Doximity Announces Fiscal 2026 Third Quarter Financial Results
SAN FRANCISCO--( BUSINESS WIRE)--Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2026 third quarter ended December 31, 2025.
“We’re proud to deliver another quarter of strong profits and record engagement,” said Jeff Tangney, co-founder and CEO of Doximity. “Our newsfeed had more than 1 million quarterly active prescribers, our workflow products had 720,000 (a record QoQ jump), and our nascent AI products had over 300,000. In short, the addition of AI features across our platform has made us more useful than ever.”
Fiscal 2026 Third Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended December 31, 2024.
Financial Outlook
Doximity is providing guidance for its fiscal fourth quarter ending March 31, 2026 as follows:
Doximity is updating guidance for its fiscal year ending March 31, 2026 as follows:
Stock Repurchase Program
Doximity’s board of directors authorized another program to repurchase up to $500 million of the Company’s Class A common stock. The repurchase program has no expiration date and is subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.
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 archived 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
Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking 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 (i) the timing and scope of anticipated stock repurchases; (ii) the impact of uncertainty in the current economic environment and macroeconomic uncertainty; (iii) our ability to retain existing members or add new members to our platform and maintain or grow their engagement with our platform; (iv) our ability to attract new customers or retain existing customers; (v) the impact of our prioritization of our members’ interests; (vi) breaches in our security measures or unauthorized access to members’ data; (vii) our ability to maintain or manage our growth, and other risks and factors that are beyond our control 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, 2025 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)
December 31, 2025
March 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
64,838
$
209,614
Marketable securities
670,288
706,050
Accounts receivable, net
156,589
128,354
Prepaid expenses and other current assets
101,738
44,602
Total current assets
993,453
1,088,620
Property and equipment, net
17,055
13,656
Deferred income tax assets
14,842
60,014
Operating lease right-of-use assets
7,523
8,886
Intangible assets, net
37,266
23,072
Goodwill
84,973
67,940
Other assets
1,914
2,121
Total assets
$
1,157,026
$
1,264,309
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
4,785
$
1,356
Accrued expenses and other current liabilities
76,677
38,405
Deferred revenue, current
66,307
114,285
Operating lease liabilities, current
2,079
2,211
Total current liabilities
149,848
156,257
Deferred revenue, non-current
174
280
Operating lease liabilities, non-current
8,613
10,185
Contingent earn-out consideration liability, non-current
—
5,579
Other liabilities, non-current
19,093
9,383
Total liabilities
177,728
181,684
Stockholders' Equity
Preferred stock
—
—
Common stock
185
189
Additional paid-in capital
956,744
894,225
Accumulated other comprehensive income
1,396
1,323
Retained earnings
20,973
186,888
Total stockholders’ equity
979,298
1,082,625
Total liabilities and stockholders’ equity
$
1,157,026
$
1,264,309
DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31,
Nine Months Ended December 31,
2025
2024
2025
2024
Revenue
$
185,053
$
168,603
$
499,491
$
432,111
Cost of revenue (1)
18,701
14,181
50,919
41,407
Gross profit
166,352
154,422
448,572
390,704
Operating expenses (1):
Research and development
34,595
22,421
91,596
68,235
Sales and marketing
42,205
38,491
117,738
108,102
General and administrative
17,656
13,585
49,144
32,943
Impairment charge
—
—
—
2,304
Total operating expenses
94,456
74,497
258,478
211,584
Income from operations
71,896
79,925
190,094
179,120
Other income, net
8,902
9,915
27,790
26,060
Income before income taxes
80,798
89,840
217,884
205,180
Provision for income taxes
19,240
14,644
40,947
44,453
Net income
$
61,558
$
75,196
$
176,937
$
160,727
Net income per share attributable to Class A and Class B common stockholders:
