Key Takeaways Hims & Hers is deepening its care platform by linking diagnostics, providers, and pharmacy fulfillment.HIMS' new offerings include Labs for biomarker testing and menopause care guided by hormonal health experts.At-home testosterone services show HIMS unifying testing, treatment and provider oversight in men's health.The renowned health and wellness platform, Hims & Hers Health, Inc. (HIMS) , operates as a connected healthcare platform rather than a single-product provider, consistently linking ...

Core Insights - Doximity, Inc. reported adjusted earnings per share (EPS) of 45 cents for Q2 fiscal 2026, a 50% increase year over year, exceeding the Zacks Consensus Estimate by 18.4% [1][8] - The company's revenues reached $168.5 million in Q2, reflecting a year-over-year growth of 23.2% and surpassing the Zacks Consensus Estimate by 6.8% [2][8] Revenue Breakdown - Subscription revenues amounted to $159.5 million, up 23% year over year, driven by increased spending from existing customers and a net revenue retention rate of 118% [3] - Other revenues totaled $9.1 million, marking a 25.9% increase year over year [3] Margin Analysis - Gross profit increased by 23.5% year over year to $152.1 million, with a gross margin expansion of 30 basis points to 90.3% [4][8] - Operating profit was $63.7 million, a 19.8% increase from the prior year, although the operating margin contracted by 100 basis points to 37.8% [5][8] Financial Position - Doximity ended Q2 fiscal 2026 with cash and cash equivalents of $169.2 million, up from $137.3 million at the end of Q1 [6] - Cumulative net cash from operating activities was $156 million, compared to $109.6 million a year ago [6] Future Guidance - For Q3 fiscal 2026, Doximity expects revenues between $180 million and $181 million, exceeding the Zacks Consensus Estimate of $178.2 million [7] - The full fiscal year revenue outlook has been raised to between $640 million and $646 million, up from the previous estimate of $628 million to $636 million [9] Product and Engagement Highlights - The company introduced multiple product updates focused on AI and workflow expansion, including the integration of Pathway's medical dataset into DoxGPT [11] - Record engagement was noted with over 650,000 unique prescribers utilizing various digital tools, and AI-optimized program adoption accounted for 40% of bookings [12]

Financial Data and Key Metrics Changes - The company reported revenue of $169 million for Q2 2026, representing a 23% year-on-year growth and a 7% beat from the high end of guidance [6][11] - Adjusted EBITDA margin was 60%, amounting to $101 million, which was 15% above the high end of guidance [6][12] - Free cash flow increased by 37% year-on-year, reaching $91.6 million [13] Business Line Data and Key Metrics Changes - The company achieved an all-time record number of quarterly active subscribers for its Newsfeed, with double-digit growth in articles read [7] - Over 650,000 unique prescribers used the workflow tools in Q2, marking another all-time high [7] - AI tools saw the fastest growth, with quarterly active prescribers up more than 50% from the prior quarter [7] Market Data and Key Metrics Changes - The company finished the quarter with a net revenue retention rate of 118% on a trailing 12-month basis [11] - The number of customers contributing at least $500,000 each in subscription-based revenue increased by approximately 16% year-on-year [11] Company Strategy and Development Direction - The company is focusing on AI-optimized integrated programs, which represented over 40% of bookings in Q2, compared to less than 5% in the same quarter last year [15][39] - The integration of Pathway's medical data set and AI models into DoxGPT is expected to enhance the company's offerings in medical AI [8][60] - The company aims to maintain a 55%+ Adjusted EBITDA margin while investing in AI solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed some uncertainty regarding the 2026 budget discussions, indicating a cautious approach to revenue expectations [20][21] - Despite potential headwinds, management remains optimistic about client engagement and the performance of integrated programs [21] - The company expects revenue for Q3 2026 to be in the range of $180 million to $181 million, representing a 7% growth at the midpoint [14] Other Important Information - The company repurchased $21.9 million worth of shares during Q2, with $280 million remaining in the existing repurchase program [13] - The company is excited about the long-term growth opportunities presented by its AI suite [17] Q&A Session Summary Question: Uncertainty around budget discussions - Management indicated that the uncertainty primarily relates to calendar 2026 budgets, which are expected to be finalized soon [20] Question: Future AI opportunities - Management expressed excitement about the potential for AI to add significant value for physicians, with plans to continue expanding AI capabilities [22][23] Question: Budget allocation changes - Management noted that clients are considering potential changes in budget allocations, particularly in light of recent policy changes [28][30] Question: Impact of direct-to-consumer advertising - Management acknowledged that while there are discussions around D2C advertising, it is still early to assess the impact on budgets [29][30] Question: Integrated programs and visibility - Management clarified that integrated offerings represented 40% of upsell sales in Q2, which provides better visibility for future revenue [48][49] Question: Market share and growth - Management stated that the company has been growing at about two times the market growth rate, with a strong competitive position [88][89]

Core Insights - Doximity, Inc. is recognized as a leading healthcare technology stock, utilizing AI-driven tools and strategic acquisitions to enhance its market position [1] - The recent acquisition of Pathway Medical significantly improves Doximity's DoxGPT tool, providing instant access to verified medical data and AI responses [2] - Doximity has introduced Doximity Scribe, an AI tool that automates clinical documentation, thereby reducing administrative workload for clinicians [3] Financial Performance - In the last quarter ending June 30, 2025, Doximity reported a 15% year-over-year revenue increase, reaching $145.9 million, surpassing analyst expectations [4] - The company achieved non-GAAP earnings per share (EPS) of $0.36, indicating strong financial performance [4] - User engagement and product adoption have notably increased, particularly for new AI scribe and workflow tools [4]

Core Insights - The article discusses the 12 best healthcare stocks to buy and hold for five years, highlighting the role of AI in improving healthcare services and addressing insurance denials [1][4]. Group 1: AI in Healthcare - Dr. Warris Bokhari's platform utilizes AI to appeal health insurance denials for approximately 70 autoimmune diseases, addressing a significant issue where 850 million denials occur annually in the U.S. [2][3]. - The platform was launched on October 2, 2024, and aims to assist patients in navigating care denials by generating appeal letters based on healthcare plans [4]. Group 2: Stock Selection Methodology - The selection of the top healthcare stocks was based on criteria including EPS growth of over 10% in the past five years, an expected EPS growth rate of at least 20% over the next five years, and a forward PE ratio greater than 20 [6]. - The final ranking of stocks was influenced by the number of hedge fund holders as tracked by the Insider Monkey database as of Q2 2025 [6][7]. Group 3: Company Highlights - **Intuitive Surgical, Inc. (NASDAQ:ISRG)**: Pioneered robotic-assisted minimally invasive surgery with its da Vinci systems, which are used globally. The company introduced advanced software features for its da Vinci 5 system in September 2025, enhancing surgical capabilities [9][10]. - **Doximity, Inc. (NYSE:DOCS)**: A leading healthcare technology stock that completed the acquisition of Pathway Medical, enhancing its AI-driven tools. The company reported a 15% year-over-year revenue increase, reaching $145.9 million for the quarter ending June 30, 2025 [13][15]. - **Penumbra, Inc. (NYSE:PEN)**: A leader in thrombectomy and vascular intervention technologies, recently introduced the Ruby XL System and the Lightning Bolt 6X device, expanding its product offerings and market reach [16][18].