DocGo (DCGO) Q4 2025 Earnings Call Transcript

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Date

Monday, March 16, 2026 at 5 p.m. ET

Call participants

• Chief Executive Officer — Lee Bienstock
• Chief Financial Officer — Norman Rosenberg

Takeaways

• Total revenue -- $74.9 million, reflecting an explicit year-over-year decline attributed entirely to the wind-down of migrant-related projects.
• Adjusted EBITDA -- Loss of $11.3 million, including the impact of nonrecurring wind-down costs tied to migrant programs.
• Guidance revision -- 2026 full-year revenue guidance raised to $290 million–$310 million; prior range was $280 million–$300 million.
• Adjusted EBITDA guidance -- 2026 adjusted EBITDA loss expected between $5 million and $10 million, tightened from previous $15 million–$25 million loss range.
• SteadyMD revenue -- $6.1 million contributed post-acquisition in the quarter, with fourth-quarter revenues for SteadyMD at over $8 million, representing a roughly $1 million increase against its prior quarterly high.
• SteadyMD gross margin -- Improved to 37% for the year, up from approximately 30% in the preceding year.
• Mobile health (non-migrant) -- Non-migrant revenue up 47%, with segment growth driven by care gap closures, remote patient monitoring, and mobile phlebotomy.
• Medical transportation revenue -- Increased to $50.2 million compared to $49.1 million, with demand notably higher in New York, Texas, and Tennessee.
• Volume metrics -- Medical transportation trips rose 11%, healthcare-in-the-home visits climbed 113%, mobile phlebotomy increased 16%, remote patients monitored grew 16%, and telehealth and lab orders advanced 50%.
• Remote patient monitoring revenue -- $4.0 million for the period, generating $830,000 in adjusted EBITDA with a 16% increase in monitored patients year over year.
• Care gap assigned lives -- Gained 12% sequentially, increasing from 1.3 million to over 1.45 million assigned lives.
• Efficiency innovation portfolio -- Projected to deliver $5 million–$6 million in 2026 savings and $20 million–$24 million in annualized savings by 2027, covering over a dozen initiatives including automation and workflow enhancements.
• Cash and cash equivalents -- Ended the year at $68.3 million, down from $95.2 million at Q3-end, primarily due to the $12.5 million SteadyMD acquisition and delayed collections on migrant-related receivables from New York City’s Department of Housing Preservation and Development.
• Goodwill and intangibles write-down -- All remaining intangible assets and goodwill written down to zero, totaling $49.5 million in goodwill impairment and $22.6 million in intangible asset impairment in the quarter, reflecting accounting decisions and persistent market cap gaps.
• Strategic review -- Initiation of a formal process to explore strategic alternatives to maximize shareholder value, with an investment bank retained for the process.
• Staffing progress -- 206 EMT and paramedic positions filled out of 546 open roles, leading to a gradual decline in overtime rates within the transportation unit.
• SG&A efficiency target -- Corporate SG&A reductions of 10%–15% underway, primarily through technology adoption and automation.
• Net Promoter Score (NPS) -- Achieved a customer satisfaction NPS of 92 as of March 1.
• Migrant receivables -- $20 million of outstanding migrant-related receivables remain, with management expecting full collection in the coming quarters.

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Risks

• Norman Rosenberg identified ongoing negative cash flow for near-term quarters, stating, "expect further declines in cash in the near term, creating potential working capital pressure during 2026."
• Operating losses are forecast to persist into at least Q2, with continued timeline uncertainty tied to collection of $20 million in receivables.
• Increased borrowing costs are possible as DocGo works to "remedy issues related to certain financial covenants" on its credit line.

Summary

DocGo (NASDAQ:DCGO) reported a year-over-year decline in total revenue wholly attributable to the exit from migrant-related contracts, while adjusted EBITDA loss widened, incorporating the last of associated wind-down costs. Full-year 2026 revenue and adjusted EBITDA loss guidance were both improved, anchored by strong medical transportation volume, SteadyMD momentum, and ongoing cost control initiatives. Management confirmed the initiation of a formal review of strategic alternatives, with no assurance of outcome at this stage.

• The company highlighted expected sequential gross margin gains in 2026, with blended gross margin guided near 33%, underpinned by lower overtime rates and favorable segment mix.
• SteadyMD’s full-year revenues are anticipated in the $25 million–$30 million range, with management expressing conviction in further upside as integration advances.
• Mobile health segment revenues, excluding any migrant or municipal contribution, are projected between $85 million and $88 million for 2026, benefitting from expanded payer programs and telehealth growth.
• All remaining goodwill and intangible asset value was eliminated from the balance sheet under ASC 350 and ASC 360 guidelines, representing a material noncash GAAP adjustment unrelated to operational outlook.
• Management reported that current guidance is based exclusively on signed contracts and existing workforce, with incremental contract wins or expansions to be reflected in future updates.