Basic
$
0.33
$
0.40
$
0.94
$
0.86
Diluted
$
0.31
$
0.37
$
0.88
$
0.80
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic
187,478
187,161
187,721
186,344
Diluted
199,224
202,233
200,375
200,625
(1)
Costs and expenses include stock-based compensation expense as follows (in thousands):
Three Months Ended December 31,
Nine Months Ended December 31,
2025
2024
2025
2024
Cost of revenue
$
2,899
$
2,818
$
8,723
$
8,373
Research and development
13,654
4,471
30,165
14,602
Sales and marketing
9,926
6,487
28,144
19,881
General and administrative
7,067
5,592
17,853
11,470
Total stock-based compensation expense
$
33,546
$
19,368
$
84,885
$
54,326
DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended December 31,
Nine Months Ended December 31,
2025
2024
2025
2024
Cash flows from operating activities
Net income
$
61,558
$
75,196
$
176,937
$
160,727
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
3,989
2,655
10,252
7,830
Deferred income taxes
—
1,992
—
2,196
Stock-based compensation, net of amounts capitalized
33,546
19,368
84,885
54,326
Non-cash lease expense
459
441
1,363
1,392
Accretion of discount on marketable securities, net
(1,764
)
(3,368
)
(6,451
)
(8,736
)
Amortization of deferred contract costs
2,499
1,785
9,271
6,544
Impairment of long-lived assets
—
—
—
2,304
Other
295
411
181
289
Changes in operating assets and liabilities:
Accounts receivable
(27,614
)
(12,986
)
(28,599
)
(36,464
)
Prepaid expenses and other assets
(12,828
)
1,303
(9,377
)
21,251
Deferred contract costs
(6,710
)
(5,853
)
(11,259
)
(9,069
)
Accounts payable, accrued expenses and other liabilities
41,855
9,418
39,522
3,872
Deferred revenue
(33,816
)
(24,628
)
(48,084
)
(30,085
)
Operating lease liabilities
(578
)
(545
)
(1,705
)
(1,599
)
Net cash provided by operating activities
60,891
65,189
216,936
174,778
Cash flows from investing activities
Cash paid for acquisition, net of cash acquired
—
—
(26,528
)
—
Purchases of intangible assets
(62
)
—
(62
)
—
Internal-use software development costs
(2,313
)
(1,771
)
(6,648
)
(5,018
)
Purchases of marketable securities
(112,922
)
(164,025
)
(381,122
)
(531,833
)
Maturities of marketable securities
143,136
99,308
413,167
517,221
Sales of marketable securities
10,386
7,564
10,386
14,805
Net cash provided by (used in) investing activities
38,225
(58,924
)
9,193
(4,825
)
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants
2,221
3,662
7,017
13,905
Proceeds from issuance of common stock in connection with the employee stock purchase plan
—
—
1,816
1,422
Taxes paid related to net share settlement of equity awards
(8,869
)
(8,107
)
(33,362
)
(16,329
)
Repurchase of common stock
(196,879
)
(19,307
)
(341,127
)
(93,505
)
Payment of contingent consideration related to a business combination
—
—
(5,249
)
(5,470
)
Payment of excise taxes on share repurchases
—
(1,491
)
—
(1,491
)
Net cash used in financing activities
(203,527
)
(25,243
)
(370,905
)
(101,468
)
Net increase (decrease) in cash and cash equivalents
(104,411
)
(18,978
)
(144,776
)
68,485
Cash and cash equivalents, beginning of period
169,249
184,248
209,614
96,785
Cash and cash equivalents, end of period
$
64,838
$
165,270
$
64,838
$
165,270
Supplemental disclosures of cash flow information
Cash paid for taxes, net of refunds
$
1,675
$
13,829
$
21,022
$
35,814
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:
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
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 December 31,
Nine Months Ended December 31,
2025
2024
2025
2024
(unaudited)
(in thousands, except percentages)
Net income
$
61,558
$
75,196
$
176,937
$
160,727
Adjusted to exclude the following:
Acquisition and other related expenses
—
—
1,616
—
Stock-based compensation
33,546
19,368
84,885
54,326
Depreciation and amortization
3,989
2,655
10,252
7,830
Provision for income taxes
19,240
14,644
40,947
44,453
Impairment charge
—
—
—
2,304
Change in fair value of contingent earn-out consideration liability
79
90
338
513
Legal expenses
1,886
—
4,813
—
Other income, net
(8,902
)
(9,915
)
(27,790
)
(26,060
)
Adjusted EBITDA
$
111,396
$
102,038
$
291,998
$
244,093
Revenue
$
185,053
$
168,603
$
499,491
$
432,111
Net income margin
33.3
%
44.6
%
35.4
%
37.2
%
Adjusted EBITDA margin
60.2
%
60.5
%
58.5
%
56.5
%
