[Part I—Financial Information](index=6&type=section&id=Part%20I%E2%80%94Financial%20Information) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Doximity, Inc. presents its unaudited condensed consolidated financial statements for Q1 FY2026, including balance sheets, statements of operations, cash flows, and explanatory notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$1.20 billion** by June 30, 2025, from **$1.26 billion**, primarily due to reduced cash and stock repurchases Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $137,261 | $209,614 | | Marketable securities | $703,712 | $706,050 | | Total current assets | $1,034,231 | $1,088,620 | | Total assets | $1,204,447 | $1,264,309 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $159,912 | $156,257 | | Total liabilities | $178,852 | $181,684 | | Total stockholders' equity | $1,025,595 | $1,082,625 | | Total liabilities and stockholders' equity | $1,204,447 | $1,264,309 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2026 revenue increased **15.2%** to **$145.9 million**, with net income rising **28.9%** to **$53.3 million** and diluted EPS at **$0.27** Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $145,913 | $126,676 | +15.2% | | Gross Profit | $130,120 | $113,126 | +15.0% | | Income from Operations | $54,517 | $46,053 | +18.4% | | Net Income | $53,320 | $41,377 | +28.9% | | Diluted EPS | $0.27 | $0.21 | +28.6% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow rose to **$62.1 million**, while financing activities used **$137.1 million** due to **$122.4 million** in stock repurchases, leading to a **$72.4 million** net cash decrease Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $62,101 | $41,243 | | Net cash provided by investing activities | $2,679 | $29,941 | | Net cash used in financing activities | $(137,133) | $(56,527) | | Net (decrease) increase in cash | $(72,353) | $14,657 | - The significant increase in cash used for financing activities was driven by a substantial rise in common stock repurchases, which amounted to **$122.4 million** in Q1 FY2026 compared to **$51.2 million** in Q1 FY2025[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, investments, and legal contingencies, highlighting Marketing, Hiring, and Workflow Solutions and a securities lawsuit - The company's primary customers are pharmaceutical companies and health systems that utilize its digital Marketing, Hiring, and Workflow Solutions to connect with healthcare professionals[26](index=26&type=chunk) Revenue Disaggregation (in thousands) | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Subscription | $137,876 | $119,968 | | Other | $8,037 | $6,708 | | **Total revenue** | **$145,913** | **$126,676** | - The company is involved in a securities class action lawsuit and several shareholder derivative lawsuits filed in April 2024, related to disclosures of user count and engagement rates. The company intends to defend vigorously against these actions[108](index=108&type=chunk) - In July 2025, subsequent to the quarter's end, Doximity acquired Pathway Medical Inc., an AI-based medical knowledge platform, for **$26 million** in cash and issued approximately **$37 million** in RSUs to certain individuals joining the company[121](index=121&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2026 financial performance, highlighting **15%** revenue growth to **$145.9 million**, key metrics, non-GAAP measures, and liquidity, including stock repurchases - Doximity is the leading digital platform for U.S. medical professionals, with over **80%** of U.S. physicians as members[126](index=126&type=chunk) Key Financial Highlights (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | $145.9 million | $126.7 million | 15% | | Net Income | $53.3 million | $41.4 million | 29% | | Adjusted EBITDA | $79.8 million | $65.9 million | 21% | [Key Business and Financial Metrics](index=33&type=section&id=Key%20Business%20and%20Financial%20Metrics) Key metrics show growth, with customers exceeding **$500k TTM revenue** increasing to **120** and net revenue retention improving to **118%** Key Metrics Comparison | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Customers with >$500k TTM Revenue | 120 | 103 | | Net Revenue Retention Rate | 118% | 114% | [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q1 FY2026 revenue grew **15%** to **$145.9 million**, primarily from subscription revenue, while