Industry glossary

• Care gap closure: Programs aimed at identifying and providing missing clinical services—such as screenings or preventive care—required by insurer guidelines for specific patient cohorts.
• Assigned lives: The number of individuals attributed to DocGo through payer contracts for specific care management or service obligations.
• SteadyMD: Virtual care platform acquired by DocGo providing telehealth services and supporting integration with mobile health offerings.
• Net Promoter Score (NPS): A standardized metric used to measure customer satisfaction and likelihood of recommendation.
• AgenTic AI: DocGo’s proprietary artificial intelligence software used for patient engagement and workflow automation.
• DARA platform: DocGo’s proprietary ordering and routing system for healthcare services logistics.
• SG&A: Selling, general, and administrative expenses.

Full Conference Call Transcript

Mike Cole: Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. All statements made in this conference call other than statements of historical fact are forward-looking statements. The words may, will, plan, potential, could, goal, outlook, design, anticipate, aim, believe, estimate, expect, intend, guidance, confidence, target, project, and other similar expressions may be used to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance, and we cannot assure you that we will achieve or realize our plans, intentions, outcomes, results, or expectations.

Forward-looking statements are inherently subject to substantial risks, uncertainties, and assumptions, many of which are beyond our control, and which may cause our actual results or outcomes or the timing of results or outcomes to differ materially from those contained in our forward-looking statements. These risks, uncertainties, and assumptions include, but are not limited to, those discussed in Risk Factors and elsewhere in DocGo Inc.’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, our earnings release for this quarter, and other reports and statements filed by DocGo Inc. with the SEC to which your attention is directed.

Actual outcomes and results or timing of results or outcomes may differ materially from what is expressed or implied in these forward-looking statements. In addition, today’s call contains references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the earnings release and the Current Report on Form 8-K, which is posted on our website, investors.docgo.com, as well as filed with the SEC. Information contained in this call is accurate only as of the date discussed. Investors should not assume that statements will remain relevant and operative at a later time.

We undertake no obligation to update any information discussed in this call to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events, except to the extent required by law. At this time, it is my pleasure to turn the call over to Mr. Lee Bienstock, CEO of DocGo Inc. Lee, please go ahead.

Lee Bienstock: Thank you, Mike, and thank you all for joining us. Today, we announced a strong close to the year, reporting $74.9 million in fourth quarter revenue and an adjusted EBITDA loss of $11.6 million. While our revenue exceeded expectations and enabled us to beat the top end of our revenue guidance, our adjusted EBITDA loss was slightly greater than expected, largely due to costs associated with the final wind-down of our migrant-related programs in the fourth quarter, which we do not expect to recur going forward.

Additionally, on the back of new customer expansions and improved hiring rates, we are increasing 2026 revenue guidance to $290 million to $310 million, compared to our previous guidance of $280 million to $300 million, and when combined with our cost efficiency initiatives, we are now expecting an adjusted EBITDA loss of $5 million to $10 million, compared to our previously projected adjusted EBITDA loss of $15 million to $25 million. I would like to take a few minutes and cover the details driving this improved outlook. First, we are seeing an absolutely stellar performance from our virtual care offering, SteadyMD.

During the fourth quarter, SteadyMD exceeded $8 million in revenue for the first time in its history, beating the previous quarterly high by approximately $1 million. As we did not acquire SteadyMD until late October, we recorded $6.1 million in DocGo Inc.’s fourth quarter results. At the same time, SteadyMD’s full year-over-year gross margin improved from approximately 30% to 37%, with additional gains expected in 2026. Our integration efforts remain on track, and we are aiming to consolidate provider networks so that SteadyMD clinicians will be able to provide care for patients across DocGo Inc.’s mobile health offerings by the end of the second quarter.

For the full year 2025, SteadyMD exceeded 4 million patient interactions, consisting of approximately 3 million lab orders and 1 million synchronous and asynchronous telehealth visits. That compares to approximately 2.5 million patients in 2024, which consisted of approximately 2 million lab orders and 500,000 synchronous and asynchronous telehealth visits. The fourth quarter performance was exceptional, and we anticipate this strong growth to continue, driven by the recent announcement of major customer expansions to meet the needs of our customers’ branded GLP-1 weight loss programs. Second, we are seeing considerable improvement in our hiring rates to support strong demand in our medical transportation segment, allowing us to outsource fewer rides and recognize the associated revenue. I want to be clear.

We still have considerable work to do, but we have filled 206 EMT and paramedic roles out of the 546 that were open at the end of last quarter. In Q4, we saw overtime rates in this segment in the teens, above our target in the mid-single digits. We are seeing this overtime rate gradually decline as hiring continues to improve, which we expect will provide some additional margin improvement potential as we progress through the year. I am extremely enthusiastic about the progress we are making to bring the doctor’s office into the patient’s living room and the continued strength in key view metrics across our business.

For example, when we compare our Q4 2025 metrics to Q4 2024, medical transportation trips increased 11%, healthcare-in-the-home visits were up 113%, mobile phlebotomy visits were up 16%, remote patients monitored increased 16%, and telehealth and lab orders were up 50%. We also continued expanding our care gap closure programs with one of our top 10 national insurance payer customers to provide annual preventative exams in the state of Kentucky, which is expected to launch later this month. We are working with this payer across California, New Mexico, and now Kentucky.

