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Doximity Q2 net income falls to $34.7M from $62.1M

Fiscal 2027 guidance sets third-quarter revenue at $195 million to $196 million and full-year revenue at $678 million to $683 million.

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8-K

Rhea-AI Filing Summary

Doximity, Inc. (DOCS) reported fiscal 2027 second-quarter revenue of $174.5 million for the three months ended September 30, 2026, up 4% from $168.5 million a year earlier. GAAP net income was $34.7 million, compared with $62.1 million, and diluted net income per share was $0.18 versus $0.31. Adjusted EBITDA was $88.9 million, down 12% year over year, with a 50.9% margin versus 59.8%; non-GAAP net income was $68.3 million versus $90.0 million.

Operating cash flow was $93.3 million versus $93.9 million, and free cash flow was $91.3 million versus $91.6 million. Doximity repurchased $54.2 million of common stock during the quarter. CEO Jeff Tangney said more than 190 health systems had purchased Doximity’s AI suite.

For the fiscal third quarter ending December 31, 2026, Doximity guided to revenue of $195 million to $196 million and adjusted EBITDA of $102.5 million to $103.5 million. It updated fiscal year guidance for the year ending March 31, 2027, to revenue of $678 million to $683 million and adjusted EBITDA of $317 million to $325 million.

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0 major · 2 points

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Positive

  • None.

Negative

  • Moderate pointNet income was $34.7 million, down from $62.1 million year over year.
  • Moderate pointAdjusted EBITDA fell 12% year over year to $88.9 million.

Filing Explained

Doximity’s November 5 Form 8-K reports fiscal 2027 second-quarter results; its September 30 balance sheet adds an unaudited liquidity snapshot listing cash and marketable securities alongside total liabilities.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Revenue $174.5 million Three months ended September 30, 2026; $168.5 million in 2025; up 4% year over year
Net income $34.7 million Three months ended September 30, 2026; $62.1 million in 2025
Adjusted EBITDA $88.9 million Three months ended September 30, 2026; down 12% year over year from $100.8 million
Diluted net income per share $0.18 Three months ended September 30, 2026; $0.31 in 2025
Fiscal third-quarter revenue guidance $195 million to $196 million Fiscal third quarter ending December 31, 2026
Fiscal third-quarter adjusted EBITDA guidance $102.5 million to $103.5 million Fiscal third quarter ending December 31, 2026
Fiscal year revenue guidance $678 million to $683 million Fiscal year ending March 31, 2027
Fiscal year adjusted EBITDA guidance $317 million to $325 million Fiscal year ending March 31, 2027
Adjusted EBITDA financial
"Adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP net income financial
"Non-GAAP net income and non-GAAP net income margin"
Non-GAAP net income is a company's profit figure that excludes certain costs or income that are included in standard accounting methods. Companies often use it to show what their earnings might look like without one-time expenses or other unusual items, helping investors see the company's core performance more clearly.
net revenue retention rate financial
"Our net revenue retention rate compares our subscription revenue"
Net revenue retention rate shows how much money a company keeps from its existing customers over time, after accounting for growth or losses. It helps measure if current customers are staying loyal and spending more or less, which is important for understanding the company's ongoing success and stability. Think of it like tracking how much your favorite subscription service keeps and grows its members' payments each year.
free cash flow financial
"We calculate free cash flow as cash flow from operating activities less"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Revenue $174.5 million Up 4% year over year from $168.5 million
Net income $34.7 million Compared with $62.1 million
Adjusted EBITDA $88.9 million Down 12% year over year from $100.8 million
Adjusted EBITDA margin 50.9% Versus 59.8%
Diluted net income per share $0.18 Versus $0.31
Guidance

Fiscal third quarter ending December 31, 2026: revenue between $195 million and $196 million and adjusted EBITDA between $102.5 million and $103.5 million. Fiscal year ending March 31, 2027: revenue between $678 million and $683 million and adjusted EBITDA between $317 million and $325 million.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were DOCS’s fiscal 2027 second-quarter revenue and net income?
Doximity reported revenue of $174.5 million, up 4% year over year from $168.5 million, and net income of $34.7 million versus $62.1 million for the three months ended September 30, 2026.

What is DOCS’s fiscal 2027 guidance?
Doximity guided to fiscal third-quarter revenue of $195 million to $196 million and adjusted EBITDA of $102.5 million to $103.5 million. For the fiscal year ending March 31, 2027, it updated revenue guidance to $678 million to $683 million and adjusted EBITDA guidance to $317 million to $325 million.