operating expenses increased due to higher stock-based compensation and personnel costs - The **$17.9 million** increase in subscription revenue was driven by **$4.8 million** from new customers and **$13.1 million** from the expansion of existing customers[160](index=160&type=chunk) - Research and development expense increased by **19%** YoY, driven by higher stock-based compensation, personnel costs, and contractor costs[162](index=162&type=chunk) - General and administrative expense rose **34%** YoY, primarily due to increased stock-based compensation and higher legal and accounting fees[166](index=166&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Doximity held **$841.0 million** in liquid assets and repurchased **$198.3 million** in stock under a **$500 million** program, with **$301.7 million** remaining - On May 1, 2024, the board authorized a new stock repurchase program of up to **$500 million** with no expiration date[171](index=171&type=chunk) - As of June 30, 2025, the company had repurchased shares for **$198.3 million** under the new program, with **$301.7 million** remaining authorized for repurchase[171](index=171&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $62,101 | $41,243 | | Net cash provided by investing activities | $2,679 | $29,941 | | Net cash used in financing activities | $(137,133) | $(56,527) | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk on its **$841.0 million** investment portfolio, with a **100 basis point** rate increase potentially reducing market value by **$5.0 million** - The company's primary market risk is interest rate risk affecting its **$841.0 million** portfolio of cash, cash equivalents, and marketable securities[188](index=188&type=chunk)[169](index=169&type=chunk) - A hypothetical **100 basis point** increase in interest rates would result in a **$5.0 million** decrease in the market value of the company's investment portfolio as of June 30, 2025[189](index=189&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of the end of the quarter, the company's disclosure controls and procedures were effective at the reasonable assurance level[192](index=192&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[193](index=193&type=chunk) [Part II—Other Information](index=46&type=section&id=Part%20II%E2%80%94Other%20Information) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company faces a securities class action and five shareholder derivative lawsuits from April 2024 regarding user count and engagement rate disclosures - The company is facing a securities class action lawsuit and five shareholder derivative lawsuits filed in April 2024 concerning disclosures about user count and engagement rates[195](index=195&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the Annual Report on Form 10-K for the fiscal year ended March 31, 2025 - There have been no material changes to the risk factors disclosed in the company's most recent Annual Report on Form 10-K[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **2,266,003** shares under its program during Q1 FY2026 and issued **28,667** Class A common shares from a warrant exercise Share Repurchases (Q1 FY2026) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1,073,195 | $53.24 | | May 2025 | 701,871 | $53.66 | | June 2025 | 490,937 | $56.08 | | **Total** | **2,266,003** | **N/A** | - As of June 30, 2025, approximately **$301.7 million** remained available for repurchase under the authorized program[199](index=199&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) CFO Anna Bryson terminated a Rule 10b5-1 trading plan and adopted a new one on May 27, 2025, for the sale of **160,000** shares - CFO Anna Bryson terminated a Rule 10b5-1 trading plan from November 2024 and adopted a new plan on May 27, 2025, for the sale of **160,000** shares over the next year[204](index=204&type=chunk)