For our Care Gap Closure program as a whole, we saw a 12% sequential gain in the number of assigned lives, increasing from 1.3 million last quarter to over 1.45 million currently. As we grow our business with insurance payers, we continue to refine our approach to care delivery in a manner that drives efficiency and maintains our exceptionally high customer satisfaction rate, which was measured at an NPS score of 92 as of March 1. To that end, we are planning to leverage SteadyMD’s clinical network to provide the virtual portions of our visits starting in Q2, and we continue expanding our use of AgenTic AI and workflow automation for administrative and patient support functions.

While we will continue to invest in this business, we expect that level of investment to decline considerably as early markets mature and become more self-sustaining, reducing the cash outlay in 2026. Our goal is to grow this business, which we believe has significant future strategic value, in an efficient manner that both minimizes investment and supports our goal of achieving profitability in 2026. Our remote patient monitoring business was another bright spot during the fourth quarter, generating record revenue of $4.0 million and $830,000 in adjusted EBITDA for the period.

This performance was driven by a 16% increase in the number of patients monitored when compared to the same period in 2024, with strong growth in our virtual care management offering. We are seeing substantial margin gains in this business as greater economies of scale are achieved, and we expect continued improvements in profitability over the balance of 2026. Additionally, we launched our efficiency innovation portfolio in Q4. This is a collection of more than a dozen projects designed to increase and create more operating leverage in our P&L.

These projects span our medical transportation, mobile health, and corporate segments, and are anticipated to deliver approximately $5 million to $6 million of savings in 2026 and approximately $20 million to $24 million of savings in 2027, when we experience the full annual benefit of these projects. Central to this work is our use of technology, which has always been a focus and key differentiator for DocGo Inc. We have already incorporated AgenTic patient outreach into our proprietary DARA ordering and routing platform, and we introduced automation into our prebilling function to increase efficiency. We are planning to expand these initiatives and bring others online in the coming months.

I look forward to sharing more about these efforts on future calls. We shared in our earnings release earlier today that DocGo Inc. has initiated a process to explore a range of strategic alternatives designed to maximize shareholder value. We make no assurance that this process will yield positive results or that any transaction may be identified or undertaken. Finally, I am often asked when DocGo Inc. will achieve profitability. And I always say it is a confluence of three key components: our top-line revenue, our gross margin, and our SG&A. With regards to revenue, we continue to see strong demand for our services and top-line growth across our volume metrics.

Our gross margin is improving due to our progress in hiring and reducing our overtime costs. And we expect our SG&A to improve as our efficiency innovation portfolio projects take shape and make a real impact. At this time, I will now hand it over to Norm to review the financials. Norm? Please go ahead.

Norman Rosenberg: Thank you, Lee, and good afternoon. Total revenue for the 2025 quarter was $74.9 million compared to $120.8 million in 2024. The year-over-year revenue decline was entirely due to the wind-down of migrant-related projects. Removing migrant-related revenues from both periods, we saw a revenue increase of 11% year over year in Q4. For the full year, total revenue amounted to $322.2 million in 2025 compared to $616.6 million in 2024. Medical transportation services revenue increased to $50.2 million in 2025 from $49.1 million in transport revenues that we recorded in 2024. Revenues were driven higher by gains in both large and small U.S. markets, some of the strongest growth in markets like New York, Texas, and Tennessee.

Mobile health revenue for 2025 was $24.8 million, down from $71.8 million in the fourth quarter of last year, driven by the wind-down of migrant revenues. Included in this year’s amount was approximately $7.4 million in migrant-related revenues. Non-migrant mobile health revenues increased by 47%, driven by increases in care gap closures, remote patient monitoring, and mobile phlebotomy, and by the inclusion of two months of revenues from SteadyMD, which we acquired on October 20. Adjusted EBITDA for the 2025 quarter was a loss of $11.3 million compared to adjusted EBITDA of $1.1 million in 2024. For the full year, the adjusted EBITDA loss was $28.6 million in 2025, compared to adjusted EBITDA of $60.0 million in 2024.

The adjusted gross margin, which removes the impact of depreciation and amortization, and is the measure of margins that we track most closely, was 32.5% in 2025, compared to 33.5% in 2024. During 2025, adjusted gross margins for the medical transportation segment were 32.8% compared to 30.1% in 2024 and the highest gross margins that we have seen in that segment since 2024. Despite these improvements, medical transportation gross margins are still being restrained by higher-than-planned effective hourly wages for field labor. As we pointed out on the last call, our transportation business has been running at the highest utilization rates that we have seen, leading to higher overtime rates.

Overtime accounted for about 13% of hourly wages in Q4 and has been running between 11%–13% for the past several quarters. However, we took solid strides toward increasing our field headcount in 2025, and we would expect the overtime rate to trend lower in 2026, closer to the sub-10% overtime rates that we saw in 2024. This should provide a lift to transportation gross margins in 2026. Mobile health segment adjusted gross margin was 31.8% versus 35.9% in 2024. As we completed the wind-down of migrant-related programs, we experienced significantly lower gross margins in that area, which were below 20% for the quarter.

