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Doximity, Inc. (DOCS)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 2025 delivered double-digit growth and strong profitability: revenue $138.3M (+17% YoY), non-GAAP diluted EPS $0.38, adjusted EBITDA $69.7M (50.4% margin), and free cash flow $97.0M; all exceeded prior guidance and Street estimates, with subscription revenue at $131.9M (+17% YoY) .
  • Full-year FY2025 revenue reached $570.4M (+20% YoY) and adjusted EBITDA $313.8M (55% margin), both above the company’s earlier outlook; GAAP diluted EPS was $1.11 and non-GAAP diluted EPS $1.42 .
  • FY2026 outlook guides to revenue of $619–$631M (~10% growth) and adjusted EBITDA $333–$345M (~54% margin), reflecting tougher comps from earlier program launches and prudence amid policy uncertainty; Q1 FY2026 guidance calls for revenue $139–$140M and adjusted EBITDA $71–$72M .
  • Key catalysts: accelerating adoption of workflow modules (point-of-care, formulary), expanding client portal usage (strong upsell enablement and ROI proof), and rapidly growing AI tools; NRR remained robust (119%; top 20 at 123%) with 116 customers >$500k TTM .

What Went Well and What Went Wrong

What Went Well

  • Strong beat vs guidance and Street: Q4 revenue and non-GAAP EPS exceeded guidance and consensus; adjusted EBITDA margin reached 50.4% and free cash flow grew 56% YoY to $97.0M .
  • Workflow and AI momentum: over 620k unique active prescribers on workflow tools; AI tool usage up more than 5x YoY; newsfeed engagement up >30% YoY; management highlighted AI-driven efficiency and client interest in AI optimization .
  • Portal traction and share gains: portal clients grew faster; integrated programs increased deal sizes and January launches; top 20 NRR at 123% and total NRR at 119% TTM, evidencing durable expansion among large accounts .

“Physicians love our specialty-specific AI tools… Our AI tools grew the fastest, again, last quarter, up more than 5x year-on-year” — CEO Jeff Tangney .

What Went Wrong

  • Slower growth guide for FY2026: revenue growth ~10% reflects tougher YoY comparisons (benefit from earlier launches in FY2025) and cautious upsell assumptions amid policy uncertainty .
  • Health systems still tentative: marginal improvement noted, but guidance assumes no material acceleration given near-term sensitivity to macro/policy changes .
  • Upsell variability risk: management emphasized that upsells are more variable and prudence is baked into guidance, particularly in early-year periods .

Financial Results

Quarterly Performance vs prior periods and guidance

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD Millions)$136.8 $168.6 $138.3
GAAP Diluted EPS ($)$0.22 $0.37 $0.31
Non-GAAP Diluted EPS ($)$0.30 $0.45 $0.38
Adjusted EBITDA ($USD Millions)$76.1 $102.0 $69.7
GAAP Gross Margin (%)90.0% 91.6% 89.5%
Non-GAAP Gross Margin (%)91.9% 93.3% 91.4%
Adjusted EBITDA Margin (%)55.7% 60.5% 50.4%

Q4 vs Street Consensus and Guidance

MetricQ4 GuidanceQ4 ConsensusQ4 Actual
Revenue ($USD Millions)$132.5–$133.5 $134.0*$138.3
Non-GAAP Diluted EPS ($)N/A$0.273*$0.38

Estimates marked with * retrieved from S&P Global.

Segment/Revenue Mix (Q4 2025)

MetricQ4 2025
Total Revenue ($USD Millions)$138.3
Subscription Revenue ($USD Millions)$131.9

KPIs and Customer Metrics

KPIQ2 2025Q3 2025Q4 2025
Net Revenue Retention (TTM)116% 117% 119%
Top 20 Customers NRR (TTM)124% 122% 123%
Customers ≥$500k TTM103 114 116
Free Cash Flow ($USD Millions)$66.8 $63.4 $97.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent/ActualChange
Revenue ($M)Q4 2025$132.5–$133.5 $138.3 Raised/Beat
Adjusted EBITDA ($M)Q4 2025$62.5–$63.5 $69.7 Raised/Beat
Revenue ($M)FY 2025$564.6–$565.6 $570.4 Raised/Beat
Adjusted EBITDA ($M)FY 2025$306.6–$307.6 $313.8 Raised/Beat
Revenue ($M)Q1 FY 2026N/A$139–$140 New
Adjusted EBITDA ($M)Q1 FY 2026N/A$71–$72 New
Revenue ($M)FY 2026N/A$619–$631 New
Adjusted EBITDA ($M)FY 2026N/A$333–$345 New

Management notes FY2026 growth prudence reflects tougher comps from earlier January launches and cautious upsell assumptions amid macro/policy uncertainty .