[Executive Summary & Financial Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Outlook) This section provides an overview of Doximity's strong Q1 FY26 financial performance, operational achievements, strategic acquisition, and future financial guidance [Fiscal 2026 First Quarter Financial Highlights](index=1&type=section&id=Fiscal%202026%20First%20Quarter%20Financial%20Highlights) Doximity reported strong financial performance for Q1 FY26, with significant year-over-year growth in total revenues, net income, adjusted EBITDA, and cash flows, exceeding previous year's figures across key metrics Fiscal 2026 First Quarter Financial Performance (in millions, except per share data) | Metric | Q1 FY26 (June 30, 2025) | Q1 FY25 (June 30, 2024) | YoY Change | | :-------------------------------- | :---------------------- | :---------------------- | :--------- | | Total Revenues | $145.9 million | $126.7 million | +15% | | Net Income | $53.3 million | $41.4 million | +28.8% | | Net Income Margin | 36.5% | 32.7% | +3.8 pts | | Non-GAAP Net Income | $71.9 million | $55.9 million | +28.6% | | Non-GAAP Net Income Margin | 49.2% | 44.1% | +5.1 pts | | Adjusted EBITDA | $79.8 million | $65.9 million | +21% | | Adjusted EBITDA Margin | 54.7% | 52.0% | +2.7 pts | | Diluted Net Income Per Share | $0.27 | $0.21 | +$0.06 | | Non-GAAP Diluted Net Income Per Share | $0.36 | $0.28 | +$0.08 | | Operating Cash Flow | $62.1 million | $41.2 million | +51% | | Free Cash Flow | $60.1 million | $39.5 million | +52% | [Operational Highlights & Strategic Initiatives](index=1&type=section&id=Operational%20Highlights%20%26%20Strategic%20Initiatives) The company achieved record engagement across its platform, with its AI suite experiencing substantial growth and workflow tools being widely adopted by prescribers. Doximity also completed the acquisition of Pathway Medical - Doximity's AI suite grew **5x year-over-year**[3](index=3&type=chunk) - More than **630,000 prescribers** utilized Doximity's workflow tools to enhance efficiency and patient care[3](index=3&type=chunk) - Doximity acquired Pathway Medical[3](index=3&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) Doximity provided guidance for the fiscal second quarter ending September 30, 2025, and updated guidance for the full fiscal year ending March 31, 2026, projecting continued revenue and Adjusted EBITDA growth Fiscal 2026 Guidance (in millions) | Metric | Q2 FY26 Guidance (Sept 30, 2025) | FY26 Guidance (March 31, 2026) | | :---------------- | :------------------------------- | :----------------------------- | | Revenue | $157 million - $158 million | $628 million - $636 million | | Adjusted EBITDA | $87 million - $88 million | $341 million - $349 million | [Company Information & Legal Disclosures](index=2&type=section&id=Company%20Information%20%26%20Legal%20Disclosures) This section provides details on the Q1 FY26 earnings call, an overview of Doximity's mission, important forward-looking statement disclaimers, and investor and media contact information [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Doximity announced details for its Q1 FY26 earnings conference call and webcast, with prepared remarks available on its investor relations website - Doximity hosted a webcast on August 7, 2025, at 2:00 p.m. Pacific Time to discuss financial results[7](index=7&type=chunk) - Prepared remarks and archived webcast are available on the Company's Investor Relations page[7](index=7&type=chunk) [About Doximity](index=2&type=section&id=About%20Doximity) Doximity is the leading digital platform for U.S. medical professionals, founded in 2010, serving over 80% of U.S. physicians with tools for collaboration, news, career management, and virtual patient visits - Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals[8](index=8&type=chunk) - Its network members include more than **80% of U.S. physicians** across all specialties[8](index=8&type=chunk) - Doximity provides digital tools for collaboration, medical news, career management, documentation, and virtual patient visits[8](index=8&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines the nature of forward-looking statements, emphasizing that actual results may differ materially due to various risks and uncertainties, and the company does not undertake to update them - Statements are forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act[9](index=9&type=chunk) - Actual results may differ materially due to risks and factors including economic uncertainty, ability to retain members/customers, security breaches, and growth management[9](index=9&type=chunk) - The company assumes no obligation to update publicly any forward-looking statements, except as required by law[9](index=9&type=chunk) [Investor and Media Contacts](index=2&type=section&id=Investor%20and%20Media%20Contacts) Provides contact information for investor relations and media inquiries - Investor Relations Contact: Perry