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0001516513FALSE00015165132026-11-052026-11-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________________________________________________________________________________
FORM 8-K
_________________________________________________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2026
_________________________________________________________________________________________________________________
Doximity, Inc.
(Exact Name of Registrant as Specified in Its Charter)
_________________________________________________________________________________________________________________
Delaware
001-40508
27-2485512
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification Number)
500 3rd St.
Suite 510
San Francisco, CA 94107
(Address of principal executive offices, including zip code)
(650) 549-4330
(Registrant's telephone number, including area code)
_______________________________________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A common stock, $0.001 par value per share
DOCS
The New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 – Results of Operations and Financial Condition
On November 5, 2026, Doximity, Inc. (“Doximity”) issued a press release announcing its financial results for its fiscal quarter ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
The information provided in this Item 2.02 of this Current Report on Form 8-K, and the Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 – Financial Statements and Exhibits
(d) Exhibits
Exhibit NumberDescription
99.1
Press Release entitled “Doximity Announces Fiscal 2027 Second Quarter Financial Results dated November 5, 2026”
104Cover Page Interactive Data File (embedded within the inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 5, 2026
DOXIMITY, INC.
By:
/s/ Matthew Sonefeldt
Matthew Sonefeldt
Chief Financial Officer



Exhibit 99.1
Doximity Announces Fiscal 2027 Second Quarter Financial Results
Total revenues of $174.5 million, up 4% year-over-year
Net income of $34.7 million, margin of 20%
Adjusted EBITDA of $88.9 million, margin of 51%

SAN FRANCISCO, Calif., November 5, 2026 -- Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2027 second quarter ended September 30, 2026.
“We delivered another quarter of record engagement while investing heavily in AI and maintaining a 51% adjusted EBITDA margin,” said Jeff Tangney, co-founder and CEO of Doximity. “More than 190 health systems have now purchased our AI suite, and with UpToDate and DoseCheck, we’re extending our lead in distribution and trust.”
Fiscal 2027 Second Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended September 30, 2025.
•Revenue: Revenue of $174.5 million, versus $168.5 million, an increase of 4% year-over-year.
•Net income and non-GAAP net income: Net income of $34.7 million, versus $62.1 million, representing a margin of 19.9%, versus 36.8%. Non-GAAP net income of $68.3 million, versus $90.0 million, representing a margin of 39.1%, versus 53.4%.
•Adjusted EBITDA: Adjusted EBITDA of $88.9 million, versus $100.8 million, a decrease of 12% year-over-year, representing adjusted EBITDA margins of 50.9%, versus 59.8%.
•Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.18, versus $0.31, while non-GAAP diluted net income per share was $0.36, versus $0.45.
•Operating cash flow and free cash flow: Operating cash flow of $93.3 million, versus $93.9 million, a decrease of 1% year-over-year, and free cash flow of $91.3 million, versus $91.6 million, a decrease of less than 1% year-over-year.
Financial Outlook
Doximity is providing guidance for its fiscal third quarter ending December 31, 2026 as follows:
•Revenue between $195 million and $196 million.
•Adjusted EBITDA between $102.5 million and $103.5 million.
Doximity is updating guidance for its fiscal year ending March 31, 2027 as follows:
•Revenue between $678 million and $683 million.
•Adjusted EBITDA between $317 million and $325 million.

For more detailed financial commentary, please refer to the “Modeling Considerations” appendix in our prepared remarks.
1

Conference Call Information
Doximity posted prepared remarks on its investor relations website at https://investors.doximity.com. Doximity will host a webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these financial results. To listen to a live audio webcast, please visit the Company’s Investor Relations page at https://investors.doximity.com. The recorded webcast will be available on the Company’s Investor Relations page shortly after the call.
About Doximity
Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company's network members include more than 85% of U.S. physicians. With AI-powered clinical reference and search capabilities, Doximity helps doctors access trusted, peer-reviewed information and medical literature. Doximity's mission is to help doctors be more productive so they can provide better care for their patients.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements are all statements other than statements of historical fact, and specifically include statements regarding guidance and future business and financial results. These statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors including, without limitation, those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 and as may be updated in any subsequent Quarterly Reports on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements. The forward-looking statements made in this press release relate only to management’s beliefs and assumptions as of this date. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact:
Perry Gold
ir@doximity.com
Media Contact:
Richard George
pr@doximity.com



