DocGo Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and the accompanying notes included elsewhere in this Quarterly Report on Form 10-Q. The discussion and analysis below contain certain forward-looking statements about our business and operations that are subject to the risks, uncertainties and other factors described in the section entitled “Risk Factors” included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, and as may be updated in this and other subsequent Quarterly Reports on Form 10-Q. These risks, uncertainties and other factors could cause our actual results to differ materially from those expressed in, or implied by, the forward-looking statements. Please refer to the section below entitled “Cautionary Note Regarding Forward-Looking Statements.”

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and the accompanying notes included elsewhere in this Quarterly Report on Form 10-Q. The discussion and analysis below contain certain forward-looking statements about our business and operations that are subject to the risks, uncertainties and other factors described in the section entitled “Risk Factors” included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, and as may be updated in this and other subsequent Quarterly Reports on Form 10-Q. These risks, uncertainties and other factors could cause our actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. Please refer to the section below entitled “Cautionary Note Regarding Forward-Looking Statements.”

Previous wording

Forward-looking statements are inherently subject to substantial risks, uncertainties and assumptions, many of which are beyond our control, and which may cause our actual results or outcomes, or the timing of our results or outcomes, to differ materially from those contained in our forward-looking statements, including, but not limited to the following: impacts related to the recent and ongoing wind down of migrant-related services; our ability to expand our programs with insurance partners, hospital systems, municipalities and other strategic partners; our ability to successfully implement our business strategy, including delivering value to shareholders via buybacks, funding new strategic relationships and potentially repaying our line of credit; our ability to establish, maintain and grow customer relationships; our ability to execute projects to the satisfaction of our customers; our ability to grow demand for our care gap closure programs; our ability to maintain or grow our cash balances; our reliance on and ability to maintain our contractual relationships with our healthcare provider partners and other strategic partners; our ability to compete effectively in a highly competitive industry, including conditions in the healthcare transportation and mobile health services markets; our ability to maintain existing contracts; our reliance on government contracts, including changes in government spending on healthcare and other social services; recent revenue growth derived from a small number of large customers; our ability to effectively manage our growth; our financial performance and future prospects; our ability to deliver on our business strategies or models, plans and goals; our ability to expand geographically; our M&A activity and success of our acquisition strategy; our ability to retain our workforce and management personnel and successfully manage leadership transitions; the availability of healthcare professionals and other personnel; changes in the cost of labor; our ability to collect on customer receivables; risks associated with our share repurchase program; overall macroeconomic and geopolitical conditions, including the interest rate environment, the inflationary environment, the potential recessionary environment, regional conflict and tensions, financial institution instability and any prospect of a shutdown of the U.S. federal government; the ability of our suppliers to meet our needs; our ability to obtain or maintain operating licenses; potential changes in federal, state or local government policies or priorities; expected impacts of geopolitical instability; our competitive position and opportunities, including our ability to realize the benefits from our operating model; our ability to improve gross margins; our ability to implement and deliver on cost-containment measures and ongoing cost rationalization initiatives; legislative and regulatory actions; the impact of legal proceedings and compliance risk; volatility …

Excerpt shortened here; the source contains the full paragraph.

Current wording

Forward-looking statements are inherently subject to substantial risks, uncertainties and assumptions, many of which are beyond our control, and which may cause our actual results or outcomes, or the timing of our results or outcomes, to differ materially from those contained in our forward-looking statements, including, but not limited to the following: impacts related to the recent and ongoing wind down of migrant-related services; our ability to expand our programs with insurance partners, hospital systems, municipalities and other strategic partners; our ability to successfully implement our business strategy, including delivering value to shareholders via buybacks and funding new strategic relationships; our ability to establish, maintain and grow customer relationships; our ability to execute projects to the satisfaction of our customers; our ability to grow demand for our care gap closure programs; our ability to maintain or grow our cash balances; our reliance on and ability to maintain our contractual relationships with our healthcare provider partners and other strategic partners; our ability to compete effectively in a highly competitive industry, including conditions in the healthcare transportation and mobile health services markets; our ability to maintain existing contracts; our reliance on government contracts, including changes in government spending on healthcare and other social services; recent revenue growth derived from a small number of large customers; our ability to effectively manage our growth; our financial performance and future prospects; our ability to deliver on our business strategies or models, plans and goals; our ability to expand geographically; our M&A activity and success of our acquisition strategy; our ability to retain our workforce and management personnel and successfully manage leadership transitions; the availability of healthcare professionals and other personnel; changes in the cost of labor; our ability to collect on customer receivables; risks associated with our share repurchase program; overall macroeconomic and geopolitical conditions, including the interest rate environment, the inflationary environment, the potential recessionary environment, regional conflict and tensions, financial institution instability and the ongoing or any future shutdown of the U.S. federal government; the ability of our suppliers to meet our needs; our ability to obtain or maintain operating licenses; potential changes in federal, state or local government policies or priorities; expected impacts of geopolitical instability; our competitive position and opportunities, including our ability to realize the benefits from our operating model; our ability to improve gross margins; our ability to implement and deliver on cost-containment measures and ongoing cost rationalization initiatives; legislative and regulatory actions; the impact of legal proceedings and compliance risk; volatility of our stock price; the impact on…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

For the three months ended June 30, 2025, the Company recorded a net loss of $13.3 million, compared to net income of $5.8 million in the three months ended June 30, 2024.