Gold, ir@doximity.com[10](index=10&type=chunk) - Media Contact: Amanda Cox, pr@doximity.com[10](index=10&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Doximity's condensed consolidated balance sheets, statements of operations, and cash flows, detailing the company's financial position and performance [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets from $1,264.3 million at March 31, 2025, to $1,204.4 million at June 30, 2025, primarily driven by a reduction in cash and cash equivalents. Total liabilities also decreased slightly, while stockholders' equity saw a reduction Condensed Consolidated Balance Sheets (in thousands) | Asset/Liability/Equity | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | Change (in thousands) | | :-------------------------------- | :--------------------------- | :---------------------------- | :-------------------- | | Cash and cash equivalents | $137,261 | $209,614 | $(72,353) | | Marketable securities | $703,712 | $706,050 | $(2,338) | | Accounts receivable, net | $141,663 | $128,354 | $13,309 | | Total current assets | $1,034,231 | $1,088,620 | $(54,389) | | Total assets | $1,204,447 | $1,264,309 | $(59,862) | | Total current liabilities | $159,912 | $156,257 | $3,655 | | Total liabilities | $178,852 | $181,684 | $(2,832) | | Total stockholders' equity | $1,025,595 | $1,082,625 | $(57,030) | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, Doximity reported a 15% increase in revenue year-over-year, with net income growing by 28.8%. Gross profit and operating income also showed healthy increases Condensed Consolidated Statements of Operations (in thousands) | Metric | Q1 FY26 (June 30, 2025) (in thousands) | Q1 FY25 (June 30, 2024) (in thousands) | YoY Change (in thousands) | YoY % Change | | :-------------------------- | :------------------------------------- | :------------------------------------- | :------------------------ | :----------- | | Revenue | $145,913 | $126,676 | $19,237 | 15.2% | | Cost of revenue | $15,793 | $13,550 | $2,243 | 16.6% | | Gross profit | $130,120 | $113,126 | $16,994 | 15.0% | | Research and development | $26,799 | $22,574 | $4,225 | 18.7% | | Sales and marketing | $36,365 | $35,244 | $1,121 | 3.2% | | General and administrative | $12,439 | $9,255 | $3,184 | 34.4% | | Total operating expenses | $75,603 | $67,073 | $8,530 | 12.7% | | Income from operations | $54,517 | $46,053 | $8,464 | 18.4% | | Net income | $53,320 | $41,377 | $11,943 | 28.9% | | Basic Net income per share | $0.28 | $0.22 | $0.06 | 27.3% | | Diluted Net income per share | $0.27 | $0.21 | $0.06 | 28.6% | Stock-based Compensation Expense (in thousands) | Stock-based Compensation Expense | Q1 FY26 (June 30, 2025) (in thousands) | Q1 FY25 (June 30, 2024) (in thousands) | YoY Change (in thousands) | | :------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------ | | Cost of revenue | $2,980 | $2,894 | $86 | | Research and development | $6,649 | $4,684 | $1,965 | | Sales and marketing | $7,710 | $6,586 | $1,124 | | General and administrative | $4,526 | $2,926 | $1,600 | | **Total stock-based compensation expense** | **$21,865** | **$17,090** | **$4,775** | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased by 51% year-over-year to $62.1 million. Investing activities provided cash, while financing activities used a substantial amount, primarily due to common stock repurchases Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Q1 FY26 (June 30, 2025) (in thousands) | Q1 FY25 (June 30, 2024) (in thousands) | YoY Change (in thousands) | | :-------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------ | | Net cash provided by operating activities | $62,101 | $41,243 | $20,858 | | Net cash provided by investing activities | $2,679 | $29,941 | $(27,262) | | Net cash used in financing activities | $(137,133) | $(56,527) | $(80,606) | | Net increase (decrease) in cash and cash equivalents | $(72,353) | $14,657 | $(87,010) | | Cash and cash equivalents, end of period | $137,261 | $111,442 | $25,819 | - Operating cash flow increased by **51% year-over-year** to **$62.1 million**[2](index=2&type=chunk)[6](index=6&type=chunk)[16](index=16&type=chunk) - Repurchase of common stock amounted to **$122.4 million** in Q1 FY26, significantly higher than **$51.2 million** in Q1 FY25[16](index=16&type=chunk) [Non-GAAP Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) This section explains Doximity's use of non-GAAP