Doximity Announces Fiscal 2027 Second Quarter Financial Results

Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2027 second quarter ended September 30, 2026.

“We delivered another quarter of record engagement while investing heavily in AI and maintaining a 51% adjusted EBITDA margin,” said Jeff Tangney, co-founder and CEO of Doximity. “More than 190 health systems have now purchased our AI suite, and with UpToDate and DoseCheck, we’re extending our lead in distribution and trust.”

Fiscal 2027 Second Quarter Financial Highlights

All comparisons, unless otherwise noted, are to the three months ended September 30, 2025.

Revenue: Revenue of $174.5 million, versus $168.5 million, an increase of 4% year-over-year.
Net income and non-GAAP net income: Net income of $34.7 million, versus $62.1 million, representing a margin of 19.9%, versus 36.8%. Non-GAAP net income of $68.3 million, versus $90.0 million, representing a margin of 39.1%, versus 53.4%.
Adjusted EBITDA: Adjusted EBITDA of $88.9 million, versus $100.8 million, a decrease of 12% year-over-year, representing adjusted EBITDA margins of 50.9%, versus 59.8%.
Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.18, versus $0.31, while non-GAAP diluted net income per share was $0.36, versus $0.45.
Operating cash flow and free cash flow: Operating cash flow of $93.3 million, versus $93.9 million, a decrease of 1% year-over-year, and free cash flow of $91.3 million, versus $91.6 million, a decrease of less than 1% year-over-year.

Financial Outlook

Doximity is providing guidance for its fiscal third quarter ending December 31, 2026 as follows:

Revenue between $195 million and $196 million.
Adjusted EBITDA between $102.5 million and $103.5 million.

Doximity is updating guidance for its fiscal year ending March 31, 2027 as follows:

Revenue between $678 million and $683 million.
Adjusted EBITDA between $317 million and $325 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. With AI-powered clinical reference and search capabilities, Doximity 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)

	September 30, 2026			March 31, 2026
Assets
Current assets:
Cash and cash equivalents	$	218,614		$	219,178
Marketable securities		494,615			529,423
Accounts receivable, net		166,113			144,783
Prepaid expenses and other current assets		42,200			50,880
Total current assets		921,542			944,264
Property and equipment, net		19,827			18,080
Deferred income tax assets		26,070			31,984
Operating lease right-of-use assets		6,362			7,140
Intangible assets, net		31,444			35,325
Goodwill		84,973			84,973
Other assets		1,552			1,921
Total assets	$	1,091,770		$	1,123,687
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	6,304		$	4,009
Accrued expenses and other current liabilities		35,865			42,804
Deferred revenue, current		100,227			106,050
Operating lease liabilities, current		2,198			2,110
Total current liabilities		144,594			154,973
Deferred revenue, non-current		37			400
Operating lease liabilities, non-current		6,948			8,075
Other liabilities, non-current		11,707			9,402
Total liabilities		163,286			172,850
Stockholders’ Equity
Preferred stock		—			—
Common stock		178			183
Additional paid-in capital		1,068,702			1,001,688
Accumulated other comprehensive income (loss)		(1,653	)		28
Accumulated deficit		(138,743	)		(51,062	)
Total stockholders’ equity		928,484			950,837
Total liabilities and stockholders’ equity	$	1,091,770		$	1,123,687

DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended September 30,				Six Months Ended September 30,
		2026		2025		2026		2025
Revenue	$	174,537	$	168,525	$	331,155	$	314,438
Cost of revenue⁽¹⁾		25,346		16,425		49,038		32,218
Gross profit		149,191		152,100		282,117		282,220
Operating expenses⁽¹⁾:
Research and development		41,961		30,202		80,439		57,001
Sales and marketing		46,892		39,168		91,941		75,533
General and administrative		16,416		19,049		32,172		31,488
Total operating expenses		105,269		88,419		204,552		164,022
Income from operations		43,922		63,681		77,565		118,198
Other income, net		6,405		9,258		13,124		18,888
Income before income taxes		50,327		72,939		90,689		137,086
Provision for income taxes		15,597		10,880		31,645		21,707
Net income	$	34,730	$	62,059	$	59,044	$	115,379
Net income per share attributable to Class A and Class B common stockholders:
Basic	$	0.19	$	0.33	$	0.33	$	0.61
Diluted	$	0.18	$	0.31	$	0.31	$	0.57
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic		178,674		187,705		180,611		187,844
Diluted		187,804		200,745		189,475		200,952

⁽¹⁾

Costs and expenses include stock-based compensation expense as follows (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
		2026		2025		2026		2025
Cost of revenue	$	3,036	$	2,844	$	6,228	$	5,824
Research and development		16,028		9,862		31,587		16,511
Sales and marketing		12,696		10,508		25,121		18,218
General and administrative		8,805		6,260		14,381		10,786
Total stock-based compensation expense	$	40,565	$	29,474	$	77,317	$	51,339

DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	Three Months Ended September 30,						Six Months Ended September 30,
		2026			2025			2026			2025
Cash flows from operating activities
Net income	$	34,730		$	62,059		$	59,044		$	115,379
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,353			3,469			8,640			6,263
Stock-based compensation, net of amounts capitalized		40,565			29,474			77,317			51,339
Non-cash lease expense		391			454			778			904
Accretion of discount on marketable securities, net		(358	)		(2,199	)		(925	)		(4,687	)
Amortization of deferred contract costs		3,858			2,876			8,158			6,772
Other		358			294			20			(114	)
Changes in operating assets and liabilities:
Accounts receivable		11,366			12,396			(21,968	)		(985	)
Prepaid expenses and other assets		5,259			7,685			14,384			3,451
Deferred contract costs		(2,577	)		(2,584	)		(5,219	)		(4,549	)
Accounts payable, accrued expenses and other liabilities		4,701			(2,168	)		2,268			(2,333	)
Deferred revenue		(8,834	)		(17,241	)		(6,186	)		(14,268	)
Operating lease liabilities		(527	)		(571	)		(1,039	)		(1,127	)
Net cash provided by operating activities		93,285			93,944			135,272			156,045
Cash flows from investing activities
Cash paid for acquisition, net of cash acquired		—			(26,528	)		—			(26,528	)
Purchases of property and equipment		—			—			(62	)		—
Internal-use software development costs		(1,953	)		(2,369	)		(4,275	)		(4,335	)
Purchases of marketable securities		(168,476	)		(128,266	)		(183,222	)		(268,200	)
Maturities of marketable securities		86,396			125,452			212,467			270,031
Sales of marketable securities		—			—			4,049			—
Net cash provided by (used in) investing activities		(84,033	)		(31,711	)		28,957			(29,032	)
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants		908			2,398			3,988			4,796
Proceeds from issuance of common stock in connection with the employee stock purchase plan		1,288			1,816			1,288			1,816
Taxes paid related to net share settlement of equity awards		(9,948	)		(12,566	)		(16,922	)		(24,493	)
Repurchase of common stock		(54,198	)		(21,893	)		(145,831	)		(144,248	)
Payment of contingent consideration related to a business combination		—			—			(5,024	)		(5,249	)
Payment of excise taxes on share repurchases		(2,292	)		—			(2,292	)		—
Net cash used in financing activities		(64,242	)		(30,245	)		(164,793	)		(167,378	)
Net increase (decrease) in cash and cash equivalents		(54,990	)		31,988			(564	)		(40,365	)
Cash and cash equivalents, beginning of period		273,604			137,261			219,178			209,614
Cash and cash equivalents, end of period	$	218,614		$	169,249		$	218,614		$	169,249
Supplemental disclosures of cash flow information
Cash paid for taxes, net of refunds	$	10,126		$	14,369		$	14,116		$	19,347

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 providers¹ 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 log in 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.

__________________________

Providers are health care professionals with clinical / prescribing roles, specifically Physicians (MD/DO), Nurse practitioners (NPs), Certified registered nurse anesthetists (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 September 30,						Six Months Ended September 30,
		2026			2025			2026			2025
	(unaudited)
	(in thousands, except percentages)
Net income	$	34,730		$	62,059		$	59,044		$	115,379
Adjusted to exclude the following:
Acquisition and other related expenses		—			1,188			—			1,616
Stock-based compensation		40,565			29,474			77,317			51,339
Depreciation and amortization		4,353			3,469			8,640			6,263
Provision for income taxes		15,597			10,880			31,645			21,707
Change in fair value of contingent earn-out consideration liability		—			91			90			259
Legal expenses		25			2,927			25			2,927
Other income, net		(6,405	)		(9,258	)		(13,124	)		(18,888	)
Adjusted EBITDA	$	88,865		$	100,830		$	163,637		$	180,602

Revenue	$	174,537		$	168,525		$	331,155		$	314,438
Net income margin		20	%		37	%		18	%		37	%
Adjusted EBITDA margin		51	%		60	%		49	%		57	%

	Three Months Ended September 30,						Six Months Ended September 30,
		2026			2025			2026			2025
	(unaudited)
	(in thousands)
Net cash provided by operating activities	$	93,285		$	93,944		$	135,272		$	156,045
Purchases of property and equipment		—			—			(62	)		—
Internal-use software development costs		(1,953	)		(2,369	)		(4,275	)		(4,335	)
Free cash flow	$	91,332		$	91,575		$	130,935		$	151,710
Other cash flow components:
Net cash provided by (used in) investing activities	$	(84,033	)	$	(31,711	)	$	28,957		$	(29,032	)
Net cash used in financing activities	$	(64,242	)	$	(30,245	)	$	(164,793	)	$	(167,378	)

