Doximity Announces Fiscal 2026 Second 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 second quarter ended September 30, 2025.
“Our platform continues to grow with new AI tools to save physicians’ time,” said Jeff Tangney, co-founder and CEO of Doximity. “In Q2, a record 650,000 prescribers used our workflow tools to better serve their patients, while our AI Scribe and DoxGPT users grew over 50% from the prior quarter.”
Fiscal 2026 Second Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended September 30, 2024.
Financial Outlook
Doximity is providing guidance for its fiscal third quarter ending December 31, 2025 as follows:
Doximity is updating guidance for its fiscal year ending March 31, 2026 as follows:
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 80% 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)
September 30, 2025
March 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
169,249
$
209,614
Marketable securities
709,118
706,050
Accounts receivable, net
129,306
128,354
Prepaid expenses and other current assets
84,527
44,602
Total current assets
1,092,200
1,088,620
Property and equipment, net
15,712
13,656
Deferred income tax assets
15,074
60,014
Operating lease right-of-use assets
7,982
8,886
Intangible assets, net
39,143
23,072
Goodwill
84,973
67,940
Other assets
2,025
2,121
Total assets
$
1,257,109
$
1,264,309
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
4,391
$
1,356
Accrued expenses and other current liabilities
33,722
38,405
Deferred revenue, current
100,034
114,285
Operating lease liabilities, current
2,123
2,211
Total current liabilities
140,270
156,257
Deferred revenue, non-current
263
280
Operating lease liabilities, non-current
9,146
10,185
Contingent earn-out consideration liability, non-current
—
5,579
Other liabilities, non-current
11,899
9,383
Total liabilities
161,578
181,684
Stockholders' Equity
Preferred stock
—
—
Common stock
188
189
Additional paid-in capital
936,176
894,225
Accumulated other comprehensive income
1,477
1,323
Retained earnings
157,690
186,888
Total stockholders’ equity
1,095,531
1,082,625
Total liabilities and stockholders’ equity
$
1,257,109
$
1,264,309
DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
Revenue
$
168,525
$
136,832
$
314,438
$
263,508
Cost of revenue (1)
16,425
13,676
32,218
27,226
Gross profit
152,100
123,156
282,220
236,282
Operating expenses (1):
Research and development
30,202
23,240
57,001
45,814
Sales and marketing
39,168
34,367
75,533
69,611
General and administrative
19,049
10,103
31,488
19,358
Impairment charge
—
2,304
—
2,304
Total operating expenses
88,419
70,014
164,022
137,087
Income from operations
63,681
53,142
118,198
99,195
Other income, net
9,258
9,029
18,888
16,145
Income before income taxes
72,939
62,171
137,086
115,340
Provision for income taxes
10,880
18,017
21,707
29,809
Net income
$
62,059
$
44,154
$
115,379
$
85,531
Net income per share attributable to Class A and Class B common stockholders:
Basic
$
0.33
$
0.24
$
0.61
$
0.46
Diluted
$
0.31
$
0.22
$
0.57
$
0.43
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic
187,705
186,252
187,844
185,933
Diluted
200,745
200,407
200,952
199,818
(1)
Costs and expenses include stock-based compensation expense as follows (in thousands):
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
Cost of revenue
$
2,844
$
2,661
$
5,824
$
5,555
Research and development
9,862
5,447
16,511
10,131
Sales and marketing
10,508
6,808
18,218
13,394
General and administrative
6,260
2,952
10,786
5,878
Total stock-based compensation expense
$
29,474
$
17,868
$
51,339
$
34,958
DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
Cash flows from operating activities
Net income
$
62,059
$
