DocGo Inc.

Thank you, operator. 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 DACO'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 DACO 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 by 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 our earnings release on the current report on Form 8K that includes our earnings release, which is posted on our website, dot go dot com, as well as filed with the SEC. The information contained in this call is accurate as of only 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 as to the extent required by law. At this time, it is now my pleasure to turn the call over to Mr. Lee Beanstalk, CEO of DOTCO. Lee, please go ahead.

Thank you, Mike, and thank you all for joining us today. 2025 has been an important year of transition for DOTCO, and I would like to start our call by sharing four key headlines from the quarter. before sharing more specifics about our performance. First, we experienced record volumes across all of our base business offerings in the quarter. Our strategy to build a robust evergreen healthcare business is coming to fruition. Second, we continue to have a strong balance sheet with cash we intend to use to fund our growth and capitalize on the opportunities in front of us. Third, we are extremely excited about our acquisition of SteadyMD. and how their 50 state virtual care network and over 500 advanced practice providers will allow us to scale more efficiently. And fourth, today we announced 2026 guidance of 280 to 300 million in revenue and a full year 2026 adjusted EBITDA loss of 15 to 25 million with the majority of this adjusted EBITDA loss expected to be realized in the first half of the year. Our 2026 revenue guidance represents 12 to 20% year-over-year base business growth. Any potential acquisitions or new contract wins would be incremental to that amount, and we would provide updates on 2026 guidance as needed. At the top end of our revenue guidance range for 2026, we would expect to exit the year on an adjusted EBITDA positive run rate. We have a bold vision of building a company that brings the capabilities of a doctor's office into a patient's living room. I am excited about our investment to build these capabilities, which I believe is a small price to pay for the promise of something that has transformational potential, both for our company and our industry. Before I cover the individual business verticals, I want to emphasize that each of our service lines, with the exception of our care gap closure and primary care offerings, is adjusted EBITDA positive on a contribution basis. I think it's important to highlight this because their value can be masked by the impact of corporate overhead costs at our current scale and the investment we are making in the capabilities I just referenced. Now I'll touch on our medical transportation and payer provider mobile health verticals. Our flagship medical transportation business achieved record volumes in Q3. driven by numerous long-term contracts with strong visibility and an enviable roster of customers, including Jefferson Health, Mount Sinai, New York City Health and Hospitals, HCA TriStar, the NHS in the UK, and others. We expect this business will generate more than 200 million of revenue in 2025, making this a strong foundational asset. As we add additional scale and ramp staffing in this segment over the next two to three years, We anticipate that we can further improve the adjusted EBITDA contribution margin to approximately 12%. We continue to see incredibly strong demand for our services with opportunities to grow revenue within our existing customer base. Several of our large health system customers use our total transportation solution, which includes our proprietary software, dedicated ambulances, EMS crews, and staff to manage their transfer center operations. Our epic integrated technology platform creates efficiency, transparency, and provides a single source of truth for transportation management across vendors. In this capacity, we often have the ability to select whether to assign a trip to one of our ambulances or select a different transportation vendor if we don't have an available unit staffed to run the trip. We estimate that over the last 12 months, we have assigned over 26,000 trips to other companies, many of which could have been run by our fleet if we had available service level capacity. We have accelerated our talent acquisition efforts and are looking to hire hundreds of additional EMS staff as soon as it is practical to create the capacity and better capitalize on this embedded demand from our current customers. We expect that these targeted additional hires will enable us to capture millions of dollars of additional top line revenue on our existing contracts in 2026. In summary, our transportation business serves a vital market need, is profitable on a standalone basis, and is a valuable foundational asset. Moving on, I would like to cover our payer and provider vertical, which is expected to generate approximately 50 million of revenue in 2025, which includes a contribution of approximately 5 million from the SteadyMD acquisition in mid-October, and is expected to grow to 85 million next year. This vertical includes services such as care gap closure, primary and preventative care, telehealth, remote patient monitoring, mobile phlebotomy, and other payer and provider services. One of our core offerings in this vertical is our remote patient monitoring business, which has made considerable progress over the last year. Remote patient monitoring is operating at an annual run rate of approximately 15 million with a greater than 10% adjusted EBITDA contribution margin, which is expected to continue trending higher in 2026. We've signed 13 new contracts or expansions this year on the back of strong demand and have eight additional proposals submitted or in contracting. We are excited to keep developing this capability in a space that typically commands high multiples. An area of our payer and provider vertical that is taking longer than anticipated to ramp, but still holds great promise for us is our primary care services. We had originally budgeted approximately 5 to 10 million of revenue from primary care in 2025. We are seeing progress here and just received a substantial list from a major health plan