Summary
Doximity closed fiscal 2026 with a mixed fourth quarter. Revenue rose 5.1% year over year to $145.4 million. Gross profit edged up 1.7% to $126.0 million. Operating income fell 49.0% to $24.8 million. Net income dropped 69.4% to $19.1 million. Gross margin slipped 2.9 percentage points to 86.7%, and operating margin fell 18.1 percentage points to 17.1%. Deferred revenue was $106.5 million, down 7.1% from the prior-year quarter. Operating cash flow rose 11.2% to $109.5 million. Free cash flow, a non-GAAP measure, was $107.3 million, up 11% from $97.0 million. The profit decline reflects rising costs tied to AI investments, stock-based compensation, and legal fees, even as the top line grew.
Fiscal 2026 revenue reached $644.9 million, up 13.1% from the prior fiscal year. Operating income was $214.9 million, down 5.7%. Net income was $196.1 million, down 12.2%. Diluted EPS was $0.98, down 11.7%. Gross margin for the full year was 89.1%, down 1.1 percentage points, and operating margin was 33.3%, down 6.6 percentage points. Operating cash flow for the fiscal year was $326.5 million, up 19.5%. Free cash flow was $317.5 million, up 19% from $266.7 million. On a non-GAAP basis, adjusted EBITDA was $357.8 million, up 14%, with an adjusted EBITDA margin of 55.5% versus 55.0%. Non-GAAP net income was $302.7 million versus $286.1 million, and non-GAAP diluted EPS was $1.52 versus $1.42.
Engagement remained the bright spot. More than 800,000 active prescribers used Doximity's workflow tools in the fourth quarter. Nearly half of those providers used its clinical AI last quarter, and prompts per user nearly doubled from January to April alone. The company also announced partnerships with Aledade and Photon, which bring the Clinical AI Suite to thousands of independent practices and enable in-workflow prescribing. Doximity reported over 3 million registered members as of March 31, 2026. Those members include more than 85% of U.S. physicians, two-thirds of U.S. nurse practitioners and physician assistants, and about 90% of graduating U.S. medical students. Customers with at least $500,000 in trailing 12-month subscription revenue totaled 125, up from 118. The net revenue retention rate was 109%, down from 119%. Quarterly unique active providers using workflow tools reached 0.81 million, up from 0.62 million. Doximity also named Matt Sonefeldt as CFO and Dr. Steve Zatz as President.
Doximity issued guidance for the fiscal first quarter ending June 30, 2026. It expects revenue between $151 million and $152 million and adjusted EBITDA between $68.5 million and $69.5 million. For the full fiscal year ending March 31, 2027, the company guided revenue between $664 million and $676 million and adjusted EBITDA between $323 million and $335 million. Management pointed to macroeconomic and policy uncertainty that could slow decision making and reduce discretionary marketing spend at pharmaceutical companies. That could affect revenue, collection of accounts receivable, and cash flow generation. The company also faces execution risks around retaining and adding members, attracting and retaining customers, protecting member data from security breaches, and managing growth. Legal fees tied to non-ordinary course matters, including shareholder class action litigation, remain a cost pressure. The timing and scope of stock repurchases add another layer of uncertainty. Doximity's AI push supported engagement but came with higher costs, and the fourth-quarter margin contraction shows how quickly those investments can weigh on profitability.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $145.4M | $185.1M | -21.4% | $138.3M | +5.1% |
| Gross profit | $126.0M | $166.4M | -24.3% | $123.8M | +1.7% |
| Gross margin | 86.7% | 89.9% | -3.2 pp | 89.5% | -2.9 pp |
| Research & development | $39.1M | $34.6M | +13.0% | $24.8M | +57.7% |
| Sales & marketing | $45.9M | $42.2M | +8.8% | $37.6M | +22.1% |
| General & administrative | $16.1M | $17.7M | -8.7% | $12.7M | +26.7% |
| Total operating expenses | $101.1M | $94.5M | +7.1% | $75.1M | +34.6% |
| Operating income (loss) | $24.8M | $71.9M | -65.5% | $48.7M | -49.0% |
| Operating margin | 17.1% | 38.9% | -21.8 pp | 35.2% | -18.1 pp |
| Net income (loss) | $19.1M | $61.6M | -68.9% | $62.5M | -69.4% |
| Net margin | 13.2% | 33.3% | -20.1 pp | 45.2% | -32.0 pp |
| Diluted EPS | $0.10 | $0.31 | -$0.21 | $0.31 | -$0.21 |
Risks
One customer accounted for 10% or more of total revenue for the fiscal year ended March 31, 2026, while no customer met this threshold for the fiscal years ended March 31, 2025 and 2024. The loss or renegotiation of key customers or agencies could slow revenue growth or cause revenue to decline.
Net revenue retention rate decreased to 109% at March 31, 2026 from 119% at March 31, 2025 and 114% at March 31, 2024, while revenue growth slowed to 13% in fiscal 2026 from 20% in fiscal 2025. If existing customers do not renew, renew on less favorable terms, or purchase additional solutions, revenue and operating results could be materially harmed.
During fiscal 2026, uncertainty surrounding federal policy initiatives, including Most Favored Nation pricing negotiations, contributed to short-term budget caution among certain pharmaceutical customers and affected the timing of bookings in Marketing Solutions. Similar policy, pricing, or reimbursement changes could delay, reduce, or reallocate customer spending and hurt revenue visibility.
The company faces increasing competition from large technology companies and emerging healthcare AI platforms such as OpenEvidence, Abridge, OpenAI, and Anthropic, while its AI investments may not achieve expected benefits or may produce inaccurate or biased outputs. Failure to compete effectively or to commercialize AI features could impair growth, reputation, and financial results.
Pharmaceutical manufacturer customers, who represent a significant portion of revenue, typically do not enter long-term contracts and can terminate their relationship or move marketing activity to a new agency. Macroeconomic pressure and customer budget limits may also lead to extended billing terms or pricing discounts, which could limit growth.
The former Chief Financial Officer departed in April 2026, the Chief Accounting Officer served as interim principal financial officer during the search, and Matt Sonefeldt was appointed Chief Financial Officer on May 13, 2026. Recent senior management changes may cause temporary disruption or require additional management attention.
As a HIPAA Business Associate, the company faces civil monetary penalties, criminal penalties, and imprisonment for compliance failures, and evolving AI, privacy, and data protection laws may increase compliance costs or require product changes. State fee-splitting and healthcare laws also create liability risk.
The company has recently been subject to securities class action litigation and incurred $4.9 million in legal expenses in fiscal 2026 related to certain non-ordinary course legal matters. Further litigation could result in substantial costs and divert management attention.
Operating income decreased 49.0% for the quarter ended March 31, 2026 versus the prior-year quarter, and net income decreased 69.4%, while gross margin decreased 2.9 percentage points. Increases in stock-based compensation and AI-related investments may continue to pressure margins.
Workflow Solutions such as telehealth, on-call scheduling, Ask, and Scribe are relatively new and unproven, and their markets may not achieve or sustain high levels of demand or market adoption. If members do not adopt these offerings, the company's growth could be harmed.
SaaS KPIs
All quarters →Adjusted EBITDA Margin
Free Cash Flow
Adjusted EBITDA
Net Revenue Retention
Non-GAAP Net Income Margin
Non-GAAP Net Income
Non-GAAP Operating Income
Summary, forecast, risks and KPIs are extracted from Doximity, Inc.'s SEC filings for Q4 FY2026 (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.