44,154
$
115,379
$
85,531
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
3,469
2,613
6,263
5,175
Deferred income taxes
—
204
—
204
Stock-based compensation, net of amounts capitalized
29,474
17,868
51,339
34,958
Non-cash lease expense
454
470
904
951
Accretion of discount on marketable securities, net
(2,199
)
(3,008
)
(4,687
)
(5,368
)
Amortization of deferred contract costs
2,876
2,033
6,772
4,759
Impairment of long-lived assets
—
2,304
—
2,304
Other
294
414
(114
)
(122
)
Changes in operating assets and liabilities:
Accounts receivable
12,396
(4,106
)
(985
)
(23,478
)
Prepaid expenses and other assets
7,685
9,488
3,451
19,948
Deferred contract costs
(2,584
)
(1,785
)
(4,549
)
(3,216
)
Accounts payable, accrued expenses and other liabilities
(2,168
)
7,396
(2,333
)
(5,546
)
Deferred revenue
(17,241
)
(9,161
)
(14,268
)
(5,457
)
Operating lease liabilities
(571
)
(538
)
(1,127
)
(1,054
)
Net cash provided by operating activities
93,944
68,346
156,045
109,589
Cash flows from investing activities
Cash paid for acquisition
(26,528
)
—
(26,528
)
—
Internal-use software development costs
(2,369
)
(1,543
)
(4,335
)
(3,247
)
Purchases of marketable securities
(128,266
)
(197,395
)
(268,200
)
(367,808
)
Maturities of marketable securities
125,452
215,855
270,031
417,913
Sales of marketable securities
—
7,241
—
7,241
Net cash provided by (used in) investing activities
(31,711
)
24,158
(29,032
)
54,099
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants
2,398
7,692
4,796
10,243
Proceeds from issuance of common stock in connection with the employee stock purchase plan
1,816
1,422
1,816
1,422
Taxes paid related to net share settlement of equity awards
(12,566
)
(5,828
)
(24,493
)
(8,222
)
Repurchase of common stock
(21,893
)
(22,984
)
(144,248
)
(74,198
)
Payment of contingent consideration related to a business combination
—
—
(5,249
)
(5,470
)
Net cash used in financing activities
(30,245
)
(19,698
)
(167,378
)
(76,225
)
Net increase (decrease) in cash and cash equivalents
31,988
72,806
(40,365
)
87,463
Cash and cash equivalents, beginning of period
137,261
111,442
209,614
96,785
Cash and cash equivalents, end of period
$
169,249
$
184,248
$
169,249
$
184,248
Supplemental disclosures of cash flow information
Cash paid for taxes, net of refunds
$
14,369
$
9,078
$
19,347
$
21,985
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
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
(unaudited)
(in thousands, except percentages)
Net income
$
62,059
$
44,154
$
115,379
$
85,531
Adjusted to exclude the following:
Acquisition and other related expenses
1,188
—
1,616
—
Stock-based compensation
29,474
17,868
51,339
34,958
Depreciation and amortization
3,469
2,613
6,263
5,175
Provision for income taxes
10,880
18,017
21,707
29,809
Impairment charge
—
2,304
—
2,304
Change in fair value of contingent earn-out consideration liability
91
221
259
423
Legal expenses
2,927
—
2,927
—
Other income, net
(9,258
)
(9,029
)
(18,888
)
(16,145
)
Adjusted EBITDA
$
100,830
$
76,148
$
180,602
$
142,055
Revenue
$
168,525
$
136,832
$
314,438
$
263,508
Net income margin
36.8
%
32.3
%
36.7
%
32.5
%
Adjusted EBITDA margin
59.8
%
55.7
%
57.4
%
53.9
%
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
(unaudited)
(in thousands)
Net cash provided by operating activities
$
93,944
$
68,346
$
156,045
$
109,589
Internal-use software development costs
(2,369
)
(1,543
)
(4,335
)
(3,247
)
Free cash flow
$
91,575
$
66,803
$
151,710
$
106,342
Other cash flow components:
Net cash provided by (used in) investing activities
$
(31,711
)
$
24,158
$
(29,032
)
$
54,099
Net cash used in financing activities
$
(30,245
)
$
(19,698
)
$
(167,378
)
(76,225
