estimates for GAAP revenue yet sharply down from Q2 2024 (Q2 2025 revenue was $80.4 million GAAP, compared to $164.9 million GAAP in Q2 2024), due largely to the wind-down of government and migrant services. Management explained, “This decline was due to the planned wind-down of migrant-related programs.” The company had flagged this shift in previous guidance updates, removing government population health from its core outlook and resetting 2025 targets accordingly.
Profitability suffered as the business mix changed. Adjusted EBITDA was negative at $(6.1 million), down from $17.2 million in adjusted EBITDA in Q2 2024, and the company posted a GAAP net loss of $13.3 million. Adjusted gross margin fell to 31.6%, compared to 33.9% (adjusted, non-GAAP) in Q2 2024. The company’s cash flow from operations remained strong, generating $33.6 million, slightly below last year's figure but up from the first quarter of 2025. Cash and equivalents rose to $128.7 million as of the end of Q2 2025, helped by successful collection of legacy receivables from government contracts. Accounts receivable related to migrant work declined but remained sizable, standing at approximately $54 million as of the end of Q2 2025, which management expects to collect through year-end.
Within business lines, transportation services proved most stable. Segment revenue was $49.6 million, up modestly compared to $48.2 million in Q2 2024, and management cited contract expansions, including a multi-year partnership with a leading New York academic medical system, with services launched after Q2 2025. This contract, supported by DocGo’s software-as-a-service (SaaS) transportation management platform, is expected to boost trip volumes in the back half of the year.
The mobile health segment—comprising in-home visits and payer/provider partnerships—generated $30.8 million in revenue, a steep drop from last year, as GAAP revenue declined from $164.9 million in Q2 2024 to $80.4 million. However, DocGo highlighted momentum in this segment’s core activities: the number of patients assigned for care gap closure services rose from 900,000 in Q1 2025 to over 1.2 million, driven by new and expanded insurance partnerships. The company completed more in-home visits in the first half of 2025 than in all of 2024. Execution in payer/provider services remains a key investment area, with profitability expected to improve as scale increases and operational efficiencies are realized.
SG&A (selling, general, and administrative) expenses continued to weigh on margins during this transition, but management initiated cost cuts and repurchased 2.5 million shares, making cuts to corporate overhead, resulting in an estimated $10 million in annual savings. Workforce reductions and further expense control measures are planned for the remainder of the year, aiming to support profitability in the longer term.
Looking Ahead: Guidance and Risk Areas
Management maintained 2025 revenue guidance at $300 million to $330 million, unchanged from the previous update. Adjusted EBITDA is still forecasted to be a loss in the range of $20 million to $30 million for the full year 2025. With another dip expected in Q3, and Q4 projected to be higher than Q3 but still below Q2 levels. The company aims for overall profitability by the second half of 2026, even without the contribution of new government contracts.
Key watchpoints for the coming quarters include the pace at which DocGo can grow its payer/provider vertical, the ability to ramp margins in both mobile health and transportation, timely collection of outstanding receivables, and further reductions in SG&A costs. Any new government revenue or contract wins will be treated as additive and not factored into the current guidance. Management emphasized ongoing focus on technology upgrades, compliance, and operational scalability as critical for the next phase of business growth.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
