Doximity (DOCS) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue reached $137M, up 20% year-over-year, with net income of $44.2M, a 44% increase, and adjusted EBITDA of $76.1M, up 41% year-over-year with a 56% margin.

• Top 20 clients grew 24% on a trailing 12-month basis, with net revenue retention of 124%.

• Client Portal adoption exceeded 40% of pharma brand clients, driving strong upsell momentum and record platform usage among medical professionals.

• Doximity serves over 80% of U.S. physicians, with 103 customers generating over $500K in trailing 12-month subscription revenue.

• Clinical workflow tools and newsfeed set new engagement records, with over 600,000 unique active prescribers.

Financial highlights

• Q2 revenue: $136.8M, up 20% year-over-year, exceeding guidance.

• Net income margin: 32% for the quarter, up from 27% in the prior year.

• Non-GAAP gross margin: 92% (vs. 91% prior year); GAAP gross margin: 90%.

• Adjusted EBITDA: $76.1M (56% margin), up from $54.2M (48% margin) last year.

• Free cash flow: $66.8M, up 475% year-over-year.

• Ended quarter with $806M in cash, equivalents, and marketable securities.

Outlook and guidance

• Q3 FY25 revenue expected at $152–$153M; Adjusted EBITDA $83–$84M.

• FY25 revenue now expected at $535–$540M, up $19M from prior guidance; Adjusted EBITDA expected at $274–$279M, up $24M from prior guidance.

• Guidance reflects strong Q2 performance and continued momentum, especially in pharma upsells and new products.

• Q4 revenue growth expected to slow due to client budget discipline and longer launch timelines for new products.

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