Rocket Doctor AI Inc.
U.S. Expansion Accelerates Despite Earnings Headwinds
Published: June 12, 2026
Author: FRC Analysts
Disclosure: Rocket Doctor AI Inc. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Report Highlights
- Business Refresher: RD operates an AI-powered digital health platform connecting physicians and patients through virtual care.
- Revenue Growth: Q1-2026 marked another quarter of sequential revenue growth ($0.53M in Q3-2025 → $0.70M in Q4-2025 → $0.74M in Q1-2026), up 6% QoQ, but 14% below our estimate due to lower-than-expected patient volumes. However, Q2 is showing strong momentum.
- Patient Volumes: Q1 growth was driven by higher patient volumes. Canadian visits increased 9% QoQ and 24% YoY to ~48k. U.S. visits were ~1.3k in Q1-2026 vs negligible activity in Q4-2025. April U.S. visits totaled ~1.1k, up 160% from the Q1 monthly average (~0.4k).
- Higher Costs: Operating expenses were 34% above our estimate, reflecting higher-than-expected Rocket Doctor integration, and scaling costs.
- Earnings: Adjusted EBITDA weakened QoQ due to higher operating expenses, while EPS improved on lower depreciation expense; both metrics remained negative.
- Balance Sheet: Ended Q1 with $3.5M in cash and minimal debt. While we estimate a potential ~$2.5M working capital requirement, in-the-money options could generate up to $2.3M in proceeds, likely limiting any financing requirement to a small raise.
- U.S. Expansion: Canada represented 77% of Q1-2026 revenue (90% in 2025), while U.S. growth accelerated through new insurer partnerships. RD’s U.S. network now reaches ~21M individuals across ~20 insurers/payers.
- Valuation: RD trades at a 54% discount to peers on forward revenue (1x vs. 3x), and a 42% discount on forward EBITDA (9x vs. 16x). Despite our lower 2026–2027 forecasts following higher Q1 costs, we continue to expect strong YoY improvement across key metrics.
Price and Volume (1-year)
* Rocket Doctor AI has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. All figures in C$ unless otherwise specified.
Company Overview
B2C: Physician-Funded Model (Primary Revenue Driver)
B2B: Institutions license AI tools for training and care
The Rocket Doctor Process
Offers a streamlined virtual care experience from patient intake to payment
Generates revenue from doctors through monthly subscriptions and per-appointment platform fees
Target Markets
Source: FRC / Company
Operating in Canada since 2020; currently focused on U.S. expansion
RD’s current target pool includes ~46M people across its target regions in the U.S. and Canada
Source: Company
Primarily targets patients using government-funded health insurance (provincial in Canada and Medicaid / Medicare in the U.S.)
Partnerships with ~20 insurers in the U.S.
Financials
Q1- 2025 and Q1-2026 results are not comparable, as material revenue commenced only after the Rocket Doctor acquisition in April 2025.
1.Excluding stock-based compensation (SBC) / 2.Excluding unusual items + SBC
Q1 revenue of $0.74M (+6% QoQ), continuing sequential growth; 14% below our estimate
Growth driven by higher patient volumes; Canadian visits up 9% QoQ and 24% YoY to ~48k
U.S. visits were ~1.3k vs negligible activity in Q4-2025
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