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
(unaudited)
(in thousands, except per share data and percentages)
GAAP cost of revenue
$
16,425
$
13,676
$
32,218
$
27,226
Adjusted to exclude the following:
Stock-based compensation
(2,844
)
(2,661
)
(5,824
)
(5,555
)
Non-GAAP cost of revenue
$
13,581
$
11,015
$
26,394
$
21,671
GAAP gross profit
$
152,100
$
123,156
$
282,220
$
236,282
Adjusted to exclude the following:
Stock-based compensation
2,844
2,661
5,824
5,555
Non-GAAP gross profit
$
154,944
$
125,817
$
288,044
$
241,837
GAAP gross margin
90.3
%
90.0
%
89.8
%
89.7
%
Non-GAAP gross margin
91.9
%
91.9
%
91.6
%
91.8
%
GAAP research and development expense
$
30,202
$
23,240
$
57,001
$
45,814
Adjusted to exclude the following:
Stock-based compensation
(9,862
)
(5,447
)
(16,511
)
(10,131
)
Amortization of acquired intangibles
(623
)
—
(623
)
—
Non-GAAP research and development expense
$
19,717
$
17,793
$
39,867
$
35,683
GAAP sales and marketing expense
$
39,168
$
34,367
$
75,533
$
69,611
Adjusted to exclude the following:
Stock-based compensation
(10,508
)
(6,808
)
(18,218
)
(13,394
)
Amortization of acquired intangibles
(1,002
)
(1,061
)
(2,004
)
(2,122
)
Change in fair value of contingent earn-out consideration liability
(91
)
(221
)
(259
)
(423
)
Non-GAAP sales and marketing expense
$
27,567
$
26,277
$
55,052
$
53,672
GAAP general and administrative expense
$
19,049
$
10,103
$
31,488
$
19,358
Adjusted to exclude the following:
Acquisition and other related expenses
(1,188
)
—
(1,616
)
—
Stock-based compensation
(6,260
)
(2,952
)
(10,786
)
(5,878
)
Legal expenses
(2,927
)
—
(2,927
)
—
Non-GAAP general and administrative expense
$
8,674
$
7,151
$
16,159
$
13,480
GAAP operating expense
$
88,419
$
70,014
$
164,022
$
137,087
Adjusted to exclude the following:
Acquisition and other related expenses
(1,188
)
—
(1,616
)
—
Stock-based compensation
(26,630
)
(15,207
)
(45,515
)
(29,403
)
Amortization of acquired intangibles
(1,625
)
(1,061
)
(2,627
)
(2,122
)
Change in fair value of contingent earn-out consideration liability
(91
)
(221
)
(259
)
(423
)
Legal expenses
(2,927
)
—
(2,927
)
—
Impairment charge
—
(2,304
)
—
(2,304
)
Non-GAAP operating expense
$
55,958
$
51,221
$
111,078
$
102,835
GAAP operating income
$
63,681
$
53,142
$
118,198
$
99,195
Adjusted to exclude the following:
Acquisition and other related expenses
1,188
—
1,616
—
Stock-based compensation
29,474
17,868
51,339
34,958
Amortization of acquired intangibles
1,625
1,061
2,627
2,122
Change in fair value of contingent earn-out consideration liability
91
221
259
423
Legal expenses
2,927
—
2,927
—
Impairment charge
—
2,304
—
2,304
Non-GAAP operating income
$
98,986
$
74,596
$
176,966
$
139,002
GAAP net income
$
62,059
$
44,154
$
115,379
$
85,531
Adjusted to exclude the following:
Acquisition and other related expenses
1,188
—
1,616
—
Stock-based compensation
29,474
17,868
51,339
34,958
Amortization of acquired intangibles
1,625
1,061
2,627
2,122
Change in fair value of contingent earn-out consideration liability
91
221
259
423
Legal expenses
2,927
—
2,927
—
Impairment charge
—
2,304
—
2,304
Income tax effect of non-GAAP adjustments (1)
(7,414
)
(4,505
)
(12,341
)
(8,359
)
Non-GAAP net income
$
89,950
$
61,103
$
161,806
$
116,979
Non-GAAP net income margin
53.4
%
44.7
%
51.5
%
44.4
%
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic
187,705
186,252
187,844
185,933
Diluted
200,745
200,407
200,952
199,818
Non-GAAP net income per share attributable to Class A and Class B stockholders:
Basic
$
0.48
$
0.33
$
0.86
$
0.63
Diluted
$
0.45
$
0.30
$
0.81
$
0.59
(1)
For the three and six months ended September 30, 2025 and 2024, management used an estimated annual effective non-GAAP tax rate of 21.0%.