By Katherine Hamilton

Shares of DocGo sank after it withdrew its government healthcare business from its revenue outlook due to changing federal spending and policies.

The stock fell 19% to $1.89 after the market closed Thursday. Shares have lost 45% of their value this year.

The medical services provider said it now expects full-year revenue to be $300 million to $330 million, down from $410 million to $450 million. The new revenue guidance excludes sales from the part of its business that provides healthcare to governments. Changes in government spending and policies have created uncertainty about that segment, prompting DocGo to remove it from its outlook, it said.

"I want to be clear, this revision is driven by our Government Population Health vertical," Chief Executive Lee Bienstock said. "The impact of ongoing policy changes in Washington and adjustments to public spending on healthcare-related projects have created substantial uncertainty."

DocGo's other segments, including hospital and payer and provider are still performing in line with expectations, Bienstock said.

First-quarter sales and earnings fell below Wall Street's expectations. Revenue of $96 million was below the $104.2 million forecast by analysts, according to FactSet. The loss of 9 cents a share was wider than the 3-cent loss analysts were anticipating.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 08, 2025 18:49 ET (22:49 GMT)

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