fiscal 2027 first quarter
Filed Aug 6, 2026Total revenues of $156.6 million, up 7% year-over-year; net income of $24.3 million, margin of 16%; adjusted EBITDA of $74.8 million, margin of 48%
Revenue growth accelerated to 7% year-over-year and the company guided to higher second-quarter revenue, but GAAP and non-GAAP profitability, adjusted EBITDA, operating cash flow, and free cash flow declined year-over-year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $156.6 million | – | 7% |
| Cost of revenueGAAP | $ 23,692 (in thousands) | – | – |
| Gross profitGAAP | $ 132,926 (in thousands) | – | – |
| Research and development expenseGAAP | $ 38,477 (in thousands) | – | – |
| Sales and marketing expenseGAAP | $ 45,049 (in thousands) | – | – |
| General and administrative expenseGAAP | $ 15,756 (in thousands) | – | – |
| Total operating expensesGAAP | $ 99,282 (in thousands) | – | – |
| Income from operationsGAAP | $ 33,644 (in thousands) | – | – |
| Other income, netGAAP | $ 6,719 (in thousands) | – | – |
| Income before income taxesGAAP | $ 40,363 (in thousands) | – | – |
| Provision for income taxesGAAP | $ 16,048 (in thousands) | – | – |
| Net incomeGAAP | $24.3 million | – | – |
| Net income marginGAAP | 15.5% | – | – |
| Diluted net income per shareGAAP | $0.13 | – | – |
| Basic net income per shareGAAP | $ 0.13 | – | – |
| Non-GAAP net incomenon-GAAP | $55.0 million | – | – |
| Non-GAAP net income marginnon-GAAP | 35.1% | – | – |
| Non-GAAP diluted net income per sharenon-GAAP | $0.29 | – | – |
| Adjusted EBITDAnon-GAAP | $74.8 million | – | decrease of 6% year-over-year |
| Adjusted EBITDA marginnon-GAAP | 47.7% | – | – |
| Operating cash flowGAAP | $42.0 million | – | decrease of 32% year-over-year |
| Free cash flowother | $39.6 million | – | decrease of 34% year-over-year |
| Total stock-based compensation expenseGAAP | $ 36,752 (in thousands) | – | – |
fiscal second quarter ending September 30, 2026 outlook
- Revenuebetween $170 million and $171 million
- NoteAdjusted EBITDA between $80.5 million and $81.5 million.
- NoteFiscal year ending March 31, 2027 revenue between $671 million and $681 million.
- NoteFiscal year ending March 31, 2027 adjusted EBITDA between $309 million and $329 million.
Capital returns
- Repurchase of common stock $ 91,633 (in thousands)
What drove it
- The company reported accelerated revenue growth.
- Workflow active prescriber growth was more than 30% year-over-year.
- AI Search query growth was over 25% quarter-over-quarter.
- Doximity Ask was the top-performing U.S.-based model in the NOHARM benchmark.
- The company reported another quarter of record engagement.
Concerns
- GAAP net income was $24.3 million, versus $53.3 million, and GAAP net income margin was 15.5%, versus 36.5%.
- Adjusted EBITDA decreased 6% year-over-year to $74.8 million and adjusted EBITDA margin was 47.7%, versus 54.7%.
- Operating cash flow decreased 32% year-over-year to $42.0 million and free cash flow decreased 34% year-over-year to $39.6 million.
- Total stock-based compensation expense was $ 36,752 (in thousands), versus $ 21,865 (in thousands).
- Accounts receivable, net was 177,575 (in thousands) as of June 30, 2026, versus 144,783 (in thousands) as of March 31, 2026.
What to watch
- Delivery against fiscal second-quarter revenue guidance of between $170 million and $171 million.
- Delivery against fiscal second-quarter adjusted EBITDA guidance of between $80.5 million and $81.5 million.
- Delivery against fiscal-year revenue guidance of between $671 million and $681 million and adjusted EBITDA guidance of between $309 million and $329 million.
- Whether workflow active prescriber and AI Search query growth continue.
- The trajectory of operating cash flow, free cash flow, stock-based compensation expense, and accounts receivable.
