Virtual Care Platform Grows US Visits 56%, Eyes Record Quarter

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• Rocket Doctor AI completed 53,348 patient visits across the U.S. and Canada in the third quarter, and announced it expects record quarterly revenue.
• U.S. visits rose 56% from the second quarter to 6,101, and U.S. clinical hours rose 33% to 2,634.
• Canadian visits rose 24% from the same quarter a year earlier to 47,247.
• The company has more than 20 in-network agreements covering commercial, Medicare Advantage, and Medicaid plans, giving it potential access to about 24 million covered lives.
• Some U.S. revenue is recognized only when cash is collected, so revenue can lag visit growth.
• In a September 8 update, Fundamental Research Corp. reiterated a Buy rating on Rocket Doctor AI with a fair value estimate of CA$1.26 per share.
• U.S. health spending reached US$5.3 trillion in 2024, according to the Centers for Medicare & Medicaid Services, and 81% of physicians now use AI in their practices, according to the American Medical Association.

Rocket Doctor AI Inc. (AIDR:CSE; AIRDF:OTCQB; 939:FSE) announced it completed 53,348 patient visits across the U.S. and Canada in the third quarter, which ended September 30, according to an October 15 release. The company also said it expects to report record quarterly revenue for the period.

Chief Executive Officer Dr. Essam Hamza called the result "a remarkable operational milestone" and said it highlights "the accelerating demand for Rocket Doctor AI's physician-built, AI-powered platform across North America."

U.S. growth led the quarter. Completed U.S. visits rose 56% to 6,101 from 3,911 in Q2, and U.S. clinical hours rose 33% to 2,634 from 1,987.5. In Canada, completed visits rose 24% to 47,247 in Q3 2026 from 37,960 in Q3 2025.

The final U.S. numbers beat the preliminary figures the company gave in its September 14 operational update. That update reported 3,625 U.S. visits and 1,555 clinical hours for July and August alone. The company credited the growth to its multi-payer strategy. It now has more than 20 in-network agreements covering commercial, Medicare Advantage, and Medicaid plans, and it is working to move out-of-network patients and physicians in-network.

Rocket Doctor AI recognizes some U.S. revenue only when cash is collected, so revenue lags behind visit growth.

"While U.S. patient volumes grew significantly in Q2, the associated revenue growth was not immediately reflected in our reported results because of the lag between patient visits, claims processing, and cash collections," Hamza said. "With U.S. patient visits increasing a further 56% in Q3, we expect to begin seeing the financial benefits of that growth as collections catch up with clinical activity. Our expectation of record Q3 revenue is an encouraging indication of that progression."

Rocket Doctor AI is a healthcare technology company founded by physicians. Its AI-powered digital health platform and marketplace connect patients with more than 350 physicians, and it has handled more than 800,000 patient visits to date.

The company's U.S. push has gained speed this year. In Q2 results released September 2, Rocket Doctor AI said completed U.S. visits nearly tripled from 1,319 in Q1. Revenue rose 43% from a year earlier to about CA$734,000. The company said its in-network agreements give it access to about 24 million covered lives, including about 10.3 million in California, 10 million in New York, and 3.2 million in Maryland. A June 30 value-based primary care agreement has created the opportunity to add more than 5 million members across nine payers.

In a September 8 update, Fundamental Research Corp. (FRC) Head of Research Sid Rajeev reiterated a Buy rating on Rocket Doctor AI with a fair value estimate of CA$1.26 per share, down from CA$1.55.

He said the company is "gaining meaningful traction in the U.S., with rapidly growing patient volumes, coverage, and provider capacity supporting its virtual care platform." His risk rating was 4 (Speculative).

Rajeev noted that U.S. in-network reach grew to about 24 million covered lives in the second quarter from about 21 million in the first, and that active U.S. clinicians increased to 30 from 19.

Fundamental Research Corp. (FRC) Head of Research Sid Rajeev reiterated a Buy rating on Rocket Doctor AI with a fair value estimate of CA$1.26 per share.

