DocGo (DCGO) Stock Forecast & Price Target

DocGo Inc exhibits a positive financial outlook characterized by growth in its Transportation Services segment, which saw a year-over-year increase of 5.4% to $50.8 million, underscoring resilience despite slight shortfalls relative to estimates. The management's projection of nearly 700,000 total transports by 2026, driven by recent business contracts including a significant two-year agreement with a national health system, indicates potential for substantial future revenue growth. Additionally, the company's expansion in its payor business is noteworthy, with the number of assigned lives surpassing 900,000, reflecting a robust increase of 200,000 since the end of FY24, highlighting strong demand for its mobile health services.

DocGo Inc. has experienced disappointing financial performance, with adjusted EBITDA results of ($3.9 million) significantly underperforming expectations of $5.2 million, resulting in a negative margin of (4.1%). In light of these results, the company has revised its FY25 adjusted EBITDA outlook downward to a range of ($30 million) to ($20 million), from prior projections of a positive 5%. Additionally, DocGo has lowered its FY25 revenue guidance to $300 million - $330 million, a substantial decrease from the previous expectations of $410 million - $450 million.