What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-11 compared with 2025-11-10 · 153 added, 224 removed, 372 unchanged (50% of the section changed)

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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 our results or outcomes, to differ materially from those contained in our forward-looking statements, including, but not limited to the following:

impacts related to the recent and ongoing wind down of migrant-related services;

impacts related to the wind down of migrant-related services;

our ability to continue as a going concern;

our ability to maintain our listing on Nasdaq;

our ability to pursue strategic initiatives to deliver on shareholder value;

our ability to expand our programs with insurance partners, hospital systems, municipalities and other strategic partners;

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our M&A activity and success of our acquisition strategy;

our ability to retain our workforce and management personnel and successfully manage leadership transitions;

the availability of healthcare professionals

and other personnel;

our ability to retain our

workforce and management personnel and successfully manage leadership transitions;

the availability of healthcare professionals and other personnel;

changes in the cost of labor;

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This segment also provides solutions to large, typically underserved population groups, typically through arrangements with municipalities, which include both physical and mental healthcare services.

The services offered by this segment include virtual care and diagnostics, remote patient monitoring, phlebotomy, addressing gaps in care and primary care physician services.

• Transportation Services:

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Net revenue from Transportation Services is derived from the transportation of patients based on billings to third party payors and healthcare facilities.

For the three months ended September 30, 2025, the Company recorded a net loss of $29.7 million, compared to net income of $4.5 million in the three months ended September 30, 2024.

For the nine months ended September 30, 2025, the Company recorded a net loss of $54.0 million, compared to net income of $21.0 million in the nine months ended September 30, 2024.

For the three months ended March 31, 2026, the Company recorded a net loss of $16.7 million, compared to net loss of $11.1 million for the three months ended March 31, 2025.

See “Results of Operations” for the Company’s evaluation of these results.

Factors Affecting Our Results of Operations

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our competitive environment;

overall macroeconomic and geopolitical conditions, including the interest rate environment, the inflationary environment, the potential recessionary environment, regional conflict and tensions, financial institution instability and the ongoing or any future shutdown of the U.S.

federal government;

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healthcare coverage of the various Mobile Health Services;

and continued desire on the part of government and municipal entities to fund programs to assist currently underserved patient segments via “population health” programs.

In the aftermath of the COVID-19 pandemic, there have been expansions of these population health programs into areas outside of testing and vaccination, such as the provision of healthcare and related services to various underserved population segments.

However, in recent months, there has been emerging uncertainty around municipal budgets, including the health care segment, and this could have an impact on the public sector portion of the Mobile Health Services market.

and, to a lesser extent, continued desire on the part of government and municipal entities to fund programs to assist currently underserved patient segments via “population health” programs.

The Transportation Services market is highly dependent on patients requiring transportation after surgeries and other medical procedures and treatments.

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Some of our most significant operating expenses are labor costs, medical supplies and vehicle-related costs, such as fuel, maintenance, repair and insurance.

Insurance costs include premiums paid for coverage as well as reserves for estimated losses within the Company’s insurance policy deductibles.

Insurance costs include premiums paid for coverage as well as reserves for estimated losses within the Company’s insurance policy deductibles and for the lines of insurance where the Company is self-insured, such as auto and workers’ compensation.

We employ our proprietary technology to help drive improvements in productivity per transport and per shift.

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This involves managing the mix of company-employed labor and subcontracted labor as well as full-time and part-time employees.

The inflation rate in the United States, as measured by the Consumer Price Index, moderated in 2024 after trending well above historical levels in the period from the second quarter of 2021 through the second quarter of 2024.

The inflation rate in the United States, as measured by the Consumer Price Index, has generally trended down since the middle of 2023.

This data is reported monthly, showing year-over-year changes in prices across a basket of goods and services.

The inflation rate

declined during the second half of 2024, and the annual inflation rate declined to 2.9% for the full year 2024 from 4.1% in 2023 and 8.0% in 2022.

For 2025 to date, the inflation rate has remained moderate, with monthly year-over-year readings between 2.3% and 3.0%.

However, the introduction of new tariffs on imported goods, and the uncertainty surrounding the tariff rates, has led to the prospect of increased inflation over the fourth quarter of 2025 and beyond.

The increased inflation rate witnessed between 2021 and 2024 had an impact on the Company’s expenses in several areas, including wages, fuel and medical and other supplies.

This had the effect of compressing gross profit margins, as the Company is generally unable to pass these higher costs on to its customers, particularly in the short term.

The inflation rate declined to 2.7% for the full year 2025, down from 2.9% in 2024, 3.4% in 2023 and 6.5% in 2022.

In March 2026, the annual inflation rate increased to 3.3%, from 2.4% in February, which was the lowest reading

since February 2021.

The increase in March was driven by fuel prices.

An increased inflation rate, such as that witnessed between 2021 and the first half of 2023, could have an impact on DocGo’s expenses in several areas, including wages, fuel and medical and other supplies.

This would have the effect of compressing gross profit margins, as DocGo is generally unable to pass these higher costs on to its customers, particularly in the short term.

In addition, opportunities to mitigate the impact of inflation are limited, aside from potentially buying more medical supplies than are currently needed in an effort to reduce the volume of future purchases, in instances where supply prices are anticipated to rise.

If inflation is above the levels that the Company anticipates, gross margins could be below plan and our business, operating results and cash flows may be adversely affected.

As inflation has moderated, and in an attempt to stimulate economic growth, the U.S.

Federal Reserve implemented three interest rate cuts in September, October and December of 2025, lowering its benchmark rate (the “federal funds rate”) to the current level of 3.5-3.8% as of the date of this Quarterly Report on Form 10-Q.

Looking out through the rest of 2026, DocGo anticipates that the inflation rate will remain at or near the currently more moderate level, with an annual rate similar to those witnessed in 2024-2025 and the 2010-2020 period, when the annual inflation rate ranged from 0.1% to 3.2%.

However, if inflation is above the levels that DocGo anticipates, gross margins could be below plan and as a result, DocGo’s business, operating results and cash flows may be adversely affected.

Trip Volumes and Average Trip Price

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The average trip price is calculated by dividing the aggregate revenue from the total number of trips by the total number of trips and is an important indicator of the effective rate at which the Company is being compensated for its provision of Transportation Services.

The average trip price is influenced by the level of acuity of the trip (for example, basic life saving (BLS) versus advanced life saving (ALS), as well as by the type of payer (commercial insurance, contracted rate with the facility, private pay, Medicare or Medicaid).

Revenues generated from programs under which the Company is paid a fixed hourly or daily rate for the use of a fully staffed and equipped ambulance do not factor in the trip counts or average trip prices mentioned above.

We expect these fixed rate, “leased hour” programs to continue to account for an increasing proportion of the Transportation Services segment’s revenues in the future.

Historically, we have pursued an acquisition strategy to obtain enhanced capabilities or licenses to offer Mobile Health Services or Transportation Services.

Historically, we have pursued an acquisition strategy to obtain enhanced capabilities, personnel or licenses to offer Mobile Health Services or Transportation Services.

Future acquisitions may also include companies that may help drive revenue, profitability, cash flow and stockholder value.

During the nine months ended September 30, 2025, the Company completed one acquisition, for $4.2 million.