Current wording

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

Previous wording

For the six months ended June 30, 2025, the Company recorded a net loss of $24.3 million, compared to net income of $16.5 million in the six months ended June 30, 2024.

Current wording

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

Previous wording

Our operating results and financial performance are influenced by a variety of factors, including, among others, our ability to establish, maintain and grow customer relationships; our ability to execute projects to the satisfaction of our customers; conditions in the healthcare transportation and mobile health services markets; changes in government spending on healthcare and other social services, including as a result of changes in the U.S. administration and administrative priorities; availability of healthcare professionals and other personnel; changes in the cost of labor; our competitive environment; overall macroeconomic and geopolitical conditions, including the interest rate environment, the inflationary environment, the potential recessionary environment, regional conflict and tensions, financial institution instability and any prospect of a shutdown of the U.S. federal government; production schedules of our suppliers; our ability to obtain or maintain operating licenses; and the success of our acquisition strategy. Some of these key factors are briefly discussed below. Future revenue growth and improvement in operating results will be largely contingent on our ability to penetrate new markets and further penetrate existing markets, which is subject to a number of uncertainties, many of which are beyond our control.

Current wording

Our operating results and financial performance are influenced by a variety of factors, including, among others, our ability to establish, maintain and grow customer relationships; our ability to execute projects to the satisfaction of our customers; conditions in the healthcare transportation and mobile health services markets; changes in government spending on healthcare and other social services, including as a result of changes in the U.S. administration and administrative priorities; availability of healthcare professionals and other personnel; changes in the cost of labor; our competitive environment; overall macroeconomic and geopolitical conditions, including the interest rate environment, the inflationary environment, the potential recessionary environment, regional conflict and tensions, financial institution instability and the ongoing or any future shutdown of the U.S. federal government; production schedules of our suppliers; our ability to obtain or maintain operating licenses; and the success of our acquisition strategy. Some of these key factors are briefly discussed below. Future revenue growth and improvement in operating results will be largely contingent on our ability to penetrate new markets and further penetrate existing markets, which is subject to a number of uncertainties, many of which are beyond our control.

Previous wording

The inflation rate in the United States, as measured by the Consumer Price Index, moderated in 2024 after trending well above historical levels in the period from the second quarter of 2021 through the second quarter of 2024. This data is reported monthly, showing year-over-year changes in prices across a basket of goods and services. The inflation rate declined during the second half of 2024, and the annual inflation rate declined to 2.9% for the full year 2024 from 4.1% in 2023 and 8.0% in 2022. For 2025 to date, the inflation rate has remained moderate, with readings of 3.0% in January, 2.8% in February, 2.4% in March, 2.3% in April, 2.4% in May and 2.7% in June. However, the introduction of new tariffs on imported goods has led to the prospect of increased inflation over the second half of 2025 and beyond. The increased inflation rate witnessed between 2021 and 2024 had an impact on the Company’s expenses in several areas, including wages, fuel and medical and other supplies. This had the effect of compressing gross profit margins, as the Company is generally unable to pass these higher costs on to its customers, particularly in the short term. In addition, opportunities to mitigate the impact of inflation are limited, aside from potentially buying more medical supplies than are currently needed in an effort to reduce the volume of future purchases, in instances where supply prices are anticipated to rise. If inflation is above the levels that the Company anticipates, gross margins could be below plan and our business, operating results and cash flows may be adversely affected.

Current wording

The inflation rate in the United States, as measured by the Consumer Price Index, moderated in 2024 after trending well above historical levels in the period from the second quarter of 2021 through the second quarter of 2024. This data is reported monthly, showing year-over-year changes in prices across a basket of goods and services. The inflation rate declined during the second half of 2024, and the annual inflation rate declined to 2.9% for the full year 2024 from 4.1% in 2023 and 8.0% in 2022. For 2025 to date, the inflation rate has remained moderate, with monthly year-over-year readings between 2.3% and 3.0%. However, the introduction of new tariffs on imported goods, and the uncertainty surrounding the tariff rates, has led to the prospect of increased inflation over the fourth quarter of 2025 and beyond. The increased inflation rate witnessed between 2021 and 2024 had an impact on the Company’s expenses in several areas, including wages, fuel and medical and other supplies. This had the effect of compressing gross profit margins, as the Company is generally unable to pass these higher costs on to its customers, particularly in the short term. In addition, opportunities to mitigate the impact of inflation are limited, aside from potentially buying more medical supplies than are currently needed in an effort to reduce the volume of future purchases, in instances where supply prices are anticipated to rise. If inflation is above the levels that the Company anticipates, gross margins could be below plan and our business, operating results and cash flows may be adversely affected.

