Earnings call transcript: DocGo misses Q2 2026 estimates as stock falls after hours

DocGo reported a second-quarter 2026 adjusted loss per share of $0.16, which significantly surpassed the forecasted loss of $0.10 per share. The earnings miss resulted in a 11.28% decline in the company's stock price after hours, from $0.71 to $0.63, after a 6.4% increase during the regular trading session. The stock's drop came after Wall Street analysts had anticipated a narrower loss.

The company's adjusted earnings per share (EPS) were far worse than expected, with a 60% gap between the actual and estimated figures. Revenue for the quarter came in at $73.42 million, falling short of the $75.40 million forecast by $1.98 million. This revenue shortfall was attributed to the end of migrant-related contracts and a decline in mobile health revenue, which dropped to $21.4 million from $30.8 million in the same period last year.

However, medical transportation revenue rose to a record $52.0 million, partially offsetting the revenue decrease.

On an organic basis, excluding migrant revenue and SteadyMD, DocGo's revenue increased by about 5% compared to the previous year. The company also achieved record volumes across its main business lines, including a 15% increase in U.S. medical transportation volume, a 26% growth in healthcare-in-the-home volume, a 20% rise in mobile phlebotomy, and a 58% increase in virtual care and lab orders.

Despite missing both earnings and revenue estimates, DocGo highlighted improving sequential trends and a stronger underlying business. Management emphasized that the company remains on track to achieve breakeven adjusted EBITDA by the end of 2026, despite larger-than-expected losses in the first half of the year and slower-than-expected cost savings. The company also expects the launch of additional efficiency programs in late 2026 and early 2027 to support cost management.

CEO Lee Bienstock expressed optimism about the company's expanded platform, including the recently acquired Hicuity Health, which he described as a holistic care platform with superior and differentiated offerings. CFO Norm highlighted the company's success in transitional care programs that have reduced 30-day post-discharge readmissions by 50% to 60%. Analysts will closely monitor the company's progress on the Hicuity acquisition, potential CMS reimbursement changes, and its path to achieving EBITDA breakeven.