2

DOXIMITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30, 2026March 31, 2026
Assets
Current assets:
Cash and cash equivalents$218,614 $219,178 
Marketable securities494,615 529,423 
Accounts receivable, net 166,113 144,783 
Prepaid expenses and other current assets42,200 50,880 
Total current assets921,542 944,264 
Property and equipment, net19,827 18,080 
Deferred income tax assets26,070 31,984 
Operating lease right-of-use assets6,362 7,140 
Intangible assets, net31,444 35,325 
Goodwill84,973 84,973 
Other assets1,552 1,921 
Total assets$1,091,770 $1,123,687 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$6,304 $4,009 
Accrued expenses and other current liabilities35,865 42,804 
Deferred revenue, current100,227 106,050 
Operating lease liabilities, current2,198 2,110 
Total current liabilities144,594 154,973 
Deferred revenue, non-current37 400 
Operating lease liabilities, non-current6,948 8,075 
Other liabilities, non-current11,707 9,402 
Total liabilities163,286 172,850 
Stockholders' Equity
Preferred stock— — 
Common stock178 183 
Additional paid-in capital1,068,702 1,001,688 
Accumulated other comprehensive income (loss)(1,653)28 
Accumulated deficit(138,743)(51,062)
Total stockholders’ equity
928,484 950,837 
Total liabilities and stockholders’ equity$1,091,770 $1,123,687 

3

DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Revenue$174,537 $168,525 $331,155 $314,438 
Cost of revenue(1)
25,346 16,425 49,038 32,218 
Gross profit149,191 152,100 282,117 282,220 
Operating expenses(1):
Research and development41,961 30,202 80,439 57,001 
Sales and marketing46,892 39,168 91,941 75,533 
General and administrative16,416 19,049 32,172 31,488 
Total operating expenses105,269 88,419 204,552 164,022 
Income from operations43,922 63,681 77,565 118,198 
Other income, net6,405 9,258 13,124 18,888 
Income before income taxes50,327 72,939 90,689 137,086 
Provision for income taxes15,597 10,880 31,645 21,707 
Net income$34,730 $62,059 $59,044 $115,379 
Net income per share attributable to Class A and Class B common stockholders:
Basic$0.19 $0.33 $0.33 $0.61 
Diluted$0.18 $0.31 $0.31 $0.57 
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic178,674 187,705 180,611 187,844 
Diluted187,804 200,745 189,475 200,952 
(1) Costs and expenses include stock-based compensation expense as follows (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Cost of revenue$3,036 $2,844 $6,228 $5,824 
Research and development16,028 9,862 31,587 16,511 
Sales and marketing12,696 10,508 25,121 18,218 
General and administrative8,805 6,260 14,381 10,786 
Total stock-based compensation expense$40,565 $29,474 $77,317 $51,339 
4

DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Cash flows from operating activities
Net income$34,730 $62,059 $59,044 $115,379 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization4,353 3,469 8,640 6,263 
Stock-based compensation, net of amounts capitalized40,565 29,474 77,317 51,339 
Non-cash lease expense391 454 778 904 
Accretion of discount on marketable securities, net(358)(2,199)(925)(4,687)
Amortization of deferred contract costs3,858 2,876 8,158 6,772 
Other358 294 20 (114)
Changes in operating assets and liabilities:
Accounts receivable11,366 12,396 (21,968)(985)
Prepaid expenses and other assets5,259 7,685 14,384 3,451 
Deferred contract costs(2,577)(2,584)(5,219)(4,549)
Accounts payable, accrued expenses and other liabilities4,701 (2,168)2,268 (2,333)
Deferred revenue(8,834)(17,241)(6,186)(14,268)
Operating lease liabilities(527)(571)(1,039)(1,127)
Net cash provided by operating activities93,285 93,944 135,272 156,045 
Cash flows from investing activities
Cash paid for acquisition, net of cash acquired— (26,528)— (26,528)
Purchases of property and equipment— — (62)— 
Internal-use software development costs(1,953)(2,369)(4,275)(4,335)
Purchases of marketable securities(168,476)(128,266)(183,222)(268,200)
Maturities of marketable securities86,396 125,452 212,467 270,031 
Sales of marketable securities— — 4,049 — 
Net cash provided by (used in) investing activities(84,033)(31,711)28,957 (29,032)
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants
908 2,398 3,988 4,796 
Proceeds from issuance of common stock in connection with the employee stock purchase plan1,288 1,816 1,288 1,816 
Taxes paid related to net share settlement of equity awards(9,948)(12,566)(16,922)(24,493)
Repurchase of common stock(54,198)(21,893)(145,831)(144,248)
Payment of contingent consideration related to a business combination— — (5,024)(5,249)
Payment of excise taxes on share repurchases
(2,292)— (2,292)— 
Net cash used in financing activities(64,242)(30,245)(164,793)(167,378)
Net increase (decrease) in cash and cash equivalents(54,990)31,988 (564)(40,365)
Cash and cash equivalents, beginning of period273,604 137,261 219,178 209,614 
Cash and cash equivalents, end of period
$218,614 $169,249 $218,614 $169,249 
Supplemental disclosures of cash flow information
Cash paid for taxes, net of refunds
$10,126 $14,369 $14,116 $19,347 