Previous wording

During the six months ended June 30, 2025, the Company completed one acquisition, for $4.2 million. The Company did not complete any acquisitions during the six months ended June 30, 2024.

Current wording

During the nine months ended September 30, 2025, the Company completed one acquisition, for $4.2 million. The Company did not complete any acquisitions during the nine months ended September 30, 2024.

Previous wording

In recent years, the Company’s government contract work has represented a substantial portion of its overall revenue. While the Company expects government contract work to decline, both in absolute dollar terms and as a percentage of overall consolidated revenue, due primarily to the ending of large migrant-related projects in New York, the Company continues to bid on government contracts and expects some revenue from this sector in the future. However, government contract work is subject to risks and uncertainties. For example, starting in the second quarter of 2023, the Company began providing services to the recent migrant population in New York City and in upstate New York. Some of these services were provided pursuant to a contract with an ending date during the second quarter of 2024. While a portion of that contract was extended through December 31, 2024, other services began to wind down in May 2024. The wind-down of all services under such contract was completed in the fourth quarter of 2024. While the Company continued to provide services under other contracts during the first and second quarters of 2025, the wind-down of those services is nearly complete and the Company expects that the revenues from these migrant-related projects will be significantly lower in 2025 than they were in 2024 and in the second half of 2023.

Current wording

In recent years, the Company’s government contract work has represented a substantial portion of its overall revenue. While the Company expects government contract work to decline, both in absolute dollar terms and as a percentage of overall consolidated revenue, due primarily to the ending of large migrant-related projects in New York, the Company continues to bid on government contracts and expects some revenue from this sector in the future. However, government contract work is subject to risks and uncertainties. For example, starting in the second quarter of 2023, the Company began providing services to the recent migrant population in New York City and in upstate New York. Some of these services were provided pursuant to a contract with an ending date during the second quarter of 2024. While a portion of that contract was extended through December 31, 2024, other services began to wind down in May 2024. The wind-down of all services under such contract was completed in the fourth quarter of 2024. While the Company continued to provide services under other contracts during the first nine months of 2025, the wind-down of the remaining migrant-related services under other contracts is nearly complete, and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026. As such, despite the Company’s expectation for revenue growth in other business lines within the Mobile Health Services segment, we expect that overall Mobile Health Services revenues will be lower in 2026 than they were in 2025, given the absence of migrant-related project revenues.

Previous wording

For the three months ended June 30, 2025, total revenues were $80.4 million, a decrease of $84.5 million, or 51.2%, compared to the three months ended June 30, 2024.

Current wording

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

Previous wording

For the three months ended June 30, 2025, Mobile Health Services revenues were $30.8 million, a decrease of $85.9 million, or 73.6%, compared to the three months ended June 30, 2024. The decline in revenues was due to the ongoing wind-down of migrant-related services, which had ramped up sharply in the third quarter of 2023 and peaked in the first quarter of 2024. Starting in the second quarter of 2023, the Company began providing services to the recently arrived migrant population in New York City and in upstate New York. These projects, which included both medical and non-medical services, such as shelter and security, expanded throughout the third and fourth quarters of 2023 and into the first quarter of 2024. However, some of these services were provided pursuant to a contract with an ending date during the second quarter of 2024. A portion of that contract was extended through December 31, 2024, while other services began to wind down in May 2024. The wind-down of all services under such contract was completed in the fourth quarter of 2024. While the exact timing of the wind-down of the remaining migrant-related services under other contracts is still uncertain, this process is nearly complete and the Company expects that the revenues from any remaining migrant-related projects will be significantly lower in 2025 than in 2024 and the second half of 2023. As such, while we expect to launch new Mobile Health Services projects in 2025 and to expand existing projects, we expect that overall Mobile Health Services revenues will be significantly lower in 2025 than they were in 2024.

Current wording

For the three months ended September 30, 2025, Mobile Health Services revenues were $20.7 million, a decrease of $70.0 million, or 77.2%, compared to the three months ended September 30, 2024. The decline in revenues was due to the ongoing wind-down of migrant-related services, which had ramped up sharply in the third quarter of 2023 and peaked in the first quarter of 2024. Starting in the second quarter of 2023, the Company began providing services to the recently arrived migrant population in New York City and in upstate New York. These projects, which included both medical and non-medical services, such as shelter and security, expanded throughout the third and fourth quarters of 2023 and into the first quarter of 2024. However, some of these services were provided pursuant to a contract with an ending date during the second quarter of 2024. A portion of that contract was extended through December 31, 2024, while other services began to wind down in May 2024. The wind-down of all services under such contract was completed in the fourth quarter of 2024. The wind-down of the remaining migrant-related services under other contracts is nearly complete, and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026. As such, despite the Company’s expectation for revenue growth in other business lines within the Mobile Health Services segment, we expect that overall Mobile Health Services revenues will be lower in 2026 than they were in 2025, given the absence of migrant-related project revenues.

