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Doximity (DOCS)
NYSE:DOCS
US Market

Doximity (DOCS) AI Stock Analysis

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Doximity

(NYSE:DOCS)

Rating:80Outperform
Price Target:
$60.00
▲( 18.23% Upside)
Doximity scores well overall due to its strong financial performance and positive earnings call results, which highlight robust revenue growth and user engagement. While the technical analysis suggests short-term bearish trends, the nearing oversold RSI indicates potential for reversal. The high P/E ratio suggests overvaluation, slightly tempering the overall score.
Positive Factors
Customer Growth
New customer wins and expansions underscore just how much momentum the business has at the moment.
Financial Performance
DOCS continues to put up really strong quarters, consistently beating revenue and profitability expectations.
Negative Factors
Market Sentiment
Shares are declining because the FY26 revenue forecast was lower than consensus estimates.
Revenue Guidance
The initial revenue and EBITDA guide for FY26 came in a bit lighter than consensus expectations.

Doximity (DOCS) vs. SPDR S&P 500 ETF (SPY)

Doximity Business Overview & Revenue Model

Company DescriptionDoximity (DOCS) is a leading digital platform for medical professionals, primarily serving the healthcare and pharmaceutical sectors. The company offers a suite of tools designed to streamline communication, collaboration, and information sharing among doctors, healthcare professionals, and industry stakeholders. Core services include a professional network similar to LinkedIn for doctors, telehealth capabilities, and a comprehensive medical newsfeed tailored to the interests of its users.
How the Company Makes MoneyDoximity generates revenue primarily through its subscription-based services, where healthcare organizations and pharmaceutical companies pay for access to its marketing, hiring, and telehealth solutions. The company offers marketing solutions that allow pharmaceutical companies to target specific groups of healthcare professionals with their promotional content. Additionally, Doximity provides hiring solutions enabling hospitals and health systems to recruit medical professionals more efficiently. Another significant revenue stream comes from its telehealth services, which facilitate virtual patient consultations, and are offered to healthcare providers on a subscription basis. Strategic partnerships with key players in the healthcare and pharmaceutical industries further bolster its revenue by expanding its reach and integrating its services into broader healthcare systems.

Doximity Financial Statement Overview

Summary
Doximity presents a strong financial position characterized by consistent revenue growth, high profitability margins, and low leverage. The company's effective cash flow management and high equity ratio further strengthen its financial health. Despite these strengths, optimizing cash reserves could enhance capital efficiency and return strategies.
Income Statement
85
Very Positive
Doximity's income statement shows a strong performance with a consistent revenue growth, illustrated by a 16% increase in TTM revenue compared to the previous annual report. The company maintains robust profitability with a high gross profit margin of 90.2% and a net profit margin of 36.6% for TTM, indicating effective cost management. The EBIT and EBITDA margins are also solid at 40.2% and 42.0%, respectively, reflecting operational efficiency.
Balance Sheet
78
Positive
The balance sheet of Doximity is stable, with a debt-to-equity ratio of 0.01, indicating low leverage and financial risk. The company has a strong equity ratio of 88.0%, showing a high level of asset financing through equity. Return on Equity (ROE) is impressive at 19.5%, demonstrating effective use of shareholders' funds. However, the relatively high cash reserves might suggest underutilized capital.
Cash Flow
82
Very Positive
Doximity exhibits strong cash flow health with a free cash flow to net income ratio of 1.19 for TTM, indicating robust cash conversion. The operating cash flow to net income ratio of 1.19 further supports efficient cash generation from operations. Free cash flow growth is substantial, reflecting effective capital management and operational scaling.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
550.17M475.42M419.05M343.55M206.90M116.39M
Gross Profit
496.19M424.75M365.56M303.76M175.70M101.49M
EBIT
221.17M163.88M125.11M113.54M53.30M22.16M
EBITDA
231.20M178.03M125.11M113.54M63.90M26.41M
Net Income Common Stockholders
201.34M147.58M112.82M154.78M50.21M29.74M
Balance SheetCash, Cash Equivalents and Short-Term Investments
844.94M762.90M841.00M798.11M142.53M86.45M
Total Assets
1.17B1.08B1.14B991.36M251.72M138.92M
Total Debt
12.95M14.55M15.64M1.09M1.25M2.28M
Net Debt
-152.32M-82.24M-142.39M-111.72M-65.14M-46.15M
Total Liabilities
141.04M177.98M170.77M112.76M184.98M137.78M
Stockholders Equity
1.03B901.40M966.12M878.59M66.74M1.14M
Cash FlowFree Cash Flow
237.00M178.29M173.42M120.88M78.36M21.95M
Operating Cash Flow
240.40M184.10M179.60M126.58M82.97M26.20M
Investing Cash Flow
-81.00M31.19M-59.92M-640.57M-70.42M-13.10M
Financing Cash Flow
-117.22M-276.52M-74.46M560.41M5.41M1.72M

