Summary
Doximity opened its fiscal 2025 third quarter with revenue of $168.6 million for the three months ended December 31, 2024, up 24.6% from the prior-year quarter. The company said subscription revenue carried the growth. New subscription customers added $7.6 million, while expansion of existing customers contributed $25.2 million. Average revenue per existing Marketing Solutions customer rose about 24% as brands and service lines expanded. Management also flagged record engagement. More than 610,000 unique providers used the clinical workflow tools, and the newsfeed passed one million unique providers. The CEO noted that AI tools grew the fastest, up 60% over the prior quarter.
Profitability outstripped the top line. Gross profit was $154.4 million for the quarter, up 25.5%, and gross margin was 91.6% against 91.0%. Operating income climbed 36.5% to $79.9 million, which lifted operating margin to 47.4% from 43.3%. Net income rose 56.8% to $75.2 million. Diluted EPS was $0.37, up from $0.24. On a non-GAAP basis, net income was $91.4 million and adjusted EBITDA was $102.0 million, up 39%, for an adjusted EBITDA margin of 60.5% versus 54.2%. The gains came against a quarter with no restructuring or impairment charges, while stock-based compensation kept rising across the expense base.
The quarter produced operating cash flow of $65.2 million, up 30.2%. Free cash flow, which subtracts purchases of property and equipment and internal-use software development costs, was $63.4 million, up 30%. Through the first nine months of fiscal 2025, revenue was $432.1 million, up 20.9%, net income was $160.7 million, up 50.3%, and diluted EPS was $0.80 against $0.52. Nine-month operating cash flow was $174.8 million, up 45.5%. Cash generation was not frictionless. Accounts receivable rose $36.5 million and deferred revenue fell $30.1 million over the nine months, both tied to the timing of billings and program launches. Deferred revenue, current, stood at $69.2 million, up 3.8% from a year earlier.
Guidance points to a slower fiscal fourth quarter ending March 31, 2025. Adjusted EBITDA for that quarter is guided to a range of $62.5 million to $63.5 million. For the full fiscal year ending March 31, 2025, adjusted EBITDA guidance was updated to a range of $306.6 million to $307.6 million, and the revenue outlook for that year was updated as well.
Customer scale kept improving. Customers with trailing 12-month subscription revenue above $500,000 totaled 114, versus 94 a year earlier, and that cohort generated roughly 84% of revenue for the trailing 12-month period. Net revenue retention was 117%, versus 115%. Cash and cash equivalents plus marketable securities reached $844.9 million as of December 31, 2024. The company repurchased 1,416,104 Class A shares for $49.2 million under a $500 million authorization, leaving $450.8 million available.
The risk list reads familiar. Management cited the timing and scope of anticipated stock repurchases, macroeconomic uncertainty, the ability to retain members and add new ones, customer acquisition and retention, security breaches or unauthorized data access, and the ability to manage growth. A restructuring-related impairment tied to subleasing the Curative office space in Irving, Texas, also showed up in the nine-month period, though the third quarter itself carried no such charge.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $168.6M | $136.8M | +23.2% | $135.3M | +24.6% |
| Gross profit | $154.4M | $123.2M | +25.4% | $123.1M | +25.5% |
| Gross margin | 91.6% | 90.0% | +1.6 pp | 91.0% | +0.6 pp |
| Research & development | $22.4M | $23.2M | -3.5% | $19.9M | +12.4% |
| Sales & marketing | $38.5M | $34.4M | +12.0% | $35.0M | +10.1% |
| General & administrative | $13.6M | $10.1M | +34.5% | $9.6M | +40.9% |
| Total operating expenses | $74.5M | $70.0M | +6.4% | $64.5M | +15.4% |
| Operating income (loss) | $79.9M | $53.1M | +50.4% | $58.6M | +36.5% |
| Operating margin | 47.4% | 38.8% | +8.6 pp | 43.3% | +4.1 pp |
| Net income (loss) | $75.2M | $44.2M | +70.3% | $48.0M | +56.8% |
| Net margin | 44.6% | 32.3% | +12.3 pp | 35.5% | +9.1 pp |
| Diluted EPS | $0.37 | $0.22 | +$0.15 | $0.24 | +$0.13 |
Risks
Customers with at least $500,000 of trailing 12-month subscription revenue accounted for approximately 84% of revenue for the TTM ended December 31, 2024, and the count of such customers rose to 114 from 94. A small group of large customers drives most revenue, so loss or reduced spend by one or more could materially affect results.
For the three months ended December 31, 2024, revenue increased $33.3 million, but $25.2 million of the subscription revenue increase came from expansion of existing customers versus $7.6 million from new subscription customers. Growth relies heavily on expanding existing Marketing Solutions customers, whose average revenue rose approximately 24%.
MD&A states the Tax Cuts and Jobs Act of 2017 eliminated the option to deduct research and development expenditures and requires capitalization and amortization over five or fifteen years, which may reduce cash flows from operating activities in future periods; the amounts and periods cannot be estimated.
For the nine months ended December 31, 2024, operating cash flow included a $30.1 million decrease in deferred revenue due to the timing of customer billings and program launches, while current deferred revenue rose only 3.8% year over year. Billing and collection timing could pressure cash flow if program launches or customer payment patterns shift.
SaaS KPIs
All quarters →Adjusted EBITDA Margin
Free Cash Flow
Adjusted EBITDA
Net Revenue Retention
Non-GAAP Net Income Margin
Non-GAAP gross margin
Summary, forecast, risks and KPIs are extracted from Doximity, Inc.'s SEC filings for Q3 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.