Previous wording

For the three months ended June 30, 2025, Transportation Services revenues were $49.6 million an increase of $1.4 million, or 2.9%, compared to the three months ended June 30, 2024. This increase was despite a 1.5% decrease in U.S. trip volumes, to 72,598 trips in the three months ended June 30, 2025, from 73,722 trips for the three months ended June 30, 2024. Offsetting this decline in volume was an increase in the average trip price to $410 in the three months ended June 30, 2025, from $393 in the three months ended June 30, 2024. The increase in the average trip price in the 2025 period reflected a shift in mix toward higher-priced transports when compared to the same period in 2024 in some of the Company’s markets.

Current wording

For the three months ended September 30, 2025, Transportation Services revenues were $50.1 million, an increase of $2.1 million, or 4.4%, compared to the three months ended September 30, 2024. This increase was due to a 2.5% increase in U.S. trip volumes, to 71,541 trips in the three months ended September 30, 2025, from 69,776 trips for the three months ended September 30, 2024. The average trip price rose to $411 in the three months ended September 30, 2025, from $404 in the three months ended September 30, 2024.

Previous wording

For the three months ended June 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 49.6% compared to the three months ended June 30, 2024, while revenues decreased by approximately 51.2%. Cost of revenues as a percentage of revenues increased to 68.4% in the three months ended June 30, 2025 from 66.2% in the three months ended June 30, 2024.

Current wording

For the three months ended September 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 40.7% compared to the three months ended September 30, 2024, while revenues decreased by approximately 49.0%. Cost of revenues as a percentage of revenues increased to 74.4% in the three months ended September 30, 2025 from 64.0% in the three months ended September 30, 2024.

Previous wording

Total cost of revenues in the three months ended June 30, 2025 decreased by $54.1 million compared to the same period in 2024. This decrease was primarily attributable to a $9.4 million decrease in total compensation, a $31.0 million decline in subcontracted labor costs and a $9.6 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter; a $1.3 million decrease in vehicle costs and a $2.8 million net decrease in other cost of revenues categories.

Current wording

Total cost of revenues in the three months ended September 30, 2025 decreased by $36.1 million compared to the same period in 2024. This decrease was primarily attributable to a $7.0 million decrease in total compensation, a $24.7 million decline in subcontracted labor costs and a $4.8 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter, and a $2.3 million net decrease in other cost of revenues categories. These decreases were partially offset by a $2.7 million increase in vehicle costs, due to an increase in expenses arising from prior-year insurance claims and increased reserves for future claims.

Previous wording

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended June 30, 2025 amounted to $20.8 million, down 72.2% from $74.9 million in the three months ended June 30, 2024. Cost of revenues as a percentage of revenues increased to 67.5% from 64.2% in the prior year period, due to the decline in Mobile Health Services revenues, driven by the wind-down of migrant-related projects and lower margins from the early-stage care gap closure business.

Current wording

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended September 30, 2025 amounted to $17.1 million, down 69.2% from $55.5 million in the three months ended September 30, 2024. Cost of revenues as a percentage of revenues increased to 82.6% from 61.2% in the prior year period, due to the decline in Mobile Health Services revenues, driven by the wind-down of migrant-related projects and lower margins from the early-stage care gap closure business.

Previous wording

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in both the three months ended June 30, 2025 and 2024 amounted to $34.2 million. Cost of revenues as a percentage of revenues decreased to 69.0% from 71.0% in the prior year quarter, as revenues increased while cost of revenues remained essentially unchanged. Total compensation increased by 15.0% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain shifts in some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors. Costs for subcontractors declined by 44.9% when compared to last year’s first quarter, reflecting a planned reduction in the number of ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

Current wording

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended September 30, 2025 amounted to $35.6 million, up 6.9% from $33.3 million in the three months ended September 30, 2024. Cost of revenues as a percentage of revenues increased to 71.1% from 69.4% in the prior year quarter, despite the revenue increase, due to increased compensation and higher vehicle costs. Total compensation increased by 15.0% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain shifts in some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors. Costs for subcontractors declined by 38.1% when compared to last year’s third quarter, reflecting a planned reduction in the number of ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services. Vehicle costs were driven higher partly due to increased insurance costs arising from prior period claims and increased reserves for future claims.