We expect that mobile health segment gross margins will improve in 2026 in the absence of these wind-down costs and with greater relative contributions from higher-margin service lines such as remote patient monitoring, mobile phlebotomy, and virtual care. There were several nonrecurring noncash items that had a large impact on our GAAP results this quarter, so I would like to spend some time reviewing. Within the operating expense category, we incurred noncash charges due to the write-down of intangible assets and goodwill. The write-downs are driven by the persistent gap between the carrying value of our assets and our market cap.

We began this process in the third quarter when we wrote down the goodwill and intangible assets relating to our clinical staffing business. Even after these write-downs, entering Q4, there was still a significant amount of goodwill and intangible assets on our balance sheet, primarily due to the acquisitions we have completed over the past four years. Throughout the fourth quarter, our market capitalization remained well below our net asset value, requiring us to consider adjusting the valuation of all of our intangible assets and goodwill in an attempt to narrow this gap, in accordance with ASC 350 and ASC 360. At year end, we have now written down all the intangible assets and goodwill to zero.

This resulted in a total goodwill impairment of $49.5 million and an impairment of intangible assets of an additional $22.6 million in the fourth quarter. Along these lines, within the other expense category, we impaired the entire carrying value of an equity investment into a healthcare company we made in previous years, which had an impact of $5.0 million in other expense. It is important to note that these write-downs are all accounting-driven and noncash in nature. In no way do they reflect a change in the company’s outlook regarding the future prospects or profitability of any of these underlying business lines.

At year end, our total cash and cash equivalents, including restricted cash and investments, was $68.3 million, down from $95.2 million as of 09/30/2025. The largest factor in the decline in cash was the acquisition of SteadyMD in October. We paid $12.5 million in cash for SteadyMD and incurred additional transaction-related costs of approximately $1.5 million. Our cash balance at year end was lower than we had expected due to the delay in collecting migrant-related accounts receivable owed by New York City’s Department of Housing Preservation and Development, which we had expected to see during the fourth quarter, coupled with an ongoing operating loss.

With further operating losses expected during 2026, and several growth-related initiatives requiring working capital, we would expect further declines in cash in the near term, creating potential working capital pressure during 2026. To mitigate this, we are highly focused on reducing cash utilization and operating costs, particularly at the corporate level. We are also working with our current credit line provider to remedy issues related to certain financial covenants, which may increase borrowing costs while providing us with greater flexibility. Turning to 2026.

As Lee mentioned in his comments earlier and as we pointed out in our press release, we have updated and increased our guidance for 2026 based upon what we have seen in the first two-plus months of the year and the positive volume trends across most of our business lines. We now see full year revenues in the range of $290 million to $310 million, up from the range of $280 million to $300 million that we had shared back in November. This does not include any revenues from migrant-related projects and represents a 15% to 23% growth over 2025 base revenues.

We anticipate a full year adjusted EBITDA loss in the range of $5 million to $10 million compared to our prior guidance of a loss of $15 million to $25 million. In addition to the increased revenue outlook, we have several cost-cutting initiatives underway that we are addressing with the efficiency innovation portfolio efforts that Lee previously outlined, which we believe can accelerate our pathway to profitability. We continue to expect to achieve profitability on an adjusted EBITDA basis in the back half of this year. At this point, I would like to turn the call back to the operator for Q&A. Operator, please proceed.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. You will hear a prompt that your hand has been raised, and should you wish to cancel your request, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Thank you. And your first question comes from the line of Pito Chickering from Deutsche Bank. Please go ahead.

Pito Chickering: Hey, good afternoon, guys, and thanks for taking my question. I guess, just to lead off here, you talked about doing a formal process on a strategic alternative. Can you give us any color on sort of what the process entails and any color on how it is going so far?

Lee Bienstock: Hi, Pito. Absolutely. Thanks for the question. So we have engaged an investment bank to run a formal process with the goal of maximizing shareholder value. We cannot share more at this time as we are in the process. But, of course, as things progress, if they do progress, we will share more at that time.

Pito Chickering: Okay. Fair enough. I figured as much, but I had to ask here. Can you split up the improvement in your 2026 guidance in both revenues and EBITDA from upside from SteadyMD or improvements in mobile health or transportation or SG&A? Just any color because you raised revenues by $10 million and adjusted EBITDA by $10 million to $15 million.

Lee Bienstock: Yeah. Absolutely. Thanks for that question as well, Pito. So we are seeing increased volumes in particularly in our medical transportation segment. We have also made progress on EMS staffing. Those are the two key components, really, for the increased revenue outlook of about $10 million. We are seeing additional upside in SteadyMD, and those, I would say, are the primary drivers of our increased guidance. Both volumes in SteadyMD are up significantly as well as our ability to fulfill the volumes that we have seen in the medical transportation segment with additional hiring that we have been successful with. We still have some additional room to run on the staffing.

