Record Free Cash Flow
Q4 free cash flow of $107 million (first-ever 9-digit FCF quarter) and full-year free cash flow of $317 million, up 19% year-over-year; free cash flow was 49% of revenue for fiscal 2026.
Doximity
· DOCS
May 13th, 2026
Summary
- Earnings Call Date:
- 2026-05-13
- Change Since:
- -10.94%
- Next Earnings Date:
- 2026-08-11
Earnings Call Sentiment
PositiveThe call highlights strong financial health (record free cash flow, solid full-year revenue growth, high adjusted EBITDA and cash balance), robust engagement and rapid AI adoption across physicians and health systems, and meaningful early commercial traction for AI products. Offsetting these positives are near-term margin pressure from rising AI compute and investments, slower revenue guidance (~4% FY27 growth at midpoint), delayed AI monetization due to regulatory reviews, and softer bookings/visibility driven by policy and macro uncertainty. Management frames the year as an "AI investment year"—accepting short-term margin impact to capture a larger long-term TAM.
Company Guidance
Doximity guided Q1 FY2027 revenue of $151–$152M (≈4% growth at the midpoint) with adjusted EBITDA of $68.5–$69.5M (≈46% adjusted EBITDA margin), and full‑year FY2027 revenue of $664–$676M (≈4% growth at the midpoint) with adjusted EBITDA of $323–$335M (≈49% adjusted EBITDA margin), while noting they expect stock‑based comp to rise to the low‑20s% of revenue in FY2027 (then trend down in 2028), that ~65% of subscription‑based revenue guidance is already booked, and that AI will be minimally revenue‑contributory this year even as higher R&D, compute and marketing spend (including AI compute) widen near‑term expense and pressure margins—management reiterated a commitment to run adjusted EBITDA margins in the high‑40s or better for FY27; trailing‑12‑month metrics cited on the call included net revenue retention of 109% (114% for the top 20), 125 customers contributing ≥$500K in subscription revenue (up from 118 a year ago) accounting for 83% of total revenue.
Revenue Growth
Q4 revenue $145 million, up 5% year-over-year; full fiscal year revenue $645 million, up 13% year-over-year.
Strong Adjusted EBITDA and Full-Year Profitability
Full-year adjusted EBITDA was $358 million (55% margin), up from $314 million last year (+14% year-over-year). Q4 adjusted EBITDA was $66 million with a 45% margin.
Healthy Customer Retention and Large Customer Cohort
Net revenue retention rate of 109% on a trailing 12-month basis; top 20 customers NRR of 114%. 125 customers contributed at least $500k in subscription revenue (up ~6% vs prior year) and accounted for 83% of total revenue.
Rapid Workflow & AI Engagement Growth
Benchmark workflow engagement exceeded 800,000 unique quarterly active prescribers in Q4, ~30% year-over-year acceleration from prior period; nearly half of active prescribers used Doximity AI tools in Q4.
Strong Early Traction for Acquired AI Product
Since acquiring Pathway, AI Search and Scribe active users tripled in 9 months; recent users averaged 31 queries per month (nearly double January); in a head-to-head clinical search evaluation, Doximity AI answers were preferred 2:1 by 4,700 physician residents.
Enterprise & Health System Adoption
140 health systems have purchased the clinical AI suite, including 7 of the top 20 hospitals; over 250,000 prescribers now have access to the clinical AI suite within hospital-approved, HIPAA-compliant workflows.
Strong Balance Sheet and Share Repurchase Activity
Ended year with $749 million in cash, cash equivalents and marketable securities. Repurchased $432 million of shares in fiscal 2026 (including $91 million in Q4) with $493 million remaining in the repurchase program.
Commercial Product Launches & Partnerships
Launched commercial AI Search product with early deals closed with top-20 pharma manufacturers; partnerships include Aledade for value-based care AI agents and Photon Health powering ePrescribing beta (1,000+ prescribers in beta).
Committed R&D & Talent Investments
380-person R&D team focused on physician-led features and agents; two senior hires announced (new CFO Matt Sonefeldt and President Dr. Steve Zatz) to bolster strategy and industry relationships.
Operator
Ladies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Doximity Fourth Quarter 2026 Earnings Call. [Operator Instructions] And I would now like to turn the conference over to Perry Gold, Vice President of Investor Relations. You may begin.
Perry Gold
Thank you, operator. Hello, and welcome to Doximity's Fiscal 2026 Fourth Quarter Earnings Call. With me on the call today are Jeff Tangney, Co-Founder and CEO of Doximity; and Matt Sonefeldt, our new CFO. A complete disclosure of our results can be found in our press release issued earlier today as well as in our related Form 8-K, along with a copy of our prepared remarks, all available on our website at investors.doximity.com. As a reminder, today's call is being recorded, and a replay will be available on our website. As part of our comments today, we will be making forward-looking statements. These statements are based on management's current views, expectations and assumptions and are subject to various risks and uncertainties. Actual results may differ materially, and we disclaim any obligation to update any forward-looking statements or outlook.
Please refer to the risk factors in our annual report on Form 10-K, any subsequent Form 10-Qs and our other reports and filings with the SEC that may be filed from time to time, including our upcoming filing on Form 10-K. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, May 13, 2026. Of note, it is Doximity's policy to neithe...
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