Doximity Q3 Revenue Rises 10% to $185M, EPS Tops Estimates, Lowers Q4 Guidance
Doximity reported Q3 revenue of $185.05 million, up 10% year-over-year and beating the $182.2 million estimate, with non-GAAP EPS of $0.46 topping consensus by $0.01. It guided Q4 revenue of $143-144 million versus $150.23 million expected and authorized a $500 million share repurchase.
1. Q3 Financial Performance Exceeds Estimates
Doximity reported revenue of $185.1 million for the fiscal third quarter ended December 31, 2025, marking a 10% year-over-year increase from $168.6 million. Non-GAAP net income reached $91.1 million, nearly flat with prior year levels, while GAAP net income of $61.6 million reflected a 33.3% margin versus 44.6% a year earlier. Adjusted EBITDA rose 9% to $111.4 million, sustaining a margin of 60.2%. Diluted non-GAAP earnings per share were $0.46, up from $0.45 in Q3 2025, comfortably ahead of consensus estimates of $0.44 per share.
2. Engagement and AI Adoption Drive Long-Term Growth
Management highlighted record user engagement across key products: more than 1.0 million quarterly active prescribers on the newsfeed, a 720,000-user base for workflow tools (a record sequential increase), and over 300,000 users leveraging nascent AI-powered features. CEO Jeff Tangney attributed these metrics to platform enhancements that streamline clinical workflows and accelerate peer-reviewed information access, positioning Doximity to deepen client relationships with pharmaceutical partners and health systems.
3. Conservative Guidance Sparks Investor Caution
For the fourth quarter ending March 31, 2026, Doximity anticipates revenue between $143 million and $144 million, below analyst projections of roughly $150 million. Full-year revenue guidance has been narrowed to $642.5 million–$643.5 million from prior estimates of $640 million–$646 million. Adjusted EBITDA is expected between $63.5 million and $64.5 million for Q4, with full-year targets of $355.5 million–$356.5 million. The downward revision reflects anticipated moderation in new client bookings and investments in AI development.
4. Strong Capital Position and Share Repurchase Program
As of December 31, 2025, Doximity held $64.8 million in cash and cash equivalents and $670.3 million in marketable securities. The board authorized a new $500 million share repurchase program with no expiration date, signaling confidence in long-term value creation. Operating cash flow of $60.9 million and free cash flow of $58.5 million, though down 7–8% year-over-year, remain robust, supporting continued investments in product innovation and potential future buybacks.