	Three Months Ended September 30,						Six Months Ended September 30,
		2026			2025			2026			2025
	(unaudited)
	(in thousands, except per share data and percentages)
GAAP cost of revenue	$	25,346		$	16,425		$	49,038		$	32,218
Adjusted to exclude the following:
Stock-based compensation		(3,036	)		(2,844	)		(6,228	)		(5,824	)
Amortization of acquired intangibles		(935	)		—			(1,870	)		—
Non-GAAP cost of revenue	$	21,375		$	13,581		$	40,940		$	26,394

GAAP gross profit	$	149,191		$	152,100		$	282,117		$	282,220
Adjusted to exclude the following:
Stock-based compensation		3,036			2,844			6,228			5,824
Amortization of acquired intangibles		935			—			1,870			—
Non-GAAP gross profit	$	153,162		$	154,944		$	290,215		$	288,044

GAAP gross margin		85.5	%		90.3	%		85.2	%		89.8	%
Non-GAAP gross margin		87.8	%		91.9	%		87.6	%		91.6	%

GAAP research and development expense	$	41,961		$	30,202		$	80,439		$	57,001
Adjusted to exclude the following:
Stock-based compensation		(16,028	)		(9,862	)		(31,587	)		(16,511	)
Amortization of acquired intangibles		—			(623	)		—			(623	)
Non-GAAP research and development expense	$	25,933		$	19,717		$	48,852		$	39,867

GAAP sales and marketing expense	$	46,892		$	39,168		$	91,941		$	75,533
Adjusted to exclude the following:
Stock-based compensation		(12,696	)		(10,508	)		(25,121	)		(18,218	)
Amortization of acquired intangibles		(1,005	)		(1,002	)		(2,011	)		(2,004	)
Change in fair value of contingent earn-out consideration liability		—			(91	)		(90	)		(259	)
Non-GAAP sales and marketing expense	$	33,191		$	27,567		$	64,719		$	55,052

GAAP general and administrative expense	$	16,416		$	19,049		$	32,172		$	31,488
Adjusted to exclude the following:
Acquisition and other related expenses		—			(1,188	)		—			(1,616	)
Stock-based compensation		(8,805	)		(6,260	)		(14,381	)		(10,786	)
Legal expenses		(25	)		(2,927	)		(25	)		(2,927	)
Non-GAAP general and administrative expense	$	7,586		$	8,674		$	17,766		$	16,159

GAAP operating expense	$	105,269		$	88,419		$	204,552		$	164,022
Adjusted to exclude the following:
Acquisition and other related expenses		—			(1,188	)		—			(1,616	)
Stock-based compensation		(37,529	)		(26,630	)		(71,089	)		(45,515	)
Amortization of acquired intangibles		(1,005	)		(1,625	)		(2,011	)		(2,627	)
Change in fair value of contingent earn-out consideration liability		—			(91	)		(90	)		(259	)
Legal expenses		(25	)		(2,927	)		(25	)		(2,927	)
Non-GAAP operating expense	$	66,710		$	55,958		$	131,337		$	111,078

GAAP operating income	$	43,922		$	63,681		$	77,565		$	118,198
Adjusted to exclude the following:
Acquisition and other related expenses		—			1,188			—			1,616
Stock-based compensation		40,565			29,474			77,317			51,339
Amortization of acquired intangibles		1,940			1,625			3,881			2,627
Change in fair value of contingent earn-out consideration liability		—			91			90			259
Legal expenses		25			2,927			25			2,927
Non-GAAP operating income	$	86,452		$	98,986		$	158,878		$	176,966

GAAP net income	$	34,730		$	62,059		$	59,044		$	115,379
Adjusted to exclude the following:
Acquisition and other related expenses		—			1,188			—			1,616
Stock-based compensation		40,565			29,474			77,317			51,339
Amortization of acquired intangibles		1,940			1,625			3,881			2,627
Change in fair value of contingent earn-out consideration liability		—			91			90			259
Legal expenses		25			2,927			25			2,927
Income tax effect of non-GAAP adjustments⁽¹⁾		(8,931	)		(7,414	)		(17,076	)		(12,341	)
Non-GAAP net income	$	68,329		$	89,950		$	123,281		$	161,806
Non-GAAP net income margin		39.1	%		53.4	%		37.2	%		51.5	%

Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic		178,674			187,705			180,611			187,844
Diluted		187,804			200,745			189,475			200,952

Non-GAAP net income per share attributable to Class A and Class B stockholders:
Basic	$	0.38		$	0.48		$	0.68		$	0.86
Diluted	$	0.36		$	0.45		$	0.65		$	0.81

⁽¹⁾

For the three and six months ended September 30, 2026 and 2025, management used an estimated annual effective non-GAAP tax rate of 21.0%.

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