Doximity(DOCS) - 2026 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 FY2026 reached $185.1 million, representing a 10% increase year-over-year from $168.6 million[5] - Net income for the quarter was $61.6 million, with a margin of 33.3%, down from 44.6% in the same quarter last year[5] - Adjusted EBITDA was $111.4 million, reflecting a 9% year-over-year increase, with an adjusted EBITDA margin of 60.2%[5] - The company reported a diluted net income per share of $0.31, down from $0.37 in the same quarter last year[5] - Net income for Q3 2025 was $61,558, a decrease of 18.2% from $75,196 in Q3 2024[15] - Non-GAAP gross profit for Q3 2025 was $111,396, representing a gross margin of 60.2%, compared to 60.5% in Q3 2024[20] - Total revenue for Q3 2025 was $185,053, up from $168,603 in Q3 2024, reflecting a growth of 9.5%[20] - Adjusted EBITDA for Q3 2025 was $111,396, compared to $102,038 in Q3 2024, indicating a year-over-year increase of 9.3%[20] - GAAP operating income for Q3 2025 was $71,896,000, down from $79,925,000 in Q3 2024, indicating a decline of 10.4%[22] - Non-GAAP net income margin for Q3 2025 was 49.3%, down from 54.2% in Q3 2024[22] Cash Flow and Assets - Operating cash flow for the quarter was $60.9 million, a decrease of 7% year-over-year, while free cash flow was $58.5 million, down 8%[5] - Free cash flow for the nine months ended December 31, 2025, was $210,226, an increase from $169,760 in the same period of 2024[20] - Cash and cash equivalents at the end of the period were $64,838, down from $165,270 at the end of Q3 2024[15] - Total assets as of December 31, 2025, were $1.157 billion, down from $1.264 billion as of March 31, 2025[11] Guidance and Stock Repurchase - Doximity updated its revenue guidance for Q4 FY2026 to between $143 million and $144 million, and for the full fiscal year to between $642.5 million and $643.5 million[5] - The company authorized a stock repurchase program of up to $500 million for Class A common stock, with no expiration date[4] Research and Development - Research and development expenses increased to $34.6 million for the quarter, compared to $22.4 million in the same period last year[13] - Research and development expenses for Q3 2025 were $34,595,000, up from $22,421,000 in Q3 2024, marking a significant increase of 54.2%[21] Customer Metrics - The number of quarterly active prescribers exceeded 1 million, with workflow products reaching a record 720,000 users, and AI products surpassing 300,000 users[3] - The net revenue retention rate is a key metric reflecting customer renewals and expansions, directly tied to revenue growth[19] - The number of customers with trailing 12-month subscription revenue greater than $500,000 is a significant indicator of business scale[19] Expenses - The company incurred stock-based compensation expenses of $33,546 in Q3 2025, up from $19,368 in Q3 2024[20] - Total GAAP cost of revenue for Q3 2025 was $18,701,000, compared to $14,181,000 in Q3 2024, reflecting an increase of 32.9%[21] - Non-GAAP sales and marketing expense for Q3 2025 was $31,197,000, slightly higher than $30,853,000 in Q3 2024, indicating a growth of 1.1%[21]