Financial Data and Key Metrics Changes - The preliminary results indicate that both Jeff Tangney and Kara Wampler have been elected to serve as directors until the 2028 Annual Meeting [9] - Deloitte's appointment as the independent auditor for fiscal year 2026 has been ratified [9] - The nonbinding advisory vote on named executive officers' compensation has been approved [9] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed in the provided content Market Data and Key Metrics Changes - No specific market data or key metrics were discussed in the provided content Company Strategy and Development Direction and Industry Competition - The company has proposed to elect two class one directors and ratify the independent auditor, indicating a focus on governance and compliance [7][8] - The approval of executive compensation suggests a strategy to align management incentives with shareholder interests [8] Management's Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided in the content Other Important Information - The meeting was conducted virtually, and the voting process was outlined to ensure transparency and efficiency [4][5][6] Q&A Session All Questions and Answers - No Q&A session content was provided in the documents

Financial Data and Key Metrics Changes - The preliminary results of the annual meeting indicate that both Jeff Tangney and Kara Wampler have been elected as directors until the 2028 Annual Meeting [8] - Deloitte's appointment as the independent auditor for fiscal year 2026 has been ratified [8] - The nonbinding advisory vote on the compensation of named executive officers for the fiscal year ended March 31, 2025, has been approved [8] Business Line Data and Key Metrics Changes - No specific data or metrics related to individual business lines were provided in the meeting [9] Market Data and Key Metrics Changes - No specific market data or metrics were discussed during the meeting [9] Company Strategy and Development Direction and Industry Competition - The company has proposed to elect two class one directors and ratify the independent auditor, indicating a focus on governance and oversight [6] - The approval of executive compensation suggests a strategy to align management incentives with shareholder interests [7] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [9] Other Important Information - The meeting was conducted virtually, and voting was completed in accordance with Doximity's Bylaws and Delaware law [2][3] - The meeting was attended by the CEO, CFO, Board of Directors, and representatives from Deloitte, indicating a strong governance structure [2] Q&A Session All Questions and Answers - No Q&A session was recorded or reported in the meeting [9]

Financial Data and Key Metrics Changes - The preliminary results of the annual meeting indicate that both Jeff Tangney and Kara Wampler have been elected as directors until the 2028 Annual Meeting [8] - Deloitte's appointment as the independent auditor for fiscal year 2026 has been ratified [8] - The nonbinding advisory vote on named executive officers' compensation for the fiscal year ended March 31, 2025, has been approved [8] Business Line Data and Key Metrics Changes - No specific data or metrics related to individual business lines were discussed in the meeting [9] Market Data and Key Metrics Changes - No specific market data or metrics were provided during the meeting [9] Company Strategy and Development Direction and Industry Competition - The company has recommended the passage of all proposals presented at the meeting, indicating a unified strategy among the Board of Directors [7] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [9] Other Important Information - The meeting was conducted virtually, and voting was completed in accordance with Doximity's Bylaws and Delaware law [2][3] - The meeting was attended by the CEO, CFO, Board of Directors, and representatives from Deloitte, indicating a strong governance structure [2] Q&A Session All Questions and Answers - No Q&A session was recorded or reported in the meeting [9]

Core Insights - Doximity, Inc. (DOCS) reported adjusted earnings per share (EPS) of 36 cents for Q1 fiscal 2026, marking a 28.6% increase year over year and exceeding the Zacks Consensus Estimate by 16.1% [1][9] - The company's revenues reached $145.9 million in the same quarter, reflecting a 15.2% year-over-year growth and surpassing the Zacks Consensus Estimate by 4.5% [2][9] Revenue Breakdown - Doximity's revenue sources include Subscription and Other, with Subscription revenues totaling $137.9 million, up 14.9% year over year, driven by new and expanding existing customers [3][4] - Other revenues amounted to $8 million, representing a 19.8% increase year over year [4] Margin Analysis - Gross profit for the quarter increased by 15% year over year to $130.1 million, although gross margin contracted by 13 basis points to 89.2% [5] - Operating profit was reported at $54.5 million, an 18.4% increase from the prior year, with the operating margin expanding by 101 basis points to 37.4% [6] Financial Position - At the end of Q1 fiscal 2026, Doximity had cash and cash equivalents of $137.3 million, down from $209.6 million at the end of fiscal 2025 [7] - Net cash provided by operating activities was $62.1 million, compared to $41.2 million a year ago [7] Guidance and Outlook - Doximity raised its full-year revenue outlook to between $628 million and $636 million, up from the previous range of $619 million to $631 million [9][10] - For Q2 fiscal 2026, the company expects revenues between $157 million and $158 million, exceeding the Zacks Consensus Estimate of $150.4 million [10] Performance Highlights - The company reported double-digit growth in unique active users across various metrics, and a record number of unique active prescribers utilized Doximity's workflow tools [12] - The recent launch of Doximity AI scribe is seen as a promising development for the company's future [12]

