Sign in
DI

Doximity, Inc. (DOCS)·Q2 2026 Earnings Summary

Executive Summary

  • DOCS delivered a strong Q2 FY26: revenue $168.5M (+23% y/y), non-GAAP diluted EPS $0.45, adjusted EBITDA $100.8M (59.8% margin), with operating cash flow $93.9M (+37% y/y). Revenue and EPS beat S&P Global consensus, and results were ~7% (revenue) and ~15% (adj. EBITDA) above the high end of their own guidance, driven by AI-optimized integrated programs and a stronger, earlier upsell cycle .
  • FY26 guidance was raised: revenue to $640–$646M and adjusted EBITDA to $351–$357M; Q3 FY26 guidance set at revenue $180–$181M and adjusted EBITDA $103–$104M .
  • Engagement and platform adoption hit records: 650k prescribers used workflow tools; AI Scribe and DoxGPT users grew >50% q/q; telehealth averaged >300k voice/video visits per weekday, integrating Scribe “one tap” into Dialer .
  • Catalysts: AI suite integration (Pathway), integrated program mix (>40% of bookings vs <5% y/y), portal-driven ROI transparency (3x client portal users; 10x ROI studies) supporting sustained share gains and higher visibility; tempered near-term sequential growth as upsells shift earlier and policy uncertainty lingers into upfronts .

What Went Well and What Went Wrong

What Went Well

  • Broad-based beat vs guidance and consensus: revenue $168.5M and adjusted EBITDA $100.8M, with CFO noting ~7% and ~15% beats vs the high end of guidance, respectively; non-GAAP diluted EPS $0.45 .
  • AI traction and integration: “AI Scribe and DoxGPT users grew over 50% from the prior quarter,” and Pathway’s dataset/models integrated into DocsGPT across web/mobile, including drug reference and full-text access to 2,000+ journals for evidence-based answers .
  • Commercial momentum and mix shift: Integrated, AI-optimized offerings represented >40% of Q2 bookings (vs <5% y/y) and SMB bookings grew ~100% y/y; NRR 118%, 121 customers >$500k TTM contributing 84% of revenue .

What Went Wrong

  • Sequential revenue cadence: Management expects a smaller Q2→Q3 “step-up” than typical as upsells were pulled forward into Q2 and spread more evenly, making Q3 a tougher comp despite healthy H2 growth (~14% y/y for calendar H2) .
  • Policy uncertainty into upfronts: Clients are cautious finalizing CY26 budgets amid regulatory/policy changes (e.g., DTC scrutiny; evolving drug pricing topics), introducing near-term visibility risk despite strong portal engagement .
  • Rising AI investment: Back-half FY26 expenses will rise to build/power AI solutions (offset over time by scale and internal AI-driven efficiencies), keeping a measured posture despite maintaining 55%+ adjusted EBITDA margin for FY26 .

Financial Results

MetricQ2 FY25 (Sep-24)Q4 FY25 (Mar-25)Q1 FY26 (Jun-25)Q2 FY26 (Sep-25)
Revenue ($M)136.832 138.288 145.913 168.525
Diluted EPS ($)0.22 0.31 0.27 0.31
GAAP Gross Margin %90.0% 89.5% 89.2% 90.3%
Adjusted EBITDA ($M)76.148 69.736 79.772 100.830
Adjusted EBITDA Margin %55.7% 50.4% 54.7% 59.8%
Net Income ($M)44.154 62.458 53.320 62.059
Net Margin %32.3% 45.2% 36.5% 36.8%

Q2 FY26 vs S&P Global consensus and vs company guidance

MetricReportedS&P Global ConsensusSurprisePrior Company Guidance (Q2)Surprise vs Guidance
Revenue ($M)168.525 157.591*+10.934 (+6.9%)*157–158 +6.6% vs high end
EPS (Non-GAAP, Diluted) ($)0.45 0.379*+0.071 (+18.7%)*——
EBITDA ($M, S&P definition)65.541*87.521*−21.980 (miss, definitional diff)*——
Adjusted EBITDA ($M, Company)100.830 ——87–88 +~15% vs high end

Values marked with * are from S&P Global. Values retrieved from S&P Global.

KPIs and operating metrics (current quarter unless noted)

KPIQ2 FY26Prior/Trend
Net Revenue Retention (TTM)118% —
Customers ≥$500k TTM121 (84% of rev) 104 a year ago
Workflow prescribers (unique)650,000 630,000 in Q1 FY26
AI Scribe + DoxGPT users>50% q/q growth —
Telehealth average weekday visits>300,000 Up from ~200,000 previously
Operating Cash Flow ($M)93.9 (+37% y/y) —
Free Cash Flow ($M)91.6 (+37% y/y) —
Cash, cash equivalents & marketable securities ($M)878 —
Share repurchases$21.9M at ~$61.62 avg; $280M remaining —

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q3 FY26N/A180–181 New
Adjusted EBITDA ($M)Q3 FY26N/A103–104 New
Revenue ($M)FY26628–636 640–646 Raised
Adjusted EBITDA ($M)FY26341–349 351–357 Raised

