TLDR
- DocGo Inc (NASDAQ:DCGO) shares surged 50% in after-hours trading after announcing the acquisition of SteadyMD virtual care platform
- The deal is valued at up to $25 million and will be funded through DocGo’s existing cash reserves
- SteadyMD operates a network of 600+ clinicians across all 50 states and expects to serve 3 million patients in 2025
- SteadyMD is projected to generate $25 million in revenue for 2025 and achieve EBITDA profitability by 2026
- SteadyMD co-founders Guy Friedman and Yarone Goren will join DocGo’s leadership team
DocGo Inc (DCGO) stock climbed sharply in after-hours trading Monday. The mobile health services provider announced it acquired virtual care platform SteadyMD, Inc.
The deal sent DCGO stock up 50% as investors reacted to the expansion news. DocGo is paying up to $25 million for the acquisition using cash on hand.
SteadyMD brings a substantial virtual care operation to the table. The platform maintains a roster of more than 600 clinicians working across all 50 states. In 2025, SteadyMD expects to service over 3 million patients.
The financial outlook for the acquired business looks solid. SteadyMD is projected to generate approximately $25 million in revenue during 2025. The company expects to reach EBITDA profitability by 2026.
Virtual Care Meets Mobile Health
DocGo CEO Lee Bienstock called the acquisition “an exciting milestone” for the company. The deal supports DocGo’s mission to make technology-powered healthcare more accessible. The company describes its approach as providing “healthcare at any address.”
The combination merges two different healthcare delivery methods. SteadyMD’s virtual care platform connects patients with clinicians remotely. DocGo’s mobile health services bring care directly to patients’ locations.
SteadyMD co-founders will take leadership roles at DocGo. CEO Guy Friedman and COO Yarone Goren are joining the executive team. Friedman said the merger provides resources to expand their vision of personalized, patient-centered virtual care.
Financial Guidance Update Coming
DocGo plans to revise its financial outlook soon. The company will update its 2025 revenue and adjusted EBITDA guidance during its earnings call in early November. The update will reflect the impact of the SteadyMD transaction.
Current analyst ratings place DCGO stock at a Hold with a $1.50 price target. The company’s market cap stands at $113.5 million. Average daily trading volume is 549,092 shares.
DocGo indicated it will continue pursuing growth opportunities. The company is looking for additional acquisitions and partnerships that expand its capabilities.
What’s Next for DCGO Stock
The technical sentiment signal for DCGO stock is currently Sell. The company faces some financial challenges including declining revenue and profitability concerns. However, there are positive signs in operational improvements and cash flow strength.
DocGo provides technology-enabled mobile health and medical transportation services. The company offers mobile health services, remote patient monitoring, and ambulance services. The SteadyMD acquisition expands DocGo’s reach across all 50 states with a nationwide network of virtual clinicians and an expected patient base of over 3 million in 2025.
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