Previous wording

For the three months ended June 30, 2025, the Company recorded $42.9 million of operating expenses compared to $45.7 million for the three months ended June 30, 2024, a decrease of 6.1%. As a percentage of revenue, operating expenses increased from 27.7% in the second quarter of 2024 to 53.4% in the second quarter of 2025, reflecting the decrease in revenues described above. The decrease of $2.8 million in operating expenses related to a $5.1 million decrease in travel-related expenses, all due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects. This decline was partially offset by an increase of $1.8 million in total compensation as well as a net $0.5 million increase spread across a variety of other operating expense categories. The Company anticipates that operating expenses will continue to decline as certain ongoing cost-containment efforts take hold.

Current wording

For the three months ended September 30, 2025, the Company recorded $60.1 million of operating expenses compared to $39.8 million for the three months ended September 30, 2024, an increase of 51.0%. As a percentage of revenue, operating expenses increased from 28.7% in the third quarter of 2024 to 84.9% in the third quarter of 2025, reflecting the decrease in revenues described above, combined with the increase in operating expenses. The increase of $20.3 million in operating expenses related primarily to several impairment charges for various intangible assets, including a $6.5 million impairment of the carrying value of the customer relationships for the Company’s Rapid Temps entity, an $8.7 million impairment of the goodwill related to the Rapid Temps entity, and a $1.5 million impairment of the carrying value of trade credits the Company had received in lieu of cash payment from a Mobile Health customer in a prior year period. In addition, a $5.0 million increase in total compensation and a net $1.6 million increase spread across a variety of other operating expense categories were partially offset by a $3.0 million decrease in travel-related expenses due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects. The Company anticipates that operating expenses will decline as certain ongoing cost-containment efforts take hold.

Previous wording

For the Mobile Health Services segment, operating expenses in the three months ended June 30, 2025 were $10.6 million, down 32.9% from $15.8 million in the three months ended June 30, 2024. Operating expenses as a percentage of revenues increased to 34.4% in the second quarter of 2025, from 13.5% in the second quarter of 2024, reflecting the drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York.

Current wording

For the Mobile Health Services segment, operating expenses in the three months ended September 30, 2025 were $26.2 million, up 98.5% from $13.2 million in the three months ended September 30, 2024, reflecting increased investments made in the Company’s nascent care gap closure business and the impairments described above. Operating expenses as a percentage of revenues increased to 126.6% in the third quarter of 2025, from 14.6% in the third quarter of 2024, reflecting the significant drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York.

Previous wording

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the three months ended June 30, 2025 were $16.2 million, up 17.4% from $13.8 million in the three months ended June 30, 2024, as higher stock compensation costs and professional fees outweighed a decline in subcontractor expenses and insurance costs. Corporate expenses amounted to approximately 20.1% of total consolidated revenues in the second quarter of 2025, compared to 8.4% in the second quarter of 2024, reflecting the decline in total consolidated revenues.

Current wording

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the three months ended September 30, 2025 were $18.3 million, up 55.1% from $11.8 million in the three months ended September 30, 2024, as higher stock compensation costs, insurance costs and professional fees outweighed a decline in subcontractor expenses. Corporate expenses amounted to approximately 25.8% of total consolidated revenues in the third quarter of 2025, compared to 8.5% in the third quarter of 2024, reflecting the increased expenses and the decline in total consolidated revenues.

Previous wording

For both the three months ended June 30, 2025 and 2024, the Company recorded $0.5 million of interest expense, net. Interest expenses on borrowings under the Prior Revolving Facility outweighed interest earned on balances in the Company’s interest-bearing accounts in both of the three month periods ended June 30, 2025 and 2024.

Current wording

During the three months ended September 30, 2025, the Company recorded a $0.2 million interest expense, net compared to a $0.5 million interest expense, net in three months ended September 30, 2024. Interest expenses on borrowings under the Prior Revolving Facility outweighed interest earned on balances in the Company’s interest-bearing accounts in both of the three month periods ended September 30, 2025 and 2024.

Previous wording

During the three months ended June 30, 2025, the Company did not record a gain or loss for the change in fair value of contingent consideration. During the three months ended June 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $0.3 million.

Current wording

During the three months ended September 30, 2025, the Company recorded a $1,052,394 loss on the change in fair value of contingent consideration. During the three months ended September 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $44,520.

Previous wording

During the three months ended June 30, 2025, the Company recorded a loss on equity method investments of $38,817, representing its share of the losses incurred by an entity in which the Company has a minority interest. During the three months ended June 30, 2024, the Company recorded a loss on equity method investments of $64,014.

Current wording

$27,035, representing its share of the losses incurred by an entity in which the Company has a minority interest. During the three months ended September 30, 2024, the Company recorded a loss on equity method investments of $82,742.