Doximity Technical Analysis

Technical Analysis Sentiment
Negative
Last Price50.75
Price Trends
50DMA
57.13
Negative
100DMA
60.02
Negative
200DMA
52.06
Negative
Market Momentum
MACD
-1.20
Positive
RSI
36.93
Neutral
STOCH
25.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCS, the sentiment is Negative. The current price of 50.75 is below the 20-day moving average (MA) of 56.98, below the 50-day MA of 57.13, and below the 200-day MA of 52.06, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 36.93 is Neutral, neither overbought nor oversold. The STOCH value of 25.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOCS.

Doximity Risk Analysis

Doximity disclosed 66 risk factors in its most recent earnings report. Doximity reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Doximity Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$9.96B45.8222.50%19.98%53.10%
76
Outperform
$13.70B84.4336.79%85.99%
72
Outperform
$7.76B60.376.53%0.65%4.72%-35.33%
72
Outperform
$3.80B30.5113.90%247.53%118.34%
HQHQY
71
Outperform
$8.77B90.614.66%20.03%71.43%
53
Neutral
$5.14B3.06-43.57%2.81%16.81%-0.12%
50
Neutral
$4.72B-19.66%7.75%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DOCS
Doximity
51.26
23.85
87.01%
TECH
Bio-Techne
47.32
-32.69
-40.86%
HQY
Healthequity
100.08
20.24
25.35%
KRYS
Krystal Biotech
125.29
-38.33
-23.43%
HIMS
Hims & Hers Health
53.52
37.69
238.09%
PCVX
Vaxcyte
33.95
-35.32
-50.99%

Doximity Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q4-2025)
|
% Change Since: -13.17%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
Doximity demonstrated strong financial performance and user engagement, driven by revenue growth, robust EBITDA margins, and successful adoption of AI tools. Despite the strong results, the company remains cautious about potential macroeconomic challenges and tougher year-over-year comparisons.
Q4-2025 Updates
Positive Updates
Revenue Growth Exceeds Expectations
Doximity reported $138 million in revenue for the fourth quarter, 4% above the high-end of the guidance range. For the full fiscal year, revenue was $570 million, representing a 20% year-on-year growth.
Strong EBITDA Performance
Adjusted EBITDA margin for the fourth quarter was 50%, translating to $70 million, which was 10% above the high-end of the guidance.
Record User Engagement
Unique active users across all timeframes hit fresh highs in Q4. Newsfeed user engagement saw record highs with articles read or tapped up more than 30% year-on-year.
AI Tools Rapid Growth
AI tools usage grew more than 5x year-on-year, indicating strong adoption and integration into medical workflows.
Successful Client Summits
Positive feedback from the 13th Annual Physician Tech Summit and the Annual Pharma Client Summit, with strong interest in AI-powered solutions.
Robust Free Cash Flow
Free cash flow for the fourth quarter was $97 million, up 56% year-on-year. For the full fiscal year, free cash flow was $267 million, an increase of 50% year-on-year.
Negative Updates
Macroeconomic Uncertainty
The company anticipates potential impacts from recent macro uncertainties and policy changes, prompting a cautious approach in guidance.
Challenging Year-Over-Year Comparison
Fiscal 2026 will face a tougher year-over-year comparison due to revenue growth upside in fiscal 2025 from strategic shifts and early program launches.
Company Guidance
During Doximity's Q4 2025 earnings call, the company reported robust financial performance with a revenue of $138 million for the quarter, surpassing the high-end of their guidance by 4%, and a total annual revenue of $570 million, marking a 20% year-on-year increase. The top 20 clients grew by 23% while adjusted EBITDA margin stood at 50% for the quarter and 55% for the year, with free cash flow reaching $97 million, a 56% increase from the previous year. Doximity's network growth was driven by record highs in unique active users across all metrics, particularly for their newsfeed and AI tools, which grew fivefold year-on-year. The company hosted successful physician and pharma client summits, highlighting the adoption of their AI tools like Doximity GPT. For fiscal 2026, they anticipate revenue of $619-$631 million, reflecting a 10% growth, and an adjusted EBITDA of $333-$345 million, with a 54% margin, while 70% of subscription-based revenue is under contract. Doximity continues to invest in AI, aiming for long-term efficiency and growth, despite the macroeconomic uncertainties.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.