financial measures, defines key metrics, and provides detailed reconciliations from GAAP to non-GAAP figures [Non-GAAP Financial Measures Overview](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Overview) Doximity uses non-GAAP financial measures to supplement its GAAP statements, providing additional insights for internal decision-making and period-to-period comparisons, while cautioning that these measures should not be considered in isolation - Non-GAAP financial measures are used internally for financial and operational decision-making and to evaluate period-to-period comparisons[17](index=17&type=chunk) - Non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and may not be comparable to similar measures used by other companies[17](index=17&type=chunk) [Definitions of Non-GAAP Measures and Key Business Metrics](index=6&type=section&id=Definitions%20of%20Non-GAAP%20Measures%20and%20Key%20Business%20Metrics) This section defines key non-GAAP financial metrics such as non-GAAP gross profit, adjusted EBITDA, and free cash flow, along with operational metrics like net revenue retention rate and customer count for large accounts - **Non-GAAP Gross Profit, Operating Income, Net Income:** Excludes acquisition and other related expenses, stock-based compensation expense, amortization of acquired intangible assets, and change in fair value of contingent earn-out consideration liability. Non-GAAP net income is further adjusted for estimated income tax on such adjustments[18](index=18&type=chunk) - **Adjusted EBITDA:** Defined as net income before interest, income taxes, depreciation, and amortization, further adjusted for acquisition and other related expenses, stock-based compensation expense, change in fair value of contingent earn-out consideration liability, and other income, net[18](index=18&type=chunk) - **Free Cash Flow:** Calculated as cash flow from operating activities less purchases of property and equipment and internal-use software development costs[18](index=18&type=chunk) - **Net Revenue Retention Rate:** Calculated by taking the trailing 12-month (TTM) subscription-based revenue from existing customers and dividing it by the total subscription-based revenue for the prior TTM period, reflecting renewals, expansion, contraction, and churn[19](index=19&type=chunk) - **Customers with TTM subscription revenue greater than $500,000:** Counts customers that contributed more than $500,000 in subscription revenue in the TTM period, serving as a key indicator of business scale[19](index=19&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) Detailed tables are provided to reconcile GAAP net income to Adjusted EBITDA, GAAP cash flow from operating activities to Free Cash Flow, and various GAAP operating expenses and income metrics to their non-GAAP counterparts, highlighting the adjustments made Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) | Metric | Q1 FY26 (June 30, 2025) (in thousands) | Q1 FY25 (June 30, 2024) (in thousands) | | :-------------------------------- | :------------------------------------- | :------------------------------------- | | GAAP Net income | $53,320 | $41,377 | | Adjustments: | | | | Acquisition and other related expenses | $428 | $0 | | Stock-based compensation | $21,865 | $17,090 | | Depreciation and amortization | $2,794 | $2,562 | | Provision for income taxes | $10,827 | $11,792 | | Change in fair value of contingent earn-out consideration liability | $168 | $202 | | Other income, net | $(9,630) | $(7,116) | | **Adjusted EBITDA** | **$79,772** | **$65,907** | | Revenue | $145,913 | $126,676 | | Net income margin | 36.5% | 32.7% | | Adjusted EBITDA margin | 54.7% | 52.0% | Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow (in thousands) | Metric | Q1 FY26 (June 30, 2025) (in thousands) | Q1 FY25 (June 30, 2024) (in thousands) | | :-------------------------------- | :------------------------------------- | :------------------------------------- | | Net cash provided by operating activities | $62,101 | $41,243 | | Internal-use software development costs | $(1,966) | $(1,704) | | **Free cash flow** | **$60,135** | **$39,539** | Reconciliation of GAAP to Non-GAAP Operating Expenses and Income (in thousands) | Metric | Q1 FY26 (June 30, 2025) (in thousands) | Q1 FY25 (June 30, 2024) (in thousands) | | :-------------------------------- | :------------------------------------- | :------------------------------------- | | GAAP