DocGo (DCGO) Stock Forecast & Price Target

DocGo is attractive because Hicuity Health adds a profitable, hospital-facing virtual care platform with $65 million of TTM revenue and $4.5 million of adjusted EBITDA, while also expanding DocGo’s reach across more than 260 hospital relationships, 4,700 monitoring beds, and about 160,000 patients per year across 30 states. The deal strengthens DocGo’s “closed-loop care anywhere” strategy by pairing higher-reimbursed virtual acute care with its home-based mobile health and transportation capabilities, creating cross-sell opportunities and a broader integrated care continuum. Management also sees about $4.3 million of annual run-rate savings plus additional upside from procurement, vendors, insurance, and technology, although the assumed $52 million debt makes execution and profitability improvement important.

DocGo is facing a deteriorating fundamental backdrop as 2Q26 revenue fell 8.7% year over year to $73.4 million, adjusted EBITDA missed expectations at $(4.2) million, and gross margin compressed to 30.5% while operating expenses rose to $40.3 million. Its core Mobile Health business is under pressure, with revenue down 30.4% year over year to $21.4 million and margin erosion tied to the end of higher-margin migrant contracts and SteadyMD hiring costs, leaving organic growth small and harder to scale. Although Transportation revenue grew 4.8% to $52.0 million, management still lowered FY26 adjusted EBITDA guidance to $(22) million to $(17) million, underscoring execution risk, licensing delays, and potentially higher acquisition-driven costs that could further constrain free cash flow.