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)

Market Cap

$9.96B

Dividend YieldN/A

Average Volume (3M)2.96M

Price to Earnings (P/E)45.8

Beta (1Y)1.35

Revenue Growth19.98%

EPS Growth53.10%

CountryUS

Employees827

SectorHealthcare

Sector Strength43

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)0.38

Shares Outstanding136,906,540

10 Day Avg. Volume4,969,139

30 Day Avg. Volume2,956,238

Financial Highlights & Ratios

PEG Ratio3.69

Price to Book (P/B)10.74

Price to Sales (P/S)0.00

P/FCF Ratio46.86

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$60.00

Price Target Upside18.23% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering15

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

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

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

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
550.17M	475.42M	419.05M	343.55M	206.90M	116.39M
	Gross Profit
496.19M	424.75M	365.56M	303.76M	175.70M	101.49M
	EBIT
221.17M	163.88M	125.11M	113.54M	53.30M	22.16M
	EBITDA
231.20M	178.03M	125.11M	113.54M	63.90M	26.41M
	Net Income Common Stockholders
201.34M	147.58M	112.82M	154.78M	50.21M	29.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
844.94M	762.90M	841.00M	798.11M	142.53M	86.45M
	Total Assets
1.17B	1.08B	1.14B	991.36M	251.72M	138.92M
	Total Debt
12.95M	14.55M	15.64M	1.09M	1.25M	2.28M
	Net Debt
-152.32M	-82.24M	-142.39M	-111.72M	-65.14M	-46.15M
	Total Liabilities
141.04M	177.98M	170.77M	112.76M	184.98M	137.78M
	Stockholders Equity
1.03B	901.40M	966.12M	878.59M	66.74M	1.14M
Cash Flow		Free Cash Flow
237.00M	178.29M	173.42M	120.88M	78.36M	21.95M
	Operating Cash Flow
240.40M	184.10M	179.60M	126.58M	82.97M	26.20M
	Investing Cash Flow
-81.00M	31.19M	-59.92M	-640.57M	-70.42M	-13.10M
	Financing Cash Flow
-117.22M	-276.52M	-74.46M	560.41M	5.41M	1.72M

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
DOCS	80 Outperform	$9.96B	45.82	22.50%	―	19.98%	53.10%
HIMS	76 Outperform	$13.70B	84.43	36.79%	―	85.99%	―
TECH	72 Outperform	$7.76B	60.37	6.53%	0.65%	4.72%	-35.33%
KRYS	72 Outperform	$3.80B	30.51	13.90%	―	247.53%	118.34%
HQY	71 Outperform	$8.77B	90.61	4.66%	―	20.03%	71.43%
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
PCVX	50 Neutral	$4.72B	―	-19.66%	―	―	7.75%

* Healthcare Sector Average

Performance Comparison

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.