cost of revenue | $15,793 | $13,550 | | Stock-based compensation adjustment | $(2,980) | $(2,894) | | **Non-GAAP cost of revenue** | **$12,813** | **$10,656** | | GAAP gross profit | $130,120 | $113,126 | | Stock-based compensation adjustment | $2,980 | $2,894 | | **Non-GAAP gross profit** | **$133,100** | **$116,020** | | GAAP gross margin | 89.2% | 89.3% | | **Non-GAAP gross margin** | **91.2%** | **91.6%** | | GAAP operating income | $54,517 | $46,053 | | Adjustments: | | | | Acquisition and other related expenses | $428 | $0 | | Stock-based compensation | $21,865 | $17,090 | | Amortization of acquired intangibles | $1,002 | $1,061 | | Change in fair value of contingent earn-out consideration liability | $168 | $202 | | **Non-GAAP operating income** | **$77,980** | **$64,406** | | GAAP net income | $53,320 | $41,377 | | Adjustments: | | | | Acquisition and other related expenses | $428 | $0 | | Stock-based compensation | $21,865 | $17,090 | | Amortization of acquired intangibles | $1,002 | $1,061 | | Change in fair value of contingent earn-out consideration liability | $168 | $202 | | Income tax effect of non-GAAP adjustments | $(4,927) | $(3,854) | | **Non-GAAP net income** | **$71,856** | **$55,876** | | **Non-GAAP net income margin** | **49.2%** | **44.1%** | | Non-GAAP diluted net income per share | $0.36 | $0.28 |

Core Insights - Doximity is enhancing its capabilities in artificial intelligence by acquiring Pathway Medical for $63 million, aiming to improve its platform for healthcare professionals [1][4] - Pathway Medical has developed an AI-powered clinical reference tool that provides answers to medical questions based on a large structured dataset, which Doximity intends to integrate into its services [2][3] - The acquisition is expected to allow Doximity's platform to serve as a resource for doctors seeking clinical answers, expanding its functionality beyond networking and administrative tasks [3][4] Financial Details - The acquisition deal closed in late July, involving a cash payment of $26 million and potential additional equity grants of up to $37 million [4] Integration and Development - Doximity is actively integrating Pathway's technology, with testing of a combined product already underway involving thousands of doctors [4]

Core Insights - The article discusses two telehealth stocks, Hims & Hers Health and Doximity, which have shown significant growth and potential for future returns in the healthcare sector [2]. Hims & Hers Health - Hims & Hers Health has experienced a stock price increase of over 200% in the past 12 months, significantly outperforming the S&P 500, which rose about 18% during the same period [3]. - The company's growth was driven by its ability to offer affordable compounded GLP-1 drugs for weight loss, although it can no longer mass-produce these drugs due to the FDA declaring the shortage resolved [5]. - Hims & Hers is diversifying its offerings beyond weight loss, focusing on sexual health, hair loss, dermatology, mental health, and primary care, with most revenue coming from recurring subscriptions [6]. - The acquisition of Zava, a European digital health platform, is expected to enhance investor confidence and expand Hims & Hers' market reach into the U.K., Ireland, France, and Germany, with plans to launch in Canada in 2026 [7][8]. - The company reported a 110% year-over-year revenue growth in Q1 and generated approximately $50 million in free cash flow [8]. Doximity - Doximity has seen its shares increase by over 100% in the past year, positioning itself as the largest digital platform for U.S. medical professionals [9]. - The platform serves as a professional network for healthcare professionals, offering tools for communication, news, and career management, including telehealth solutions [10]. - Doximity provides free access to its services for healthcare professionals, generating revenue through advertising and selling information to pharmaceutical manufacturers and healthcare systems [11][12]. - In fiscal 2025, Doximity reported a 20% revenue increase to $570.4 million, with net income rising 51% year-over-year to $223.2 million and free cash flow increasing by 50% to $266.7 million [13].

Investors with an interest in Medical Info Systems stocks have likely encountered both Omnicell (OMCL) and Doximity (DOCS) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revis ...

