Doximity (DOCS) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 grew 25% year-over-year to $169M, exceeding guidance, with net income rising to $75.2M and adjusted EBITDA reaching $102M (61% margin).

• Top 20 clients achieved 122% net revenue retention, and 114 customers generated at least $500K in trailing 12-month subscription revenue, up 21% year-over-year.

• Unique active users, prescriber engagement, and AI tool usage hit record highs, with over 610,000 unique providers using workflow tools and 1.8M AI prompts in Q3, up 60% sequentially.

• New products, integrated programs, and agency partnerships drove significant upsell, larger deal sizes, and SMB growth.

• Doximity serves over 80% of U.S. physicians and maintains a strong cash and marketable securities position of $845M.

Financial highlights

• Q3 revenue: $168.6M, up 25% year-over-year; subscription revenue accounted for 96% of total revenue.

• Adjusted EBITDA: $102M (61% margin), up from $73.3M (54% margin) last year; net income margin was 45%.

• Non-GAAP gross margin: 93%, flat year-over-year; GAAP gross margin: 91.6%.

• Free cash flow: $63.4M in Q3, up 30% year-over-year; $169.8M for the nine months ended December 31, 2024.

• Diluted EPS for Q3 was $0.37, up from $0.24; non-GAAP diluted EPS was $0.45, up from $0.29.

Outlook and guidance

• Q4 revenue expected: $132.5–$133.5M; adjusted EBITDA: $62.5–$63.5M.

• FY25 revenue guidance raised to $564.6–$565.6M; adjusted EBITDA: $306.6–$307.6M.

• Guidance increase driven by strong pharma upsells, new product traction, and faster program launches.

• Management expects existing cash and securities to support operations for at least 12 months.

• FY26 guidance to be provided in May; goal is to outpace 5–7% market growth.