The Company did not complete any acquisitions during the nine months ended September 30, 2024.

Investing in R&D and Enhancing our Customer Experience

Our performance is dependent on the investments we make in research and development (“R&D”), including our ability to attract and retain highly skilled R&D personnel.

We intend to develop and introduce innovative new software services, integrations with third-party products and services, mobile applications and other new offerings.

If we fail to innovate and enhance our brand and our products, our market position and revenue may be adversely affected.

The Company did not complete any acquisitions during the three months ended March 31, 2026.

During the three months ended March 31, 2025, the Company completed one acquisition, for $4.2 million.

Investing in R&D and AI

Our research and development (“R&D”) efforts include, among other things, the development of innovative software and services as well as the adoption and responsible integration of artificial intelligence (“AI”) and machine learning (“ML”) capabilities across our products and internal operations, including the development, training, validation, deployment, and ongoing monitoring of ML models and related systems.

We also intend to develop integrations with third-party products and services, mobile applications, automation tools to improve workforce productivity and operational efficiency, and other new offerings.

These initiatives may require significant capital and operating expenditures, specialized technical expertise, access to high-quality data, robust computing infrastructure, and effective governance and controls.

Our ability to realize anticipated benefits from AI adoption, ML training, and workforce automation depends on, among other things, our ability to executive effectively, maintain model performance and reliability over time, manage the risks associated with bias, errors, data quality, and security, comply with evolving legal and regulatory requirements, and achieve adoption by employees, customers, and partners.

If we fail to innovate, deploy, and scale these capabilities, or if our investments do not produce the expected returns, our market position, operating results, and revenue may be adversely affected.

Regulatory Environment

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For example, starting in the second quarter of 2023, the Company began providing services to the recent migrant population in New York City and in upstate New York.

Some of these services

were provided pursuant to a contract with an ending date during the second quarter of 2024.

Some of these services were provided pursuant to a contract with an ending date during the second quarter of 2024.

While a portion of that contract was extended through December 31, 2024, other services began to wind down in May 2024.

The wind-down of all services under such contract was completed in the fourth quarter of 2024.

While the Company continued to provide services under other contracts during the first nine months of 2025, the wind-down of the remaining migrant-related services under other contracts is nearly complete, and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026.

While the Company continued to provide services under other contracts during 2025, the wind-down of the remaining migrant-related services under other contracts was completed in December 2025, and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026.

As such, despite the Company’s expectation for revenue growth in other business lines within the Mobile Health Services segment, we expect that overall Mobile Health Services revenues will be lower in 2026 than they were in 2025, given the absence of migrant-related project revenues.

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Accordingly, other income and expenses not included in results of operations are only included in the discussion of consolidated results of operations.

When evaluating results of operations, the Company will typically not take into account certain on-cash elements of results of operations, such as impairments of intangible assets and goodwill.

In the Company’s view, these items, while part of results of operations, are not a reflection of the underlying performance of the business during the period being evaluated.

The Company’s revenues consist of services provided by its Mobile Health Services segment and its Transportation Services segment.

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General and Administrative Expenses

General and administrative expenses consist primarily of salaries, bad debt expense, insurance expense, consultant fees and professional fees for accounting services.

General and administrative expenses consist primarily of salaries, bad debt expense, insurance expense, consultant fees and professional fees for accounting and related services.

We incur additional general and administrative expenses as a result of operating as a public company, including our compliance with SEC rules and regulations, audit activities, additional insurance expenses, investor relations activities and other administrative and professional services.

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However, these costs have increased when measured as a percentage of total revenue, as the decline in general and administrative costs has been smaller than has been the decline in total revenue.

Over the remainder of 2025, we expect this trend to continue, with general and administrative costs declining sequentially in absolute dollar terms, while increasing as a percentage of revenues.

Over the remainder of 2026, we expect that general and administrative costs will decline sequentially in both absolute dollars and as a percentage of revenues.

Over the longer term, we expect that general and administrative expenses will increase along with headcount as the Company’s overall business activity increases, including higher sales and marketing fees.

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These expenses may vary from period to period as a percentage of revenue, depending primarily upon when we choose to make more significant investments, particularly when entering new business lines or customer sales channels.

Technology and development expenses will also be driven by investments made into new areas, such as artificial intelligence (AI).

Technology and development expenses will also be driven by investments made into new areas, such as AI.

Sales, Advertising and Marketing Expenses

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We expect our sales, advertising and marketing expenses to continue to increase over time as we increase our marketing activities, expand into new geographic markets and customer verticals, particularly in the Mobile Health segment, and continue to build brand awareness.

Within the Transportation Services segment, these expenses are often related to our efforts to attract and retain personnel.

Interest Expense

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These expenses are determined by the amounts of debt that are outstanding, as well as market interest rates, which form the basis for the interest expenses relating to our Prior Revolving Facility.

Interest expense is reported on a net basis, so that interest income earned on the Company’s cash and investment balances serves to offset part or all of our interest expense in a particular period.

Results of Operations

Comparison of the Three Months Ended September 30, 2025 and 2024

Three Months Ended September 30, Change

Comparison of the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31, Change

$ in Millions 2026 2025

8 unchanged sentences

Sales, advertising and marketing 0.4 0.5 % 0.3 0.3 % 0.1 33.3 %

Finite-lived intangible asset impairment 8.0 11.3 % — — % 8.0 100.0 %

Goodwill impairment 8.7 12.3 % — — % 8.7 100.0 %

Total expenses 94.2 124.7 % 110.0 114.7 % (15.8) (14.4) %

(Loss) income from operations (42.0) (59.3) % 10.1 7.3 % (52.1) (515.8) %

Other expense:

Loss from operations (18.7) (24.7) % (14.0) (14.7) % (4.7) (33.6) %

Other income (expense):

Interest expense, net (0.1) (0.1) % (0.4) (0.4) % 0.3 75.0 %

Loss on change in fair value of contingent consideration (2.8) (3.7) % — — % (2.8) (100.0) %

Loss on equity method investments — — % (0.1) — % 0.1 100.0 %

Insurance proceeds 4.7 6.2 % — — % 4.7 100.0 %

Loss on equity method investment — — % (0.1) (0.1) % 0.1 100.0 %

(Loss) gain on disposal of fixed assets (0.1) (0.1) % — — % (0.1) (100.0 %)

Other income (expense) 0.3 0.4 % (0.3) (0.3) % 0.6 200.0 %

Total other expense (1.2) (1.7) % (1.1) (0.8) % (0.1) (9.1) %

Net (loss) income before income tax benefit (expense) (43.2) (61.0) % 9.0 6.5 % (52.2) (580.0) %

Benefit from (provision for) income taxes 13.5 19.1 % (4.5) (3.2) % 18.0 400.0 %

Net (loss) income (29.7) (41.9) % 4.5 3.3 % (34.2) (760.0) %

Total other income (expense) 2.0 2.7 % (0.8) (0.8) % 2.8 350.0 %

Net loss before income tax (expense) benefit (16.7) (22.0) % (14.8) (15.5) % (1.9) (12.8) %

(Provision for) benefit from income taxes — — % 3.7 3.9 % (3.7) (100.0) %

Net loss (16.7) (22.0) % (11.1) (11.6) % (5.6) (50.5) %

Net loss attributable to noncontrolling interests (1.9) (2.5) % (1.7) (1.8) % (0.2) (11.8) %

Net (loss) income attributable to stockholders of DocGo Inc.