Company Performance - Doximity's stock closed at $59.70, down 2.13% from the previous trading session, underperforming the S&P 500's loss of 0.3% [1] - The stock has decreased by 0.55% over the past month, while the Medical sector gained 0.76% and the S&P 500 increased by 3.64% [1] Earnings Forecast - Doximity is expected to release its earnings on August 7, 2025, with projected earnings per share (EPS) of $0.31, reflecting a 10.71% increase year-over-year [2] - Revenue is forecasted to be $139.67 million, indicating a 10.26% growth compared to the same quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $1.46 per share and revenue of $625.72 million, representing increases of 2.82% and 9.7% respectively from the previous year [3] Analyst Revisions - Recent changes in analyst estimates for Doximity are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3][4] Zacks Rank - Doximity currently holds a Zacks Rank of 1 (Strong Buy), which has historically outperformed with an average annual return of +25% since 1988 [5] - The Zacks Consensus EPS estimate has remained steady over the past month [5] Valuation Metrics - Doximity has a Forward P/E ratio of 41.81, which is a premium compared to the industry average of 27.27 [6] - The company has a PEG ratio of 4.54, while the average PEG ratio for the Medical Info Systems industry is 2.66 [6] Industry Context - The Medical Info Systems industry ranks in the top 23% of all industries, with a current Zacks Industry Rank of 55 [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]

Live Chat on The Biotech Forum has been dominated by discussion of covered call opportunities in recent quarters. To see what I and the other season biotech investors are targeting as trading ideas in real-time, just initiate your free trial into The Biotech Forum by clicking HERE .Today, I put Doximity, Inc. (NYSE: DOCS ) in the spotlight. The stock is down nearly 25% from its recent highs in February. The company has seen tremendous revenue growth over its history and has a rock-solid balance sheet asBret ...

Doximity (DOCS) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investo ...

Company Performance - Doximity's stock (DOCS) decreased by 1.44% to $59.38, underperforming the S&P 500's daily gain of 0.06% [1] - Over the past month, Doximity's stock has increased by 3.92%, while the Medical sector has declined by 1.83% and the S&P 500 has risen by 5.88% [1] Earnings Forecast - Doximity is expected to release its earnings on August 7, 2025, with a forecasted EPS of $0.31, reflecting a 10.71% increase from the same quarter last year [2] - Revenue is projected to be $139.67 million, indicating a 10.26% growth compared to the corresponding quarter of the previous year [2] Full-Year Estimates - The Zacks Consensus Estimates for Doximity's full-year earnings are $1.46 per share and revenue of $625.72 million, representing year-over-year changes of +2.82% and +9.7%, respectively [3] - Recent adjustments to analyst estimates suggest evolving short-term business trends, with positive revisions indicating analyst optimism [3] Valuation Metrics - Doximity has a Forward P/E ratio of 41.3, which is higher than the industry average of 28.27 [6] - The company also has a PEG ratio of 4.48, compared to the Medical Info Systems industry's average PEG ratio of 3.23 [6] Industry Ranking - The Medical Info Systems industry, part of the Medical sector, holds a Zacks Industry Rank of 81, placing it in the top 33% of over 250 industries [7] - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks within the industry, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Performance - Doximity (DOCS) closed at $61.55, with a +2.24% increase from the previous day, outperforming the S&P 500's gain of 0.14% [1] - Prior to the latest trading session, Doximity shares had gained 7.65%, contrasting with the Medical sector's loss of 1.34% and the S&P 500's gain of 3.97% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.31, reflecting a 10.71% increase year-over-year [2] - Revenue is anticipated to be $139.67 million, indicating a 10.26% rise compared to the same quarter last year [2] - For the annual period, earnings are projected at $1.46 per share and revenue at $625.72 million, representing increases of +2.82% and +9.7% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Doximity suggest a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system indicates that changes in estimates are correlated with stock price performance, with Doximity currently holding a Zacks Rank of 3 (Hold) [5][6] Valuation Metrics - Doximity is trading at a Forward P/E ratio of 41.26, which is a premium compared to the industry average of 28.13 [7] - The company has a PEG ratio of 4.48, while the Medical Info Systems industry has an average PEG ratio of 2.64 [8] Industry Context - The Medical Info Systems industry, part of the Medical sector, holds a Zacks Industry Rank of 85, placing it in the top 35% of over 250 industries [9] - Research indicates that industries in the top 50% outperform those in the bottom half by a factor of 2 to 1 [9]