Doximity Announces Fiscal 2027 First Quarter Financial Results

Doximity Announces Fiscal 2027 First Quarter Financial Results 08/06/2026 Total revenues of $156.6 million, up 7% year-over-year Net income of $24.3 million, margin of 16% Adjusted EBITDA of $74.8 million, margin of 48% Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2027 first quarter ended June 30, 2026. “We're proud that our clinical AI assistant, Doximity Ask, was the top-performing U.S.-based model in the NOHARM benchmark while we delivered another quarter of record engagement,” said Jeff Tangney, co-founder and CEO of Doximity. "In Q1 we had accelerated revenue growth along with workflow active prescriber growth of more than 30% year-over-year and AI Search query growth of over 25% quarter-over-quarter.” Fiscal 2027 First Quarter Financial Highlights All comparisons, unless otherwise noted, are to the three months ended June 30, 2025. Revenue: Revenue of $156.6 million, versus $145.9 million, an increase of 7% year-over-year.Net income and non-GAAP net income: Net income of $24.3 million, versus $53.3 million, representing a margin of 15.5%, versus 36.5%. Non-GAAP net income of $55.0 million, versus $71.9 million, representing a margin of 35.1%, versus 49.2%.Adjusted EBITDA: Adjusted EBITDA of $74.8 million, versus $79.8 million, a decrease of 6% year-over-year, representing adjusted EBITDA margins of 47.7%, versus 54.7%.Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.13, versus $0.27, while non-GAAP diluted net income per share was $0.29, versus $0.36.Operating cash flow and free cash flow: Operating cash flow of $42.0 million, versus $62.1 million, a decrease of 32% year-over-year, and free cash flow of $39.6 million, versus $60.1 million, a decrease of 34% year-over-year. Financial Outlook Doximity is providing guidance for its fiscal second quarter ending September 30, 2026 as follows: Revenue between $170 million and $171 million.Adjusted EBITDA between $80.5 million and $81.5 million. Doximity is updating guidance for its fiscal year ending March 31, 2027 as follows: Revenue between $671 million and $681 million.Adjusted EBITDA between $309 million and $329 million. For more detailed financial commentary, please refer to the “Modeling Considerations” appendix in our prepared remarks. Conference Call Information Doximity posted prepared remarks on its investor relations website at https://investors.doximity.com. Doximity will host a webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these financial results. To listen to a live audio webcast, please visit the Company’s Investor Relations page at https://investors.doximity.com. The recorded webcast will be available on the Company’s Investor Relations page shortly after the call. About Doximity Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company's network members include more than 85% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay current on medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. With new AI-powered clinical reference and search capabilities, Doximity also helps doctors access trusted, peer-reviewed information and medical literature. Doximity's mission is to help doctors be more productive so they can provide better care for their patients. Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements are all statements other than statements of historical fact, and specifically include statements regarding guidance and future business and financial results. These statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors including, without limitation, those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 and as may be updated in any subsequent Quarterly Reports on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements. The forward-looking statements made in this press release relate only to management’s beliefs and assumptions as of this date. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. DOXIMITY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) June 30, 2026 March 31, 2026 Assets Current assets: Cash and cash equivalents $ 273,604 $ 219,178 Marketable securities 414,185 529,423 Accounts receivable, net 177,575 144,783 Prepaid expenses and other current assets 48,614 50,880 Total current assets 913,978 944,264 Property and equipment, net 19,243 18,080 Deferred income tax assets 23,839 31,984 Operating lease right-of-use assets 6,752 7,140 Intangible assets, net 33,385 35,325 Goodwill 84,973 84,973 Other assets 1,675 1,921 Total assets $ 1,083,845 $ 1,123,687 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 6,494 $ 4,009 Accrued expenses and other current liabilities 32,666 42,804 Deferred revenue, current 109,061 106,050 Operating lease liabilities, current 2,142 2,110 Total current liabilities 150,363 154,973 Deferred revenue, non-current 37 400 Operating lease liabilities, non-current 7,531 8,075 Other liabilities, non-current 9,844 9,402 Total liabilities 167,775 172,850 Stockholders' Equity Preferred stock — — Common stock 180 183 Additional paid-in capital 1,035,282 1,001,688 Accumulated other comprehensive income (loss) (348 ) 28 Accumulated deficit (119,044 ) (51,062 ) Total stockholders’ equity 916,070 950,837 Total liabilities and stockholders’ equity $ 1,083,845 $ 1,123,687 DOXIMITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended June 30, 2026 2025 Revenue $ 156,618 $ 145,913 Cost of revenue(1) 23,692 15,793 Gross profit 132,926 130,120 Operating expenses(1): Research and development 