Doximity — Financial Results
Revenue Grew 13% to $645 Million, Driven Mostly by Existing Customers Spending More
| Fiscal Year | Revenue | Growth |
|---|---|---|
| FY2024 | $475.4M | — |
| FY2025 | $570.4M | 20% |
| FY2026 | $644.9M | 13% |
Revenue grew solidly, though the pace slowed from 20% to 13% year-over-year. Of the $74.5 million increase, $48.4 million came from existing customers expanding their spending — existing Marketing Solutions customers increased average revenue by 10% by adding new brands and service lines. New customers contributed a smaller $16.2 million, suggesting the growth engine is largely upselling rather than new client acquisition.
Customer Retention Slipped, a Number Worth Watching
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Net Revenue Retention Rate | 114% | 119% | 109% |
The net revenue retention rate (a measure of whether existing customers are spending more or less than the prior year) dropped from 119% to 109%. Anything above 100% still means existing customers are growing their spending in aggregate, but the trend is moving in the wrong direction over three years. This is worth monitoring — if it falls toward 100%, it would signal that expansion within the customer base has stalled.
Net Income Fell Despite Higher Revenue, Largely Due to Rising Costs
| FY2025 | FY2026 | Change | |
|---|---|---|---|
| Net Income | $223.2M | $196.1M | -12% |
| R&D Expense | $93.0M | $130.7M | +40% |
| G&A Expense | $45.7M | $65.3M | +43% |
Even as revenue grew 13%, net income fell 12%. The main culprits were a 40% jump in research and development costs and a 43% rise in general and administrative expenses. A large portion of the R&D increase ($28.6 million) was stock-based compensation (paying employees in company shares rather than cash) tied to new hires and performance awards. G&A was hit by $9.4 million in legal fees. The adjusted EBITDA margin (a measure of operating profitability before certain non-cash items) held steady at 55%, suggesting the underlying business remains highly profitable.
AI Investment Is Accelerating and Showing Up in User Engagement
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Quarterly unique active providers using workflow tools | 0.58M | 0.62M | 0.81M |
The number of providers actively using Doximity's workflow tools — which now include AI features like Scribe (automated clinical note-taking) and Ask (a medical AI assistant) — jumped 31% to 810,000 in FY2026. The company is investing meaningfully here, with hosting and software costs rising $5.6 million specifically to support AI. This is the clearest sign that Doximity is evolving from a professional network into an AI-powered clinical tools platform.
The Company Returned Over $430 Million to Shareholders via Buybacks
The board authorized a $500 million share repurchase program in May 2024, which was fully completed by March 2026. A fresh $500 million program was then authorized in February 2026, with $492.5 million still remaining. In total, the company spent $431.7 million buying back its own stock in FY2026 alone — funded by its $326.5 million in operating cash flow and a $748.6 million cash and securities balance. This signals management's confidence in the business and returns capital to investors, though it also means less cash available for acquisitions or other investments.