Doximity — Income Statement, Cash Flows & Balance Sheet
Is Doximity profitable?
Doximity grew revenue strongly, but net income dipped as operating costs accelerated — particularly stock-based compensation.
| Metric | FY2025 | FY2026 | Change |
|---|---|---|---|
| Revenue | $570.4M | $644.9M | +13.1% |
| Gross Profit | $514.5M | $574.5M | +11.7% |
| Gross Margin | 90.2% | 89.1% | -1.1pp |
| Income from Operations | $227.8M | $214.9M | -5.7% |
| Net Income | $223.2M | $196.1M | -12.1% |
Revenue growth was healthy, but operating income and net income both declined year-over-year. The culprit is a sharp rise in operating expenses — most notably stock-based compensation, which jumped from $72M to $122M — causing operating costs to outpace revenue growth.
A large portion of the cost increase is non-cash stock-based compensation, which distorts the picture somewhat.
| Expense | FY2025 | FY2026 | Change |
|---|---|---|---|
| Stock-based compensation (GAAP) | $72.4M | $121.6M | +68.0% |
| R&D expense | $93.0M | $130.7M | +40.5% |
| G&A expense | $45.7M | $65.3M | +42.9% |
The jump in R&D and G&A is largely explained by stock compensation growth rather than a dramatic surge in cash spending. Investors evaluating true cash profitability should keep this distinction in mind.
Does Doximity generate cash?
Doximity is a strong cash generator — operating cash flow grew meaningfully and comfortably covers all investment needs.
| Metric | FY2025 | FY2026 | Change |
|---|---|---|---|
| Net Cash from Operations | $273.3M | $326.5M | +19.5% |
| Capital Expenditures (software dev costs) | $6.5M | $8.9M | +36.9% |
| Free Cash Flow (approx.) | ~$266.8M | ~$317.6M | +19.1% |
Operating cash flow grew faster than net income, largely because non-cash items like stock compensation are added back. Free cash flow (operating cash minus internal software development costs, the primary capital expenditure) remains robust.
Doximity returned a substantial amount of capital to shareholders through buybacks, funded entirely by cash on hand and investment maturities.
| Activity | FY2025 | FY2026 | Change |
|---|---|---|---|
| Share repurchases | $120.3M | $431.7M | +259% |
| Net cash from investing | ($29.3M) | $147.2M | swing to positive |
The company deployed over $430M in buybacks this year — more than its entire annual net income — drawing down its marketable securities portfolio. This was a deliberate capital return decision rather than a sign of financial strain.
How strong is Doximity's balance sheet?
Doximity carries zero debt and holds a large liquid investment portfolio, making it exceptionally well-capitalised.
| Metric | Mar 2025 | Mar 2026 | Change |
|---|---|---|---|
| Cash & Cash Equivalents | $209.6M | $219.2M | +4.6% |
| Marketable Securities | $706.1M | $529.4M | -25.1% |
| Total Debt | $0 | $0 | — |
| Total Liabilities | $181.7M | $172.9M | -4.8% |
There is no financial debt on the balance sheet. Total liabilities consist mainly of deferred revenue (advance payments from customers) and lease obligations — both benign in nature. The decline in marketable securities reflects the large buyback programme.
Retained earnings turned negative due to buybacks, but this is an accounting artefact rather than a solvency concern.
| Metric | Mar 2025 | Mar 2026 | Change |
|---|---|---|---|
| Retained Earnings | $186.9M | ($51.1M) | swing to deficit |
| Total Stockholders' Equity | $1,082.6M | $950.8M | -12.2% |
When a company repurchases more shares than it earns in net income, GAAP retained earnings can turn negative even if the business is financially healthy. With nearly $750M in combined cash and securities and no debt, Doximity's overall financial position remains solid.