That is going to be a continued focus for us on the EMS side. But that has really been the driving factor of the revenue guide increase. On the EBITDA side, it really is a factor of, A, the revenue increase provides more gross profit dollars. We are also seeing gross margin improve with reduced overtime that Norm pointed out. And so we see gross margin improve as we start the year here and as we progress because we have been able to staff more efficiently and drive that overtime rate down.

And then, again, we are also very focused on reducing SG&A by another 10% to 15% from recent levels with some of these efficiency innovation portfolio items that we have already kicked off. These are areas where we are working to automate many of the functions in billing and in dispatch where we can utilize perhaps fewer staff members but leverage automation to make us more efficient. And we have already kicked that off.

I mentioned prebilling is an area where we have already made that automation process improvement, and there are going to be other areas as we progress throughout the year here as we use technology to become more and more efficient and take cost out of the business. That is what is really driving the EBITDA outlook improvement. Norm, anything to add?

Norman Rosenberg: Yeah. I mean, I would just say that when we look at the gross margin, the exit rate of gross margin in the fourth quarter or so, we showed it was around 32.5% to 33% on a blended adjusted basis. But in reality, there were a couple of things that were holding us back in the fourth quarter that have already improved here in the first two, two and a half months of the year. Number one is on the transport side. So as Lee mentioned, there is the overtime rate, which cannot be overstated in terms of the impact that having a higher overtime rate has on your overall gross margins. It raises your effective hourly rate.

If we look at the fourth quarter, the effective hourly rate for field labor was probably the highest that we have seen. And it has since moderated, along the lines of having your overtime rate come down from 13% closer to the 10% area that we had seen in 2024. So that is one driver. The other part of it is when we look at the mobile health gross margins, on its way out, the migrant revenue came in at a much, much lower gross margin level than it had.

It had traditionally been running in the 35% to 38% gross margin range, then in the third quarter of last year, it ran in maybe the higher mid-twenties and then under 20%. And it is a little bit of a stranded cost thing, but it is more a matter of just having people on staff till the end of the year. Some of those projects ended midway through the month of December, and you are left with a little bit of cost. Those costs are all gone. There is not going to be any of that in Q1 along with those revenues.

So when we think of the exit rate, and then we think of what we had pegged the gross margin at, our original guidance, especially in the first half of the year, we think we are running at a level that is somewhat above.

Pito Chickering: Okay. Excellent. And then last question here. You talked about sort of free cash flow pressures in 2026, potentially covenants here. Can you please quantify what free cash flow generation or if free cash flow declines will be sort of during 2026? And then any color on how we start and end the year? And just to be very clear, does that include or not include collections in the rest of the migrant business?

Norman Rosenberg: Okay. So, a little bit to unpack there, so we will do it in order. I mean, the first thing to point out, and we did talk about it here in our prepared comments, our cash balance at year end was lower than what we had pegged it to be. And that is simply because there is about $20 million in those migrant receivables. The last piece of it—we have collected 97% of everything up until now—that did not come in during the fourth quarter. That still has not come in yet in the first quarter. I believe that a good chunk of that is imminent.

By that, I mean I still think that some of it is going to come in during the first quarter, even though there are only about a couple weeks to go. So it is pretty imminent. The rest will come in the second quarter, maybe the third quarter. But we expect to collect all of it. So when I look out a few months, I would not expect there to be any net difference. But that is $20 million of receivables, or $20 million of cash, that I would have expected—when we last spoke in November of last year—that I would have expected to have had in the door and in the bank by the end of the year.

So that is one factor. But, again, getting to your other question very clearly, it does not change—our outlook has not changed as to the ultimate collectability of that money. I am just looking at a cash balance that is somewhat lower than it had been before. We do have working capital requirements. As Lee mentioned, we are bringing on a lot of new people on the EMT side. So you bring on an EMT, you start to pay them, you get them out in the field working on the truck, they do more volumes, and then those are typically paid within 80 to 90 days.

So you have got a little bit of your typical growth working capital needs there as well. So that is really what we are talking about. As far as the line of credit is concerned, we have your typical covenant or adjusted EBITDA covenant, and it is no secret we have been running at an EBITDA negative level for a good few quarters. So that is one of those things that we need to work through with them. We are in the process of working with our credit line provider in terms of how they interpret that and those kinds of adjustments to make sure that line of credit remains available to us.

We have not drawn down on it since we paid it back in August, but it will be nice to know it is there. As far as—I want to avoid—I think I have learned my lesson—I want to avoid looking into the crystal ball and talking about exactly how much cash will be there at what date. But just to give you an idea of the trend, as we mentioned, I think the next couple of quarters, where we expect negative EBITDA, at least in Q1 and Q2, and into Q3, that will probably result in a somewhat lower cash balance. But, again, it depends on the timing of the payment of the remaining migrant receivables.

When they come in, that will cover up the loss, and, technically, that could keep us at a somewhat flat level. So all of it really depends on the timing of that and the timing of some of the payments that we make. But then as we get towards the back part of the year, and we are looking at relatively small EBITDA losses or even positive EBITDA numbers, as we get to the back end of the year, then we should see a sort of plateauing of that particular cash balance.

Pito Chickering: Great. Thanks so much.