Balance sheet and cash flow
- Cash and cash equivalents $ 273,604 (in thousands) as of June 30, 2026, versus $ 219,178 (in thousands) as of March 31, 2026.
- Marketable securities 414,185 (in thousands) as of June 30, 2026, versus 529,423 (in thousands) as of March 31, 2026.
- Accounts receivable, net 177,575 (in thousands) as of June 30, 2026, versus 144,783 (in thousands) as of March 31, 2026.
- Total assets $ 1,083,845 (in thousands) as of June 30, 2026, versus $ 1,123,687 (in thousands) as of March 31, 2026.
- Total liabilities 167,775 (in thousands) as of June 30, 2026, versus 172,850 (in thousands) as of March 31, 2026.
- Total stockholders’ equity 916,070 (in thousands) as of June 30, 2026, versus 950,837 (in thousands) as of March 31, 2026.
- Net cash provided by operating activities 41,987 (in thousands), versus 62,101 (in thousands).
- Purchases of property and equipment (62) (in thousands), versus —.
- Internal-use software development costs (2,322) (in thousands), versus (1,966) (in thousands).
- Net cash provided by investing activities 112,990 (in thousands), versus 2,679 (in thousands).
- Net cash used in financing activities (100,551) (in thousands), versus (137,133) (in thousands).
- Net increase (decrease) in cash and cash equivalents 54,426 (in thousands), versus (72,353) (in thousands).
Analysis
Doximity reported fiscal 2027 first-quarter revenue of $156.6 million, up 7% year-over-year from $145.9 million. Management characterized growth as accelerated and cited workflow active prescriber growth of more than 30% year-over-year, AI Search query growth of over 25% quarter-over-quarter, and record engagement. The filing did not provide revenue by operating segment or product category, limiting visibility into the individual sources of growth and mix.
Profitability declined materially despite revenue growth. GAAP net income was $24.3 million, versus $53.3 million, with a 15.5% margin versus 36.5%. Non-GAAP net income was $55.0 million, versus $71.9 million, while adjusted EBITDA declined 6% year-over-year to $74.8 million and its margin declined to 47.7% from 54.7%. The statement of operations shows higher research and development, sales and marketing, and general and administrative expense, while total stock-based compensation expense rose to $ 36,752 (in thousands) from $ 21,865 (in thousands).
Cash generation also moved lower. Operating cash flow was $42.0 million, down 32% year-over-year, and free cash flow was $39.6 million, down 34% year-over-year. Accounts receivable, net increased to 177,575 (in thousands) at June 30, 2026 from 144,783 (in thousands) at March 31, 2026. Cash and cash equivalents increased to $ 273,604 (in thousands), while marketable securities declined to 414,185 (in thousands). The company repurchased common stock totaling $ 91,633 (in thousands) during the quarter.
For the fiscal second quarter ending September 30, 2026, Doximity guided to revenue between $170 million and $171 million and adjusted EBITDA between $80.5 million and $81.5 million. For the fiscal year ending March 31, 2027, it guided to revenue between $671 million and $681 million and adjusted EBITDA between $309 million and $329 million. The report frames the period around improving revenue momentum and healthcare workflow and AI engagement, but investors will focus on whether that growth can be accompanied by stabilization in margins and operating cash flow.
Management, verbatim
We're proud that our clinical AI assistant, Doximity Ask, was the top-performing U.S.-based model in the NOHARM benchmark while we delivered another quarter of record engagement,
Jeff Tangney, co-founder and CEO of Doximity
In Q1 we had accelerated revenue growth along with workflow active prescriber growth of more than 30% year-over-year and AI Search query growth of over 25% quarter-over-quarter.
Jeff Tangney, co-founder and CEO of Doximity
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Revenue by segment, product, customer type, or geography was not reported.
- GAAP gross margin was not reported.
- Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP basic net income per share, and their reconciliations were not included in the provided filing text.
- Debt and borrowing balances were not reported.
- Dividend information was not reported.
- Guidance for gross margin, operating expenses, tax rate, EPS, operating cash flow, free cash flow, and capital returns was not reported.
- Free cash flow calculation and reconciliation were not included in the provided filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.