DocGo (NASDAQ:DCGO) narrowed its adjusted EBITDA loss in the third quarter as it cut costs and restructured unprofitable operations, but lowered its full-year revenue outlook and announced that CEO Lee Bienstock plans to leave once a successor is appointed.
Bienstock said he plans to remain in the role until at least March 31, 2027, and work with the board on a transition. The company reaffirmed its goal of exiting 2026 at a profitable run rate, even as it scales back some business lines.
Revenue rose 4% to $73.4 million from $70.8 million a year earlier, marking the company’s first year-over-year revenue increase since the second quarter of 2023, CFO Norm Rosenberg said. The adjusted EBITDA loss narrowed to $3.2 million from $7.2 million a year earlier and $6.3 million in the second quarter.
Revenue Outlook Cut as DocGo Reshapes Portfolio
DocGo now expects approximately $300 million in revenue for 2026, down from its previous forecast of $305 million to $310 million. It maintained its forecast for a full-year adjusted EBITDA loss of $17 million to $22 million. The revenue outlook excludes the pending acquisition of Hicuity Health.
Bienstock said the revenue revision reflects efforts to restructure or discontinue unprofitable business lines. The company is winding down its Upstate New York medical transportation operation, which generates approximately $10 million in annual revenue and is expected to produce an adjusted EBITDA loss of about $3 million this year.
Rosenberg said the shutdown would be gradual because the company must continue to honor contracts. He estimated the fourth-quarter revenue impact at roughly $1 million to $1.5 million compared with the third quarter.
Bienstock also said about $60 million of the company’s anticipated $300 million in annual revenue was weighing on margins. DocGo expects to wind down roughly one-third of that business, including some U.K. contracts and U.S. Mobile Health work, while seeking to restructure or renegotiate the remainder.
DocGo did not issue formal 2027 guidance. Rosenberg said the company anticipates revenue growth and positive adjusted EBITDA for the full year, with growth across its business lines and an incremental contribution from Hicuity, subject to the acquisition closing.
Transport Growth Offsets Loss of Migrant Revenue
Medical transportation revenue rose 6.4% to a quarterly record of $53.3 million. Rosenberg cited growth in markets including New York City, Delaware, Wisconsin and Tennessee.
Mobile Health revenue was $20.2 million, compared with $20.7 million a year earlier. The earlier period included $8.4 million in migrant-related revenue, while the latest quarter included none. Excluding migrant revenue, Mobile Health revenue grew 64%, helped by remote patient monitoring, mobile phlebotomy and SteadyMD, which DocGo acquired in October 2025.
SteadyMD contributed $7.8 million in third-quarter revenue. Rosenberg said its fourth-quarter revenue could be a couple of million dollars higher because of seasonal demand. He also said revenue of roughly $77 million to $78 million in the fourth quarter looked achievable.
Care in the Home visit volume fell about 26% in the third quarter as DocGo reduced outreach and changed its staffing mix, Bienstock said. The company is using AI voice agents for outreach and adding mobile phlebotomists and medical assistants alongside licensed practical nurses. Bienstock said the changes are intended to support more profitable expansion in the fourth quarter and 2027.
Margins Improve as Costs Decline
Adjusted gross margin rose to 33.3% from 30.5% in the second quarter and 33% a year earlier. Adjusted selling, general and administrative expenses fell to $28.7 million from $29.7 million in the preceding quarter, aided by workforce reductions and vendor renegotiations.
Rosenberg said medical transportation adjusted gross margin increased to 34.7% from 31.7% a year earlier, as overtime declined. Higher fuel costs and weak results in Upstate New York remained headwinds. Excluding that market, he estimated transport gross margin would have approached 37%.
Mobile Health adjusted gross margin fell to 29.7% from 36.2% a year earlier. Rosenberg attributed part of the pressure to SteadyMD hiring ahead of demand, but said its margins improved each month during the third quarter.
Liquidity and CEO Transition
Unrestricted cash stood at $19.1 million at September 30, down from $25.2 million at the end of June. On October 1, DocGo received the first $12.5 million tranche of a Perceptive Advisors term loan. Another $12.5 million is available when the Hicuity acquisition closes, and a further $25 million is subject to a Mobile Health revenue condition.
Bienstock said two receivables tied to the discontinued municipal population health business totaled approximately $19 million. He expects the majority of the smaller, $6.7 million receivable to be collected imminently and the $12.6 million balance to be resolved late this year or early in 2027.
Rosenberg said operating cash flow could turn positive a quarter or two after adjusted EBITDA reaches break-even, depending in part on collections. Hicuity’s closing is awaiting regulatory approval and remains on track for the end of November, Bienstock said.
Chairman Michael Burdiek said the board is looking for a leader with operational experience, potentially including restructuring or turnaround work, as DocGo enters a new phase.
About DocGo (NASDAQ:DCGO)
DocGo Inc (NASDAQ:DCGO) is a healthcare services company that delivers medical care and related support outside traditional healthcare facilities. Its platform combines mobile medical services, technology and logistics to help healthcare providers, government agencies and other organizations improve access to care.
The company provides mobile health services that can include in-home and community-based clinical care, preventive services, diagnostic testing, vaccinations and care coordination.