Operator: Thank you. And your next question comes from the line of Ryan MacDonald from Needham & Company. Please go ahead.

Ryan MacDonald: Hi. Thanks for taking my questions. Maybe, Lee, just on the payer business first. Obviously, some great momentum there in terms of covered lives that you continue to grow, the expansion into Kentucky as well. And I think earlier this year at your conference, you were talking about sort of a pipeline of two to four more incremental payers that you could sign on in the first half of this year. Just any update on what that pipeline looks like and if that is being factored into even the increased top-line outlook, if at all, that you set today?

Lee Bienstock: Absolutely, Ryan. Thanks for the question. Great to hear from you. So the forecast that we have, the forecast that we shared today, is consistent with what we shared on our previous call. We continue to see momentum in this business. The number of visits is up significantly. As we mentioned, the number of lives and patients that are being referred to us by the payers is up. And we continue to balance scaling that business and the investment we are making in that business. And that is the key factor there.

I think the reason why I was excited to share the expansion into a new state by a payer we are already working with in two other states is that it is a great harbinger for us that the value we are providing to our partners is there. They are looking to us to expand and provide that value to additional patients in other states. And that is a good indicator to us that, of course, patients and the partners we are working with are deeply valuing the services we are providing. And so that makes us very, very excited. And, of course, we see it every day when we go visit patients and see the impact we are making.

So the momentum we are seeing. We are really focused on making sure that we are growing efficiently, that we are continuing to scale while balancing the investment rate we are making in this business so that we could achieve really critical mass in the markets we are in, and be very selective about whatever markets we expand to, primarily with existing customers of ours. So that is the focus. I think you will see us visit in the patients’ homes about 200,000 patients this year across our mobile lab and care-in-the-home business. Care gap transition management, primary care is another big focus of ours where we are seeing good progress.

We always endeavored when we entered this business to not only close care gaps, but provide longitudinal preventative care. That is when you can really impact the cost of care, improve health outcomes, so we are seeing great progress there as well. So that is what the forecast consists of. Of course, if we sign additional contracts, we will announce those and then adjust accordingly as we go throughout the year.

Ryan MacDonald: Excellent. Appreciate it. Norm, obviously, there are a lot of moving parts at the gross margin level this year with some of the migrant revenues coming off, reduction in overtime rates, also integrating SteadyMD to the point where you can start doing more of the mobile health visits through that platform in the second quarter. Can you just give us a sense of, implied in the forecast, where you are thinking in terms of gross margins at each segment level and the overall level as you are thinking about the 2026 guide?

Lee Bienstock: Thanks.

Norman Rosenberg: Sure. So at the risk of sounding redundant like everybody else in the world, we do expect sequential gross margin gains as we go through the year. That is the first thing I will point out. But I think that whether that plays out or whether we end up doing better in the first and second quarter and a little bit less in the third and fourth quarter compared to where we are, on a full year basis, we would expect the blended gross margin to come in right about 33%.

On the transport side, where we are currently running—last quarter, our adjusted gross margin was, I think, 32.8%—I will always be clear about it: there is a certain limit to where gross margins go. I think that once we get to a point where we would have gross margins on the transport side of 34.5% or 35%, we would probably end up seeing that scale back a little bit.

So I would say that on the transport side, that number is going to be hopefully somewhat higher than, a little bit north of, 33% as we go through the full year, and I can point to certain markets where we are certainly expecting a turnaround, and there are one or two markets that are currently holding us back that we have already seen some improvement in Q1. So that is the transport side. And on mobile health, a lot of it is going to come down to mix. We have a group of—obviously, the health plan provider, the care-in-the-home business, is a relatively lower margin than what we see otherwise.

But then the mobile phlebotomy business comes in at a high margin. SteadyMD comes in at a pretty high margin, but we have talked about how they have had to rapidly expand. So you might even see a period of time where SteadyMD margins are taking a little bit of a step back along with some growth that is above plan. But then you have your remote patient monitoring business, which is chugging along, which is increasing both on a year-over-year and a sequential basis, and the margin is hanging in there, and it is north of 50%.

So we would like to see mobile health margins get back to, let us say, a 35% blended level for the year, and that would sort of get you that 33% for the full year.

Ryan MacDonald: Awesome. Appreciate all the color there. I will hop back in the queue.

Operator: Thank you. And your next question comes from the line of David Larsen from BTIG. Please go ahead.

David Larsen: Hi. Can you talk about, for the 2026 guide, the different sort of revenue components? In the past, you have disclosed it by division—transport, municipalities, health systems, payers—or also by RPM, virtual primary care. Any of those details by division would be very helpful. Thank you.

Lee Bienstock: Absolutely, Dave. Thanks for the question. So I think if we take the midpoint of our updated guidance, call it $300 million as the midpoint, we are expecting now that transport is going to come in somewhere around $215 million. We think there is some additional upside there if we continue to make progress on the staffing. And on the mobile health side, it continues to be in that $85 million to $88 million of projected revenue. The mobile health side, if you remember, consists of no population health municipal revenue.