Earnings Call Themes & Trends

TopicQ2 2025 (prior)Q3 2025 (prior)Q4 2025 (current)Trend
AI/Technology1M GPT prompts; AI assisting workflow; portal rollout to 40% brands 1.8M prompts (+60% QoQ); record engagement; AI a future “third act” AI tools up >5x YoY; CEO shifting focus to clinical AI; clients “AI-cheery” Accelerating
Client PortalStrong upsells; NP extensions popular; agency partner program launched Portal cohort growth; integrated programs increased deal sizes Majority of pharma clients with access; daily ROI insights; upsell enablement Improving
Workflow ModulesPOC/Formulary = 20% of pharma sales; early innings >100% YoY growth; nine-figure business expected Low double-digit penetration; strong training to scale Accelerating
Macro/PolicyMarket growth 5–7%; cautious near-term Flight to quality; under-indexed digital budgets Policy uncertainty; prudent assumptions; no slowdown yet Cautiously stable
Health SystemsStable; marginal improvement Marginal improvement; not expecting material change near-term Marginal improvement; sensitivity to policy Slightly improving
AgenciesPrioritized over SMB self-service; referrals to 6-figure clients Agency content speeds approvals and boosts ROI Strong alignment; content authoring; faster launches; upsell leverage Improving

Management Commentary

  • “We delivered $138 million of revenue for the fourth quarter… Our free cash flow was stronger still at $97 million, up 56% year-on-year.” — CEO Jeff Tangney .
  • “We finished the quarter with a net revenue retention rate of 119%… top 20… 123%… 116 customers contributing at least $500k.” — CFO Anna Bryson .
  • “Fiscal 2025 received the benefit of being the transition year… earlier January launches… creates a tougher year-over-year comparison for fiscal 2026.” — CFO Anna Bryson .
  • “Our AI investments are already paying off… we have been able to scale our business without sufficient additional headcount.” — CFO Anna Bryson .

Q&A Highlights

  • Macro/policy uncertainty: No slowdown seen yet; guidance prudently assumes lower-end market growth and variable upsells; “cautiously optimistic” tone among pharma clients .
  • Upsell/seasonality: Integrated programs support more predictable curves and January starts; upsell variability considered in Q1 assumptions; Q3 likely remains highest revenue quarter .
  • Workflow runway and penetration: Point-of-care and formulary experiencing >100% YoY growth; still low double-digit penetration of brands; expected to become on par with newsfeed over time .
  • Portal/agency leverage: Portal enables real-time ROI, recommendations (e.g., NP extensions), and smoother upsells; agency content authoring speeds approvals and can improve ROI .
  • AI monetization and efficiency: Early innings for monetization; internal AI drives margin efficiency (e.g., forecasting, contract scanning, programming augmentation) .

Estimates Context

  • Q4 2025: Company beat Street on both revenue and non-GAAP EPS — revenue $138.3M vs $134.0M*, non-GAAP diluted EPS $0.38 vs $0.273* .
  • FY 2025: Company exceeded updated FY outlook — $570.4M vs consensus $569.5M*; non-GAAP diluted EPS $1.42 vs consensus $1.310* .
  • FY 2026: Company guides $619–$631M vs Street $644.96M*; implies potential consensus reductions to reflect prudence and tougher comps; adjusted EBITDA guide $333–$345M (~54% margin) .

Estimates marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Strong execution and engagement underpin durable growth; Q4 and FY2025 outcomes show Doximity’s ability to beat guidance/consensus while expanding margins and FCF .
  • Workflow modules (point-of-care/formulary) and integrated programs are strategic growth engines with long runway and rising attach rates; expect continued share gains vs programmatic/other channels .
  • Client portal is a structural advantage: daily ROI visibility, easier upsells, agency alignment; supports larger, longer deals and earlier launches, enhancing predictability over time .
  • FY2026 guide reflects prudence (upsell variability, policy uncertainty, tough comps); near-term growth moderates, but long-term digital under-indexing (pharma ~30–35% digital) supports secular expansion .
  • AI is a multi-year catalyst: growing clinician adoption, internal efficiency gains, and potential future monetization; management and clients are “AI-cheery,” a positive narrative driver .
  • Health systems improving marginally; not a near-term growth driver vs pharma, but stability adds optionality as macro/policy environment evolves .
  • Net/net: Expect continued relative share gains and strong profitability; FY2026 consensus likely to recalibrate closer to company guide, with upside tied to upsell cadence and workflow penetration .

Additional Relevant Press Releases (context)

  • Doximity ranked #1 Best in KLAS telehealth video platform for fourth consecutive year; reinforces workflow/telehealth leadership and brand perception .
  • Q4 2025 earnings release timetable announced for May 15, 2025 (context on timing) .