Doximity(DOCS) - 2026 Q2 - Quarterly Results

Financial Performance - Total revenues for Q2 fiscal 2026 reached $168.5 million, representing a 23% increase year-over-year[2] - Operating cash flow was $93.9 million, up 37% year-over-year, while free cash flow also increased by 37% to $91.6 million[2][4] - Net income for the quarter was $62.1 million, compared to $44.2 million in the prior year, resulting in a net income margin of 36.8%[4] - Non-GAAP net income was $90.0 million, up from $61.1 million, with a margin of 53.4%[4] - Adjusted EBITDA for the quarter was $100.8 million, a 32% increase year-over-year, with adjusted EBITDA margins of 59.8%[4] - Total revenue for Q3 2025 was $168,525,000, an increase from $136,832,000 in Q3 2024, marking a growth of 24.1%[19] - Non-GAAP net income for the six months ended September 30, 2025, was $161.8 million, compared to $117.0 million for the same period in 2024, reflecting a 38.2% growth[21] - GAAP net income for the six months ended September 30, 2025, was $115.4 million, compared to $85.5 million in the same period of 2024, a growth of 35.0%[21] Cash Flow and Expenses - Free cash flow for the six months ended September 30, 2025, was $151,710,000, compared to $106,342,000 for the same period in 2024, reflecting a 42.5% increase[19] - Cash and cash equivalents at the end of Q3 2025 were $169,249,000, down from $184,248,000 at the end of Q3 2024[14] - Cash paid for taxes in Q3 2025 was $14,369,000, compared to $9,078,000 in Q3 2024, reflecting a higher tax burden[14] - The company made a cash payment of $26,528,000 for an acquisition during the period[14] - Research and development expenses for Q3 2025 were $30.2 million, up from $23.2 million in Q3 2024, indicating a 29.0% increase[20] Guidance and Projections - Guidance for Q3 fiscal 2026 projects revenue between $180 million and $181 million[4] - Full fiscal year 2026 revenue guidance is set between $640 million and $646 million[4] User Engagement and Product Development - The number of prescribers using Doximity's workflow tools reached a record 650,000, with AI Scribe and DoxGPT users growing over 50% from the previous quarter[3] - Doximity's platform includes over 80% of U.S. physicians, enhancing collaboration and access to medical information[6] - The company continues to invest in AI tools to improve efficiency for medical professionals[3] Profitability Metrics - Non-GAAP gross profit for Q3 2025 was $100,830,000, representing a 32.4% increase from $76,148,000 in Q3 2024[19] - Adjusted EBITDA margin for Q3 2025 was 59.8%, compared to 55.7% in Q3 2024, indicating improved operational efficiency[19] - Non-GAAP operating income for Q3 2025 was $99.0 million, compared to $74.6 million in Q3 2024, reflecting a 32.7% increase[21] - The company reported a non-GAAP net income margin of 53.4% for Q3 2025, up from 44.7% in Q3 2024[21] - GAAP gross profit for Q3 2025 was $152.1 million, up from $123.2 million in Q3 2024, representing a 23.5% increase[20] - Total GAAP cost of revenue for Q3 2025 was $16.4 million, compared to $13.7 million in Q3 2024, a 19.9% increase[20] Stock and Shareholder Information - Stock-based compensation for Q3 2025 was $29,474,000, up from $17,868,000 in Q3 2024, indicating increased employee incentives[19] - The weighted-average diluted shares used in computing net income per share increased to 200,745 for Q3 2025 from 200,407 in Q3 2024[21]