DocGo buys virtual care provider Hicuity, cuts FY26 EBITDA outlook to as low as ($22M)
What's the deal? DocGo (Nasdaq: DCGO) has signed a definitive agreement to acquire 100% of Hicuity Health, a provider of high-acuity virtual clinical care. Alongside the deal, DocGo secured a commitment from Perceptive Advisors for up to $50 million in new debt financing.
The terms: DocGo will assume Hicuity's existing debt held by Perceptive Advisors, estimated at roughly $52 million at closing, now maturing in December 2029. Hicuity's preferred shareholder will receive equity worth about 2.0% of DocGo's outstanding common stock, with a potential top-up if DocGo reaches a $250 million market capitalisation within three years.
What Hicuity does: It offers Tele-ICU, Virtual Nursing, and Telemetry Monitoring services. Over the trailing 12 months, it generated roughly $65 million in revenue and $4.5 million in adjusted EBITDA.
The financing: Perceptive Advisors will fund a first tranche of $12.5 million once DocGo and Hicuity enter a services agreement.
Why now? DocGo sharply cut its full-year 2026 adjusted EBITDA guidance to a loss of $17 million to $22 million, down from a prior loss of $5 million to $10 million. It narrowed revenue guidance to $305-$310 million, from $300-$315 million; the outlook excludes any contribution from Hicuity, which has not yet closed.
DocGo still expects to exit the year at a profitable run rate.
The numbers: Second-quarter revenue fell to $73.4 million from $80.4 million a year earlier, due to the wind-down of migrant-related programs. Excluding those programmes, revenue rose 19% year-over-year, while the GAAP net loss widened to $18.0 million from $13.3 million.
Cash and equivalents, including restricted cash and investments, stood at about $48.1 million as of June 30, 2026, down from $59.9 million three months earlier. Management credited cost cuts for removing more than $4 million of estimated annual SG&A costs during the quarter.
The signal: The acquisition points DocGo toward higher-acuity virtual care as it retires the migrant-related contracts that once padded revenue. Whether that pivot delivers profitability depends on integrating Hicuity while absorbing fresh debt and a widening near-term loss.
Read more: MiniChart
Image credit: NavyMedicine