He said the company's falling gross margin reflects the growing share of U.S. business rather than "a structural change in the business model."

U.S. insurers pay Rocket Doctor AI, which then pays physicians, so U.S. margins run at about 15% to 20%. In Canada, provincial plans pay physicians directly, and physicians pay the company a fee, so margins there are about 85% to 90%.

He also said the stock trades at a 56% discount to peers on forward revenue (1.0 times versus 2.3 times) and a 54% discount on forward EBITDA (8.7 times versus 18.9 times). Rajeev cautioned, however, that "the slower-than-expected revenue ramp, rising marketing costs, funding requirements, and potential dilution remain key risks."

U.S. health spending rose 7.2% in 2024 to US$5.3 trillion, or US$15,474 per person, according to the Centers for Medicare & Medicaid Services. That is 18% of gross domestic product. CMS projects spending will grow an average of 5.4% a year through 2034, reaching 20.6% of GDP.

The country is also short of doctors. The Association of American Medical Colleges projected in 2024 a shortage of up to 86,000 physicians by 2036, including as many as 40,400 in primary care.

Grand View Research expects the global telehealth market to reach US$87.7 billion this year and US$187.5 billion by 2033, a compound annual growth rate of 11.5%. North America made up 45.2% of the market in 2025. In February, the Consolidated Appropriations Act, 2026, extended Medicare's telehealth flexibilities through December 31, 2027. These flexibilities let patients be seen from home anywhere in the country and keep payment for audio-only visits.

Doctors are adopting AI quickly. In a March American Medical Association survey, 81% of physicians said they use AI in their practices, up from 38% in 2023, the AMA reported. They use it most to summarize medical research (39%), write discharge instructions, care plans, and progress notes (30%), and document billing codes, charts, and visit notes (28%).

"AI has quickly become part of everyday medical practice," AMA Chief Executive Officer Dr. John Whyte said.

Hospitals are moving as well. A January study in The American Journal of Managed Care found that 62.6% of U.S. hospitals on Epic's electronic health records had adopted ambient AI tools, which listen to visits and draft clinical notes. 

Rocket Doctor AI Inc. has a market cap of approximately CA$54.56 million, with 105.31 million shares outstanding. The company's 52-week range is CA$0.48-CA$0.98.

Management and insiders own 4.07% of shares, institutions own 0.23%, and the rest is retail.

What drove Rocket Doctor AI's third-quarter growth?

U.S. visits rose 56% from the second quarter, and the company credited its multi-payer strategy and expanding in-network coverage for the gain. Canadian visits rose 24% from the same quarter a year earlier.

Why does revenue lag behind patient visits?

Rocket Doctor AI recognizes some U.S. revenue only when cash is collected. Growth in second-quarter visits didn't show up right away in reported results. The company expects collections to catch up in the third quarter, producing record revenue.

There is an inherent time gap between clinical activity (the patient visit), claim submission, insurance claims adjudication/processing, and final payment collection — a process that can take several weeks to months. While visit volumes increase immediately, reported revenues only reflect these visits once payments clear.

How large is Rocket Doctor AI's U.S. reach?

Its in-network agreements give it access to about 24 million covered lives, including about 10.3 million in California, 10 million in New York, and 3.2 million in Maryland.

What does the analyst covering Rocket Doctor AI think?

Fundamental Research Corp.'s Sid Rajeev rates the stock a Buy with a fair value estimate of CA$1.26 per share and a risk rating of 4 (Speculative). He cited strong U.S. traction but flagged the company's funding needs and potential dilution as key risks.

What is driving demand for telehealth and AI in health care?

U.S. health spending rose 7.2% in 2024 to US187.5 billion by 2033.

What are the next catalysts for Rocket Doctor AI?

The formal third-quarter financial results should confirm whether revenue hit a record. Investors will also watch for more in-network agreements and for progress moving out-of-network patients and physicians in-network.