Net loss attributable to stockholders of DocGo Inc.

and Subsidiaries $ (14.8) (19.5) % $ (9.4) (9.8) % $ (5.4) (57.4) %

For the three months ended September 30, 2025, total revenues were $70.8 million, a decrease of $67.9 million, or 49.0%, compared to the three months ended September 30, 2024.

For the three months ended March 31, 2026, total revenues were $75.5 million, a decrease of $20.5 million, or 21.4%, compared to the three months ended March 31, 2025.

Mobile Health Services

For the three months ended September 30, 2025, Mobile Health Services revenues were $20.7 million, a decrease of $70.0 million, or 77.2%, compared to the three months ended September 30, 2024.

For the three months ended March 31, 2026, Mobile Health Services revenues were $23.6 million, a decrease of $21.6 million, or 47.8%, compared to the three months ended March 31, 2025.

The decline in revenues was due to the ongoing wind-down of migrant-related services, which had ramped up sharply in the third quarter of 2023 and peaked in the first quarter of 2024.

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The wind-down of all services under such contract was completed in the fourth quarter of 2024.

The wind-down of the remaining migrant-related services under other contracts is nearly complete, and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026.

The wind-down of the remaining migrant-related services under other contracts was completed in the fourth quarter of 2025, and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026.

Offsetting the decline in revenues from migrant-related services was the inclusion in the current year period of virtual care revenues from SteadyMD, which was acquired in October 2025.

Transportation Services

For the three months ended September 30, 2025, Transportation Services revenues were $50.1 million, an increase of $2.1 million, or 4.4%, compared to the three months ended September 30, 2024.

For the three months ended March 31, 2026, Transportation Services revenues were $51.9 million, an increase of $1.1 million, or 2.2%, compared to the three months ended March 31, 2025.

This increase was due to a 7.5% increase in U.S.

trip volumes, to 71,541 trips in the three months ended September 30, 2025, from 69,776 trips for the three months ended September 30, 2024.

The average trip price rose to $411 in the three months ended September 30, 2025, from $404 in the three months ended September 30, 2024.

trip volumes, to 79,712 trips in the three months ended March 31, 2026, from 74,130 trips for the three months ended March 31, 2025.

The average trip price increased to $408 in the three months ended March 31, 2026, from $378 in the three months ended March 31, 2025.

The biggest volume gains were witnessed in New York, Texas and Tennessee.

These increases in volumes and average trip price in the U.S.

were partially offset by declines in the U.K.

Cost of revenues

For the three months ended September 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 40.7% compared to the three months ended September 30, 2024, while revenues decreased by approximately 49.0%.

Cost of revenues as a percentage of revenues increased to 74.4% in the three months ended September 30, 2025 from 64.0% in the three months ended September 30, 2024.

Total cost of revenues in the three months ended September 30, 2025 decreased by $36.1 million compared to the same period in 2024.

This decrease was primarily attributable to a $7.0 million decrease in total compensation, a $24.7 million decline in subcontracted labor costs and a $4.8 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter, and a $2.3 million net decrease in other cost of revenues categories.

These decreases were partially offset by a $2.7 million increase in vehicle costs, due to an increase in expenses arising from prior-year insurance claims and increased reserves for future claims.

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended September 30, 2025 amounted to $17.1 million, down 69.2% from $55.5 million in the three months ended September 30, 2024.

Cost of revenues as a percentage of revenues increased to 82.6% from 61.2% in the prior year period, due to the decline in Mobile Health Services revenues, driven by the wind-down of migrant-related projects and lower margins from the early-stage care gap closure business.

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended September 30, 2025 amounted to $35.6 million, up 6.9% from $33.3 million in the three months ended September 30, 2024.

For the three months ended March 31, 2026, total cost of revenues (exclusive of depreciation and amortization) decreased by 20.7% compared to the three months ended March 31, 2025, while revenues decreased by approximately 21.4%.

Cost of revenues as a percentage of revenues increased to 68.5% in the three months ended March 31, 2026 from 67.9% in the three months ended March 31, 2025.

Total cost of revenues in the three months ended March 31, 2026 decreased by $13.5 million compared to the same period in 2025.

This decrease was primarily attributable to a $6.8 million decrease in total compensation and a $6.7 million decline in subcontracted labor costs, driven by the Mobile Health Services segment, due to the absence of migrant-related projects during the current year period.

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended March 31, 2026 amounted to $16.3 million, down 47.9% from $31.3 million in the three months ended March 31, 2025.

Cost of revenues as a percentage of revenues decreased to 69.1% from 69.2% in the prior year period, despite the decline in Mobile Health Services revenues from migrant-related projects, due to year-over-year growth in higher margin service lines, such as mobile phlebotomy and remote patient monitoring.

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended March 31, 2026 amounted to $35.4 million, up 4.4% from $33.9 million in the three months ended March 31, 2025.

Cost of revenues as a percentage of revenues increased to 68.2% from 66.7% in the prior year quarter, despite the revenue increase, due to increased compensation and higher vehicle costs.

Total compensation increased by 15.0% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain shifts in

some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors.

Costs for subcontractors declined by 38.1% when compared to last year’s third quarter, reflecting a planned reduction in the number of ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

Vehicle costs were driven higher partly due to increased insurance costs arising from prior period claims and increased reserves for future claims.

Total compensation increased by 8.2% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain shifts in some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors.

Costs for subcontractors declined by 27.7% when compared to last year’s first quarter, reflecting a planned reduction in the number of ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

Vehicle costs were driven higher primarily due to increased fuel costs, reflecting higher prices for gasoline in the month of March, which have continued into the second quarter.

Operating expenses

For the three months ended September 30, 2025, the Company recorded $60.1 million of operating expenses compared to $39.8 million for the three months ended September 30, 2024, an increase of 51.0%.

As a percentage of revenue, operating expenses increased from 28.7% in the third quarter of 2024 to 84.9% in the third quarter of 2025, reflecting the decrease in revenues described above, combined with the increase in operating expenses.

The increase of $20.3 million in operating expenses related primarily to several impairment charges for various intangible assets, including a $6.5 million impairment of the carrying value of the customer relationships for the Company’s Rapid Temps entity, an $8.7 million impairment of the goodwill related to the Rapid Temps entity, and a $1.5 million impairment of the carrying value of trade credits the Company had received in lieu of cash payment from a Mobile Health customer in a prior year period.

In addition, a $5.0 million increase in total compensation and a net $1.6 million increase spread across a variety of other operating expense categories were partially offset by a $3.0 million decrease in travel-related expenses due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects.

The Company anticipates that operating expenses will decline as certain ongoing cost-containment efforts take hold.

For the Mobile Health Services segment, operating expenses in the three months ended September 30, 2025 were $26.2 million, up 98.5% from $13.2 million in the three months ended September 30, 2024, reflecting increased investments made in the Company’s nascent care gap closure business and the impairments described above.