Core Insights - Doximity Inc reported better-than-expected earnings for Q1, with earnings of 36 cents per share, surpassing the analyst consensus estimate of 30 cents per share [1] - The company achieved quarterly sales of $145.913 million, exceeding the analyst consensus estimate of $139.705 million [1] - Doximity raised its FY2026 sales guidance from a range of $619 million-$631 million to $628 million-$636 million [1] Company Performance - The CEO of Doximity highlighted strong profit growth and record engagement across their newsfeed, workflow, and AI products, with the AI suite growing 5x year-over-year [2] - Over 630,000 prescribers utilized Doximity's workflow tools to enhance efficiency and patient service [2] - Following the earnings announcement, Doximity shares increased by 10.3%, trading at $64.55 [2] Analyst Ratings - Needham analyst Ryan MacDonald maintained a Buy rating on Doximity and raised the price target from $67 to $75 [7] - Wells Fargo analyst Stan Berenshteyn maintained an Equal-Weight rating and increased the price target from $62 to $65 [7]

Group 1 - Doximity reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and showing an increase from $0.28 per share a year ago, resulting in an earnings surprise of +16.13% [1] - The company achieved revenues of $145.91 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.47%, and up from $126.68 million year-over-year [2] - Doximity has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock has gained approximately 8.9% since the beginning of the year, compared to the S&P 500's gain of 7.9% [3] - The future performance of Doximity's stock will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $150.43 million, and for the current fiscal year, it is $1.46 on revenues of $625.72 million [7] Group 3 - The Medical Info Systems industry, to which Doximity belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Doximity's stock performance [5][6]

Financial Data and Key Metrics Changes - Doximity reported revenue of $146 million for Q1 FY2026, representing a 15% year-on-year growth and a 4% beat from the high end of guidance [7] - Adjusted EBITDA margin was 55%, amounting to $80 million, which was 11% above the high end of guidance [7] - Free cash flow increased by 52% year-on-year, reaching $60.1 million [22] - Non-GAAP gross margin for Q1 was 91%, down from 92% in the prior year [21] Business Line Data and Key Metrics Changes - Unique active users across all metrics (quarterly, monthly, daily) reached record highs, with double-digit percentage growth year-on-year [9] - The number of unique active prescribers using workflow tools reached 630,000, marking significant engagement [9] - The AI tools experienced over 5x year-on-year growth [9] Market Data and Key Metrics Changes - Doximity's net revenue retention rate was 118% on a trailing twelve-month basis, with the top 20 customers showing a higher rate of 119% [20] - The company ended the quarter with 120 customers contributing at least $500,000 each in subscription-based revenue, a 17% increase from the previous year [21] Company Strategy and Development Direction - Doximity is focusing on AI integration, with the launch of the Doximity AI Scribe and the acquisition of Pathway, aiming to enhance physician productivity [19][23] - The company plans to integrate Scribe into telehealth tools, creating a seamless experience for physicians [13] - Doximity aims to build a comprehensive AI suite that addresses clinical questions and enhances workflow efficiency [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength despite ongoing policy uncertainty, noting no slowdown in customer budgets [27] - The outlook for FY2026 includes revenue guidance of $628 million to $636 million, reflecting an 11% growth at the midpoint [25] - Management highlighted the importance of AI investments for long-term growth and productivity improvements [56] Other Important Information - The Pathway acquisition was completed for $26 million in cash and up to $37 million in equity grants, with no expected revenue contribution this year [24] - The company repurchased $122.3 million worth of shares during the first quarter [23] Q&A Session Summary Question: How can you frame the opportunity for investors regarding Scribe, Pathways, and Doximity GPT? - Management sees these AI tools as a potential third act, enhancing physician engagement and addressing clinical questions in real-time [31] Question: Can you provide insights on customer budgets and the second half guidance? - Management noted strong Q1 performance but cautioned against extrapolating this into the second half due to policy uncertainties [36] Question: What are the qualitative differences in upsell cycles this year? - Management indicated broad-based strength across all customer segments, with significant growth in SMB customers [40] Question: How do you view the drivers of continued provider use of products? - Management highlighted the stickiness of workflow tools and the importance of AI in enhancing user engagement [48] Question: Will the new AI offerings become standalone revenue generators? - Management anticipates that AI products like Scribe could evolve into enterprise revenue streams similar to the Doximity Dialer [59] Question: What is the current state of the Provider Solutions business? - Management reported strong traction in the health system business, particularly in enterprise offerings [99] Question: How is the news feed performing and what developments are there? - Management noted record high engagement in the news feed, with video content becoming increasingly important [109]

