DocGo increased the estimated contingent consideration liability associated with its SteadyMD acquisition to $5 million from $2.3 million, recording a $2.7 million first-half fair-value loss because the company now expects stronger revenue performance from the acquired telehealth business.
The accounting charge is therefore tied to a positive change in the underlying business outlook. DocGo explicitly attributed the $2.8 million overall first-half contingent-consideration fair-value loss primarily to an improved revenue outlook for SteadyMD.
DocGo acquired SteadyMD in October 2025 for approximately $13 million of cash consideration, including payments used to settle specified debt and convertible-note obligations. The agreement also provides for as much as $12.5 million of additional contingent consideration if SteadyMD meets specified net-revenue targets during calendar 2026.
SteadyMD provides a 50-state virtual clinician workforce serving digital-health companies, laboratories, pharmacies, employers and other healthcare organizations. DocGo acquired the business as part of its effort to broaden technology-enabled and virtual-care capabilities within its Mobile Health Services segment.
The stronger SteadyMD outlook comes while DocGo’s consolidated results continue to absorb the disappearance of large migrant-related government programs. Q2 revenue declined 8.7% to $73.4 million, while Mobile Health Services revenue fell 30.5% to $21.4 million. Virtual-care revenue from SteadyMD partially offset that decline.
For the first half, total revenue declined 15.6% to $149 million, while Mobile Health Services revenue fell 40.7% to $45 million. Management expects remaining migrant-related project revenue to be relatively insignificant during 2026, making growth from newer businesses such as SteadyMD increasingly important to the segment’s future revenue base.
DocGo’s Q2 net loss was $18 million, compared with $13.3 million a year earlier, while the first-half net loss increased to $34.7 million from $24.3 million.
The company had $25.2 million of unrestricted cash and $47.5 million of working capital at June 30. DocGo said it expects near-term operating losses to continue consuming available unrestricted cash, making the performance of growth businesses such as SteadyMD relevant both operationally and to the company’s broader liquidity trajectory.