Operating expenses as a percentage of revenues increased to 126.6% in the third quarter of 2025, from 14.6% in the third quarter of 2024, reflecting the significant drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York.

For the Transportation Services segment, operating expenses in the three months ended September 30, 2025 were $15.6 million, up 5.4% from $14.8 million in the three months ended September 30, 2024.

Operating expenses as a percentage of revenues increased slightly, to 31.1% for the three months ended September 30, 2025 from 30.8% in the three months ended September 30, 2024.

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the three months ended September 30, 2025 were $18.3 million, up 55.1% from $11.8 million in the three months ended September 30, 2024, as higher stock compensation costs, insurance costs and professional fees outweighed a decline in subcontractor expenses.

Corporate expenses amounted to approximately 25.8% of total consolidated revenues in the third quarter of 2025, compared to 8.5% in the third quarter of 2024, reflecting the increased expenses and the decline in total consolidated revenues.

For the three months ended March 31, 2026, the Company recorded $42.5 million of operating expenses compared to $44.8 million for the three months ended March 31, 2025, a decrease of 5.1%.

As a percentage of revenue, operating expenses increased from 46.7% in the first quarter of 2025 to 56.3% in the first quarter of 2026, reflecting the decrease in revenues described above.

The decrease of $2.3 million in operating expenses related primarily to a decline of $1.5 million in total compensation, as a 27% reduction in compensation in the Corporate segment outweighed increases in the Mobile Health Services and Transportation Services segments.

For the Mobile Health Services segment, operating expenses in the three months ended March 31, 2026 were $11.0 million, down 3.5% from $11.4 million in the three months ended March 31, 2025, as the elimination of operating expenses related to the wound-down migrant-related projects outweighed investments made in the Company’s nascent care gap closure business and the inclusion of operating expenses from the SteadyMD business which was acquired in October 2025.

Operating expenses as a percentage of revenues increased to 46.6% in the first quarter of 2026, from 25.2% in the first quarter of 2025, reflecting the significant drop in Mobile Health Services revenues in relation to cessation of migrant-related projects in New York at the end of 2025.

For the Transportation Services segment, operating expenses in the three months ended March 31, 2026 were $16.8 million, up 7.0% from $15.7 million in the three months ended March 31, 2025.

Operating expenses as a percentage of revenues increased slightly, to 32.4% for the three months ended March 31, 2026 from 30.9% in the three months ended March 31, 2025, primarily due to increased compensation for non-field personnel, to support the ongoing growth of that segment.

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the three months ended March 31, 2026 were $14.7 million, down 16.9% from $17.7 million in the three months ended March 31, 2025, as reduced corporate headcount and lower subcontractor costs, relating to the Company’s ongoing cost-cutting efforts, outweighed an increase in professional fees outweighed a decline in subcontractor expenses.

Corporate expenses amounted to approximately 19.5% of total consolidated revenues in the first quarter of 2026, compared to 18.4% in the first quarter of 2025, reflecting the decline in total consolidated revenues.

Interest expense, net

During the three months ended September 30, 2025, the Company recorded a $0.2 million interest expense, net compared to a $0.5 million interest expense, net in three months ended September 30, 2024.

Interest expenses on borrowings under the Prior Revolving Facility outweighed interest earned on balances in the Company’s interest-bearing accounts in both of the three month periods ended September 30, 2025 and 2024.

During the three months ended March 31, 2026, the Company recorded a $0.1 million interest expense, net compared to a $0.4 million interest expense, net in the three months ended March 31, 2025.

Loss on change in fair value of contingent consideration

During the three months ended September 30, 2025, the Company recorded a $1,052,394 loss on the change in fair value of contingent consideration.

During the three months ended September 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $44,520.

Loss on equity method investments

During the three months ended September 30, 2025, the Company recorded a loss on equity method investments of

$27,035, representing its share of the losses incurred by an entity in which the Company has a minority interest.

During the three months ended September 30, 2024, the Company recorded a loss on equity method investments of $82,742.

During the three months ended March 31, 2026, the Company recorded a $2.8 million loss on the change in fair value of contingent consideration, reflecting an improved revenue outlook for the SteadyMD business, which was acquired in October 2025.

The Company did not record a change in fair value of contingent consideration during the three months ended March 31, 2025.

Insurance proceeds

During the three months ended March 31, 2026, the Company recorded $4.7 million in other income from insurance proceeds.

The Company did not record any insurance proceeds during the three months ended March 31, 2025.

The Company was reimbursed in the 2026 period for legal fees that were covered by the Company’s insurance policy.

Loss on equity method investment

The Company did not record a gain or loss on equity method investment for the three months ended March 31, 2026.

During the three months ended March 31, 2025, the Company recorded a loss on equity method investments of $40,698, representing its share of the losses incurred by an entity in which the Company has a minority interest.

(Loss) gain on disposal of fixed assets

During the three months ended March 31, 2026, the Company recorded a $62,493 loss on disposal of fixed assets compared to a $15,139 gain on disposal of fixed assets in three months ended March 31, 2025.

Other income (expense)

During the three months ended September 30, 2025, the Company recorded other income of $0.1 million, compared to other expense of $0.5 million in the three months ended September 30, 2024.

Benefit from (provision for) income taxes

During the three months ended September 30, 2025, the Company recorded an income tax benefit of $13.5 million, compared to an income tax provision of $4.5 million in the three months ended September 30, 2024.

The tax benefit in the current year period reflects the recording of a pretax loss, as compared to pretax income in the 2024 period.

Net loss attributable to noncontrolling interests

For the three months ended September 30, 2025, the Company had net loss attributable to noncontrolling interests of approximately $1.9 million, compared to net loss attributable to noncontrolling interests of approximately $1.0 million for the three months ended September 30, 2024.

Comparison of the Nine Months Ended September 30, 2025 and 2024

Nine Months Ended September 30, Change

$ in Millions 2025 2024

Actual Results % of Total Revenues Actual Results % of Total Revenues

Revenues, net $ 247.3 100.0 % $ 495.7 100.0 % $ (248.4) (50.1) %

Cost of revenues (exclusive of depreciation and amortization, which is shown separately below) 172.9 69.9 % 322.6 65.1 % (149.7) (46.4) %

Operating expenses:

General and administrative 94.3 38.2 % 103.7 20.9 % (9.4) (9.1) %

Depreciation and amortization 11.7 4.7 % 12.6 2.6 % (0.9) (7.1) %

Legal and regulatory 14.3 5.8 % 11.6 2.3 % 2.7 23.3 %

Technology and development 9.8 4.0 % 7.9 1.6 % 1.9 24.1 %

Sales, advertising and marketing 1.1 0.4 % 1.1 0.2 % — — %

Finite-lived intangible asset impairment 8.0 3.2 % — — % 8.0 100.0 %

Goodwill impairment 8.7 3.5 % — — % 8.7 100.0 %

Total expenses 320.8 129.7 % 459.5 92.7 % (138.7) (30.2) %

(Loss) income from operations (73.5) (29.7) % 36.2 7.3 % (109.7) (303.0) %

Other expense:

Interest expense, net (1.1) (0.4) % (1.4) (0.3) % 0.3 21.4 %

Loss on change in fair value of contingent consideration (1.1) (0.4) % (0.4) (0.1) % (0.7) (175.0) %

Loss on equity method investments (0.1) (0.1) % (0.2) — % 0.1 50.0 %

Other (expense) income (0.1) (0.1) % 0.1 — % (0.2) (200.0) %

Total other expense (2.4) (1.0) % (1.9) (0.4) % (0.5) (26.3) %

Net (loss) income before income tax benefit (expense) (75.9) (30.7) % 34.3 6.9 % (110.2) (321.3) %

Benefit from (provision for) income taxes 21.9 8.9 % (13.3) (2.7) % 35.2 264.7 %

Net (loss) income (54.0) (21.8) % 21.0 4.2 % (75.0) (357.1) %

Net loss attributable to noncontrolling interests (5.7) (2.3) % (2.2) (0.5) % (3.5) (159.1) %

Net (loss) income attributable to stockholders of DocGo Inc.

and Subsidiaries $ (48.3) (19.5) % $ 23.2 4.7 % $ (71.5) (308.2) %

For the nine months ended September 30, 2025, total revenues were $247.3 million, a decrease of $248.4 million, or 50.1%, compared to the nine months ended September 30, 2024.

Mobile Health Services

For the nine months ended September 30, 2025, Mobile Health Services revenues were $96.7 million, a decrease of $254.6 million, or 72.5%, compared to the nine months ended September 30, 2024.

The decline in revenues was due to the ongoing wind-down of migrant-related services, which had ramped up sharply in the third quarter of 2023 and peaked in the first quarter of 2024.

Starting in the second quarter of 2023, the Company began providing services to the recently arrived migrant population in New York City and in upstate New York.

These projects, which included both medical and non-medical services, such as shelter and security, expanded throughout the third and fourth quarters of 2023 and into the first quarter of 2024.

However, some of these services were provided pursuant to a contract with an ending date during the second quarter of 2024.

A portion of that contract was extended through December 31, 2024, while other services began to wind down in May 2024.

The wind-down of all services under such contract was completed in the fourth quarter of 2024.

The wind-down of the remaining migrant-related services under other contracts is nearly complete and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026.

Transportation Services

For the nine months ended September 30, 2025, Transportation Services revenues were $150.6 million, an increase of $6.2 million, or 4.3%, compared to the nine months ended September 30, 2024.

This increase was due to a 2.2% increase in U.S.

trip volumes, to 218,269 trips in the nine months ended September 30, 2025, from 213,475 trips for the nine months ended September 30, 2024.

The increase in trip volumes was due to a combination of growth in the Company’s customer base in certain core markets and increased volumes with existing customers.

Our average trip price increased slightly, to $400 in the nine months ended September 30, 2025, from $399 in the nine months ended September 30, 2024.

Cost of revenues

For the nine months ended September 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 46.4% compared to the nine months ended September 30, 2024, while revenues decreased by approximately 50.1%.

Cost of revenues as a percentage of revenues increased to 69.9% in the nine months ended September 30, 2025 from 65.1% in the nine months ended September 30, 2024.

Total cost of revenues in the nine months ended September 30, 2025 decreased by $149.7 million compared to the same period in 2024.

This decrease was primarily attributable to a $23.5 million decrease in total compensation, an $87.1 million decline in subcontracted labor costs and a $28.1 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter, a $1.9 million decline in travel-related costs for field employees, and a $9.1 million net decrease in other cost of revenues categories.

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the nine months ended September 30, 2025 amounted to $69.2 million, down 69.0% from $223.2 million in the nine months ended September 30, 2024.

Cost of revenues as a percentage of revenues increased to 71.6% from 63.5% in the prior year period, due to the decline in Mobile Health Services revenues, driven by the wind-down of migrant-related projects, and lower margins from the early-stage care gap closure business.

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in the nine months ended September 30, 2025 amounted to $103.7 million, up 4.3% from $99.4 million in the nine months ended September 30, 2024.

Cost of revenues as a percentage of revenues increased only slightly to 68.9% from 68.8% in the prior year period, as the increase in revenues was in line with the increase in cost of revenues.

Total compensation increased by 10.0% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain

shifts in some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors.

Costs for subcontractors declined by 38.9% when compared to the first nine months of last year, reflecting a planned reduction in the number of ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

Operating expenses

For the nine months ended September 30, 2025, the Company recorded $147.9 million of operating expenses compared to $136.9 million for the nine months ended September 30, 2024, an increase of 8.0%.

As a percentage of revenue, operating expenses increased from 27.6% in the first nine months of 2024 to 59.8% in the first nine months of 2025, primarily reflecting the decrease in revenues described above.

The increase of $11.0 million in operating expenses related to a $7.5 million increase in total compensation, a total of $16.7 million in impairment charges for intangible assets and goodwill in the third quarter of 2025 as described above, and a $2.6 million increase in professional fees due primarily to ongoing legal matters, which outweighed a $15.4 million decrease in travel-related expenses due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects and a net $0.4 million decrease spread across a variety of other operating expense categories.

The Company anticipates that operating expenses will decline as certain ongoing cost-containment efforts take hold.

For the Mobile Health Services segment, operating expenses in the nine months ended September 30, 2025 were $48.3 million, up 0.8% from $47.9 million in the nine months ended September 30, 2024.

Operating expenses as a percentage of revenues increased to 49.9% in the nine months ended September 30, 2025, from 13.6% in the nine months ended September 30, 2024, reflecting the drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York and the impairment described above.

For the Transportation Services segment, operating expenses in the nine months ended September 30, 2025 were $47.5 million, up 3.0% from $46.1 million in the nine months ended September 30, 2024.

Operating expenses as a percentage of revenues decreased to 31.5% for the nine months ended September 30, 2025 from 31.9% in the nine months ended September 30, 2024, due to the increased revenues in the current year period.

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the nine months ended September 30, 2025 were $52.1 million, up 21.4% from $42.9 million in the nine months ended September 30, 2024, reflecting higher total compensation and insurance and increased professional fees.

Corporate expenses amounted to approximately 21.1% of total consolidated revenues in the nine months ended September 30, 2025, compared to 8.7% in the nine months ended September 30, 2024, reflecting both the increase in absolute dollar expenses and the decline in total consolidated revenues.

Interest expense, net

For the nine months ended September 30, 2025, the Company recorded $1.1 million of interest expense, net, compared to $1.4 million in the nine months ended September 30, 2024.

Interest expenses on borrowings under the Prior Revolving Facility outweighed interest earned on balances in the Company’s interest-bearing accounts in both of the nine month periods ended September 30, 2025 and 2024.

However, net interest expense for the 2025 period was lower than in the 2024 period, reflecting the repayments of the amounts outstanding under the Prior Revolving Facility in August 2025.

Loss on change in fair value of contingent consideration

During the nine months ended September 30, 2025, the Company recorded a $1.1 million loss for the change in fair value of contingent consideration.

During the nine months ended September 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $0.4 million.

Loss on equity method investments

During the nine months ended September 30, 2025, the Company recorded a loss on equity method investments of $0.1 million, representing its share of the losses incurred by an entity in which the Company has a minority interest.