Previous wording

During the three months ended June 30, 2025, the Company recorded other income of $0.1 million, compared to other income of $0.3 million in the three months ended June 30, 2024.

Current wording

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

Previous wording

During the three months ended June 30, 2025, the Company recorded an income tax benefit of $4.6 million, compared to an income tax provision of $3.7 million in the three months ended June 30, 2024. The increased tax expense in the 2024 period was due to the recording of higher pretax income in the 2024 period, as well as increased state and local taxes in the jurisdictions in which the Company did business in the 2024 period.

Current wording

During the three months ended September 30, 2025, the Company recorded an income tax benefit of $13.5 million, compared to an income tax provision of $4.5 million in the three months ended September 30, 2024. The tax benefit in the current year period reflects the recording of a pretax loss, as compared to pretax income in the 2024 period.

Previous wording

For the three months ended June 30, 2025, the Company had net loss attributable to noncontrolling interests of approximately $2.1 million, compared to net loss attributable to noncontrolling interests of approximately $0.7 million for the three months ended June 30, 2024.

Current wording

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

Previous wording

For the six months ended June 30, 2025, total revenues were $176.5 million, a decrease of $180.5 million, or 50.6%, compared to the six months ended June 30, 2024.

Current wording

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

Previous wording

For the six months ended June 30, 2025, Mobile Health Services revenues were $76.0 million, a decrease of $184.7 million, or 70.8%, compared to the six months ended June 30, 2024. The decline in revenues was due to the ongoing wind-down of migrant-related services, which had ramped up sharply in the third quarter of 2023 and peaked in the first quarter of 2024. Starting in the second quarter of 2023, the Company began providing services to the recently arrived migrant population in New York City and in upstate New York. These projects, which included both medical and non-medical services, such as shelter and security, expanded throughout the third and fourth quarters of 2023 and into the first quarter of 2024. However, some of these services were provided pursuant to a contract with an ending date during the second quarter of 2024. A portion of that contract was extended through December 31, 2024, while other services began to wind down in May 2024. The wind-down of all services under such contract was completed in the fourth quarter of 2024. While the exact timing of the wind-down of the remaining migrant-related services under other contracts is still uncertain, this process is nearly complete and the Company expects that the revenues from any remaining migrant-related projects will be significantly lower in 2025 than in 2024 and the second half of 2023. As such, while we expect to launch new Mobile Health Services projects in 2025 and to expand existing projects, we expect that overall Mobile Health Services revenues will be significantly lower in 2025 than they were in 2024.

Current wording

For the nine months ended September 30, 2025, Mobile Health Services revenues were $96.7 million, a decrease of $254.6 million, or 72.5%, compared to the nine months ended September 30, 2024. The decline in revenues was due to the ongoing wind-down of migrant-related services, which had ramped up sharply in the third quarter of 2023 and peaked in the first quarter of 2024. Starting in the second quarter of 2023, the Company began providing services to the recently arrived migrant population in New York City and in upstate New York. These projects, which included both medical and non-medical services, such as shelter and security, expanded throughout the third and fourth quarters of 2023 and into the first quarter of 2024. However, some of these services were provided pursuant to a contract with an ending date during the second quarter of 2024. A portion of that contract was extended through December 31, 2024, while other services began to wind down in May 2024. The wind-down of all services under such contract was completed in the fourth quarter of 2024. The wind-down of the remaining migrant-related services under other contracts is nearly complete and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026. As such, despite the Company’s expectation for revenue growth in other business lines within the Mobile Health Services segment, we expect that overall Mobile Health Services revenues will be lower in 2026 than they were in 2025, given the absence of migrant-related project revenues.

Previous wording

For the six months ended June 30, 2025, Transportation Services revenues were $100.5 million, an increase of $4.1 million, or 4.3%, compared to the six months ended June 30, 2024. This increase was due to a 2.1% increase in U.S. trip volumes, to 146,728 trips in the six months ended June 30, 2025, from 143,699 trips for the six months ended June 30, 2024. The increase in trip volumes was due to a combination of growth in the Company’s customer base in certain core markets and increased volumes with existing customers. Our average trip price decreased slightly, to $394 in the six months ended June 30, 2025, from $396 in the six months ended June 30, 2024. The decline in the average trip price in the 2025 period reflected a shift in mix toward lower-priced transports when compared to the same period in 2024 in some of the Company’s markets, particularly in the first quarter of the year.

Current wording

For the nine months ended September 30, 2025, Transportation Services revenues were $150.6 million, an increase of $6.2 million, or 4.3%, compared to the nine months ended September 30, 2024. This increase was due to a 2.2% increase in U.S. trip volumes, to 218,269 trips in the nine months ended September 30, 2025, from 213,475 trips for the nine months ended September 30, 2024. The increase in trip volumes was due to a combination of growth in the Company’s customer base in certain core markets and increased volumes with existing customers. Our average trip price increased slightly, to $400 in the nine months ended September 30, 2025, from $399 in the nine months ended September 30, 2024.