38,477 26,799 Sales and marketing 45,049 36,365 General and administrative 15,756 12,439 Total operating expenses 99,282 75,603 Income from operations 33,644 54,517 Other income, net 6,719 9,630 Income before income taxes 40,363 64,147 Provision for income taxes 16,048 10,827 Net income $ 24,315 $ 53,320 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.13 $ 0.28 Diluted $ 0.13 $ 0.27 Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: Basic 182,569 187,984 Diluted 191,169 201,158 (1) Costs and expenses include stock-based compensation expense as follows (in thousands): Three Months Ended June 30, 2026 2025 Cost of revenue $ 3,192 $ 2,980 Research and development 15,559 6,649 Sales and marketing 12,425 7,710 General and administrative 5,576 4,526 Total stock-based compensation expense $ 36,752 $ 21,865 DOXIMITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended June 30, 2026 2025 Cash flows from operating activities Net income $ 24,315 $ 53,320 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,287 2,794 Stock-based compensation, net of amounts capitalized 36,752 21,865 Non-cash lease expense 387 450 Accretion of discount on marketable securities, net (568 ) (2,488 ) Amortization of deferred contract costs 4,300 3,896 Other (338 ) (408 ) Changes in operating assets and liabilities: Accounts receivable (33,334 ) (13,381 ) Prepaid expenses and other assets 9,125 (4,234 ) Deferred contract costs (2,642 ) (1,965 ) Accounts payable, accrued expenses and other liabilities (2,433 ) (165 ) Deferred revenue 2,648 2,973 Operating lease liabilities (512 ) (556 ) Net cash provided by operating activities 41,987 62,101 Cash flows from investing activities Purchases of property and equipment (62 ) — Internal-use software development costs (2,322 ) (1,966 ) Purchases of marketable securities (14,746 ) (139,934 ) Maturities of marketable securities 126,071 144,579 Sales of marketable securities 4,049 — Net cash provided by investing activities 112,990 2,679 Cash flows from financing activities Proceeds from issuance of common stock upon exercise of stock options and common stock warrants 3,080 2,398 Taxes paid related to net share settlement of equity awards (6,974 ) (11,927 ) Repurchase of common stock (91,633 ) (122,355 ) Payment of contingent consideration related to a business combination (5,024 ) (5,249 ) Net cash used in financing activities (100,551 ) (137,133 ) Net increase (decrease) in cash and cash equivalents 54,426 (72,353 ) Cash and cash equivalents, beginning of period 219,178 209,614 Cash and cash equivalents, end of period $ 273,604 $ 137,261 Supplemental disclosures of cash flow information Cash paid for taxes, net of refunds $ 3,990 $ 4,978 Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses the following non-GAAP measures of financial performance: Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income margin, and non-GAAP basic and diluted net income per common share: We exclude the effect of acquisition and other related expenses, stock-based compensation expense, amortization of acquired intangible assets, legal fees associated with certain non-ordinary course legal matters including the shareholder class action litigation, and change in fair value of contingent earn-out consideration liability from non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating income. Non-GAAP net income and non-GAAP net income margin are further adjusted for estimated income tax on such adjustments. We calculate income taxes on the adjustments by applying an estimated annual effective tax rate to the adjustments. Non-GAAP basic and diluted net income per common share is non-GAAP net income attributable to common stockholders divided by the weighted average number of shares. For both basic and diluted non-GAAP net income per share, the weighted average shares we use in computing non-GAAP net income per share is equal to our GAAP weighted average shares. Non-GAAP gross margin represents non-GAAP gross profit as a percentage of revenue and non-GAAP net income margin represents non-GAAP net income as a percentage of revenue.Adjusted EBITDA and adjusted EBITDA margin: We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, legal fees associated with certain non-ordinary course legal matters including the shareholder class action litigation, change in fair value of contingent earn-out consideration liability, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.Free cash flow: We calculate free cash flow as cash flow from operating activities less purchases of property and equipment, purchases of intangible assets, and internal-use software development costs. We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results. Key Business Metrics Net revenue retention rate: Our net revenue retention rate compares our subscription revenue from the same set of customers across comparable periods, and reflects customer renewals, expansion, contraction, and churn. Net revenue retention rate is calculated by taking the trailing 12-month (“TTM”) subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period. For the purposes of this calculation, subscription revenue excludes subscriptions for individuals and small practices and other non-recurring items. Our net revenue retention rate is directly tied to our revenue growth rate and thus fluctuates as that growth rate fluctuates.Customers with trailing 12-month subscription revenue greater than $500,000: The number of customers with TTM subscription revenue greater than $500,000 is a key indicator of the scale of our business and the value we create for large customers, and is calculated by counting the number of customers that contributed more than $500,000 in subscription revenue in the TTM period. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments.Quarterly unique active providers using our workflow tools: Quarterly unique active providers 1 using our Workflow Tools is a measure of our platform’s usage and adoption among healthcare providers on our platform. We calculate the number of unique active providers by counting providers who securely login and use any of the following workflow functions on our technology platform during the quarter: placing phone calls or video calls lasting more than 10 seconds, sending voicemails, or sending secure text messages using our Dialer communications tools; sending or receiving faxes; submitting a prompt on Ask (formerly DoxGPT), our HIPAA‑compliant generative AI clinical research tool and writing assistant; conducting research on prescription drugs; reviewing AI responses for our PeerCheck feature; scheduling via our on-call scheduling tool, Amion; or using our HIPAA-compliant ambient note taking tool, Scribe, for a patient visit. Each provider is counted once per quarter, even if they use multiple tools or use them many times.________________ 1 Providers are health care professionals with clinical / prescribing roles specifically Physicians (MD/DO), Nurse practitioners (NPs), Certified registered nurse anesthetist (CRNAs), Physician assistants (PAs), Pharmacists, and Medical students Reconciliation of GAAP to Non-GAAP Financial Measures The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below: Three Months Ended June 30, 2026 2025 (unaudited) (in thousands, except percentages) Net income $ 24,315 $ 53,320 Adjusted to exclude the following: Acquisition and other related expenses — 428 Stock-based compensation 36,752 21,865 Depreciation and amortization 4,287 2,794 Provision for income taxes 16,048 10,827 Change in fair value of contingent earn-out consideration liability 90 168 Other income, net (6,719 ) (9,630 ) Adjusted EBITDA $ 74,773 $ 79,772 Revenue $ 156,618 $ 145,913 Net income margin 15.5 % 36.5 % Adjusted EBITDA margin 47.7 % 54.7 % Three Months Ended June 30, 2026 2025 (unaudited) (in thousands) Net cash provided by operating activities $ 41,987 $ 62,101 Purchases of property and equipment (62 ) — Internal-use software development costs (2,322 ) (1,966 ) Free cash flow $ 39,603 $ 60,135 Other cash flow components: Net cash provided by investing activities $ 112,990 $ 2,679 Net cash used in financing activities $ (100,551 ) $ (137,133 ) Three Months Ended June 30, 2026 2025 (unaudited) (in thousands, except per share data and percentages) GAAP cost of revenue $ 23,692 $ 15,793 Adjusted to exclude the following: Stock-based compensation (3,192 ) (2,980 ) Amortization of acquired intangibles (935 ) — Non-GAAP cost of revenue $ 19,565 $ 12,813 GAAP gross profit $ 132,926 $ 130,120 Adjusted to exclude the following: Stock-based compensation 3,192 2,980 Amortization of acquired intangibles 935 — Non-GAAP gross profit $ 137,053 $ 133,100 GAAP gross margin 84.9 % 89.2 % Non-GAAP gross margin 87.5 % 91.2 % GAAP research and development expense $ 38,477 $ 26,799 Adjusted to exclude the following: Stock-based compensation (15,559 ) (6,649 ) Non-GAAP research and development expense $ 22,918 $ 20,150 GAAP sales and marketing expense $ 45,049 $ 36,365 Adjusted to exclude the following: Stock-based compensation (12,425 ) (7,710 ) Amortization of acquired intangibles (1,005 ) (1,002 ) Change in fair value of contingent earn-out consideration liability (90 ) (168 ) Non-GAAP sales and marketing expense $ 31,529 $ 27,485 GAAP general and administrative expense $ 15,756 $ 12,439 Adjusted to exclude the following: Acquisition and other related expenses — (428 ) Stock-based compensation (5,576 ) (4,526 ) Non-GAAP general and administrative expense $ 10,180 $ 7,485 GAAP operating expense $ 99,282 $ 75,603 Adjusted to exclude the following: Acquisition and other related expenses — (428 ) Stock-based compensation (33,560 ) (18,885 ) Amortization of acquired intangibles (1,005 ) (1,002 ) Change in fair value of contingent earn-out consideration liability (90 ) (168 ) Non-GAAP operating expense $ 64,627 $ 55,120 GAAP operating income $ 33,644 $ 54,517 Adjusted to exclude the following: Acquisition and other related expenses — 428 Stock-based compensation 36,752 21,865 Amortization of acquired intangibles 1,940 1,002 Change in fair value of contingent earn-out consideration liability 90 168 Non-GAAP operating income $ 72,426 $ 77,980 GAAP net income $ 24,315 $ 53,320 Adjusted to exclude the following: Acquisition and other related expenses — 428 Stock-based compensation 36,752 21,865 Amortization of acquired intangibles 1,940 1,002 Change in fair value of contingent earn-out consideration liability 90 168 Income tax effect of non-GAAP adjustments (1) (8,144 ) (4,927 ) Non-GAAP net income $ 54,953 $ 71,856 Non-GAAP net income margin 35.1 % 49.2 % Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: Basic 182,569 187,984 Diluted 191,169 201,158 Non-GAAP net income per share attributable to Class A and Class B stockholders: Basic $ 0.30 $ 0.38 Diluted $ 0.29 $ 0.36 (1) For the three months ended June 30, 2026 and 2025, management used an estimated annual effective non-GAAP tax rate of 21.0%. Source: Doximity