Doximity (DOCS) Q4 2026 earnings summary

Executive summary

• Fiscal year 2026 revenue grew 13% year-over-year to $645 million, with Q4 revenue at $145 million, up 5% year-over-year, both exceeding guidance.

• Adjusted EBITDA margin was 45% in Q4 and 55% for the full year; free cash flow hit a record $107 million in Q4 and $317 million for the year, up 19% year-over-year.

• AI engagement accelerated, with over 800,000 unique quarterly active prescribers, up 30% year-over-year; nearly half used AI tools and prompts per user nearly doubled from January to April.

• New partnerships with Aledade and Photon expand Clinical AI Suite to thousands of independent practices.

• Announced new CFO Matt Sonefeldt and President Dr. Steve Zatz, both bringing significant industry experience.

Financial highlights

• Q4 non-GAAP gross margin was 89% (down from 91% prior year), impacted by higher AI compute costs.

• Q4 adjusted EBITDA was $66 million (45% margin), down from $70 million (50% margin) prior year due to increased AI investment.

• Full-year adjusted EBITDA was $358 million (55% margin), up from $314 million last year.

• Free cash flow for the year was $317 million, representing 49% of revenue.

• Ended the year with $749 million in cash equivalents and marketable securities.

Outlook and guidance

• FY27 revenue guidance: $664–$676 million (4% growth at midpoint); adjusted EBITDA: $323–$335 million (49% margin).

• Q1 FY27 revenue expected at $151–$152 million (4% growth); adjusted EBITDA margin at 46%.

• Stock-based compensation expected to rise to low 20s % of revenue in FY27, then trend down.

• Minimal AI revenue contribution expected in FY27; more notable ramp anticipated in the fiscal back half.