Financial Data and Key Metrics Changes - Doximity reported revenue of $146 million for Q1 2026, representing a 15% year-on-year growth and a 4% beat from the high end of guidance [5][18] - Adjusted EBITDA margin was 55%, amounting to $80 million, which was 11% above the high end of guidance [5][6] - Free cash flow grew by 52% year-on-year, reaching $60.1 million [21] - Non-GAAP gross margin was 91%, slightly down from 92% in the prior year [20] Business Line Data and Key Metrics Changes - Unique active users across all engagement metrics hit record highs, with a significant increase in the use of workflow tools [7] - The Doximity AI Scribe launched, with over 10,000 healthcare professionals participating in beta testing, indicating strong initial adoption [8][9] - The Pathway acquisition is expected to enhance clinical reference tools, although no immediate revenue contribution is anticipated this fiscal year [22] Market Data and Key Metrics Changes - The company reported a net revenue retention rate of 118% on a trailing twelve-month basis, with the top 20 customers showing a higher retention rate of 119% [18] - The agency partners contributed to over 100% year-on-year bookings growth in the SMB customer segment [25] Company Strategy and Development Direction - Doximity is focusing on integrating AI tools into its offerings, with the Scribe and Pathway acquisition seen as pivotal for long-term growth [26][17] - The company aims to enhance physician productivity through its AI suite, which includes tools for note-taking and clinical question answering [17][26] - The strategy includes making clinical reference tools free to users, thereby increasing engagement and adoption [22][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength despite ongoing policy uncertainties, noting that client budgets remain robust [35][112] - The outlook for the full fiscal year is revenue guidance of $628 million to $636 million, reflecting an 11% growth at the midpoint [24] - Management remains cautious about the second half of the year, taking a measured approach to unbooked revenue due to policy uncertainties [35][112] Other Important Information - The company ended the quarter with $841 million in cash and equivalents, and repurchased $122.3 million worth of shares [21][22] - The Pathway acquisition cost $26 million in cash and up to $37 million in equity grants, with minimal impact on expenses expected this fiscal year [22][23] Q&A Session Summary Question: How can investors frame the opportunity with Scribe and Pathway? - Management highlighted that AI tools could represent a significant growth opportunity, potentially as large as previous product launches [28][32] Question: What insights are there regarding customer budgets for the second half of the year? - Management noted that while Q1 was strong, it is the smallest bookings quarter, and they are taking a cautious approach due to policy uncertainties [33][35] Question: Can you elaborate on the upsell cycle and the role of the client portal? - Management indicated that all business segments are performing well, with the client portal providing valuable insights that have driven significant growth in SMB customers [40][42] Question: What are the drivers of increased utilization of Doximity's products? - Management pointed to strong growth in workflow tools and telehealth products, with AI enhancing the newsfeed's relevance and engagement [46][50] Question: How does the Pathway acquisition fit into Doximity's overall strategy? - Management confirmed that Pathway's integration is progressing well, with plans to offer its tools for free to enhance user engagement [82][84]

[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 |