It does not include any migrant revenue, of course, for 2026, and also we continue to point out that if we will do municipal or population health revenue, we are going to report on that as a separate item. So it really does consist, on the mobile health side, of our SteadyMD acquisition, which is the virtual care side; the care-in-the-home portfolio that I was describing; the mobile labs; the care gap; the primary care; and the patient monitoring, along with some of the staffed clinics that we do. That is really the component pieces. I would say that we shared in previous calls that SteadyMD is in the $25 million to $30 million range.

As Norm pointed out, we think there is upside to that plan, given the progress that we are making now that we have spent more time with that business, having acquired it in October, and we are continuing to integrate and infuse them into the company and all the opportunities that the company is seeing. And so I would say that is the mix. You have that SteadyMD acquisition that is coming really into full bloom as we integrate it, and that mobile health collection of businesses is in the $85 million to $88 million of revenue, of which none of that is migrant or municipal or population health in nature.

David Larsen: That is very helpful. Thank you. And then can you talk about the cross-selling effort? I would imagine from a health plans perspective, care gap closures are enormously helpful. How frequently would you be able to add in remote patient monitoring and then assign a primary care doctor, or you have a mobile lab service? Can you talk about the cross-sell and upsell growth potential? Thank you.

Lee Bienstock: Yeah. That is a great question. I am so glad you asked it because that is often something that I think is really an untapped opportunity for us. I think we have done some of it, and I can give some examples in a minute. But I think that remains a very big opportunity for the company, one that we have made some progress on, but there is clearly more opportunity that we can leverage as we really refine our portfolio of services. I think 2025 was a year where we have established a great portfolio of services on the mobile health and medical transportation side. It is very clear what our value is. Patients love it.

And now we can start to think about how we cross-sell and provide those services to patients on a broader basis, particularly because our two main customer segments are really the two customer segments you want to have in healthcare. We work directly with large health systems and hospitals and then the payers. And so we are excited about being at the center of that. The payers and the hospitals are really where the vast majority of touchpoints and cost are coming from in the system, and we are contracting with and partnered with them in that space. So I will give you a few examples.

One area that we are really enthused about is our ability to take a care gap patient and turn them into a preventative primary longitudinal care patient. So we go and we may close the care gap for a diabetes patient or do a screening of some sort. We find that many of those patients do not have a primary care provider or know who that primary care provider is. Over 70% of the time, they would opt for us to be that primary care provider. So we are starting to add that aspect of our services as we go into care gap and then primary care.

The other piece I will just flag also—you mentioned the mobile labs—we are working with some of the hottest consumer healthcare companies in the space, the wearable space, where they are now offering lab orders, and they are integrating your lab results into their consumer apps for their wearables. And right now, they are driving patients to patient service centers, but we have partnerships with a lot of the labs. Perhaps we can go to the homes of those patients as an upsell, as more convenience than driving them to the patient service center. So going into the home and providing mobile labs is an example.

And we continue to think that the opportunity that we have where we are bedside at discharge is a very key moment in a patient’s journey. When the patient is being discharged by the hospital and our EMS teams are there transporting the patients, and we are bedside at discharge, we continue to think that is a crucial moment in the healthcare journey. And so what can we do to bridge the discharge from the hospital to the home? We think we have a big role to play in that as we continue to build out the capabilities and continue to work with our amazing partners. So those are some of the areas that we are excited about.

And that is why I am giving such a long detailed answer about it because I think it is an additional area of opportunity that is in front of the company as we go forward here.

David Larsen: Thanks very much. I will hop back in the queue.

Operator: And your last question comes from the line of Sarah James from Cantor Fitzgerald. Please go ahead. Thank you. I appreciate the commentary that you have made so far on some of the moving pieces in 2026 with migrant costs being concluded in 2025 and the improvement you have already seen year to date in EMS labor. But I am wondering if you could put that all together with what you are planning on the SG&A efficiency side and give us a view of how we should think about EBITDA cadence throughout the year.

Sarah James: So I guess based on what you are doing on the SG&A side, is it a ratable improvement for the year? Should the year be really back-end loaded, or how should we think about that?

Lee Bienstock: Yeah. Thanks, Sarah, for the question. I think, as Norm mentioned, we see most of the adjusted EBITDA losses focused on the first half of the year, and as we turn the corner to the second half of the year, we turn to profitability. I think the big components really are in reducing corporate expenses, both on the headcount side as well as some of the vendors that we work with on the corporate side. We have already undertaken a lot of that work. And so that is a factor.

And then on the efficiency side, the charge I have really given to the team is to find a way to make us more efficient, use technology, automate, standardize processes at the company where the patient and the customer do not feel it. They do not know that we are being more efficient. The service levels that they have come to love remain as high as ever. The patient experience that the patients absolutely love—I mentioned the Net Promoter Score of 92—stays as delightful of a patient experience as you can have in a patient’s home when they are in need of healthcare, to maintain that high bar but at the same time remove cost.

