Doximity — Income Statement, Cash Flows & Balance Sheet
Is Doximity profitable?
Doximity delivered strong revenue growth and significantly expanded its profits in fiscal 2025.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Revenue | $475.4M | $570.4M | +20.0% |
| Gross Profit | $424.8M | $514.5M | +21.1% |
| Gross Margin | 89.4% | 90.2% | +0.8 pp |
| Income from Operations | $163.9M | $227.8M | +39.0% |
| Net Income | $147.6M | $223.2M | +51.2% |
Revenue grew briskly and gross margin remains exceptionally high — north of 90% — reflecting the asset-light, software-subscription nature of the business. Net income grew even faster than revenue, meaning Doximity is becoming more profitable at scale, not less.
A small one-time charge in fiscal 2025 modestly dents the operating picture, but is not a concern.
| Item | FY2024 | FY2025 | Change |
|---|---|---|---|
| Restructuring & Impairment Charges | $7.9M | $2.3M | -$5.6M |
Fiscal 2024 included a ~10% workforce reduction; fiscal 2025 had only a minor office-space impairment charge related to subleasing part of an office. Both years contain these small distortions, but they are immaterial relative to overall profit levels and the trend is improving.
Does Doximity generate cash?
Doximity converts its profits into cash at an impressive rate, and free cash flow (operating cash minus software development spending) surged this year.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Net Cash from Operations | $184.1M | $273.3M | +48.5% |
| Internal-Use Software Development Costs | ($5.7M) | ($6.5M) | +$0.8M |
| Free Cash Flow (approx.) | ~$178.4M | ~$266.8M | +49.6% |
Operating cash flow grew even faster than net income, partly because deferred revenue (cash collected from customers before it is recognized as revenue) increased, signalling strong advance bookings heading into fiscal 2026.
Doximity is returning significant cash to shareholders through buybacks while keeping investment modest.
| Activity | FY2024 | FY2025 | Change |
|---|---|---|---|
| Share Repurchases | ($280.7M) | ($120.3M) | -$160.4M |
| Capital Expenditures (software + equipment) | ($5.8M) | ($6.5M) | +$0.7M |
The company has no debt, so nearly all surplus cash goes back to shareholders. The buyback pace slowed this year compared to a particularly heavy fiscal 2024, but a new $500M repurchase programme was authorised in May 2024 with $424M still available.
How strong is Doximity's balance sheet?
Doximity carries no debt and holds a substantial cash and investment portfolio that comfortably exceeds all liabilities.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Cash & Cash Equivalents | $96.8M | $209.6M | +$112.8M |
| Marketable Securities | $666.1M | $706.1M | +$40.0M |
| Total Liquid Assets | $762.9M | $915.7M | +$152.8M |
| Total Liabilities | $178.0M | $181.7M | +$3.7M |
The balance sheet is fortress-like — liquid assets alone are roughly five times total liabilities, and there is no long-term debt. The marketable securities portfolio consists entirely of investment-grade instruments (corporate bonds, U.S. government securities, commercial paper), keeping risk low.
Deferred revenue is rising, which is a positive sign for near-term revenue visibility.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Deferred Revenue (current + non-current) | $99.4M | $114.6M | +$15.2M |
Deferred revenue represents cash already collected from customers for services not yet delivered — essentially an interest-free loan from customers. A growing balance suggests customers are committing and paying in advance at a higher rate, providing a degree of confidence in near-term revenue recognition.