to offer these services to 10,000 members, which will launch in Q4 and ramp in early 2026. Also within our payer and provider vertical, our care gap closure and transitions of care business more than quadrupled when we compare Q3 2025 to Q3 2024. While our investment in product development, training, and technology to build our capabilities was substantial in 2025, we expect that rate of investment to decline considerably in 2026, which will help contribute to our goal of achieving profitability. As we work to drive our care gap and primary care business to profitability as soon as possible, I want to underscore why we are making this strategic investment to build these capabilities. DACA's ability to leverage a tech-enabled clinical workforce to reach difficult populations with chronic conditions delivers meaningful value to our payer and provider customers. Our solutions help keep people healthier and in their homes and have the potential to significantly lower health systems costs. Considering the convergence of increasing costs, flat reimbursement levels, facility overcrowding, and ongoing operational challenges facing healthcare today, we believe DACO's offering is positioned to drive substantial value and represents a significant opportunity for our company. While this payer-provider business takes considerable time to develop, we have made significant inroads over the last two years, and we believe it has high growth potential. As I shared on our last earnings call, we are already working with two of the top 10 national payers and are in active discussions with both of these customers to expand those contracts. Additionally, we are in the process of contracting with two more of the top 10 national payers and have an additional 10 pending proposals in our business development pipeline. I wanted to illustrate the potential of these relationships by highlighting the growth trajectory of one of our major payer customers over time. In 2023, our first year working with a major California health plan, we performed 789 total patient visits. In 2024, that number grew by nearly 65% to 1,293. In 2025, it is expected to grow another 250% and reach 4,500. And in 2026, it's expected to grow another 280% and reach over 17,000 visits based on existing plans. This same customer started with a single transition to care program, added care gap closure, and has recently added longitudinal care services as well. In summary, it takes time for these relationships to ramp, but they can accelerate quickly as our customers appreciate the value we can deliver. As I mentioned, we also considerably expanded our capabilities with our acquisition of virtual care provider SteadyMD last month. We believe we got a very attractive deal for our shareholders with the way we structure this transaction and the value it brings. For those of you who didn't have the opportunity to dial into our webcast last month, which is posted on our investor relations website, SteadyMD offers a 50-state virtual clinician workforce, clinical operations, and world-class technology that powers real-time matching between patient needs and clinical expertise. The company provides virtual care for top consumer healthcare and digital wellness brands, including two Fortune 10 customers. SteadyMD maintains a roster of over 500 clinicians, is expected to service over 3 million patients in 2025, and is projected to generate approximately 25 million in revenue this year. SteadyMD's scaled network of virtual providers is expected to enable .go, to achieve more efficient delivery of patient care by pairing DACO's mobile health clinicians in the field with SteadyMD's clinical network over time. We are enthusiastic about this acquisition for numerous reasons. First, it provides us with a 50-state virtual care footprint, which significantly expands our clinical capacity and positions us to extend our offering to both payers and providers. Second, we have long believed that pairing our last mile clinical delivery capabilities with virtual care has the potential to unlock the power and potential of telehealth and creates an optimal end-to-end solution. We look forward to the potential synergies this creates, and we'll look to both amplify our existing offerings and potentially launch new services next year. Lastly, we see strong opportunities for cross-pollinization between the two exceptional customer bases that both Docco and SteadyMD have built, and we look forward to exploring those as well. We continue to believe that Docco has a unique ability to acquire traditional healthcare assets where we can overlay our technology, mobile health capabilities, and extensive customer base to drive additional value. There are a wide variety of healthcare companies out there that see Docco's last mile healthcare delivery capabilities as a missing piece, making us a very attractive partner, and we plan to remain active on the M&A front. In sum, 2025 has been a transitional year as we moved beyond emergency response contracts and increasingly focused on executing DACO's evolution to a provider of long-term, integrated, technology-driven healthcare solutions that meet the needs of our customers today and tomorrow. I couldn't be more proud of the progress we are making as we are positioned for strong growth in each of our key verticals. We expect the investment in our early stage business lines to gradually abate over the course of 2026. We have made a strategic acquisition in SteadyMD that expands our footprint, adds a creative capabilities and a roster of blue chip customers that we can continue building upon. Additionally, we continue to grow our pipeline of new business and look for potential acquisition opportunities, both of which can help us gain critical mass, achieve profitability and create additional shareholder value in the coming years. Our future is bright and valuable. We have the right products and services to address critical needs in our healthcare industry, have built differentiated technology and capabilities, and have business lines such as medical transportation and remote patient monitoring that are already firmly EBITDA positive, and we have the balance sheet to see our vision of bringing the doctor's office to the living room a reality. At this time, I will hand it over to Norm to cover the financials. Norm, please go ahead.