5

Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses the following non-GAAP measures of financial performance:
•Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income margin, and non-GAAP basic and diluted net income per common share: We exclude the effect of acquisition and other related expenses, stock-based compensation expense, amortization of acquired intangible assets, legal fees associated with certain non-ordinary course legal matters including the shareholder class action litigation, and change in fair value of contingent earn-out consideration liability from non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating income. Non-GAAP net income and non-GAAP net income margin are further adjusted for estimated income tax on such adjustments. We calculate income taxes on the adjustments by applying an estimated annual effective tax rate to the adjustments. Non-GAAP basic and diluted net income per common share is non-GAAP net income attributable to common stockholders divided by the weighted average number of shares. For both basic and diluted non-GAAP net income per share, the weighted average shares we use in computing non-GAAP net income per share is equal to our GAAP weighted average shares. Non-GAAP gross margin represents non-GAAP gross profit as a percentage of revenue and non-GAAP net income margin represents non-GAAP net income as a percentage of revenue.
•Adjusted EBITDA and adjusted EBITDA margin: We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, legal fees associated with certain non-ordinary course legal matters including the shareholder class action litigation, change in fair value of contingent earn-out consideration liability, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.
•Free cash flow: We calculate free cash flow as cash flow from operating activities less purchases of property and equipment, purchases of intangible assets, and internal-use software development costs.
We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.
6

Key Business Metrics
•Net revenue retention rate: Our net revenue retention rate compares our subscription revenue from the same set of customers across comparable periods, and reflects customer renewals, expansion, contraction, and churn. Net revenue retention rate is calculated by taking the trailing 12-month (“TTM”) subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period. For the purposes of this calculation, subscription revenue excludes subscriptions for individuals and small practices and other non-recurring items. Our net revenue retention rate is directly tied to our revenue growth rate and thus fluctuates as that growth rate fluctuates.
•Customers with trailing 12-month subscription revenue greater than $500,000: The number of customers with TTM subscription revenue greater than $500,000 is a key indicator of the scale of our business and the value we create for large customers, and is calculated by counting the number of customers that contributed more than $500,000 in subscription revenue in the TTM period. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments.
•Quarterly unique active providers using our workflow tools: Quarterly unique active providers1 using our Workflow Tools is a measure of our platform’s usage and adoption among healthcare providers on our platform. We calculate the number of unique active providers by counting providers who securely log in and use any of the following workflow functions on our technology platform during the quarter: placing phone calls or video calls lasting more than 10 seconds, sending voicemails, or sending secure text messages using our Dialer communications tools; sending or receiving faxes; submitting a prompt on Ask (formerly DoxGPT), our HIPAA‑compliant generative AI clinical research tool and writing assistant; conducting research on prescription drugs; reviewing AI responses for our PeerCheck feature; scheduling via our on-call scheduling tool, Amion; or using our HIPAA-compliant ambient note taking tool, Scribe, for a patient visit. Each provider is counted once per quarter, even if they use multiple tools or use them many times.
1 Providers are health care professionals with clinical / prescribing roles, specifically Physicians (MD/DO), Nurse practitioners (NPs), Certified registered nurse anesthetists (CRNAs), Physician assistants (PAs), Pharmacists, and Medical students.
7

Reconciliation of GAAP to Non-GAAP Financial Measures
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:
Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
(unaudited)
(in thousands, except percentages)
Net income$34,730 $62,059 $59,044 $115,379 
Adjusted to exclude the following:
Acquisition and other related expenses— 1,188 — 1,616 
Stock-based compensation40,565 29,474 77,317 51,339 
Depreciation and amortization4,353 3,469 8,640 6,263 
Provision for income taxes15,597 10,880 31,645 21,707 
Change in fair value of contingent earn-out consideration liability— 91 90 259 
Legal expenses25 2,927 25 2,927 
Other income, net(6,405)(9,258)(13,124)(18,888)
Adjusted EBITDA$88,865 $100,830 $163,637 $180,602 
Revenue$174,537 $168,525 $331,155 $314,438 
Net income margin20 %37 %18 %37 %
Adjusted EBITDA margin51 %60 %49 %57 %

Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
(unaudited)
(in thousands)
Net cash provided by operating activities$93,285 $93,944 $135,272 $156,045 
Purchases of property and equipment— — (62)— 
Internal-use software development costs(1,953)(2,369)(4,275)(4,335)
Free cash flow$91,332 $91,575 $130,935 $151,710 
Other cash flow components:
Net cash provided by (used in) investing activities$(84,033)$(31,711)$28,957 $(29,032)
Net cash used in financing activities$(64,242)$(30,245)$(164,793)$(167,378)
8

Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
(unaudited)
(in thousands, except per share data and percentages)
GAAP cost of revenue$25,346 $16,425 $49,038 $32,218 
Adjusted to exclude the following:
Stock-based compensation(3,036)(2,844)(6,228)(5,824)
Amortization of acquired intangibles(935)— (1,870)— 
Non-GAAP cost of revenue$21,375 $13,581 $40,940 $26,394 
GAAP gross profit$149,191 $152,100 $282,117 $282,220 
Adjusted to exclude the following:
Stock-based compensation3,036 2,844 6,228 5,824 
Amortization of acquired intangibles935 — 1,870 — 
Non-GAAP gross profit$153,162 $154,944 $290,215 $288,044 
GAAP gross margin85.5 %90.3 %85.2 %89.8 %
Non-GAAP gross margin87.8 %91.9 %87.6 %91.6 %
GAAP research and development expense$41,961 $30,202 $80,439 $57,001 
Adjusted to exclude the following:
Stock-based compensation(16,028)(9,862)(31,587)(16,511)
Amortization of acquired intangibles— (623)— (623)
Non-GAAP research and development expense$25,933 $19,717 $48,852 $39,867 
GAAP sales and marketing expense$46,892 $39,168 $91,941 $75,533 
Adjusted to exclude the following:
Stock-based compensation(12,696)(10,508)(25,121)(18,218)
Amortization of acquired intangibles(1,005)(1,002)(2,011)(2,004)
Change in fair value of contingent earn-out consideration liability— (91)(90)(259)
Non-GAAP sales and marketing expense$33,191 $27,567 $64,719 $55,052 
GAAP general and administrative expense$16,416 $19,049 $32,172 $31,488 
Adjusted to exclude the following:
Acquisition and other related expenses— (1,188)— (1,616)
Stock-based compensation(8,805)(6,260)(14,381)(10,786)
Legal expenses(25)(2,927)(25)(2,927)
Non-GAAP general and administrative expense$7,586 $8,674 $17,766 $16,159 
GAAP operating expense$105,269 $88,419 $204,552 $164,022 
Adjusted to exclude the following:
Acquisition and other related expenses— (1,188)— (1,616)
Stock-based compensation(37,529)(26,630)(71,089)(45,515)
Amortization of acquired intangibles(1,005)(1,625)(2,011)(2,627)
Change in fair value of contingent earn-out consideration liability— (91)(90)(259)
Legal expenses(25)(2,927)(25)(2,927)
Non-GAAP operating expense$66,710 $55,958 $131,337 $111,078 
9

Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
(unaudited)
(in thousands, except per share data and percentages)
GAAP operating income$43,922 $63,681 $77,565 $118,198 
Adjusted to exclude the following:
Acquisition and other related expenses— 1,188 — 1,616 
Stock-based compensation40,565 29,474 77,317 51,339 
Amortization of acquired intangibles1,940 1,625 3,881 2,627 
Change in fair value of contingent earn-out consideration liability— 91 90 259 
Legal expenses25 2,927 25 2,927 
Non-GAAP operating income$86,452 $98,986 $158,878 $176,966 
GAAP net income$34,730 $62,059 $59,044 $115,379 
Adjusted to exclude the following:
Acquisition and other related expenses— 1,188 — 1,616 
Stock-based compensation40,565 29,474 77,317 51,339 
Amortization of acquired intangibles1,940 1,625 3,881 2,627 
Change in fair value of contingent earn-out consideration liability— 91 90 259 
Legal expenses25 2,927 25 2,927 
Income tax effect of non-GAAP adjustments (1)
(8,931)(7,414)(17,076)(12,341)
Non-GAAP net income$68,329 $89,950 $123,281 $161,806 
Non-GAAP net income margin39.1 %53.4 %37.2 %51.5 %
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic178,674 187,705 180,611 187,844 
Diluted187,804 200,745 189,475 200,952 
Non-GAAP net income per share attributable to Class A and Class B stockholders:
Basic$0.38 $0.48 $0.68 $0.86 
Diluted$0.36 $0.45 $0.65 $0.81 
(1) For the three and six months ended September 30, 2026 and 2025, management used an estimated annual effective non-GAAP tax rate of 21.0%.
10

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