Previous wording

For the six months ended June 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 48.6% compared to the six months ended June 30, 2024, while revenues decreased by approximately 50.6%. Cost of revenues as a percentage of revenues increased to 68.1% in the six months ended June 30, 2025 from 65.5% in the six months ended June 30, 2024.

Current wording

For the nine months ended September 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 46.4% compared to the nine months ended September 30, 2024, while revenues decreased by approximately 50.1%. Cost of revenues as a percentage of revenues increased to 69.9% in the nine months ended September 30, 2025 from 65.1% in the nine months ended September 30, 2024.

Previous wording

Total cost of revenues in the six months ended June 30, 2025 decreased by $113.7 million compared to the same period in 2024. This decrease was primarily attributable to a $16.5 million decrease in total compensation, a $62.4 million decline in subcontracted labor costs and a $23.3 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter; a $2.7 million decrease in vehicle costs; a $2.0 million decline in travel-related costs for field employees; and a $6.8 million net decrease in other cost of revenues categories.

Current wording

Total cost of revenues in the nine months ended September 30, 2025 decreased by $149.7 million compared to the same period in 2024. This decrease was primarily attributable to a $23.5 million decrease in total compensation, an $87.1 million decline in subcontracted labor costs and a $28.1 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter, a $1.9 million decline in travel-related costs for field employees, and a $9.1 million net decrease in other cost of revenues categories.

Previous wording

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the six months ended June 30, 2025 amounted to $52.1 million, down 68.9% from $167.7 million in the six months ended June 30, 2024. Cost of revenues as a percentage of revenues increased to 68.6% from 64.3% in the prior year period, due to the decline in Mobile Health Services revenues, driven by the wind-down of migrant-related projects and lower margins from the early-stage care gap closure business.

Current wording

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the nine months ended September 30, 2025 amounted to $69.2 million, down 69.0% from $223.2 million in the nine months ended September 30, 2024. Cost of revenues as a percentage of revenues increased to 71.6% from 63.5% in the prior year period, due to the decline in Mobile Health Services revenues, driven by the wind-down of migrant-related projects, and lower margins from the early-stage care gap closure business.

Previous wording

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in the six months ended June 30, 2025 amounted to $68.1 million, up 3.0% from $66.1 million in the six months ended June 30, 2024. Cost of revenues as a percentage of revenues decreased to 67.8% from 68.6% in the prior year quarter, as the increase in revenues outpaced the increase in cost of revenues. Total compensation increased by 14.8% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain shifts in some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors. Costs for subcontractors declined by 39.3% when compared to last year’s first half, reflecting a planned reduction in the number of ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

Current wording

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in the nine months ended September 30, 2025 amounted to $103.7 million, up 4.3% from $99.4 million in the nine months ended September 30, 2024. Cost of revenues as a percentage of revenues increased only slightly to 68.9% from 68.8% in the prior year period, as the increase in revenues was in line with the increase in cost of revenues. Total compensation increased by 10.0% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain shifts in some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors. Costs for subcontractors declined by 38.9% when compared to the first nine months of last year, reflecting a planned reduction in the number of ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

Previous wording

For the six months ended June 30, 2025, the Company recorded $87.8 million of operating expenses compared to $97.1 million for the six months ended June 30, 2024, a decrease of 9.6%. As a percentage of revenue, operating expenses increased from 27.2% in the first half of 2024 to 49.7% in the first half of 2025, reflecting the decrease in revenues described above. The decrease of $9.3 million in operating expenses related to a $12.5 million decrease in travel-related expenses, due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects. This decline was partially offset by a $2.5 million increase in total compensation and a net $0.7 million increase spread across a variety of other operating expense categories. The Company anticipates that operating expenses will continue to decline as certain ongoing cost-containment efforts take hold.

Current wording

For the nine months ended September 30, 2025, the Company recorded $147.9 million of operating expenses compared to $136.9 million for the nine months ended September 30, 2024, an increase of 8.0%. As a percentage of revenue, operating expenses increased from 27.6% in the first nine months of 2024 to 59.8% in the first nine months of 2025, primarily reflecting the decrease in revenues described above. The increase of $11.0 million in operating expenses related to a $7.5 million increase in total compensation, a total of $16.7 million in impairment charges for intangible assets and goodwill in the third quarter of 2025 as described above, and a $2.6 million increase in professional fees due primarily to ongoing legal matters, which outweighed a $15.4 million decrease in travel-related expenses due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects and a net $0.4 million decrease spread across a variety of other operating expense categories. The Company anticipates that operating expenses will decline as certain ongoing cost-containment efforts take hold.