During the nine months ended September 30, 2024, the Company recorded a loss on equity method investments of $0.2 million.

Other (expense) income

During the nine months ended September 30, 2025, the Company recorded other expense of $0.1 million, compared to other income of $0.1 million in the nine months ended September 30, 2024.

Benefit from (provision for) income taxes

During the nine months ended September 30, 2025, the Company recorded an income tax benefit of $21.9 million, compared to an income tax provision of $13.3 million in the nine months ended September 30, 2024.

The recording of a tax benefit in the current period compared to a tax provision in the prior year period is due to the recording of a pretax loss in the current period compared to pretax income in the prior year period.

During the three months ended March 31, 2026, the Company recorded other income of $0.3 million, compared to other expense of $0.3 million in the three months ended March 31, 2025.

(Provision for) benefit from income taxes

During the three months ended March 31, 2026, the Company recorded an income tax expense of $19,283, compared to an income tax benefit of $3.7 million in the three months ended March 31, 2025.

Net loss attributable to noncontrolling interests

For the nine months ended September 30, 2025, the Company had net loss attributable to noncontrolling interests of approximately $5.7 million, compared to net loss attributable to noncontrolling interests of approximately $2.2 million for the nine months ended September 30, 2024.

For the three months ended March 31, 2026, the Company had net loss attributable to noncontrolling interests of approximately $1.9 million, compared to net loss attributable to noncontrolling interests of approximately $1.7 million for the three months ended March 31, 2025

Liquidity and Capital Resources

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The Company has also funded these activities through operating cash flows.

Despite the fact that the Company generated operating cash flow for the nine months ended September 30, 2025, operating cash flows are not always sufficient to meet immediate obligations arising from current operations.

Operating cash flows are not always sufficient to meet immediate obligations arising from current operations.

For example, as the business has grown, the Company’s expenditures for human capital and supplies have expanded accordingly, and the timing of the payments for payroll and to associated vendors, compared to the timing of receipts of cash from customers, frequently results in the need to use existing cash balances to fund working capital needs.

During the second half of 2023 and during the year ended December 31, 2024, as a greater proportion of the Company’s overall revenues were generated through services provided to municipal customers with long payment cycles, and expenditures made by the Company to allow for the provision of these services were substantial, operating cash flows were not sufficient to meet these demands for working capital, leading to a marked decline in the Company’s cash balances, which improved in the second half of 2024, as invoices were collected.

As more of these invoices are collected, the Company expects cash flows to be sufficient for near term working capital needs, even if further operating losses are generated.

During the year ended December 31, 2025, as the Company collected older invoices from municipal customers for services provided in 2024 and early 2025, operating cash flows were sufficient to outweigh the Company’s operating losses.

However, as most of these older invoices had been collected by the end of 2025, operating cash flows in 2026 might not be sufficient to cover operating losses and working capital demands.

The Company’s future working capital needs depend on many factors, including the overall growth of the Company and the various payment terms that are negotiated with customers and vendors.

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Capital requirements might also be affected by factors outside of the Company’s control, such as interest rates, rising inflation and other monetary and fiscal policy changes to the manner in which the Company currently operates.

If the Company’s growth rate is higher than is currently anticipated, resulting in greater-than-anticipated capital requirements, the Company might need to, or choose to, raise additional capital through debt or equity financings.

This last factor was evident at different times during 2023 and 2024, leading to a draw down in the Company’s credit line during the fourth quarter of 2023 and during the first quarter of 2024.

On November 1, 2022, the Company entered into the Prior Credit Agreement, which provided for the Prior Revolving Facility in the initial aggregate principal amount of $90.0 million.

The Prior Revolving Facility included the ability for the Company to request an increase to the commitment by an additional amount of up to $50.0 million, though no lender (nor the lenders collectively) was obligated to increase its respective commitments.

Borrowings under the Prior Revolving Facility bore interest at a per annum rate equal to (i) at the Company’s option, (x) the base rate or (y) the adjusted term SOFR rate, plus (ii) the applicable margin.

The applicable margins were based on the Company’s consolidated net leverage ratio, adjusted on a quarterly basis.

The initial applicable margins were 1.25% for an adjusted term SOFR loan and 0.25% for a base rate loan and were updated based on the Company’s consolidated net leverage ratio.

The Prior Revolving Facility was scheduled to mature on November 1, 2027 and was secured by a first-priority lien on substantially all of the

Company’s present and future personal assets and intangible assets.

The Prior Revolving Facility was subject to certain financial covenants, such as a net leverage ratio and interest coverage ratio, as defined in the Prior Credit Agreement.

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Borrowings under the Revolving Facility bear interest at a per annum rate equal to:

(i) at the Company’s option, (x) the base rate or (y) the adjusted term SOFR rate, plus (ii) the applicable margin.

(i) at the Company’s option, (x) the base rate or (y) the adjusted term

SOFR rate, plus (ii) the applicable margin.

The applicable margin for an adjusted term SOFR loan is 2.00% and the applicable margin for a base rate loan is 1.00%.

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The Credit Agreement is secured by a first-priority lien on substantially all of the Company’s present and future personal assets and intangible assets.

The Credit Agreement is subject to a certain minimum liquidity financial covenant, as defined in the Credit Agreement.

There were no amounts outstanding under the Revolving Facility as of the date of this Quarterly Report on Form 10-Q.

Considering the foregoing, the Company anticipates that its existing balances of cash and cash equivalents, future expected cash flows generated from its operations and amounts available under the Revolving Facility will be sufficient to satisfy operating requirements for at least the next twelve months.

Looking beyond the next twelve months, the Company anticipates that expected future cash flows, amounts available under the Revolving Facility and proceeds from potential additional financings will be sufficient to satisfy any operating and potential investing requirements.

The Credit Agreement is subject to a certain minimum liquidity financial covenant based on the prior twelve months’ cash burn and the Company’s available cash balances and borrowing ability under the Credit Agreement.

As of December 31, 2025, the Company was no longer in compliance with such covenant under the Credit Agreement.

The Company is currently in active discussions with its lender to reach a resolution regarding the covenant non-compliance and to preserve its ability to draw from the Revolving Facility as needed.

There can be no assurance that the Company will be successful in reaching a resolution or that the Revolving Facility will remain available;

however, these discussions are still progressing as of March 31, 2026.

Considering the foregoing, including historical operating losses, the projected liquidity deficit, and the covenant non-compliance under the Credit Agreement, the Company, together with its Board of Directors, has reviewed and extensively discussed certain plans intended to reduce cash utilization and operating costs, including transitioning a larger portion of bonus compensation from cash to Company stock, intensified collection efforts focused on closing out open municipal receivables from ended contracts, reducing headcount, and delayed spending on certain business growth strategies, as well as utilizing the Revolving Facility, subject to obtaining the necessary waiver from its lender.

While these plans carry meaningful inherent risk to operations, the Company’s management and the Board of Directors have evaluated these conditions in totality and conclude it is probable that, when implemented, the plans will be sufficient to alleviate substantial doubt about the Company’s ability to continue as a going concern for the next twelve months.

See Note 2, “Summary of Significant Accounting Policies - Liquidity and Going Concern” for further information.

