Doximity, Inc. Q1 FY2026 earnings

Doximity opened fiscal 2026 with double-digit growth and stronger profitability. Revenue in the quarter ended June 30, 2025 reached $145.9 million, up 15% year over year. Gross profit was $130.1 million, up 15.0%, while operating income rose 18.4% to $54.5 million. Net income climbed 28.9% to $53.3 million. Diluted EPS came in at $0.27, up $0.06. Gross margin was 89.2%, down 0.1 percentage points, and operating margin was 37.4%, up 1.0 percentage point. Operating cash flow was $62.1 million, up 50.6%. The company also reported free cash flow of $60.1 million, up 52%. Free cash flow is a non-GAAP measure and differs from operating cash flow because it subtracts internal-use software development costs.

Engagement and customer metrics moved higher. Net revenue retention rate was 118%, compared with 114% a year earlier. The number of customers with at least $500,000 in trailing 12-month subscription revenue was 120, compared with 103. That cohort accounted for approximately 84% of revenue for the trailing 12 months ended June 30, 2025. Management said more than 630,000 prescribers used its workflow tools. The AI suite grew the fastest, up 5x year over year. Doximity also acquired Pathway Medical during the quarter. These figures point to a platform that is adding large customers and deepening use among existing ones.

Management attributed the revenue increase to a rise in subscription revenue, with new customers and expansion of existing customers both contributing. Average revenue per existing Marketing Solutions customer increased by approximately 14%. About 94% of revenue came from subscription customers. Deferred revenue, current portion, was $117.4 million, up 14.1%, a sign that billings and renewals remained healthy. Non-GAAP adjusted EBITDA was $79.8 million, up 21%, with adjusted EBITDA margin of 54.7%, compared with 52.0%. Non-GAAP net income was $71.9 million, with a non-GAAP net income margin of 49.2%, compared with 44.1%. Non-GAAP diluted EPS was $0.36, compared with $0.28.

Guidance points to continued growth. For the fiscal second quarter ending September 30, 2025, Doximity guided revenue between $157 million and $158 million and adjusted EBITDA between $87 million and $88 million. For the full fiscal year ending March 31, 2026, the company guided revenue between $628 million and $636 million and adjusted EBITDA between $341 million and $349 million. The full-year guidance is not comparable to a single quarter's growth rate, and the company did not provide a GAAP net income or EPS outlook.

Risks remain familiar for a high-margin platform. The company cites macroeconomic uncertainty, its ability to retain existing members or add new members and maintain engagement, its ability to attract or retain customers, security breaches or unauthorized access to member data, and its ability to manage growth. Competition is intense and the environment changes quickly. Spending also rose. Cost of revenue, research and development, and general and administrative expenses all increased, partly on stock-based compensation. The quarter showed strong revenue and profit growth, but the company still faces execution risk in retaining large customers and expanding its AI and workflow products.