Previous wording

For the Mobile Health Services segment, operating expenses in the six months ended June 30, 2025 were $22.1 million, down 36.3% from $34.7 million in the six months ended June 30, 2024. Operating expenses as a percentage of revenues increased to 29.1% in the second quarter of 2025, from 13.3% in the second quarter of 2024, reflecting the drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York.

Current wording

For the Mobile Health Services segment, operating expenses in the nine months ended September 30, 2025 were $48.3 million, up 0.8% from $47.9 million in the nine months ended September 30, 2024. Operating expenses as a percentage of revenues increased to 49.9% in the nine months ended September 30, 2025, from 13.6% in the nine months ended September 30, 2024, reflecting the drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York and the impairment described above.

Previous wording

For the Transportation Services segment, operating expenses in the six months ended June 30, 2025 were $31.8 million, up 1.6% from $31.3 million in the six months ended June 30, 2024. Operating expenses as a percentage of revenues decreased to 31.6% for the six months ended June 30, 2025 from 32.5% in the six months ended June 30, 2024, due to the increased revenues in the current year period.

Current wording

For the Transportation Services segment, operating expenses in the nine months ended September 30, 2025 were $47.5 million, up 3.0% from $46.1 million in the nine months ended September 30, 2024. Operating expenses as a percentage of revenues decreased to 31.5% for the nine months ended September 30, 2025 from 31.9% in the nine months ended September 30, 2024, due to the increased revenues in the current year period.

Previous wording

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the six months ended June 30, 2025 were $33.9 million, up 9.0% from $31.1 million in the six months ended June 30, 2024, as higher stock compensation costs outweighed a decline in subcontractor expenses and professional fees. Corporate expenses amounted to approximately 19.2% of total consolidated revenues in the first half of 2025, compared to 8.7% in the first half of 2024, reflecting the decline in total consolidated revenues.

Current wording

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the nine months ended September 30, 2025 were $52.1 million, up 21.4% from $42.9 million in the nine months ended September 30, 2024, reflecting higher total compensation and insurance and increased professional fees. Corporate expenses amounted to approximately 21.1% of total consolidated revenues in the nine months ended September 30, 2025, compared to 8.7% in the nine months ended September 30, 2024, reflecting both the increase in absolute dollar expenses and the decline in total consolidated revenues.

Previous wording

For both the six months ended June 30, 2025 and 2024, the Company recorded $0.9 million of interest expense, net. Interest expenses on borrowings under the Prior Revolving Facility outweighed interest earned on balances in the Company’s interest-bearing accounts in both of the six month periods ended June 30, 2025 and 2024.

Current wording

For the nine months ended September 30, 2025, the Company recorded $1.1 million of interest expense, net, compared to $1.4 million in the nine months ended September 30, 2024. Interest expenses on borrowings under the Prior Revolving Facility outweighed interest earned on balances in the Company’s interest-bearing accounts in both of the nine month periods ended September 30, 2025 and 2024. However, net interest expense for the 2025 period was lower than in the 2024 period, reflecting the repayments of the amounts outstanding under the Prior Revolving Facility in August 2025.

Previous wording

During the six months ended June 30, 2025, the Company did not record a gain or loss for the change in fair value of contingent consideration. During the six months ended June 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $0.3 million.

Current wording

During the nine months ended September 30, 2025, the Company recorded a $1.1 million loss for the change in fair value of contingent consideration. During the nine months ended September 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $0.4 million.

Previous wording

During the six months ended June 30, 2025, the Company recorded a loss on equity method investments of $0.1 million, representing its share of the losses incurred by an entity in which the Company has a minority interest. During the six months ended June 30, 2024, the Company also recorded a loss on equity method investments of $0.1 million.

Current wording

During the nine months ended September 30, 2025, the Company recorded a loss on equity method investments of $0.1 million, representing its share of the losses incurred by an entity in which the Company has a minority interest. During the nine months ended September 30, 2024, the Company recorded a loss on equity method investments of $0.2 million.

Previous wording

During the six months ended June 30, 2025, the Company recorded other expense of $0.2 million, compared to other income of $0.5 million in the six months ended June 30, 2024.

Current wording

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

Previous wording

During the six months ended June 30, 2025, the Company recorded an income tax benefit of $8.4 million, compared to an income tax provision of $8.8 million in the six months ended June 30, 2024. The recording of a tax benefit in the current period compared to a tax provision in the prior year period is due to the recording of a pretax loss in the current period compared to pretax income in the prior year period.

Current wording

During the nine months ended September 30, 2025, the Company recorded an income tax benefit of $21.9 million, compared to an income tax provision of $13.3 million in the nine months ended September 30, 2024. The recording of a tax benefit in the current period compared to a tax provision in the prior year period is due to the recording of a pretax loss in the current period compared to pretax income in the prior year period.