DCGO · DocGo Inc.

DocGo’s Q1 2026 results reflect a deliberate strategic pivot: the complete exit from migrant-related programs—responsible for $35.0 million in Q1 2025 revenue—explains the entire YoY top-line decline, while underlying organic growth accelerated meaningfully. Ex-migrant, revenue rose 19.3% to $75.6 million, powered by 131% growth in Mobile Health Services (driven by SteadyMD integration and organic expansion) and robust 36% sequential growth in its core ‘healthcare at any address’ verticals—including virtual care, remote monitoring, and mobile phlebotomy. However, this rapid scaling introduced near-term margin headwinds: GAAP gross margin held steady at 28.1%, but adjusted gross margin dipped to 31.6% (from 32.1%) due to elevated hiring costs, workforce incentives to bridge staffing gaps, and fuel price inflation linked to Middle East conflict—factors management explicitly labeled as temporary. Net loss widened to ($16.7) million and adjusted EBITDA deteriorated to ($10.2) million, reflecting these operational inefficiencies. Despite the near-term pressure, management reaffirmed confidence in the business model, raising full-year revenue guidance by $7.5 million at the midpoint to $300–$315 million while holding adjusted EBITDA guidance unchanged at ($5–$10) million—indicating expectations that cost rationalization and efficiency initiatives will begin flowing through in H2. Liquidity remains adequate at $59.9 million, and management emphasized progress on collecting final migrant-related receivables and reiterated the goal of achieving adjusted EBITDA profitability in the back half of 2026. The earnings release also highlights strategic validation—including CMS ACCESS Model participation, industry awards, and strong client satisfaction (93% likelihood to recommend)—underscoring durable demand for DocGo’s integrated virtual and physical care delivery platform.