Three Months Ended December 31,
Nine Months Ended December 31,
2025
2024
2025
2024
(unaudited)
(in thousands)
Net cash provided by operating activities
$
60,891
$
65,189
$
216,936
$
174,778
Purchases of intangible assets
(62
)
—
(62
)
—
Internal-use software development costs
(2,313
)
(1,771
)
(6,648
)
(5,018
)
Free cash flow
$
58,516
$
63,418
$
210,226
$
169,760
Other cash flow components:
Net cash provided by (used in) investing activities
$
38,225
$
(58,924
)
$
9,193
$
(4,825
)
Net cash used in financing activities
$
(203,527
)
$
(25,243
)
$
(370,905
)
$
(101,468
)
Three Months Ended December 31,
Nine Months Ended December 31,
2025
2024
2025
2024
(unaudited)
(in thousands, except per share data and percentages)
GAAP cost of revenue
$
18,701
$
14,181
$
50,919
$
41,407
Adjusted to exclude the following:
Stock-based compensation
(2,899
)
(2,818
)
(8,723
)
(8,373
)
Non-GAAP cost of revenue
$
15,802
$
11,363
$
42,196
$
33,034
GAAP gross profit
$
166,352
$
154,422
$
448,572
$
390,704
Adjusted to exclude the following:
Stock-based compensation
2,899
2,818
8,723
8,373
Non-GAAP gross profit
$
169,251
$
157,240
$
457,295
$
399,077
GAAP gross margin
89.9
%
91.6
%
89.8
%
90.4
%
Non-GAAP gross margin
91.5
%
93.3
%
91.6
%
92.4
%
GAAP research and development expense
$
34,595
$
22,421
$
91,596
$
68,235
Adjusted to exclude the following:
Stock-based compensation
(13,654
)
(4,471
)
(30,165
)
(14,602
)
Amortization of acquired intangibles
(935
)
—
(1,558
)
—
Non-GAAP research and development expense
$
20,006
$
17,950
$
59,873
$
53,633
GAAP sales and marketing expense
$
42,205
$
38,491
$
117,738
$
108,102
Adjusted to exclude the following:
Stock-based compensation
(9,926
)
(6,487
)
(28,144
)
(19,881
)
Amortization of acquired intangibles
(1,003
)
(1,061
)
(3,007
)
(3,183
)
Change in fair value of contingent earn-out consideration liability
(79
)
(90
)
(338
)
(513
)
Non-GAAP sales and marketing expense
$
31,197
$
30,853
$
86,249
$
84,525
GAAP general and administrative expense
$
17,656
$
13,585
$
49,144
$
32,943
Adjusted to exclude the following:
Acquisition and other related expenses
—
—
(1,616
)
—
Stock-based compensation
(7,067
)
(5,592
)
(17,853
)
(11,470
)
Legal expenses
(1,886
)
—
(4,813
)
—
Non-GAAP general and administrative expense
$
8,703
$
7,993
$
24,862
$
21,473
GAAP operating expense
$
94,456
$
74,497
$
258,478
$
211,584
Adjusted to exclude the following:
Acquisition and other related expenses
—
—
(1,616
)
—
Stock-based compensation
(30,647
)
(16,550
)
(76,162
)
(45,953
)
Amortization of acquired intangibles
(1,938
)
(1,061
)
(4,565
)
(3,183
)
Change in fair value of contingent earn-out consideration liability
(79
)
(90
)
(338
)
(513
)
Legal expenses
(1,886
)
—
(4,813
)
—
Impairment charge
—
—
—
(2,304
)
Non-GAAP operating expense
$
59,906
$
56,796
$
170,984
$
159,631
GAAP operating income
$
71,896
$
79,925
$
190,094
$
179,120
Adjusted to exclude the following:
Acquisition and other related expenses
—
—
1,616
—
Stock-based compensation
33,546
19,368
84,885
54,326
Amortization of acquired intangibles
1,938
1,061
4,565
3,183
Change in fair value of contingent earn-out consideration liability
79
90
338
513
Legal expenses
1,886
—
4,813
—
Impairment charge
—
—
—
2,304
Non-GAAP operating income
$
109,345
$
100,444
$
286,311
$
239,446
GAAP net income
$
61,558
$
75,196
$
176,937
$
160,727
Adjusted to exclude the following:
Acquisition and other related expenses
—
—
1,616
—
Stock-based compensation
33,546
19,368
84,885
54,326
Amortization of acquired intangibles
1,938
1,061
4,565
3,183
Change in fair value of contingent earn-out consideration liability
79
90
338
513
Legal expenses
1,886
—
4,813
—
Impairment charge
—
—
—
2,304
Income tax effect of non-GAAP adjustments (1)
(7,864
)
(4,309
)
(20,206
)
(12,668
)
Non-GAAP net income
$
91,143
$
91,406
$
252,948
$
208,385
Non-GAAP net income margin
49.3
%
54.2
%
50.6
%
48.2
%
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic
187,478
187,161
187,721
186,344
Diluted
199,224
202,233
200,375
200,625
Non-GAAP net income per share attributable to Class A and Class B stockholders:
Basic
$
0.49
$
0.49
$
1.35
$
1.12
Diluted
$
0.46
$
0.45
$
1.26
$
1.04
(1)
For the three and nine months ended December 31, 2025 and 2024, management used an estimated annual effective non-GAAP tax rate of 21.0%.