Capital Resources

Working capital as of September 30, 2025 and December 31, 2024 was as follows:

September 30 December 31 Change

$ in Millions 2025 2024

Working capital as of March 31, 2026 and December 31, 2025 was as follows:

$ in Millions March 31,

2026 December 31,

Working capital

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Total working capital $ 61.0 $ 84.9 $ (23.9) (28.2) %

As of September 30, 2025, available cash totaled $73.4 million, which represented a decrease of $15.9 million compared to December 31, 2024, as a net loss and repayment of $30.0 million in outstanding borrowings under the Prior Credit Agreement outweighed the impact of increased collections, which led to a decline in accounts receivable during the nine months ended September 30, 2025.

As of September 30, 2025, working capital amounted to $116.6 million, which represented a decrease of $66.1 million compared to December 31, 2024, as a large decline in accounts receivable and a decline in cash outweighed a decline in accounts payable.

Current assets declined by $114.3 million, due primarily to the large drop in accounts receivable, as well as the declines in cash, slightly offset by an increase in other current assets and a small increase in prepaid expenses.

Cash flows as of the nine months ended September 30, 2025 and 2024 were as follows:

Nine Months Ended September 30, Change

As of March 31, 2026, available cash totaled $35.7 million, which represented a decrease of $15.3 million compared to December 31, 2025, primarily reflecting the net loss recorded during the three months ended March 31, 2026.

As of March 31, 2026, working capital amounted to $61.0 million, which represented a decrease of $23.9 million compared to December 31, 2025, reflecting the decline in cash, accompanied by increases in accounts payable and the current portion of contingent consideration.

Current assets declined by $14.2 million, due primarily to the decline in cash as well as a decrease in other current assets.

Cash flows for the three months ended March 31, 2026 and 2025 were as follows:

Three Months Ended March 31, Change

$ in Millions 2026 2025

Cash flow summary

Net cash provided by operating activities $ 44.9 $ 57.4 $ (12.5) (21.8) %

Net cash used in investing activities (26.0) (5.2) (20.8) (400.0) %

Net cash (used in) provided by operating activities $ (4.7) $ 9.2 $ (13.9) (151.1) %

Net cash provided by (used in) investing activities 1.7 (5.3) 7.0 132.1 %

Net cash used in financing activities (2.5) (8.5) 6.0 70.6 %

Effect of exchange rate changes (0.2) 0.3 (0.5) (166.7) %

Net (decrease) increase in cash $ (29.7) $ 36.4 $ (66.1) (181.6) %

Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents $ (5.7) $ (4.3) $ (1.4) (32.6) %

Operating Activities

During the nine months ended September 30, 2025, operating activities provided $44.9 million of cash, despite a net loss of $54.0 million.

Non-cash charges amounted to $25.0 million and included $14.3 million of stock compensation expense, $8.7 million goodwill impairment, $8.0 million of finite-lived asset impairment, $7.5 million in depreciation of property and equipment and right-of-use assets, $4.2 million from amortization of intangible assets, bad debt expense of $3.7 million, loss on change in fair value of contingent consideration of $1.0 million and a loss on equity method investment of $0.1 million.

During the three months ended March 31, 2026, operating activities used $4.7 million of cash, due to a net loss of $16.7 million.

Non-cash charges amounted to $10.1 million and included $3.2 million of stock compensation expense, a loss on change in fair value of contingent consideration of $2.8 million, a $2.6 million in depreciation of property and equipment and right-of-use assets, bad debt expense of $1.7 million, and a loss on disposal of fixed asset of $0.1 million.

These were partially offset by $0.2 million in deferred taxes and $0.1 million in accretion of discount related to restricted investments.

Changes in assets and liabilities resulted in approximately $73.9 million in positive operating cash flow, as a $100.7 million decrease in accounts receivable, reflecting collections of older invoices from large municipal customers, a $1.0 million decrease in other assets, and a $0.4 million increase in operating lease liabilities and right-of-use assets were partially offset by a $20.2 million decrease in accounts payable, $5.4 million increase in prepaid expenses and other current assets and a $2.6 million decrease in accrued liabilities.

During the nine months ended September 30, 2024, operating activities provided $57.4 million of cash, aided by net income of $21.0 million.

Non-cash charges amounted to $21.5 million and included $9.7 million of stock compensation expense, $7.7 million in depreciation of property and equipment and right-of-use assets, $4.9 million from amortization of intangible assets, bad debt expense of $3.8 million, a change in the fair value of contingent consideration of $0.4 million, and a loss of $0.2 million from an investment that is accounted for under the equity method.

Changes in assets and liabilities resulted in approximately $1.9 million in positive operating cash flow, as a $2.7 million increase in accounts payable, a $1.9 million increase in accrued liabilities and a $0.1 million increase in operating lease liabilities and right-of-use assets were partially offset by a $2.8 million increase in accounts receivable.

During the three months ended March 31, 2025, operating activities provided $9.2 million of cash, despite a net loss of $11.1 million.

Non-cash charges amounted to $6.0 million and included $4.8 million of stock compensation expense, $2.5 million in depreciation of property and equipment and right-of-use assets, $1.3 million from amortization of intangible assets, bad debt expense of $1.2 million, and a loss of $0.1 million from an investment that is accounted for under the equity method.

These were partially offset by $3.9 million in deferred taxes.

Changes in assets and liabilities resulted in approximately $14.9 million in positive operating cash flow, as a $19.8 million decline in accounts receivable, reflecting collections of invoices from large municipal customers, a $12.3 million decrease in prepaid expenses and other current assets, and a $15.3 million increase in accounts payable outweighed a $31.5 million decline in accrued liabilities and a $1.0 million increase in other assets.

Changes in assets and liabilities resulted in approximately $14.3 million in positive operating cash flow, as a $31.4 million decline in accounts receivable, reflecting collections of invoices from large municipal customers, a $0.5 million decrease in other assets, and a $0.2 million positive impact of operating lease liabilities and right-of-use assets were partially offset by a $9.1 million decrease in accrued liabilities, a $8.3 million decrease in accounts payable, and a $0.4 million increase in prepaid expenses and other current assets.

Investing Activities

During the nine months ended September 30, 2025, investing activities used $26.0 million of cash and restricted cash and consisted of the purchase of restricted investments of $24.7 million, the acquisition of a business of $3.6 million, the purchase of property and equipment totaling approximately $3.0 million, and the acquisition of intangibles of $2.3 million, partially offset by $7.4 million in proceeds from the sale of restricted investments and $0.2 million in cash proceeds from the disposal of property and equipment.

During the nine months ended September 30, 2024, investing activities used $5.2 million of cash and consisted of the purchase of property and equipment totaling approximately $2.9 million, the acquisition of intangibles in the amount of $2.2 million and the purchase of an equity method investment in the amount of $0.3 million, partially offset by $0.2 million in cash proceeds from the disposal of property and equipment.

During the three months ended March 31, 2026, investing activities provided $1.7 million of cash and restricted cash and consisted of the purchase of restricted investments of $1.7 million, the purchase of intangibles of $0.7 million and the purchase of property and equipment totaling approximately $0.4 million, which were outweighed by $4.5 million in proceeds from the sale and maturity of restricted investments.