And the way to do that is to use technology and to automate. And so I mentioned an example of the prebilling process. In the past, we had our dispatchers and we had members of our team doing the prebilling component to ensure, of course, that the patient had insurance, that we were going to be able to collect, as an example, the medical transportation trip. Now we are working to automate that, and we feel like we have built something that can automate that process and then, of course, free up our people to do other work or perhaps allow us to be just as efficient and productive with fewer people. And that really is a driving function.

So we are really looking at areas where we are using human labor today, but it can be automated, it can be standardized, and those are the areas that we are using technology to build out. Another great example I have been using is when we first started engaging with the patient lists that the payers are providing us for care gap services, we were making phone calls for all those patients, myself included. I did a bunch of those calls—quite good, I might add—engaging with the patients. But now we are automating a large portion of it. We are automating a large portion of it with text. We are automating a large portion of it with AgenTic AI.

And we are doing more with fewer resources. And so those are really the areas we are focused on. We are very enthused by the progress we are seeing. That AgenTic AI patient engagement solution is already live. It has been running for months now. That automation of the prebilling is set to go live. We have been testing it for months now. And so these are the areas that we are really going to push forward on to drive efficiency and ultimately remove costs from the business that we know is crucial. And so that is really where we set out.

We really worked on it toward the end of last year, and we are starting to see it come to fruition as we kicked off 2026.

Sarah James: Great. Very helpful. Thank you.

Operator: Thank you. Your next question comes from the line of David Crossman from Stifel. Please go ahead.

David Crossman: Lee, maybe you could help us better understand your expectations for the cadence of mobile growth as 2026 progresses? And maybe if you could in your response, help us better understand what visibility you have today and what the pipeline may look like, including how you leverage the success you are having with this one particular payer in care gap closure into marketing that to some of the other payers.

Lee Bienstock: Absolutely. Thanks, David, for the question. As we mentioned on our last call, we are really taking the approach to set guidance based on what we have today—the contracts we have today, the staff we have today, the volumes we have today—and then, of course, if we are able to add to that with new contracts, new expansions, additional staff, then we would update as we went along. And so we are taking that same approach this quarter. This is based on the staff we have today and how much progress we are making on the staffing. There is still more progress to be made. This includes the contracts we have today.

It does not include any wins that are projected to come, but rather what we already have in house today. So in terms of visibility, this is the full visibility that we have. It is the contracts that we have with the staff we have today, in the mix of the business right now with the customers we already have. So that is the key component. We really project that the mobile health business will grow as we go throughout the year. There is no one quarter where we hit some inflection point. It really is going to be a linear build on the mobile health side, because, as I mentioned, it includes all the contracts we already have today.

I think what you are seeing on the mobile health side is about a 40% year-over-year growth from 2025 to 2026. Now, of course, that does include a full year of SteadyMD revenues, which we acquired in October. If you exclude SteadyMD from both periods, we have about 10% to 15% year-over-year growth as well. So what we are going to be focused on this year is integrating SteadyMD, utilizing them across the DocGo Inc. platform so that we are utilizing SteadyMD’s clinician base to oversee the visits that are happening in the patients’ homes with our mobile health clinicians in the homes and then enabling them to grow as well.

But that is basically what we see: a linear growth on mobile health as we go throughout the year. Of course, if we were to win a new contract, that would maybe introduce a step function into the growth rate, but it is based on what we have today, which is the visibility aspect to your question.

David Crossman: Okay. Great. Thank you for that. And just a quick one for you, Norm. I think you said you expect to get another chunk of cash from HPD at some point, perhaps even before the end of the month. Any sense for what the gating items are to getting paid at this point, or has it just been typical administrative delays in getting the final payments? Any sense for whether there is any risk to the $20 million? I think in your press release you said you expect to get fully paid, but just thought I would ask the question.

Norman Rosenberg: Yeah. And, sure, David. It is a good question. And just to set the table, we are in touch with them on a pretty frequent basis. I have a counterpart there. There are about half a dozen people here who are in touch with their counterparts. I speak to them weekly. So what has been going on is that as the administration has transitioned—first of all, people have been a little bit busy—but beyond that, they are going through an audit, not just for our payable, not just for the payable to us, but really for everything that HPD has done with all the different vendors that they have.

And they brought in one of the big four consulting firms that was doing an audit for them across the board, looking at the stuff that they already paid, looking at the stuff that was already open, routine type of process. But I would say that payment was held hostage, if you will, by that particular audit that went on for quite a few months. That audit has been wrapped up. The findings are now being put together on paper. And that is why I think that we should find out really within days what they are going to pay us in an initial wave of funding.

And then, of course, if there is some stuff where they require additional information, all of which we have, we would provide that and continue that process going. So that was the big gating item—getting that audit done—that took at least, I would say, two to three months, maybe more, to get complete.

David Crossman: Got it. Great. Thanks very much.

Operator: Thank you. And there are no further questions at this time. I will now hand the call back to Mr. Lee Bienstock for any closing remarks.

Lee Bienstock: Wonderful. Thank you so much for everyone joining us today, and we are looking forward to speaking with you again soon. Take care.

Operator: And this concludes today’s call. Thank you for participating. You may all disconnect.

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