DocGo Inc. (DCGO) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This summary covers the quarterly period ended June 30, 2026. DocGo Inc. operates as a mobile healthcare services company with three segments: Mobile Health Services (in-home care, virtual care, phlebotomy), Transportation Services (emergency and non-emergency transport), and Corporate (shared services). The company is currently navigating a wind-down of large municipal migrant-related contracts that previously drove significant revenue, while integrating recent acquisitions such as SteadyMD (virtual care) and Primary Care Ambulance.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Revenue | $73.4 million | $80.4 million | $149.0 million | $176.5 million |
| Net Loss (GAAP) | $(18.0) million | $(13.3) million | $(34.7) million | $(24.4) million |
| Net Loss Attributable to Stockholders | $(15.8) million | $(11.2) million | $(30.6) million | $(20.6) million |
| Loss Per Share (Diluted) | $(0.16) | $(0.11) | $(0.31) | $(0.21) |
| Operating Cash Flow | N/A | N/A | $(13.9) million (Used) | $43.2 million (Provided) |
| Cash & Equivalents (Unrestricted) | $25.2 million | N/A | N/A | N/A |
| Working Capital | $47.5 million | N/A | N/A | N/A |
| Total Debt (Notes Payable) | $0.2 million | N/A | N/A | N/A |
Note: The company has a $55.0 million revolving credit facility with no outstanding borrowings as of June 30, 2026.
Material Changes vs. Prior Period
- Revenue Decline: Consolidated revenue decreased 8.7% QoQ and 15.6% YTD compared to 2025. This is primarily due to the cessation of large-scale migrant-related government contracts in New York, which concluded in late 2025.
- Segment Performance:
- Mobile Health Services: Revenue dropped 30.5% QoQ ($21.4M vs $30.8M) due to the loss of migrant projects, partially offset by new virtual care revenue from the SteadyMD acquisition.
- Transportation Services: Revenue increased 4.8% QoQ ($52.0M vs $49.6M) driven by a 10.8% increase in U.S. trip volumes and higher average trip prices ($426 vs $410).
- Profitability: Net loss widened to $18.0 million in Q2 2026 from $13.3 million in Q2 2025. Operating expenses as a percentage of revenue increased due to the revenue decline outpacing cost reductions.
- Unusual Items:
- Contingent Consideration: A $2.8 million loss was recorded YTD 2026 due to a change in the fair value of contingent consideration for the SteadyMD acquisition, reflecting an improved revenue outlook.
- Insurance Proceeds: $4.7 million in insurance proceeds were recognized YTD 2026 for reimbursed legal fees, offsetting some losses.
Guidance, Outlook, Risks, and Contingencies
- Liquidity and Going Concern: The company disclosed substantial doubt about its ability to continue as a going concern without implementing cost-reduction plans. It is currently in non-compliance with a minimum liquidity covenant under its Credit Agreement and is in active discussions with lenders for a resolution or waiver. Management plans include workforce reductions, shifting compensation to stock, and intensified receivables collection.
- Nasdaq Compliance: The company received a second 180-day compliance period from Nasdaq to regain the $1.00 minimum bid price requirement, extending the deadline to January 25, 2027. A reverse stock split is being evaluated.
- Legal Proceedings:
- Stockholder Actions: A securities class action was settled for $12.5 million (covered by insurance) with court approval in March 2026. Derivative actions remain pending.
- Cybersecurity: A settlement regarding a 2024 data security incident was finalized for $337,198 (covered by insurance).
- Labor Actions: California labor actions regarding wage and hour claims were settled in principle for $220,000, pending final court approval.
- Subsequent Event: On August 16, 2026, the company entered into a merger agreement to acquire Hicuity Health, Inc., a tele-critical care provider. The deal involves stock consideration and the assumption of up to $52 million in Hicuity's indebtedness.
Investor Verification Checklist
- Covenant Compliance: Verify the status of negotiations with lenders regarding the minimum liquidity covenant breach and the availability of the $55M credit facility.
- Revenue Sustainability: Assess the trajectory of Mobile Health Services revenue post-migrant contract wind-down and the integration performance of SteadyMD.
- Cash Burn Rate: Monitor the conversion of operating losses to cash burn, noting the shift from positive operating cash flow in 2025 to negative in 2026.
- Stock Price: Track the closing bid price to ensure compliance with Nasdaq listing requirements by the January 2027 deadline.
- Merger Execution: Review the terms and financing details of the proposed Hicuity Health merger, specifically the assumption of debt and dilution impact.