Start here if you're new
what it is
Doximity sells software and digital tools to doctors, hospitals, and drug companies inside a medical social network.
how it gets paid
Last year Doximity made $570M in revenue. Pharma marketing solutions was the main engine at $330M, or 58% of sales.
why it's growing
Revenue grew 20.0% last year. For the full year, we are calling for a 13% top-line advance, to $643 million, and for a 9% earnings boost, to $1.55 per share.
what just happened
Latest results showed revenue of $499M and EPS of $0.88, both far above the prior year.
At a glance
B+ balance sheet — decent shape, but not bulletproof
16.4x trailing p/e — the market's not buying it — or you found a deal
18.5% return on capital — nothing to write home about
xvary composite: 40/100 — below average
$1.85 fy2027 eps est
What they do
Doximity sells software and digital tools to doctors, hospitals, and drug companies inside a medical social network.
Doximity has over 2 million registered members as of March 31, 2025, including more than 80% of U.S. physicians. Network effect → the service gets better as more clinicians join → so what: your doctor contacts, workflow, and outreach all live in one place, which makes leaving annoying. That reach also extends to over 60% of nurse practitioners and physician assistants and over 90% of graduating U.S. medical students.
How they make money
$570M
annual revenue · their business grew +20.0% last year
Pharma marketing solutions
$330M
+12.0%
Hiring solutions
$95M
+8.0%
Telehealth and workflow tools
$80M
+22.0%
Newsfeed and sponsored content
$40M
+5.0%
Other subscriptions and services
$25M
+3.0%
The products that matter
professional network and workflow tools
Doximity Platform
3M+ members · 85%+ physician reach
this network of more than 3 million U.S. healthcare professionals is the foundation under all $570M in annual revenue shown on this page. if engagement slips, the monetization story weakens fast.
audience moat
hipaa-compliant clinician communication
Doximity Dialer
embedded in a 3M+ member network
it lets clinicians contact patients while protecting personal phone numbers. the page does not break out standalone revenue, so we are not going to pretend we know it. what we do know is that tools like this keep usage inside the platform.
engagement layer
sales to healthcare organizations
Enterprise Solutions
linked to the $512M subscription mix
this is where audience reach turns into dollars. with Subscription & Services at roughly $512M, or about 90% of revenue, enterprise demand is not one growth lever. it is the model.
monetization engine
Key numbers
43.7%
net margin
Net margin → profit kept from each dollar of sales → so what: Doximity keeps almost $0.44 from every $1 of revenue.
39.9%
operating margin
Operating margin → profit from the core business before taxes and interest → so what: the actual business is still very efficient.
$775M
fy2027 revenue est
That is the revenue target implied in the base forecast, versus $570M trailing revenue, which frames the growth case.
18.5%
return on capital
Return on capital → how well management turns invested money into profit → so what: this is well above the 15% line many investors use for quality.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- net profit margin 43.7% — keeps 44 cents of every dollar in revenue
- return on equity 18% — $0.18 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for DOCS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest results showed revenue of $499M and EPS of $0.88, both far above the prior year.
The quarter posted 170% revenue growth and 184% EPS growth vs. prior year, while gross margin stayed at 89.8%. The quiet part out loud: the numbers were strong, but softer guidance mattered more than the beat.
$143M
revenue
$0.88
eps
89.8%
gross margin
the number that mattered
The key number was the $143.5M midpoint revenue guide for the next quarter, below the $151.3M analyst estimate, because guidance sets the mood now.
-
shares of doximity continue to plummet.
-
indeed, the stock is down over 40% in value since our december review and nearly 70% off its 52-week high.worries about the company's overall growth prospects were compounded when it reported fiscal 2025 third-quarter (year ends march 31st, 2026) results.
-
although the figures were in line with expectations, management's forecast for the march quarter spooked investors further, as revenues are now likely to rise only 4% vs. prior year and adjusted earnings will probably be down.
-
for the full year, we are calling for a 13% top-line advance, to $643 million, and for a 9% earnings boost, to $1.55 per share. (note: we have adjusted our presentation to include non-gaap earnings as we feel it more accurately reflects the company's prospects.) the near-term outlook is decent.
-
doximity now boasts over 3 million registered members on its platform, including 85% of u.s.-based physicians, as well as a large swath of nurse practitioners and physician's assistants.the company's platforms, including its workflow and newsfeed solutions, continue to see increased usage.
source: company earnings report, 2026
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What could go wrong
the #1 risk is premium-margin erosion inside Doximity's core subscription business.
med
margin compression stops being a one-quarter problem
Non-GAAP gross margin fell to 91% from 93% from a year ago, and operating margin dropped 855 basis points to 38.9%. For a company valued on software-like economics, that is the fracture line.
If margins stay near this level, the 43.5% net margin no longer looks like the baseline. It looks like the old peak.
med
soft guidance turns into a slower demand trend
Q1 CY2026 revenue guidance midpoint is $143.5M, below the $151.3M analysts expected. Subscription & Services is roughly 90% of the $570M revenue mix shown here, so a soft patch does not stay contained.
This revenue base is concentrated. If enterprise demand slows, most of the model slows with it.
med
leadership transition complicates a trust reset
The CFO change announced on February 5, 2026 adds execution risk while investors are already asking whether spending discipline slipped. The timing does not create the problem. It narrows management's room for error.
A messy handoff would not break the platform. It would make a skeptical market less willing to give management the benefit of the doubt.
A move from 93% to 91% gross margin and down to 38.9% operating margin matters because premium economics are the whole thesis here. The $500M buyback is support for the stock. It is not proof the margin story is fixed.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
operating margin after the 38.9% quarter
This stock can handle slower growth better than it can handle a broken margin story. One quarter is noise. Two quarters is a new baseline.
calendar
the next read on the $143.5M guide
Management set expectations below the street. You want to see whether that was conservative framing or a real demand slowdown.
ownership
institutional selling streak
There were 149 buyers versus 219 sellers in 4q2025. When larger money managers keep trimming near the low end of the range, they are telling you conviction is still rebuilding.
risk
whether the buyback changes the mood or just absorbs supply
A $500M authorization equals about 10% of market cap. That helps on share count. It does not repair soft guidance or rising costs by itself.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think this stock has more to prove than most over the next 12 months.
risk profile
below average
stability score 4 — it trades with more volatility than you would expect from a defensive healthcare name.
chart momentum
average
technical score 3 — no trend edge right now. welcome to the prove-it zone.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 149 buyers vs. 219 sellers in 4q2025. total institutional holdings: 0.1B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$20
$76
$25
current price
$48
target midpoint · +88% from current · 3-5yr high: $60 (+135% · 24% ann'l return)
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