Notes: H1 FY26 revenue totals $314.438M . Combined with FY26 revenue guidance and Q3 guide, implied Q4 FY26 revenue range is roughly ~$146–$151M (calc from ). Management cautioned that Q4 step-up will be smaller than historical due to earlier, smoother upsell deployment .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY25, Q1 FY26)Current Period (Q2 FY26)Trend
AI/technology initiativesAI tools at highs in Q4; Q1: AI suite up 5x y/y; Pathway acquisition to elevate clinical reference AI Scribe & DoxGPT users +50% q/q; Pathway fully integrated (drug reference, 2,000+ journals); aiming to be fastest, best real-world medical AI Accelerating
Client portal & ROIPortal introduced; transparency improving conversion (implied) 3x users y/y; 10x ROI studies vs pre-portal; drives earlier, smoother upsells Strengthening
Sales mix/integrated programs— (emerging in FY25)Integrated AI-optimized programs >40% of Q2 bookings vs <5% y/y; smoother cadence Scaling rapidly
SMB/agency partners—SMB bookings +~100% y/y via >12 agency partners; nearing high-7 figures run-rate brought in Positive
Health systemsTelehealth/Dialer enterprise base Enterprise (on-call scheduling) one of fastest-growing; AI suite sold into top-20 systems; recruiting (Curative) +~25% y/y Improving
Macro/policy/regulatory—DTC scrutiny causing budget caution; evolving drug pricing viewed as potentially positive but too early to quantify Uncertain near-term
Telehealth/product usageStrong engagement in Q4 >300k average weekday calls; one-tap Scribe in Dialer; 1M+ newsfeed users Rising

Management Commentary

  • “In Q2, a record 650,000 prescribers used our workflow tools… while our AI Scribe and DoxGPT users grew over 50% from the prior quarter.” — Jeff Tangney, CEO .
  • “Adjusted EBITDA margin of 60% or $101M… 15% above the high end of our guidance.” — CEO .
  • “We finished the quarter with a net revenue retention rate of 118%… 121 customers contributing at least $500,000… accounted for 84% of our total revenue.” — CFO .
  • “Integrated offerings represented over 40% of bookings in Q2 compared to less than 5%… last year.” — CFO .
  • “Client portal users are up 3x y/y… number of ROI studies up over 10x… leading to a smoother… upsell cycle.” — CEO/CFO .

Q&A Highlights

  • Budget cadence and policy: Management sees CY26 budget caution and more even upsell deployment; Q2 was stronger than typical with less Q3 step-up expected. Policy shifts (DTC scrutiny, drug pricing) contribute to uncertainty but engagement remains high .
  • AI strategy and monetization: Pathway integrated; focus on quality, speed, and evidence-based answers (drug reference, 2,000+ journals). AI is also optimizing integrated programs (akin to Google PMax) to deliver better ROI and smoother revenue .
  • SMB channel: Agency partners (>12) are accelerating SMB growth (+~100% y/y), adding new clients and elevating existing accounts .
  • Health systems: Enterprise on-call scheduling is one of fastest-growing businesses; early sales of AI suite to top-20 systems; recruiting (Curative) up ~25% y/y .
  • Capital allocation: Repurchased $21.9M of shares at ~$61.62; $280M authorization remaining; $878M in cash & investments .

Estimates Context

  • Q2 FY26 beats: Revenue $168.525M vs $157.591M consensus; Non-GAAP diluted EPS $0.45 vs $0.379 consensus; both indicate solid outperformance and likely positive estimate revisions near term.*
  • EBITDA metric caution: S&P Global “EBITDA Consensus Mean” shows reported EBITDA $65.541M vs $87.521M consensus (miss), but the company’s key profitability metric is Adjusted EBITDA at $100.830M (59.8% margin), which beat company guidance. The definitional difference (EBITDA vs Adjusted EBITDA) is material for interpretation.*
  • FY26 outlook raised (revenue and adjusted EBITDA) should prompt upward revisions to FY26 models; however, management flagged a smaller Q3 step-up and policy-related budget caution into CY26 upfronts, tempering near-term sequential assumptions .

Values marked with * are from S&P Global. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Outperformance with raised FY26 guide: Q2 revenue/EPS beats and higher FY26 ranges underscore durable growth and operating leverage, aided by AI-optimized integrated programs .
  • Mix shift drives visibility: Integrated programs (>40% of bookings) and portal-driven ROI (3x users; 10x studies) are smoothing upsells and improving predictability; expect a more even cadence vs historical year-end “flush” patterns .
  • AI differentiation: Pathway integration (drug reference, 2,000+ journals) and rapid AI user adoption (>50% q/q) strengthen competitive moat and create additional monetization vectors across newsfeed, workflow, and enterprise .
  • Health system momentum: Enterprise on-call scheduling and early AI suite adoption by top systems plus recruiting growth diversify beyond pharma and support medium-term growth .
  • Near-term watch items: Expect a smaller Q3 step-up given pull-forward; track CY26 budget finalization, DTC policy developments, and implied Q4 revenue (~$146–$151M) versus expectations .
  • Expense trajectory: Back-half AI investments rise, but management still targets 55%+ adjusted EBITDA margin in FY26; monitor opex scaling and AI unit economics .
  • Capital returns: Active buybacks ($21.9M in Q2) with $280M remaining and $878M liquidity provide flexibility; deployment may support EPS and downside protection .