Doximity (DOCS) Q1 2025 earnings summary

Executive summary

• Revenue for fiscal Q1 2025 grew 17% year-over-year to $126.7 million, driven by new and expanded subscription customers and record engagement from 590,000 unique providers.

• Adjusted EBITDA margin was 52% ($65.9 million), up from 43% last year, reflecting strong profitability.

• Net income increased to $41.4 million, with a net income margin of 32.7%.

• The platform serves over 80% of U.S. physicians, maintaining a leading position in digital healthcare.

• Top 20 clients grew revenue 21% on a trailing 12-month basis, with high engagement and upsell activity.

Financial highlights

• Subscription revenue was $119.97 million, about 95% of total revenue; non-GAAP gross margin was 92%, up from 90% a year ago.

• Free cash flow was $39.5 million, down 29% year-over-year due to tax payment timing.

• 102 customers contributed at least $500,000 in subscription revenue, up 16% from last year and accounting for 82% of total revenue.

• Cash, cash equivalents, and marketable securities totaled $750.5 million at quarter end.

• Diluted EPS was $0.21, up from $0.13; non-GAAP diluted EPS was $0.28, up from $0.19.

Outlook and guidance

• Q2 2025 revenue expected at $126.5–$127.5 million; adjusted EBITDA at $62.5–$63.5 million.

• FY2025 revenue guidance raised to $514–$523 million; adjusted EBITDA guidance at $248.5–$257.5 million.

• Guidance reflects strong Q1 performance and continued macro uncertainty.

• Management expects existing cash and investments to be sufficient for at least the next 12 months.