During the three months ended March 31, 2025, investing activities used $5.3 million of cash and consisted of the acquisition of a business for $3.7 million, the purchase of property and equipment totaling approximately $1.0 million, and the purchase of intangibles in the amount of $0.7 million, partially offset by $0.1 million in cash proceeds from the disposal of property and equipment

Financing Activities

During the nine months ended September 30, 2025, financing activities used $48.9 million of cash, as the Company spent $30.0 million on the repayment of the Prior Revolving Facility, spent approximately $10.8 million on its share repurchase program, made $4.0 million in payments under the terms of a finance lease, made $1.9 million in earnout payments on contingent liabilities, paid $1.4 million in taxes related to shares withheld for employee taxes, made $0.9 million in

payments due to seller, and made $0.2 million in distributions to noncontrolling interests, partially offset by $0.3 million in proceeds from notes payable.

During the nine months ended September 30, 2024, financing activities used $16.3 million of cash, as $45.0 million in proceeds from the Prior Revolving Facility were mostly offset by $40.0 million in repayments of the Prior Revolving Facility.

In addition, the Company spent approximately $11.1 million on its share repurchase program, $3.1 million in payments under the terms of a finance lease, $3.0 million in payments of amounts due to seller, $1.8 million in the acquisition of noncontrolling interest , $1.6 million in earnout payments on contingent liabilities, $0.3 million in dividends paid to a noncontrolling interest, and $0.4 million in taxes related to shares withheld for employee taxes.

Future minimum annual maturities of notes payable as of September 30, 2025 are as follows (in thousands):

During the three months ended March 31, 2026, financing activities used $2.5 million of cash, as the Company made $1.4 million in payments under the terms of finance leases and made $1.1 million in distributions to noncontrolling interests.

During the three months ended March 31, 2025, financing activities used $8.5 million of cash, as the Company spent approximately $5.7 million on its share repurchase program, made $1.3 million in payments under the terms of finance leases, paid $1.2 million in taxes related to shares withheld for employee taxes, and made $0.3 million in earnout payments on contingent liabilities.

Future minimum annual maturities of notes payable as of March 31, 2026 are as follows (in thousands):

Notes Payable

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Long-term portion of notes payable $ 171.7

Future minimum lease payments under finance leases as of September 30, 2025 are as follows (in millions):

Future minimum lease payments under finance leases as of March 31, 2026 are as follows (in millions):

Finance Leases

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Present value of future minimum lease payments $ 17.4

Future minimum lease payments under operating leases as of September 30, 2025 are as follows (in millions):

Future minimum lease payments under operating leases as of March 31, 2026 are as follows (in millions):

2026, remaining $ 3.8

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Moreover, the PCs do not have sufficient equity to finance their activities without additional subordinated financial support.

Based on the foregoing, these entities are considered VIEs, and an enterprise having a controlling financial interest in a VIE must consolidate the VIE if it is the primary beneficiary, meaning it has (1) the power to direct the activities of the VIE that most significantly impacts the VIE’s economic performance (power) and (2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE (benefits).

to direct the activities of the VIE that most significantly impacts the VIE’s economic performance (power) and (2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE (benefits).

In accordance with corporate practice of medicine restrictions, all clinical treatment decisions are made solely by licensed healthcare professionals engaged by the PCs.

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The Company has therefore determined that it is the primary economic beneficiary of the PCs and appropriately consolidates them as VIEs.

Net loss for the Company’s VIEs was $2,111,569 and $67,785 for the three months ended September 30, 2025 and 2024, respectively, and $6,216,018 and $425,668 for the nine months ended September 30, 2025 and 2024, respectively.

Total assets, exclusive of intercompany assets, amounted to $6,985,326 and $3,122,209 as of September 30, 2025 and December 31, 2024, respectively.

Total liabilities, exclusive of intercompany liabilities, were $13,880,879 and $3,801,744 as of September 30, 2025 and December 31, 2024, respectively.

The Company’s VIEs’ total stockholders’ deficit was $6,895,553 and $679,535 as of September 30, 2025 and December 31, 2024, respectively.

Net loss for the Company’s VIEs was $1,767,756 and $1,711,511 for the three months ended March 31, 2026 and 2025, respectively.

Total assets, exclusive of intercompany assets, amounted to $10,270,219 and $7,039,301 as of March 31, 2026 and December 31, 2025, respectively.

Total liabilities, exclusive of intercompany liabilities, were $22,781,072 and $17,782,198 as of March 31, 2026 and December 31, 2025, respectively.

The Company’s VIEs’ total stockholders’ deficit was $12,510,853 and $10,742,897 as of March 31, 2026 and December 31, 2025, respectively.

Self-Insurance Reserves

12 unchanged sentences

Unobservable inputs which are supported by little or no market activity and values determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2025 and December 31, 2024.

Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2026 and December 31, 2025.

For certain financial instruments, including cash, accounts receivable, prepaid expenses, other current assets, restricted cash, accounts payable, accrued expenses, and due to seller, the carrying amounts approximate their fair values as it is short term in nature.

3 unchanged sentences

Level 3 instruments are valued based on unobservable inputs that are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value.

Future changes in fair value of the contingent consideration, as a result of changes in significant inputs such as the discount rate and estimated probabilities of financial milestone achievements, could have a material effect on the unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income and unaudited Condensed Consolidated Balance Sheets in the period of the change.

Future changes in fair value of the contingent consideration, as a result of changes in significant inputs such as the discount rate and estimated probabilities of financial milestone achievements, could have a material effect on the unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss and unaudited Condensed Consolidated Balance Sheets in the period of the change.

Accounts Receivable

15 unchanged sentences

As of January 1, 2026, the Company held a beginning balance in its allowance for credit losses on accounts receivable of $8,299,053.

The Company recognized an additional provision for credit losses and write offs of $1,255,945 and $(1,649,986), respectively, for the three months ended September 30, 2025, and $3,760,623 and $(3,936,018), respectively, for the nine months ended September 30, 2025.

The Company’s balance in its allowance for credit losses amounted to $5,698,547 as of September 30, 2025.

The Company recognized an additional provision for credit losses and write offs of $1,727,270 and $(1,522,564), respectively, for the three months ended March 31, 2026.

The Company’s balance in its allowance for credit losses amounted to $8,503,759 as of March 31, 2026.

Business Combinations

10 unchanged sentences

Management uses assumptions on the basis of historical knowledge of the business and projected financial information of the target.

These assumptions may vary based on future events, perceptions of different market participants and other factors outside the control of management, and such variations may be significant to estimated values.

These assumptions may vary based on future

events, perceptions of different market participants and other factors outside the control of management, and such variations may be significant to estimated values.

Impairment of Long-Lived Assets

10 unchanged sentences

(iii) current, historical or projected deterioration of our financial performance;

or (iv) a sustained decrease in our market capitalization, as indicated by our publicly quoted share price, below our net carrying value.

or (iv) a sustained decrease in the Company’s market capitalization, as indicated by the Company’s publicly quoted share price, below its net carrying value.

Revenue Recognition

23 unchanged sentences

Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740.

accounts for uncertain tax positions in accordance with the provisions of ASC 740.

When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority.

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis