Q4 2025 DocGo Inc Earnings Call

March 16, 2026

Speaker #2: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator.

Speaker #2: This call is being recorded on March 16, 2026. I would now like to turn the conference over to Mr. Mike Cole, Vice President, Investor Relations.

Speaker #2: Please go ahead. Thank you, operator. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. While 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.

Mike Cole: Thank you, operator. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. While 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.

Speaker #2: 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.

Speaker #2: 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.

Mike Cole: These risks, uncertainties, and assumptions include but are not limited to those discussed in risk factors and elsewhere in DocGo'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 DocGo 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 in 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 the earnings release and the current report on Form 8-K which is posted on our website, excuse me, docgo.com, as well as filed with the SEC. The information contained in this call is accurate as of only the date discussed.

Speaker #2: These risks, uncertainties, and assumptions include, but are not limited to, those discussed in Risk Factors and elsewhere in DocGo'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 DocGo with the SEC, to which your attention is directed.

Speaker #2: Actual outcomes and results or timing of results or outcomes may differ materially from what is expressed or implied in 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 the earnings release and the current report on Form 8-K that included in which is posted on our website excuse me, docgo.com, as well as filed with the SEC.

Speaker #2: 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.

Mike Cole: Investors should not assume that statements will remain relevant and operative at a later time. We undertake no obligation to update, excuse me once again, 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 Bienstock, CEO of DocGo. Lee, please go ahead.

Speaker #2: We undertake no obligation to update, excuse me once again, 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 to the extent required by law.

Speaker #2: At this time, it is now my pleasure to turn the call over to Mr. Lee Bienstock, CEO of DocGo. Please go ahead.

Lee Bienstock: Thank you, Mike, and thank you all for joining us. Today, we announced a strong close to the year, reporting $74.9 million in Q4 revenue and an adjusted EBITDA loss of $11.6 million. While our revenue exceeded expectations and enabled us to beat the top end of our revenue guidance, our adjusted EBITDA loss was slightly greater than expected, largely due to costs associated with the final wind down of our migrant-related programs in the Q4, which we do not expect to recur going forward. Additionally, on the back of new customer expansions and improved hiring rates, we are increasing 2026 revenue guidance to $290 to 310 million compared to our previous guidance of $280 to 300 million.

Speaker #3: Thank you, Mike, and thank you all for joining us. Today, we announced a strong close to the year, reporting $74.9 million in fourth quarter revenue and an adjusted EBITDA loss of $11.6 million.

Speaker #3: While our revenue exceeded expectations and enabled us to beat the top end of our revenue guidance, our adjusted EBITDA loss was slightly greater than expected.

Speaker #3: Largely due to costs associated with the final wind-down of our migrant-related programs in the fourth quarter, which we do not expect to recur going forward.

Speaker #3: Additionally, on the back of new customer expansions and improved hiring rates, we are increasing 2026 revenue guidance to $290 to $310 million compared to our previous guidance of $280 to $300 million. When combined with our cost-efficiency initiatives, we are now expecting an adjusted EBITDA loss of $5 to $10 million compared to our previously projected adjusted EBITDA loss of $15 to $25 million.

Lee Bienstock: When combined with our cost efficiency initiatives, we are now expecting an adjusted EBITDA loss of $5 to 10 million compared to our previously projected adjusted EBITDA loss of $15 to 25 million. I'd like to take a few minutes and cover the details driving this improved outlook. First, we are seeing an absolutely stellar performance from our virtual care offering, SteadyMD. During Q4, SteadyMD exceeded $8 million in revenue for the first time in its history, beating the previous quarterly high by approximately $1 million. As we did not acquire SteadyMD until late October, we recorded $6.1 million in DocGo's Q4 results. At the same time, SteadyMD's full year-over-year gross margins improved from approximately 30% to 37%, with additional gains expected in 2026.

Speaker #3: I'd like to take a few minutes and cover the details driving this improved outlook. First, we are seeing an absolutely stellar performance from our virtual care offering, SteadyMD.

Speaker #3: During the fourth quarter, SteadyMD exceeded $8 million in revenue for the first time in its history, beating the previous quarterly high by approximately $1 million.

Speaker #3: As we did not acquire SteadyMD until late October, we recorded $6.1 million in DocGo's fourth quarter results. At the same time, SteadyMD's full year-over-year gross margins improved from approximately 30% to 37%, with additional gains expected in 2026.

Lee Bienstock: Our integration efforts remain on track, and we are aiming to consolidate provider networks so that SteadyMD clinicians will be able to provide care for patients across DocGo's mobile health offerings by the end of Q2. For the full year 2025, SteadyMD exceeded 4 million patient interactions consisting of approximately 3 million lab orders and 1 million synchronous and asynchronous telehealth visits. That compares to approximately 2.5 million patient interactions in 2024, which consisted of approximately 2 million lab orders and 500,000 synchronous and asynchronous telehealth visits. The Q4 performance was exceptional, and we anticipate this strong growth to continue, driven by the recent announcement of major customer expansions to meet the needs of our customers' branded GLP-1 weight loss programs.

Speaker #3: Our integration efforts remain on track, and we are aiming to consolidate provider networks so that steady MD clinicians will be able to provide care for patients across DocGo's mobile health offerings by the end of the second quarter.

Speaker #3: For the full year 2025, SteadyMD exceeded 4 million patient interactions, consisting of approximately 3 million lab orders and 1 million synchronous and asynchronous telehealth visits.

Speaker #3: That compares to approximately 2.5 million patient interactions in 2024, which consisted of approximately 2 million lab orders and 500,000 synchronous and asynchronous telehealth visits.

Speaker #3: The fourth quarter performance was exceptional, and we anticipate this strong growth to continue, driven by the recent announcement of major customer expansions to meet the needs of our customers' branded GLP-1 weight loss programs.

Lee Bienstock: Second, we are seeing considerable improvement in our hiring rates to support strong demand in our medical transportation segment, allowing us to outsource fewer rides and recognize the associated revenue. I want to be clear: we still have considerable work to do, but we have filled 206 EMT and paramedic roles out of the 546 that were open at the end of last quarter. In Q4, we saw overtime rates in this segment in the teens above our target in the mid-single digits. We are seeing this overtime rate gradually decline as hiring continues to improve, which we expect will provide some additional margin improvement potential as we progress through the year. I am extremely enthusiastic about the progress we are making to bring the doctor's office into the patient's living room and the continued strength in key volume metrics across our business.

Speaker #3: Second, we are seeing considerable improvement in our hiring rates to support strong demand in our medical transportation segment, allowing us to outsource fewer rides and recognize the associated revenue.

Speaker #3: I want to be clear, we still have considerable work to do, but we have filled 206 ENT and paramedic roles out of the 546 that were open at the end of last quarter.

Speaker #3: In Q4, we saw overtime rates in this segment in the teens, above our target in the mid-single digits. We are seeing this overtime rate gradually decline as hiring continues to improve, which we expect will provide some additional margin improvement potential as we progress through the year.

Speaker #3: I am extremely enthusiastic about the progress we are making to bring the doctor’s office into the patient’s living room, and the continued strength in key volume metrics across our business.

Lee Bienstock: For example, when we compare our Q4 2025 metrics to Q4 2024, medical transportation trips increased 11%, healthcare in the home visits were up 113%, mobile phlebotomy visits were up 16%, remote patients monitored increased 16%, and telehealth and lab orders were up 50%. We also continued expanding our care gap closure programs with one of our top ten national insurance payer customers to provide annual preventative exams in the state of Kentucky, which is expected to launch later this month. We are working with this payer across California, in New Mexico, and now Kentucky. For our care gap closure program as a whole, we saw a 12% sequential gain in the number of assigned lives, increasing from 1.3 million last quarter to over 1.45 million currently.

Speaker #3: For example, when we compare our Q4 2025 metrics to Q4 2024, medical transportation trips increased 11%, healthcare in the home visits were up 113%, mobile phlebotomy visits were up 16%, remote patients monitored increased 16%, and telehealth and lab orders were up 50%.

Speaker #3: We also continued to expand our care gap closure programs with one of our top 10 national insurance payer customers to provide annual preventative exams in the state of Kentucky.

Speaker #3: which is expected to launch later this month. We are working with this payer across California, in New Mexico, and now Kentucky. For our care gap closure program as a whole, we saw a 12% sequential gain in the number of assigned lives, increasing from 1.3 million last quarter to over 1.45 million currently.

Lee Bienstock: As we grow our business with insurance payers, we continue to refine our approach to care delivery in a manner that drives efficiency and maintains our exceptionally high customer satisfaction rate, which was measured at an NPS score of 92 as of 1 March. To that end, we're planning to leverage SteadyMD's clinical network to provide the virtual portions of our visits starting in Q2, and we continue expanding our use of agentic AI and workflow automation for administrative and patient support functions. While we will continue to invest in this business, we expect that level of investment to decline considerably as early markets mature and become more self-sustaining, reducing the cash outlay in 2026.

Speaker #3: As we grow our business with insurance payers, we continue to refine our approach to care delivery in a manner that drives efficiency and maintains our exceptionally high customer satisfaction rate, which was measured at an NPS score of 92 as of March 1.

Speaker #3: To that end, we're planning to leverage SteadyMD's clinical network to provide the virtual portions of our visits starting in Q2, and we continue expanding our use of agentic AI and workflow automation for administrative and patient support functions.

Speaker #3: While we will continue to invest in this business, we expect that level of investment to decline considerably as early markets mature and become more self-sustaining, reducing the cash outlay in 2026.

Lee Bienstock: Our goal is to grow this business, which we believe has significant future strategic value, in an efficient manner that both minimizes investment and supports our goal of achieving profitability in the second half of 2026. Our remote patient monitoring business was another bright spot during Q4, generating record revenue of $4 million and $830,000 in adjusted EBITDA for the period. This performance was driven by a 16% increase in the number of patients monitored when compared to the same period in 2024, with strong growth in our virtual care management offering. We are seeing substantial margin gains in this business as greater economies of scale are achieved, and we expect continued improvements in profitability over the balance of 2026. Additionally, we launched our efficiency innovation portfolio in Q4.

Speaker #3: Our goal is to grow this business, which we believe has significant future strategic value, in an efficient manner that both minimizes investment and supports our goal of achieving profitability in the second half of 2026.

Speaker #3: Our remote patient monitoring business was another bright spot during the fourth quarter, generating record revenue of $4.0 million and $830,000 in adjusted EBITDA for the period.

Speaker #3: This performance was driven by a 16% increase in the number of patients monitored when compared to the same period in 2024, with strong growth in our virtual care management offering.

Speaker #3: We are seeing substantial margin gains in this business as greater economies of scale are achieved, and we expect continued improvements in profitability over the balance of 2026.

Speaker #3: Additionally, we launched our efficiency innovation portfolio in Q4. This is a collection of more than a dozen projects designed to increase efficiency and create more operating leverage in our P&L.

Lee Bienstock: This is a collection of more than a dozen projects designed to increase efficiency and create more operating leverage in our P&L. These projects span our medical transportation, mobile health, and corporate segments and are anticipated to deliver approximately $5 to 6 million of savings in 2026 and approximately $20 to 24 million of savings in 2027 when we experience the full annual benefit of these projects. Central to this work is our use of technology, which has always been a focus and key differentiator for DocGo. We've already incorporated agentic patient outreach into our proprietary Dara ordering and routing platform, and we introduced automation into our pre-billing function to increase efficiency. We're planning to expand these initiatives and bring others online in the coming months. I look forward to sharing more about these efforts on future calls.

Speaker #3: These projects span our medical transportation, mobile health, and corporate segments, and are anticipated to deliver approximately $5 to $6 million of savings in 2026, and approximately $20 to $24 million of savings in 2027 when we experience the full annual benefit of these projects.

Speaker #3: Central to this work is our use of technology, which has always been a focus and key differentiator for DocGo. We've already incorporated agentic patient outreach into our proprietary DARA ordering and routing platform, and we introduced automation into our pre-billing function to increase efficiency.

Speaker #3: We're planning to expand these initiatives and bring others online in the coming months. I look forward to sharing more about these efforts on future calls.

Lee Bienstock: We shared in our earnings release earlier today that DocGo has initiated a process to explore a range of strategic alternatives designed to maximize shareholder value. We make no assurance that this process will yield positive results or that any transaction may be identified or undertaken. Finally, I'm often asked when DocGo will achieve profitability, and I always say it's a confluence of three key components. Our top-line revenue, our gross margin, and our SG&A. With regards to revenue, we continue to see strong demand for our services and top-line growth across our volume metrics. Our gross margin is improving due to our progress in hiring and reducing our overtime costs. We expect our SG&A to improve as our efficiency innovation portfolio projects take shape and make a real impact. At this time, I will now hand it over to Norm to review the financials. Norm, please go ahead.

Speaker #3: We shared in our earnings release earlier today that DocGo has initiated a process to explore a range of strategic alternatives designed to maximize shareholder value.

Speaker #3: We make no assurance that this process will yield positive results or that any transaction may be identified or undertaken. Finally, I'm often asked when DocGo will achieve profitability.

Speaker #3: And I always say it's a confluence of three key components: our top-line revenue, our gross margin, and our SG&A. With regards to revenue, we continue to see strong demand for our services and top-line growth across our volume metrics.

Speaker #3: Our gross margin is improving due to our progress in hiring and reducing our overtime costs. And we expect our SG&A to improve as our efficiency innovation portfolio projects take shape and make a real impact.

Speaker #3: At this time, I will now hand it over to Norm to review the financials. Norm, please go ahead.

Norman Rosenberg: Thank you, Lee, and good afternoon. Total revenue for the Q4 of 2025 was $74.9 million compared to $120.8 million in the Q4 of 2024. The year-over-year revenue decline was entirely due to the wind-down of migrant-related projects. Removing migrant-related revenues in both periods, we saw a revenue increase of 11% year-over-year in Q4. For the full year, total revenue amounted to $322.2 million in 2025 compared to $616.6 million in 2024. Medical transportation services revenue increased to $50.2 million in Q4 of 2025 from $49.1 million in transport revenues that we recorded in the Q4 of 2024.

Speaker #2: Thank you, Lee, and good afternoon. Total revenue for the fourth quarter of 2025 was $74.9 million, compared to $120.8 million in the fourth quarter of 2024.

Speaker #2: The year-over-year revenue decline was entirely due to the wind-down of migrant-related projects. Removing migrant-related revenues in both periods, we saw a revenue increase of 11% year-over-year in Q4.

Speaker #2: For the full year, total revenue amounted to $322.2 million in 2025, compared to $616.6 million in 2024. Medical transportation services revenue increased to $50.2 million in Q4 of 2025, from $49.1 million in transport revenues that we recorded in the fourth quarter of 2024.

Norman Rosenberg: Revenues were driven higher by gains in both large and small US markets, with some of the strongest growth in markets like New York, Texas, and Tennessee. Mobile health revenue for Q4 2025 was $24.8 million, down from $71.8 million in Q4 last year, driven by the wind-down of migrant revenues. Included in this year's amount was approximately $7.4 million in migrant-related revenues. Non-migrant mobile health revenues increased by 47%, driven by increases in care gap closures, remote patient monitoring, and mobile phlebotomy, and by the inclusion of two months of revenues from SteadyMD, which we acquired on 20 October.

Speaker #2: Revenues were driven higher by gains in both large and small U.S. markets, with some of the strongest growth in markets like New York, Texas, and Tennessee.

Speaker #2: Mobile Health revenue for the fourth quarter of 2025 was $24.8 million, down from $71.8 million in the fourth quarter of last year, driven by the wind-down of migrant revenues.

Speaker #2: Included in this year's amount was approximately $7.4 million in migrant-related revenues. Non-migrant mobile health revenues increased by 47%, driven by increases in care gap closures, remote patient monitoring, and mobile phlebotomy, and by the inclusion of two months of revenues from SteadyMD, which we acquired on October 20th.

Norman Rosenberg: Adjusted EBITDA for Q4 2025 was a loss of $11.3 million compared to adjusted EBITDA of $1.1 million in Q4 2024. For the full year, the adjusted EBITDA loss was $28.6 million in 2025 compared to adjusted EBITDA of $60 million in 2024. The adjusted gross margin, which removes the impact of depreciation and amortization and is the measure of margins that we track most closely, was 32.5% in Q4 2025 compared to 33.5% in Q4 2024.

Speaker #2: Adjusted EBITDA for the fourth quarter of 2025 was a loss of $11.3 million, compared to adjusted EBITDA of $1.1 million in the fourth quarter of 2024.

Speaker #2: For the full year, the adjusted EBITDA loss was $28.6 million in 2025, compared to adjusted EBITDA of $60 million in 2024. The adjusted gross margin, which removes the impact of depreciation and amortization and is the measure of margins that we track most closely, was 32.5% in the fourth quarter of 2025, compared to 33.5% in the fourth quarter of 2024.

Norman Rosenberg: During Q4 of 2025, adjusted gross margins for the medical transportation segment were 32.8% compared to 30.1% in Q4 of 2024, and the highest gross margins that we've seen in that segment since Q1 of 2024. Despite these improvements, medical transportation gross margins are still being restrained by higher than planned effective hourly wages for field labor. As we pointed out on the last call, our transportation business has been running at the highest utilization rates that we've seen, leading to higher overtime rates. Overtime accounted for about 13% of hourly wages in Q4 and has been running between 11% and 13% for the past several quarters.

Speaker #2: During the fourth quarter of 2025, adjusted gross margins for the medical transportation segment were 32.8%, compared to 30.1% in Q4 of 2024, and the highest gross margins that we've seen in that segment since Q1 of 2024.

Speaker #2: Despite these improvements, medical transportation gross margins are still being restrained by higher-than-plan effective hourly wages for field labor, as we pointed out on the last call.

Speaker #2: Our transportation business has been running at the highest utilization rates that we've seen, leading to higher overtime rates. Overtime accounted for about 13% of hourly wages in Q4 and has been running between 11% and 13% for the past several quarters.

Norman Rosenberg: However, we took solid strides toward increasing our field headcount in Q4 2025, and we would expect the overtime rate to trend lower in 2026, closer to the sub-10% overtime rates that we saw in the first half of 2024. This should provide a lift to transportation gross margins in 2026. Mobile Health segment adjusted gross margin was 31.8% versus 35.9% in Q4 2024. As we completed the wind down of migrant related programs, we experienced significantly lower gross margins in that area, which were below 20% for the quarter.

Speaker #2: However, we took solid strides toward increasing our field headcount in the fourth quarter of 2025, and we would expect the overtime rate to trend lower in 2026, closer to the sub-10% overtime rates that we saw in the first half of 2024.

Speaker #2: This should provide a lift to transportation gross margins in 2026. Mobile Health segment adjusted gross margin was 31.8%, versus 35.9% in the fourth quarter of 2024.

Speaker #2: As we completed the wind-down of migrant-related programs, we experienced significantly lower gross margins in that area, which were below 20% for the quarter. We expect that mobile health segment gross margins will improve in costs, and with greater relative contributions from higher-margin service lines such as remote patient monitoring, mobile phlebotomy, and virtual care.

Norman Rosenberg: We expect that Mobile Health segment gross margins will improve in 2026 in the absence of these wind down costs and with greater relative contributions from higher margin service lines such as remote patient monitoring, mobile phlebotomy, and virtual care. There were several non-recurring non-cash items that had a large impact on our GAAP results this quarter, so I'd like to spend some time reviewing them. Within the operating expense category, we incurred non-cash charges due to the write-down of intangible assets and goodwill. The write-downs were driven by the persistent gap between the carrying value of our assets and our market cap. We began this process in Q3 when we wrote down the goodwill and intangible assets relating to our clinical staffing business.

Speaker #2: There were several non-recurring, non-cash items that had a large impact on our GAAP results this quarter, so I'd like to spend some time reviewing them.

Speaker #2: Within the operating expense category, we incurred non-cash charges due to the write-down of intangible assets and goodwill. The write-downs were driven by the persistent gap between the carrying value of our assets and our market cap.

Speaker #2: We began this process in the third quarter when we wrote down the goodwill and intangible assets relating to our clinical staffing business. Even after these write-downs, entering Q4, there was still a significant amount of goodwill and intangible assets on our balance sheet.

Norman Rosenberg: Even after these write-downs, entering Q4, there was still a significant amount of goodwill and intangible assets on our balance sheet, primarily due to the acquisitions we have completed over the past four years. Throughout Q4, our market capitalization remained well below our net asset value, requiring us to consider adjusting the valuation of all of our intangible assets and goodwill in an attempt to narrow this gap in accordance with ASC 350 and ASC 360. At year-end, we have now written down all the intangible assets and goodwill to zero. This resulted in a total goodwill impairment of $49.5 million and an impairment of intangible assets of an additional $22.6 million in Q4.

Speaker #2: Primarily due to the acquisitions that we have completed over the past four years. Throughout the fourth quarter, our market capitalization remained well below our net asset value, requiring us to consider adjusting the valuation of all of our intangible assets and goodwill in an attempt to narrow this gap in accordance with ASC 350 and ASC 360.

Speaker #2: At year-end, we have now written down all the intangible assets and goodwill to zero. This resulted in a total goodwill impairment of $49.5 million and an impairment of intangible assets of an additional $22.6 million in the fourth quarter.

Norman Rosenberg: Along these lines, within the other expense category, we impaired the entire carrying value of an equity investment into a healthcare company we made in previous years, which had an impact of $5 million in other expense. It is important to note that these write-downs are all accounting driven and non-cash in nature. In no way do they reflect a change in the company's outlook regarding the future prospects or profitability of any of these underlying business lines. At year-end, our total cash and cash equivalents, including restricted cash and investments, was $68.3 million, down from $95.2 million at 30 September 2025. The largest factor in the decline in cash was the acquisition of SteadyMD in October.

Speaker #2: Along these lines, within the other expense category, we impaired the entire carrying value of an equity investment in a healthcare company we made in previous years, which had an impact of $5 million in other expense.

Speaker #2: It is important to note that these write-downs are all accounting-driven and non-cash in nature. In no way do they reflect a change in the company's outlook regarding the future prospects or profitability of any of these underlying business lines.

Speaker #2: At year-end, our total cash and cash equivalents, including restricted cash and investments, was $68.3 million, down from $95.2 million at September 30, 2025. The largest factor in the decline in cash was the acquisition of SteadyMD in October.

Norman Rosenberg: We paid $12 and a half million in cash for SteadyMD and incurred additional transaction-related costs of approximately $1 and a half million. Our cash balance at year-end was lower than we had expected due to the delay in collecting migrant-related accounts receivable owed by New York City Department of Housing Preservation and Development, which we had expected to see during Q4, coupled with an ongoing operating loss. With further operating losses expected during the first half of 2026 and several growth-related initiatives requiring working capital, we would expect further declines in cash in the near term, creating potential working capital pressure during 2026. To mitigate this, we are highly focused on reducing cash utilization and operating costs, particularly at the corporate level.

Speaker #2: We paid $12.5 million in cash for SteadyMD and incurred additional transaction-related costs of approximately $1.5 million. Our cash balance at year-end was lower than we had expected.

Speaker #2: Due to the delay in collecting migrant-related accounts receivable owed by New York City's Department of Housing Preservation and Development, which we had expected to see during the fourth quarter, coupled with an ongoing operating loss.

Speaker #2: With further operating losses expected during the first half of 2026, and several growth-related initiatives requiring working capital, we would expect further declines in cash in the near term, creating potential working capital pressure during 2026.

Speaker #2: To mitigate this, we are highly focused on reducing cash utilization and operating costs, particularly at the corporate level. We're also working with our current credit line provider to remedy issues related to certain financial covenants, which may increase borrowing costs while providing us with greater flexibility.

Norman Rosenberg: We're also working with our current credit line provider to remedy issues related to certain financial covenants, which may increase borrowing costs while providing us with greater flexibility. Turning to 2026. As Lee mentioned in his comments earlier, and as we pointed out in our press release, we have updated and increased our guidance for 2026 based upon what we've seen in the first 2+ months of the year and the positive volume trends across most of our business lines. We now see full-year revenues in the range of $290 million to $310 million, up from the range of $280 million to $300 million that we had shared back in November. This does not include any revenues from migrant-related projects and represents a 15% to 23% growth over 2025's base revenues.

Speaker #2: Turning to 2026, as Lee mentioned in his comments earlier and as we pointed out in our press release, we have updated and increased our guidance for 2026 based upon what we've seen in the first two-plus months of the year and the positive volume trends across most of our business lines.

Speaker #2: We now see full-year revenues in the range of $290 million to $310 million, up from the range of $280 million to $300 million that we had shared back in November.

Speaker #2: This does not include any revenues from migrant-related projects, and represents a 15% to 23% growth over 2025's base revenues. We anticipate a full-year adjusted EBITDA loss in the range of $5 million to $10 million, compared to our prior guidance of a loss of $15 million to $25 million.

Norman Rosenberg: We anticipate a full year adjusted EBITDA loss in the range of $5 million to $10 million compared to our prior guidance of a loss of $15 million to $25 million. In addition to the increased revenue outlook, we have several cost-cutting initiatives underway that we are addressing with the efficiency innovation portfolio efforts that Lee previously outlined, which we believe can accelerate our pathway to profitability. We continue to expect to achieve profitability on an adjusted EBITDA basis in the back half of this year. At this point, I'd like to turn the call back to the operator for Q&A. Operator, please proceed.

Speaker #2: In addition to the increased revenue outlook, we have several cost-cutting initiatives underway that we are addressing with the efficiency innovation portfolio efforts that Lee previously outlined, which we believe can accelerate our pathway to profitability.

Speaker #2: We continue to expect to achieve profitability on an adjusted EBITDA basis in the back half of this year. At this point, I'd like to turn the call back to the operator for Q&A.

Speaker #2: Operator, please proceed.

Operator 2: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the one on your telephone keypad. You will hear a prompt that your hand has been raised. Should you wish to cancel your request, please press star followed by the two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Thank you. Your first question comes from the line of Peter Chickering from Deutsche Bank. Please go ahead.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the one on your telephone keypad. You will hear a prompt that your hand has been raised. Should you wish to cancel your request, please press star followed by the two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Thank you. Your first question comes from the line of Peter Chickering from Deutsche Bank. Please go ahead.

Speaker #1: Thank you, Lee. Sanjansaman. We will now begin the question-and-answer session. Should you have a question, please press star followed by the one on your telephone keypad.

Speaker #1: You will hear a prompt that your hand has been raised, and should you wish to cancel your request, please press star followed by the two.

Speaker #1: If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Thank you. And your first question comes from the line of PTO Triggering from Deutsche Bank.

Speaker #1: Please go ahead.

Peter Chickering: Hey, good afternoon, guys, and thanks for taking my question. I guess just to lead off here, you talked about doing a formal process on a strategic alternative. Just can you give us any color on sort of, you know, what the process entails and any color on how it's going so far?

Speaker #3: Hey, good afternoon, guys, and thanks for taking my question. I guess just to lead off here, you talked about doing a formal process on a strategic alternative.

Speaker #3: Can you give us any color on sort of what the process entails, and any color on us going so far?

Lee Bienstock: Hi, Peter. Absolutely. Thanks for the question. We've engaged an investment bank to run a formal process with the goal of maximizing shareholder value. We can't share more at this time as we're in the process, but of course, as things progress, if they do progress, you know, we'll share more at that time.

Speaker #4: Hi, Peto. Absolutely. Thanks for the question. So, we've engaged an investment bank to run a formal process with the goal of maximizing shareholder value.

Speaker #4: We can't share more at this time, as we're in the process, but of course, as things progress—if they do progress—we'll share more at that time.

Peter Chickering: Okay, fair enough.

Speaker #3: Okay, fair enough. I figured as much, but I had to ask here. Can you split up the improvement in the 2026 guidance in both revenues and EBITDA from upside from steady MD, or improvements in Mobile Health, or Transportation, or SG&A?

Peter Chickering: I figured as much, but I felt, you know, like I had to ask here. Can you split out the improvement in the 2026 guidance in both revenues and EBITDA from upside from SteadyMD or improvements in mobile health, transportation, or SG&A? Just any color because you raised revenues by $10 million and adjusted EBITDA by $10 to 15 million.

Speaker #3: Just any color, because you raised revenues by $10 million and adjusted EBITDA by $10 to $15 million.

Lee Bienstock: Yeah. Absolutely. Thanks for that question as well, Peter. We're seeing increased volumes in, particularly in our medical transportation segment, where we've also made progress on EMS staffing. Those are the two key components really for the increased revenue outlook of about $10 million. We are seeing additional upside in SteadyMD, and those, I would say, are the primary drivers of our increased guidance. Both volumes in SteadyMD are up significantly, as well as our ability to fulfill the volumes that we've seen in the medical transportation segment with additional hiring that we've been successful with. We still have some additional room to run on the staffing. That's going to be a continued focus for us on the EMS side. That's really been the driving factor of the revenue guide increase.

Speaker #4: Yeah, absolutely. And thanks for that question as well, Peto. So we're seeing increased volumes, particularly in our medical transportation segment, where we've also made progress on EMS staffing.

Speaker #4: Those are the two key components, really, for the increased revenue outlook of about $10 million. We are seeing additional upside in SteadyMD. And those, I would say, are the primary drivers of our increased guidance. Both volumes in SteadyMD are up significantly, as well as our ability to fulfill the volumes that we've seen in the medical transportation segment with additional hiring that we've been successful with.

Speaker #4: We still have some additional room to run on the staffing. That's going to be a continued focus for us on the EMS side. But that's really been the driving factor of the revenue guide increase.

Lee Bienstock: On the EBITDA side, it really is a factor of A, the revenue increase provides more gross profit dollars. We're also seeing gross margin improve with reduced overtime that Norm pointed out. We see gross margin improving as we start the year here and as we progress, because we've been able to staff more efficiently and drive that overtime rate down. We're also very focused on reducing SG&A by another 10 to 15% from recent levels with some of these efficiency innovation portfolio items that we've already kicked off. These are areas where we're working to automate many of the functions in billing, in dispatch, where we can utilize perhaps fewer staff members, but leverage automation to make us more efficient. We've already kicked that off.

Speaker #4: On the EBITDA side, it really is a factor of, A, the revenue increase provides much more gross profit dollars. We're also seeing gross margin improve with reduced overtime that Norm pointed out.

Speaker #4: And so we see gross margin improving as we start the year here and as we progress, because we've been able to staff more efficiently and drive that overtime rate down.

Speaker #4: And then, again, we're also very focused on reducing SG&A by another 10% to 15% from recent levels, with some of these efficiency innovation portfolios items that we've already kicked off.

Speaker #4: These are areas where we're working to automate many of the functions in billing, in dispatch, where we can utilize perhaps fewer staff members, but leverage automation to make us more efficient, and we've already kicked that off.

Lee Bienstock: I mentioned pre-billing is an area where we've already made that automation process improvement. There's going to be other areas as we progress throughout the year here, as we use technology to become more and more efficient and take costs out of the business. That's what's really driving the EBITDA improvement, the EBITDA outlook improvement. Norm, anything to add?

Speaker #4: I mentioned pre-billing is an area where we've already made that automation process improvement, and there's going to be other areas as we progress throughout the year here, as we use technology to become more and more efficient and take costs out of the business.

Speaker #4: That's what's really driving the EBITDA improvement, the EBITDA outlook improvement. Norm, anything to add?

Norman Rosenberg: Yeah, I mean, I would just say that when we look at the gross margin, the exit rate of gross margin in Q4, we showed it was around 32.5, 33% on a blended adjusted basis. In reality, you know, a couple of things that were holding us back in Q4 that have already improved here in the first two and a half months of the year. Number one is on the transport side. As Lee mentioned, there's the overtime rate, which is, you know, it can't be overstated, you know, in terms of the impact that having a higher overtime rate has on your overall gross margins. It raises your effective hourly rate.

Speaker #3: Yeah. I mean, I would just say that when we look at the gross margin, the exit rate of gross margin, in the fourth quarter, so we showed it was around 32 and a half, 33 percent on a blended adjusted basis.

Speaker #3: But in reality, one of the things that was actually there were a couple of things that were holding us back in the fourth quarter that have already improved here in the first two, two and a half months of the year.

Speaker #3: Number one is on the transport side. So, as Lee mentioned, there's the overtime rate, which is—it can't be overstated in terms of the impact that having a higher overtime rate has on your overall gross margins.

Speaker #3: It raises your effective hourly rate. If we look at the fourth quarter, the effective hourly rate for field labor was probably the highest that we've seen.

Norman Rosenberg: You know, if we look at the Q4, the effective hourly rate for field labor was probably the highest that we've seen, and it has since moderated, you know, along the lines of having your overtime rate come down from, like, 13% closer to the 10% area that we had seen in the first half of 2024. That's one driver. The other part of it is when we look at the mobile health revenue or the mobile health gross margins. On its way out, the migrant revenue came in at a much lower gross margin level than it had. It had traditionally been running in the 35% to 38% gross margin range.

Speaker #3: And it has since moderated along the lines of having your overtime rate come down from like 13 percent, closer to the 10 percent area that we had seen in the first half of 2024.

Speaker #3: So that's one driver. The other part of it is, when we look at the mobile health revenue, or the mobile health gross margins, on its way out, the migrant revenue came in at a much, much lower gross margin level than it had.

Speaker #3: It had traditionally been running in the 35% to 38% gross margin range. Then, in the third quarter of last year, it ran in maybe the higher mid-20s.

Norman Rosenberg: In Q3 of last year, it ran in maybe the high or mid-20s and then under 20%. It's a little bit of a stranded cost thing, but it's more a matter of just sort of having people on staff till the end of the year. Some of those projects ended midway through the month of December, and you're left with a little bit of cost. Those costs are all gone. There's not going to be any of it in Q1 along with those revenues. When we think of the exit rate, and then we think of what we had pegged the gross margin at in our original guidance, especially in the first half of the year, we think we're running at a level that's somewhat above that.

Speaker #3: And then under 20 percent. And it's a little bit of a stranded cost thing, but it's more a matter of just sort of having people on staff till the end of the year.

Speaker #3: Some of those projects ended midway through the month of December, and you're left with a little bit of cost. Those costs are all gone.

Speaker #3: There's not going to be any of it in Q1, along with those revenues. So, when we think of the exit rate, and then we think of what we had pegged the gross margin at in our original guidance—especially in the first half of the year—we think we're running at a level that's somewhat above that.

Peter Chickering: Okay, excellent. Last question here. You talked about free cash flow pressures in 2026, potentially renegotiating covenants here. Can you sort of quantify what free cash flow generation or its free cash flow declines will be sort of during 2026 and any color on how we start in the year? Just to be very clear, does that include or not include collections from the rest of the migrant business?

Speaker #5: Okay, excellent. And then last question here. You talked about sort of free cash flow pressures in '26, and potentially renegotiating covenants here. Can you sort of quantify what free cash flow generation or free cash flow declines will be during 2026?

Speaker #5: And any color on how we start and end the year? And just to be very clear, does that include or not include collections from the rest of the migrant business?

Norman Rosenberg: Okay. A little bit to unpack there, so we'll do it in order. I mean, the first thing to point out, and we did talk about it here in our prepared comments. Our cash balance at year-end was lower than what we had pegged it to be, and that's simply because there's about $20 million in those migrant receivables. The last piece of it, we've collected 97% of everything up until now. That did not come in during Q4. That still has not come in yet in Q1. I believe that a good chunk of that is imminent. By that I mean, I still think that some of it is gonna come in during Q1, even though there's only about a couple of weeks to go.

Speaker #3: Okay. So a little bit to unpack there. So we'll do it in order. I mean, the first thing to point out, the first thing to point out, and we did talk about it here in our prepared comments, our cash balance at year-end was lower than what we had pegged it to be.

Speaker #3: And that's simply because there's about $20 million in those migrant receivables. The last piece of it, we've collected 97 percent of everything up until now.

Speaker #3: That did not come in during the fourth quarter. That still has not come in yet in the first quarter. I believe that a good chunk of that is imminent.

Speaker #3: By that, I mean I still think that some of it is going to come in during the first quarter, even though there's only about a couple of weeks to go.

Norman Rosenberg: It's pretty imminent, and the rest will come in, you know, in Q2, maybe Q3. We expect to collect all of it. When I look out a few months, I wouldn't expect there to be any net difference. Yeah, that's $20 million of receivables or $20 million of cash that I would have expected, you know, when we last spoke in November of last year, that I would have expected to have had in the door and in the bank by the end of the year. That's, you know, that's one factor. You know, again, getting to your other question very clearly, it doesn't change. Our outlook hasn't changed as to the ultimate collectibility of that money.

Speaker #3: So it's pretty imminent. And the rest will come in in the second quarter, maybe the third quarter. But we expect to collect all of it.

Speaker #3: So, when I look out a few months, I wouldn't expect there to be any net difference. But that's $20 million of receivables or $20 million of cash that I would have expected, when we last spoke in November of last year, that I would have expected to have had in the door.

Speaker #3: And in the bank by the end of the year. So that's one factor. But again, getting to your other question very clearly, it doesn't change—our outlook hasn't changed as to the ultimate collectibility of that money.

Norman Rosenberg: I'm just looking at a cash balance that's somewhat lower than it had been before. We do have working capital requirements. As Lee mentioned, we're bringing on a lot of new people on the EMT side. You bring on an EMT, you start to pay them, you get them out in the field working on the truck, you know, they do more volumes, and then those are typically paid within, you know, 80 to 90 days. You've got a little bit of, you know, your typical growth working capital needs there as well. That's really what we're talking about. As far as the vendor line of credit is concerned.

Speaker #3: I'm just looking at a cash balance that's somewhat lower than it had been before. We do have working capital requirements, as Lee mentioned. We're bringing on a lot of new people on the EMT side.

Speaker #3: So you're bringing on an EMT. You start to pay them. You get them out in the field, working on the truck. They do more volumes.

Speaker #3: And then those are typically paid within 80 to 90 days. So you've got a little bit of your typical growth working capital needs there as well.

Speaker #3: So that's really what we're talking about. As far as the line of credit is concerned, we have your typical, I'll say, EBITDA covenant or adjusted EBITDA covenant.

Norman Rosenberg: You know, we have your typical, I'll say, EBITDA covenant or adjusted EBITDA covenant, and you know, it's no secret we've been running it at an EBITDA negative level for a good few quarters. That's one of those things that we need to work through with them. We're in the process of working with our credit line provider, in terms of how they interpret that and those kinds of adjustments to make sure that that line of credit remains available to us. We have not drawn down on it since we paid it back in August of last year. But, you know, it'd be nice to know it's there. Certainly nice to know it's there. That's a big part of it.

Speaker #3: And it's no secret. We've been running it at an EBITDA-negative level for a good few quarters. So that's one of those things that we need to work through with them.

Speaker #3: We're in the process of working with our credit line provider in terms of how they interpret that and those kinds of adjustments, to make sure that that line of credit remains available to us.

Speaker #3: We have not tapped down on it since we drew down on it, since we paid it back in August of last year. But it'd be nice to know it's there.

Speaker #3: Certainly nice to know it's there, so that's a big part of it. As far as what I want to avoid, I think I've learned my lesson.

Norman Rosenberg: I think I've learned my lesson. I wanna avoid, like, looking into the crystal ball and talking about exactly how much cash will be there at what date. Just to give you an idea of the trend, as we mentioned, I think the next couple of quarters, where we expect some negative EBITDA, at least in Q1, Q2, and into Q3, you know, that will probably result in a somewhat lower cash balance. Again, it depends on the timing of that, of the payment of the remaining migrant receivables. When they come in, that'll cover up the loss, and technically, that could keep us at a somewhat flat level.

Speaker #3: I want to avoid looking into the crystal ball and talking about exactly how much cash will be there at what date. But just to give you an idea of the trend, as we mentioned, I think the next couple of quarters, where we expect some negative EBITDA, at least in Q1 and Q2, and into Q3, that will probably result in a somewhat lower cash balance.

Speaker #3: But again, it depends on the timing of the payment of the remaining migrant receivables. When they come in, that'll cover up the loss, and technically that could keep us at a somewhat flat level.

Norman Rosenberg: All of it really depends on the timing of that and the timing of some of the payments that we make. Then as we get towards the back part of the year, and we're looking at, you know, relatively small EBITDA losses or even positive EBITDA numbers, as we get to the back end of the year, then we should see a sort of a plateauing of that particular cash balance.

Speaker #3: So all of it really depends on the timing of that and the timing of some of the payments that we make. But then, as we get towards the back part of the year, and we're looking at relatively small EBITDA losses or even positive EBITDA numbers as we get to the back end of the year, then we should see a sort of plateauing of that particular cash balance.

Peter Chickering: Great. Thanks so much.

Speaker #5: Great. Thanks so much.

Operator 2: Thank you. Your next question comes from the line of Ryan MacDonald from Needham & Company. Please go ahead.

Operator: Thank you. Your next question comes from the line of Ryan MacDonald from Needham & Company. Please go ahead.

Speaker #1: Thank you. And your next question, cash flow line of Ryan McDonald from Needham & Company. Please go ahead.

Ryan MacDonald: Hi, thanks for taking my questions. Maybe, Lee, just on the payer business, first, obviously some great momentum there in terms of, you know, covered lives, that you continue to grow there, the expansion into Kentucky as well. I think earlier this year, you know, at our conference, you were talking about sort of a pipeline of 2 to 4 more incremental payers that you could, you know, sign on with in the first half of this year. Just any update on sort of what that pipeline looks like and, you know, if that's being factored into even the increased top-line outlook, if at all, that you set today. Thanks.

Speaker #6: Hi, thanks for taking my questions. Maybe, Lee, just on the payer business first—obviously, some great momentum there in terms of covered lives that you continue to grow, and the expansion into Kentucky as well.

Speaker #6: And I think earlier this year, at our conference, you were talking about sort of a pipeline of two to four more incremental payers that you could sign on with in the first half of this year.

Speaker #6: Just any update on sort of what that pipeline looks like, and if that's being factored into even the increased top-line outlook, if at all, that you set today.

Speaker #6: Thanks.

Lee Bienstock: Absolutely, Ryan. Thanks for the question. Great to hear from you. The forecast that we have, the forecast that we shared today is consistent with what we shared in our previous call. We, you know, we continue to see momentum in this business. The number of visits is up significantly. As we mentioned, the number of lives and patients that are being referred to us by the payers is up. We continue to balance scaling that business with also obviously the investment we're making in that business. That's the key factor there.

Speaker #4: Absolutely, Ryan. Thanks for the question—great to hear from you. So, the forecast that we have, the forecast that we shared today, is consistent with what we shared in our previous call.

Speaker #4: We continue to see momentum in this business. The number of visits is up significantly. As we mentioned, the number of lives and patients that are being referred to us by the payers is up.

Speaker #4: And we continue to balance scaling that business with also, obviously, the investment we're making in that business. And that's the key factor there. I think the reason why I was excited to share the expansion into a new state by a payer we're already working with, and two other states, is just that it's a great harbinger for us that the value we're providing to our partners is there.

Lee Bienstock: I think the reason why I was excited to share the expansion into a new state by a payer we're already working with in two other states is just that is a great harbinger for us that the value we're providing to our partners is there. They're looking to us to expand and provide that value to additional patients in other states. That is a good indicator to us that, of course, patients and the partners we're working with are deeply valuing the services we're providing. That makes us very, very excited. Of course, we see it every day when we go visit patients and see the impact we're making. That's the momentum we're seeing.

Speaker #4: They're looking to us to expand and provide that value to additional patients in other states. And that is a good indicator to us that, of course, patients and the partners we're working with are deeply valuing the services we're providing.

Speaker #4: And so that makes us very, very excited. And, of course, we see it every day when we go visit patients and see the impact we're making.

Speaker #4: So that's the momentum we're seeing. We're really focused on making sure that we're growing efficiently, that we're continuing to scale while balancing the investment we're making in this business so that we can achieve critical mass in the markets we're in and be very selective about whatever markets we expand to—primarily with existing customers of ours.

Lee Bienstock: We're really focused on making sure that we're growing efficiently, that we're continuing to scale while balancing the investment rate we're making in this business so that we could achieve really critical mass in the markets, the markets we're in and be very selective about whatever markets we expand to, primarily with existing customers of ours. That's the focus. I think you'll see us visit in the patients' homes about 200,000 patients this year across our mobile lab and care in the home business. Care gap, transitional care management, primary care is another big focus of ours where we're seeing good progress. You know, we always endeavored when we entered this business to not only close care gaps, but provide longitudinal preventative care. That's when you can really impact the cost of care, improve health outcomes.

Speaker #4: So that's the focus. I think you'll see us visit in the patients' homes about 200,000 patients this year across our mobile lab and care in the home business.

Speaker #4: Care gap, transitional care management, primary care is another big focus of ours where we're seeing good progress. We always endeavored when we entered this business to not only close care gaps, but provide longitudinal preventative care.

Speaker #4: That's when you can really impact the cost of care and improve health outcomes. And so we're seeing great progress there as well. So that's what the forecast consists of.

Lee Bienstock: We're seeing great progress there as well. That's what the forecast consists of. As, of course, if we sign additional contracts, we'll announce those and then adjust accordingly as we go throughout the year.

Speaker #4: As of course, if we sign additional contracts, we'll announce those and then adjust accordingly as we go throughout the year.

Ryan MacDonald: Excellent. Appreciate it. Norm, obviously, you know, there's a lot of moving parts at the gross margin level this year with some of the, you know, migrant revenues coming off, reduction in overtime rates, also sort of shifting SteadyMD to or integrating it to the point where you can start doing more of the mobile health visits through that platform in Q2. Can you just kind of give us a sense of sort of implied in the forecast, you know, where you're thinking in terms of, you know, gross margins at each segment level on the overall level as you're thinking about the 2026 guide? Thanks.

Speaker #5: Excellent. Appreciate it. Norm, obviously there's a lot of moving parts at the gross margin level this year, with some of the migrant revenues coming off, reduction in overtime rates, also sort of shifting SteadyMD or integrating it to the point where you can start doing more of the mobile health visits through that platform in second quarter.

Speaker #5: Can you just kind of give us a sense of, sort of, what's implied in the forecast—where you're thinking in terms of gross margins at each segment level and overall, as you're thinking about the 2026 guide?

Speaker #5: Thanks.

Norman Rosenberg: Sure. At the risk of sounding redundant like everybody else in the world, we do expect sequential gross margin gains as we go through the year. That's the first thing I'll point out. I think that might, you know, whether that plays out or whether, you know, we end up doing better in Q1 and Q2 and a little bit less in Q3 and Q4 compared to where we are. On a full year basis, you know, we would expect the consolidated blended gross margin to come in right about 33%. That'll be a little bit of a pickup. On the transport side, where we're currently running at about last quarter, our adjusted gross margin was, I think it was 32.8%.

Speaker #3: Sure. So, at the risk of sounding redundant like everybody else in the world, we do expect sequential gross margin gains as we go through the year.

Speaker #3: That's the first thing I'll point out. But I think that might — whether that plays out, or whether we end up doing better in the first and second quarter and a little bit less in the third and fourth quarter compared to where we are.

Speaker #3: But on a full-year basis, we would expect the blended gross margin—the consolidated blended gross margin—to come in right about 33%. So that'll be a little bit of a pickup.

Speaker #3: On the transport side, where we're currently running at about last quarter, our adjusted gross margin was—I think it was 32.8%. I will always be clear about it.

Norman Rosenberg: I will always be clear about it. There's a certain limit to where gross margins go. I think that, you know, once we get to a point where we would have gross margins on the transport side of 34.5% or 35%, we'll probably end up seeing that scale back a little bit. I would say that on the transport side, that number is gonna be, you know, hopefully, somewhat higher than a little bit north of 33%, as we go through the full year. I can point to certain markets where, you know, we're certainly expecting a turnaround, and there are one or two markets that are currently holding us back that we've already seen better improvement or some improvement in Q1. That's the transport side.

Speaker #3: There's a certain limit to where gross margins go. I think that once we get to a point where we would have gross margins on the transport side of 34.5% or 35%, we'll probably end up seeing that scale back a little bit.

Speaker #3: So, I would say that on the transport side, that number is going to be, hopefully, somewhat higher than a little bit north of 33% as we go through the full year.

Speaker #3: And I can point to certain markets where we're certainly expecting a turnaround, and there are one or two markets that are currently holding us back, where we've already seen some improvement in Q1.

Norman Rosenberg: On mobile health, a lot of it's gonna come down to mix. We have a group of obviously the health plan provider, the care in the home business is a much relatively lower margin than what we see otherwise. The mobile phlebotomy business comes in at a high margin. SteadyMD comes in at a pretty high margin, but we've talked about how they've had to rapidly expand. You might even see a period of time where SteadyMD margins are taking a little bit of a step back along with some growth that's above plan. You have your remote patient monitoring business, which is chugging along, which is increasing both on a year-over-year and sequential basis.

Speaker #3: So that's the transport side. And on the mobile health, a lot of it's going to come down to mix. We have a group of, obviously, the health plan provider. The care in the home business is a much relatively lower margin than what we see otherwise.

Speaker #3: But then the mobile phlebotomy business comes in at a high margin. SteadyMD comes in at a pretty high margin, but we've talked about how they've had to rapidly expand.

Speaker #3: So you might even see a period of time where we’re steady, MD margins are taking a little bit of a step back, along with some growth that’s above plan.

Speaker #3: But then you have your remote patient monitoring business, which is chugging along, increasing both on a year-over-year and sequential basis. And the margin is hanging in there, and it's north of 50%.

Norman Rosenberg: The margin's hanging in there, and it's, you know, north of 50%. You know, we would like to see mobile health margins get back to, let's say, a 35% blended basis, blended level for the year, and that would sort of get you that 33% for the full year.

Speaker #3: So, we would like to see mobile health margins get back to, let's say, a 35% blended basis—blended level for the year. And that would sort of get you that 33% for the full year.

Ryan MacDonald: Awesome. Appreciate all the color there. I'll hop back in the queue.

Speaker #5: Awesome. Appreciate all the color there. I'll hop back in the queue.

Operator 2: Thank you. Your next question comes from the line of David Larsen from BTIG. Please go ahead.

Operator: Thank you. Your next question comes from the line of David Larsen from BTIG. Please go ahead.

Speaker #1: Thank you. And your next question, comes from the line of David Larson from BTIG. Please go ahead.

David Larsen: Hi. Can you talk about for the 2026 guide, the different sort of revenue components? In the past, you've kind of, you know, disclosed it like by division, transport, municipalities, health systems, payers, or also by like RPM, virtual primary care. Any of those sort of details by division would be very helpful. Thank you.

Speaker #6: Hi. Can you talk about, for the 2026 guide, the different sort of revenue components? In the past, you've kind of disclosed that by division—transport, municipalities, health systems, payers—or also by RPM, virtual primary care.

Speaker #6: Any of those sort of details by division would be very helpful. Thank you.

Lee Bienstock: Absolutely, Dave. Thanks. Thanks for the question. I think, if we take the midpoint of our updated guidance, call it $300 million as the midpoint, we're expecting now that transport's gonna come in somewhere around $215 million. We think there's some additional upside there if we continue to make progress on the staffing. On the mobile health side, continues to be in that $85 to 88 million of projected revenue. The mobile health side, if you remember, consists of no population health municipal revenue. Doesn't include any migrant revenue, of course, for 2026. You know, we continue to point out that if we'll do municipal or population health revenue, we're gonna report on that as a sort of separate item.

Speaker #4: Absolutely, Dave. Thanks for the question. So I think if we take the midpoint of our updated guidance—call it $300 million as the midpoint—we're expecting now that transport's going to come in somewhere around $215 million.

Speaker #4: We think there's some additional upside there if we continue to make progress on the staffing. And on the mobile health side, it continues to be in that $85 to $88 million of projected revenue.

Speaker #4: The mobile health side, if you remember, consists of no population health, municipal revenue. Doesn't include any migrant revenue, of course, for 2026. And also, we continue to point out that if we'll do municipal or population health revenue, we're going to report on that as a sort of separate item.

Lee Bienstock: It really does consist on the mobile health side of our SteadyMD, of course, acquisition, which is a virtual care side, the care in the home portfolio that I was describing, the mobile labs, the care gap, the primary care, and the patient monitoring, along with some of the staff clinics that we do. That's really the component pieces. I would say that we've shared in previous calls that SteadyMD is sort of in the $25 to 30 million range. As Norm pointed out, we think there's upside to that plan, given the progress that we're making now that we've spent more time with that business, having acquired in October, and we're continuing to integrate and infuse them into the company and all the opportunities that the company is seeing. I would say that's sort of the mix.

Speaker #4: So it really does consist, on the mobile health side, of our SteadyMD, of course, acquisition—which is the virtual care side—the care in the home portfolio that I was describing, the mobile labs, the care gap, the primary care, and the patient monitoring.

Speaker #4: Along with some of the staffed clinics that we do. That's really the component pieces. I would say that we've shared in previous calls that SteadyMD is sort of in the $25 to $30 million range, as Norm pointed out.

Speaker #4: We think there's upside to that plan, given the progress that we're making now that we've spent more time with that business, having acquired it in October.

Speaker #4: And we're continuing to integrate and infuse them into the company and all the opportunities that the company is seeing, and so I would say that's sort of the mix.

Lee Bienstock: You have that SteadyMD acquisition that is coming really into full bloom as we integrate it, and that mobile health collection of businesses is in the $85 to 88 million of revenue, of which none of that is migrant or municipal or population health in nature.

Speaker #4: You have that steady MD acquisition that is coming really into full bloom as we integrate it. And that mobile health collection of businesses is in the $85 to $88 million of revenue, of which none of that is migrant or municipal or population health in nature.

David Larsen: That's very helpful. Thank you. Then can you talk about the cross-selling effort? Like, I would imagine from a health plan's perspective, care gap closures, that's enormously helpful. How frequently would you be able to add in, like, remote patient monitoring, and then, okay, you assign a primary care doctor or you have a mobile lab service. Like, can you talk about the cross-sell and upsell growth potential? Thank you.

Speaker #6: That's very helpful. Thank you. And then, can you talk about the cross-selling effort? I would imagine from a health plan's perspective, care gap closures—that's enormously helpful.

Speaker #6: How frequently would you be able to add in remote patient monitoring, and then you assign a primary care doctor, or you have a mobile lab service?

Speaker #6: Can you talk about the cross-sell and upsell growth potential? Thank you.

Lee Bienstock: Yeah, that's a great question. I'm so glad you asked it because that's often something that I think is really an untapped opportunity for us. I think we've done some of it, and I can give some examples in a minute, but I think that remains a very big opportunity for the company, one that we've made some progress on, but there's clearly more opportunity that we can leverage as we really, you know, refine our portfolio of services. You know, I think 2025 was a year where we've established a great portfolio of services on the mobile health and medical transportation side. It's very clear what our value is. Patients love it.

Speaker #4: Yeah, that's a great question. I'm so glad you asked it, because that's often something that I think is really an untapped opportunity for us.

Speaker #4: I think we've done some of it, and I can give some examples in a minute. But I think that remains a very big opportunity for the company.

Speaker #4: One that we've made some progress on, but there's clearly more opportunity that we can leverage as we really refine our portfolio of services. I think 2025 was a year where we've established a great portfolio of services on the mobile health and medical transportation side.

Speaker #4: It's very clear what our value is. Patients love it. And now we can start to think about how we cross-sell and provide those services to patients on a broader basis.

Lee Bienstock: Now we can start to think about how do we cross-sell and provide those services to patients on a broader basis, particularly because our two main customer segments are really the two customer segments you wanna have in healthcare. We work directly with large health systems and hospitals, and then the payers. We're excited about being at the center of that between the payers and the hospitals, which is really where the vast majority of touch points and really cost is coming from in the system that, you know, we're contracting with and partnered with in that space. I'll give you a few examples. I mean, one area that we're really enthused about is our ability to take a care gap patient and turn them into a preventative primary longitudinal care patient.

Speaker #4: Particularly because our two main customer segments are really the two customer segments you want to have in healthcare. We work directly with large health systems and hospitals.

Speaker #4: And then the payers. And so we're excited about being at the center of that, between the payers and the hospitals, which is really where the vast majority of touchpoints and really cost is coming from in the system that we're contracting with and partnered with in that space.

Speaker #4: So I'll give you a few examples. I mean, one area that we're really enthused about is our ability to take a care gap patient and turn them into a preventative, primary, longitudinal care patient.

Lee Bienstock: We go and we may close a care gap for a diabetes patient, or do a screening of some sort, and we find that many of those patients do not have a primary care provider or know who that primary care provider is, and over 70% of the time would opt for us to be that primary care provider. We're starting to add that aspect of our services as we go into care gap and then primary care. The other piece I'll just flag, also, you mentioned the mobile labs. We're working with some of the hottest consumer healthcare companies in the space, the wearable space, where they're now offering, you know, lab orders, and they're integrating your lab results into their consumer apps for their wearables.

Speaker #4: So, we go and we make close a care gap for a diabetes patient, or do a screening of some sort, and we find that many of those patients do not have a primary care provider or know who that primary care provider is.

Speaker #4: And over 70% of the time would opt for us to be that primary care provider. So we're starting to add that aspect of our services as we go into care gap and then primary care. The other piece I'll just flag also—you mentioned the mobile labs.

Speaker #4: We're working with some of the hottest consumer healthcare companies in the space, the wearable space, where they're now offering lab orders. And they're integrating your lab results into their consumer apps.

Lee Bienstock: Right now they're driving patients to patient service centers, but we have partnerships with a lot of the labs. Perhaps we can go to the homes of those patients as an upsell, as a more convenience than driving them to the patient, service center. Going into the home and providing mobile labs as an example. We continue to think that the opportunity that we have where we're bedside at discharge is a very key moment in a patient's journey. When the patient is being discharged by the hospital and our EMS teams are there transporting the patients and we're bedside at discharge, we continue to think that that is a crucial moment in the healthcare journey.

Speaker #4: For their wearables. And right now, they're driving patients to patient service centers. But we have partnerships with a lot of the labs. Perhaps we can go to the homes of those patients as an upsell.

Speaker #4: As a more convenient option than driving them to the patient service center—so going into the home and providing mobile labs, as an example. And we continue to think that the opportunity we have, where we're bedside at discharge, is a very key moment in a patient's journey.

Speaker #4: When the patient is being discharged by the hospital and our EMS teams are there transporting the patients and we're bedside at discharge, we continue to think that that is a crucial moment in the healthcare journey.

Lee Bienstock: What can we do to bridge the discharge from the hospital to the home? We think we have a big role to play in that as we continue to build out the capabilities and continue to work with our amazing partners. Those are some of the areas, but we are absolutely excited about it, and that's why I'm giving, you know, such a long detailed answer about it, because I think it's an additional area of opportunity that is in front of the company, you know, as we go forward here.

Speaker #4: And so, what can we do to bridge the discharge from the hospital to the home? We think we have a big role to play in that as we continue to build out the capabilities and continue to work with our amazing partners.

Speaker #4: So those are some of the areas, but we are absolutely excited about it. And that's why I'm giving such a long, detailed answer about it, because I think it's an additional area of opportunity that is in front of the company as we go forward here.

David Larsen: Thanks very much. I'll hop back in the queue.

Speaker #6: Thanks very much. I'll hop back in the queue.

Operator 2: Thank you. Your last question comes from the line of Sarah James from Cantor Fitzgerald. Please go ahead.

Operator: Thank you. Your last question comes from the line of Sarah James from Cantor Fitzgerald. Please go ahead.

Speaker #1: Thank you. And your last question comes from the line of Sarah James from Cantor Fitzgerald. Please go ahead.

Sarah James: Thank you. I appreciate the commentary that you've made so far on some of the moving pieces in 2026 with migrant costs being concluded in 2025 and the improvement you've already seen year to date in EMS labor. Wondering if you could put that all together with what you're planning on the SG&A efficiency side and give us a view of how we should think about EBITDA cadence throughout the year. I guess based on what you're doing on the G&A side, is it like a ratable improvement for the year? Should the year be really back-end loaded, or how should we think about that?

Speaker #5: Thank you. I appreciate the commentary that you've made so far on some of the moving pieces in '26 with migrant costs, being concluded in '25, and the improvement you've already seen year to date in EMS labor.

Speaker #5: But wondering if you could put that all together with what you're planning on the SG&A efficiency side, and give us a view of how we should think about EBITDA cadence throughout the year.

Speaker #5: So I guess based on what you're doing on the G&A side, is it like a radical improvement for the year? Should the year be really back-end loaded or how should we think about that?

Lee Bienstock: Yeah. Thanks, Sarah, for the question. I think as Norm mentioned, we see most of the EBITDA, the adjusted EBITDA projection, the loss, you know, focused on the first half of the year. As we turn the corner to the second half of the year, you know, we turn to profitability. I think the big components really are in reducing corporate expenses, both in the headcount side as well as some of the vendors that we work with on the corporate side. I mean, we've already undertaken a lot of that work. That is a factor.

Speaker #4: Yeah, thanks, Sarah, for the question. I think as Norm mentioned, I think we see most of the EBITDA, the adjusted EBITDA projection, the loss focused on the first half of the year and as we turn the corner into the second half of the year, we turn to profitability.

Speaker #4: I think the big components really are in reducing corporate expenses, both on the headcount side as well as some of the vendors that we work with on the corporate side.

Speaker #4: We've already undertaken a lot of that work, and so that is a factor. And then, on the efficiency side, the charge I've really given to the team is to find a way to make us more efficient—use technology, automate, standardize processes at the company—where the patient and the customer don't feel it.

Lee Bienstock: On the efficiency side, you know, the charge I've really given to the team is to find a way to make us more efficient, use technology, automate, standardize processes at the company where the patient and the customer doesn't feel it. They don't know that we're being more efficient. The service levels that they've come to love remain as high as ever. The patient experience that the patients absolutely love, I mentioned the net promoter score of 92, stays as delightful of a patient experience that you can have in a patient's home when they're in need of healthcare, you know, to maintain that high bar, but at the same time remove cost. The way to do that is to use technology and to automate. I mentioned an example of the pre-billing process.

Speaker #4: They don't know that we're being more efficient. The service levels that they've come to love remain as high as ever. The patient experience is something that the patients absolutely love.

Speaker #4: I mentioned the Net Promoter Score of 92. It's as delightful of a patient experience as you can have in a patient's home when they're in need of healthcare—to maintain that high bar, but at the same time remove cost.

Speaker #4: And the way to do that is to use technology and to automate it. And so I mentioned an example of the pre-billing process. Today—or in the past, I should say—we had our dispatchers and we had members of our team doing the pre-billing component, to ensure, of course, that the patient had insurance, that we were going to be able to collect, as an example, on the medical transportation trip.

Lee Bienstock: Today, or in the past, I should say, we had our dispatchers, and we had members of our team doing the pre-billing component to ensure, of course, that the patient had insurance that we were gonna be able to collect, as an example, on the medical transportation trip. You know, now we're working to automate that, and we feel like we have built something that can automate that process and then of course free up our people to do other work or perhaps, you know, allow us to be just as efficient and productive, perhaps with fewer people. That really is a driving function.

Speaker #4: And now we're working to automate that, and we feel like we have built something that can automate that process. And then, of course, free up our people to do other work, or perhaps allow us to be just as efficient and productive, perhaps with fewer people.

Speaker #4: And that really is a driving function. And so we're really looking at areas where we are using human labor today, but it can be automated.

Lee Bienstock: We're really looking at areas where we are using, you know, human labor today, but it can be automated, it can be standardized, and those are the areas that we're using technology to build out. Another great example I've been using is when we first started engaging with the patient lists that the payers were providing us for care gap services. We were making phone calls for all those patients, myself included. Like, I did a bunch of those calls. I was quite good, I might add. Engaging with the patients. Now we're automating a large portion of it. We're automating a large portion of it with text. We're automating a large portion of it with agentic AI, and we're doing more with fewer resources. Those are really the areas we're focused on.

Speaker #4: It can be standardized, and those are the areas we're using technology to build out. Another great example I've been using is, when we first started engaging with the patient lists that the payers were providing us for care gap services, we were making phone calls for all those patients.

Speaker #4: Myself included—I did a bunch of those calls. I was quite good, I might add, at engaging with the patients. But now we're automating a large portion of it.

Speaker #4: We're automating a large portion of it with text. We're automating a large portion of it with agentic AI. And we're doing more with fewer resources.

Speaker #4: And so those are really the areas we're focused on. We are very enthused by the progress we're seeing. That agentic AI, patient engagement solution is already live.

Lee Bienstock: We are very enthused by the progress we're seeing. That agentic AI patient engagement solution is already live. It's been running for months now. That automation of the pre-billing is set to go live. We've been testing it for months now. These are the areas that we're really gonna push forward on to drive efficiency and ultimately remove costs from the business that, you know, we know is crucial. That is really where we set out. We really worked on it toward the end of last year, and we're starting to see it come to fruition, you know, as we kicked off 2026.

Speaker #4: It's been running for months now. That automation of the pre-billing is set to go live. We've been testing it for months now. And so these are the areas that we're really going to push forward on to drive efficiency and ultimately remove costs from the business, that we know is crucial.

Speaker #4: And so that is really where we set out. We really worked on it towards the end of last year, and we're starting to see it come to fruition as we kicked off 2026.

Sarah James: Great. Very helpful. Thank you.

Speaker #1: Great. Very helpful. Thank you. Thank you. Your next question comes on the line of David Crossman from CFL. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of David Grossman from Stifel. Please go ahead.

Operator: Thank you. Your next question comes from the line of David Grossman from Stifel. Please go ahead.

David Grossman: Thank you. You know, Lee, maybe you could help us better understand kind of your expectations for the cadence of mobile growth as 2026 progresses. Maybe if you could, in your response, maybe help us better understand, you know, what visibility you have today and what the pipeline may look like, including, you know, how do you leverage the success you're having with this one particular payer and care gap closure into marketing that to some of the other payers?

Speaker #2: Thank you. Maybe you could help us better understand your expectations for the cadence of mobile growth as '26 progresses. And maybe, if you could in your response, help us better understand what visibility you have today and what the pipeline may look like, including how you leverage the success you're having with this one particular payer and care gap closure into marketing that to some of the other payers?

Lee Bienstock: Absolutely. Thanks, David, for the question. You know, as we mentioned on our last call, we're really taking the approach to set guidance based on what we have today, the contracts we have today, the staff we have today, the volumes we have today. Of course, if we're able to add to that with new contracts, new expansions, additional staff, then we would update as we went along. We're taking that same approach this quarter. This is based on the staff we have today. We mentioned how much progress we're making on the staffing. There's still more progress to be made. This includes the contracts we have today. It doesn't include any sort of, you know, wins that are projected to come, but rather what we already have in-house today.

Speaker #4: Absolutely. Thanks, David, for the question. So, as we mentioned on our last call, we're really taking the approach to set guidance based on what we have today—the contracts we have today, the staff we have. Of course, if we're able to add to that with new contracts, new expansions, additional staff, then we would update as we went along.

Speaker #4: And so we're taking that same approach this quarter. This is based on the staff we have today, and we mentioned how much progress we're making on the staffing.

Speaker #4: There's still more progress to be made. This includes the contracts we have today. It doesn't include any sort of wins that are projected to come, but rather what we already have in-house today.

Lee Bienstock: That in terms of visibility, in terms of that part of your question, this is the full visibility that we have. It's the contracts that we have with the staff we have today. You know, of course, you know, things can happen, but this is what we have. In the mix of the business right now with the customers we already have. That's the key component. I think, you know, we really project that the mobile health business will grow, as we go throughout the year. There is no one quarter where we hit some inflection point. It really is gonna be a linear build on the mobile health side because, as I mentioned, it's including all the contracts we already have today.

Speaker #4: So that, in terms of visibility—in terms of that part of your question—this is the full visibility that we have. It's the contracts that we have with the staff we have today.

Speaker #4: Of course, things can happen, but this is what we have in the mix of the business right now with the customers we already have.

Speaker #4: So that's the key component. I think we really project that the mobile health business will grow as we go throughout the year. There is no one quarter where we hit some inflection point.

Speaker #4: It really is going to be a linear build on the mobile health side, because, as I mentioned, it's including all the contracts we already have today.

Lee Bienstock: I think what you're seeing on the mobile health side is about a 40% year-over-year growth from 2025 to 2026. Now, of course, that does include a full year of SteadyMD revenues, which we acquired, as we mentioned, in October. If you exclude SteadyMD from both periods, we have about 10 to 15% year-over-year growth, as well. What we're gonna be focused on this year is integrating SteadyMD, utilizing them across the DocGo platform so that we're utilizing SteadyMD's clinician base to oversee the visits that are happening in the patient's homes with our mobile health clinicians in the homes, and then, of course, enabling them to grow as well. That's basically what we see is a linear growth on mobile health as we go throughout the year.

Speaker #4: I think what you're seeing on the mobile health side is about a 40% year-over-year growth from 2025 to 2026. Now, of course, that does include a full year of steady and deep revenues, which we acquired, as we mentioned, in October.

Speaker #4: If you exclude Steady and Deep from both periods, we have about a 10% to 15% year-over-year growth as well. So, what we're going to be focused on this year is integrating Steady and Deep, utilizing them across the DocGo platform so that we're utilizing Steady and Deep's clinician base to oversee the visits that are happening in the patients' homes with our mobile health clinicians in the homes.

Speaker #4: And then, of course, enabling them to grow as well. But that's basically what we see—is a linear growth on mobile health as we go throughout the year.

Lee Bienstock: Of course, if we were to win a new contract, that would maybe introduce a step function into the growth rate, but it's based on what we have today, is sort of the visibility aspect to your question.

Speaker #4: Of course, if we were to win a new contract, that would maybe introduce a step function into the growth rate. But it's based on what we have today—it's sort of the visibility aspect to your question.

David Grossman: Okay, great. Thank you for that. Just a quick one for you, Norm. I think you said you expect to get another, you know, chunk of cash, you know, from HPD at some point, perhaps even before the end of the month. Any sense for what the gating items are to getting paid at this point, or has it just been typical administrative, you know, kind of delays in getting the final payments? Any sense for whether or not there's any risk to the $20 million? I think in your press release you said you expect to get fully paid, but just thought I'd just ask the question.

Speaker #2: Okay, great. Thank you for that. And just a quick one for you, Norm. So I think you said you expect to get another chunk of cash from HPD at some point.

Speaker #2: Perhaps even before the end of the month. Any sense for what the gating items are to getting paid at this point, or has it just been typical administrative kind of delays in getting the final payments?

Speaker #2: Any sense for whether or not there's any risk to the $20 million? I think in your press release, you said you expect to get fully paid.

Speaker #2: But just thought I'd ask the question.

Norman Rosenberg: Yeah. Sure, David, it's a good question. Just to set the table, you know, we're in touch with them on a pretty frequent basis. I have a counterpart there. There's about half a dozen people here who are in touch with their counterparts. I speak to them weekly. What has been going on is that as the administration has sort of transitioned, first of all, people have been a little bit busy, but, you know, beyond that, they're going through an audit, not just for our payable to us, but really for everything that HPD has done with all the different vendors that they have. They're going through an event.

Speaker #3: Yeah, and sure, David, it's a good question. And just to set the table, we're in touch with them on a pretty frequent basis. I have a counterpart there.

Speaker #3: There's about half a dozen people here who are in touch with their counterparts. I speak to them weekly. So, what has been going on is that as the administration has sort of transitioned, first of all, people have been a little bit busy.

Speaker #3: But beyond that, they're going through an audit, not just for our payable to not just for the payable to us, but really for everything that HPD has been done.

Speaker #3: With all the different vendors that they have, and they're going through an event. They had brought in, I'll say, one of the Big Four accounting firms that was—and consulting firms—that was doing an audit for them across the board.

Norman Rosenberg: They have brought in, I'll say, one of the Big Four accounting firms and consulting firms that was doing an audit for them across the board and looking at, you know, the stuff that they already paid, looking at the stuff that was already open, kind of routine type of process. I would say that payment was held hostage, if you will, by that particular audit that really dragged on for quite a few months. That audit has been wrapped up. The findings are now being put together on paper. That's why I think that we should find out really within days of what they are gonna pay us in an initial wave of funding.

Speaker #3: And looking at the stuff that they already paid, looking at the stuff that was already open, kind of routine type of process. But I would say that that payment was held hostage, if you will, by that particular audit that really dragged on for quite a few months.

Speaker #3: That audit has been wrapped up. The findings are now being put together on paper. And that's why I think that we should find out really within days what they are going to pay us in an initial wave of funding.

Norman Rosenberg: Of course, if there's some stuff that where they require additional information, all of which we have, you know, we would provide that and continue that process going. That was the big gating item there, really was getting that audit done. That took at least, I would say, 2 to 3 months, maybe more to get complete.

Speaker #3: And then, of course, if there's some stuff where they require additional information, all of which we have, we would provide that and continue that process going.

Speaker #3: So that was the big gating item there, really, was getting that audit done. That took at least, I would say, two to three months, maybe more, to get complete.

David Grossman: Got it. Great. Thanks very much.

Speaker #2: Got it. Great. Thanks very much.

Lee Bienstock: Thank you.

Operator 2: There are no further questions at this time. I will now hand the call back to Mr. Lee Bienstock for any closing remarks.

Operator: There are no further questions at this time. I will now hand the call back to Mr. Lee Bienstock for any closing remarks.

Speaker #1: Thank you. And there are no further questions at this time. I will now hand the call back to Mr. Lee Bienstock for any closing remarks.

Lee Bienstock: Wonderful. Thank you so much for everyone joining us today, and we're looking forward to speaking with you again soon. Take care.

Speaker #4: Wonderful. Thank you so much, everyone, for joining us today. We're looking forward to speaking with you again soon. Take care.

Operator 2: This concludes today's call. Thank you for participating. You may all disconnect.

Operator: This concludes today's call. Thank you for participating. You may all disconnect.

Q4 2025 DocGo Inc Earnings Call

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