Thank you, Lee, and good afternoon. Total revenue for the third quarter of 2025 was $70.8 million compared to $138.7 million in the third quarter of 2024. The year-over-year revenue decline was entirely due to the sunset of migrant-related projects. Excluding revenue from migrant-related programs, revenue increased by 8% to $62.4 million in Q3 of 2025 from $58 million in Q3 of 2024. Medical transportation services revenue increased to $50.1 million in Q3 of 2025, from $48 million in transport revenues that we recorded in the third quarter of 2024. Revenues were driven higher by gains in nearly all of our U.S. markets, with some of the strongest growth in Texas and Tennessee. Mobile health revenue for the third quarter of 2025 was $20.7 million, down from $90.7 million in the third quarter of last year, driven by the wind down of migrant services. Included in this year's amount was approximately $8 million in migrant-related revenues. Non-migrant mobile health revenues increased by more than 20% year-over-year, driven by increases in care gap closures, remote patient monitoring, and mobile phlebotomy. Adjusted EBITDA for the third quarter of 2025 was a loss of $7.1 million compared to adjusted EBITDA of $17.9 million in the third quarter of 2024. The adjusted gross margin, which removes the impact of depreciation and amortization and several one-off items, and is the measure of margins that we track most closely, was 33% in the third quarter of 2025, compared to 36% in the third quarter of 2024. During the third quarter of 2025, adjusted gross margins for the medical transportation segment were 31.7%, compared to 30.7% in Q3 of 2024, and the highest gross margins we've seen in this segment since Q1 of 2024. During the third quarter, our transportation business ran at the highest utilization rates that we've seen. Given these utilization rates, it will be critical for us to expand our field labor team, which we would expect to lead to higher revenues and improved gross margins for transport in 2026. Mobile health segment adjusted gross margin was 36.2% versus 38.8% in the third quarter of 2024, but up from adjusted gross margins of 32.5%, in the second quarter of 2025. We expect to continue replacing migrant related revenues with relatively higher margin service lines, such as remote patient monitoring and mobile phlebotomy. On both the cost of goods sold and an operating cost basis, we continue to make significant investments in our care gap closure business. We estimate that the adjusted gross margin for mobile health would have been above 40% in Q3 of 2025, excluding the care gap closure business. There were also some non-recurring items that had a large impact on our gap results this quarter, so I'd like to briefly review them. Within the cost of goods sold area, we incurred increased insurance costs in the amount of approximately $5.2 million. These largely consisted of additional premium owed for workers' compensation coverage back in 2022 and 2023, driven largely by an increased migrant program-related employee base, and the settlement of a large auto insurance claim for an incident in 2022 in the since discontinued California transport market. Also, within the operating expense category, we incurred non-cash charges due to the write-down of various intangible assets and goodwill. These charges totaled $16.7 million in the quarter. During the third quarter, we made further progress on strengthening our balance sheet by paying off the outstanding amounts under our line of credit, removing $30 million in debt from our balance sheet. We continue to collect our older, larger invoices, which allowed us to generate approximately $1.7 million in operating cash flow for the quarter, despite our operating losses. Through the first nine months of 2025, we have generated nearly $45 million in cash flow from operations. As of September 30th, 2025, our total cash and cash equivalents, including restricted cash and investments, was $95.2 million, down from $107.3 million at the beginning of the year. Having paid down the entire outstanding balance on our credit line during Q3, our cash position net of debt is well above our net position as of the beginning of this year. Our balance sheet is now debt-free for the first time since late 2023. Our accounts receivable continued to decrease, particularly for migrant-related receivables. At quarter end, we had approximately $37 million in accounts receivable from the various migrant programs, which represented a little more than a third of our total company AR. This compares to $54 million in migrant program-related AR at the end of Q2, $120 million at the end of Q1, and $150 million at the end of 2024, which at the time represented approximately 71% of the company total. We've now collected about 96% of all of our migrant-related receivables from the inception of those programs until today, and we remain confident that we will collect all remaining outstanding amounts. Now that we've improved our cash balance and paid off our credit line debt, we are well positioned to carry the company through this ongoing transitionary period. Over these final seven weeks or so of 2025, we will focus intently on collecting the remainder of the migrant-related receivables. Assuming that these amounts are collected during the fourth quarter, we would expect our cash balances at year-end to be higher than they were at the end of Q3 after adjusting for the steady MD acquisition. We expect to exit 2026 at about $65 million of cash which we expect will be the low point subject, of course, to buybacks or any additional acquisitions. Finally, as we head here into the home stretch of 2025, we'd like to discuss our outlook for the full year and offer a preliminary view on 2026. For full year 2025, we now expect revenues in the range of $315 million to $320 million. Of that amount, about $68 million to $70 million relates to migrant projects, so the base revenue should come in at about $250 million. For adjusted EBITDA, we see the full year 2025 loss in the range of $25 million to $28 million. For 2026, we see revenues in the range of $280 to $300 million, which would represent a 12% to 20% growth over 2025's base revenues. We anticipate a full year adjusted EBITDA loss of somewhere between $15 million and $25 million. However, at the top end of this revenue guidance range for 2026, we would expect to exit the year on an adjusted EBITDA positive run rate. On a sequential basis, looking at 2026, we expect revenues to increase and for the EBITDA performance to improve over each of the four quarters of the year. At this point, I'd like to turn the call back over to the operator for questions and answers. Operator, please proceed.