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Doximity (NYSE: DOCS) Q1 revenue hits $156.6M as net income falls

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Doximity reported fiscal 2027 first‑quarter results with revenue of $156.6 million, up 7% year‑over‑year. Net income was $24.3 million with a 15.5% margin, down from $53.3 million and 36.5% a year earlier. Adjusted EBITDA was $74.8 million with a 47.7% margin.

GAAP gross margin was 84.9%, and non‑GAAP gross margin 87.5%. Operating cash flow was $42.0 million and free cash flow $39.6 million, both down more than 30% year‑over‑year. Cash and cash equivalents were $273.6 million and marketable securities $414.2 million as of June 30, 2026. The company repurchased $91.6 million of common stock in the quarter.

Management noted its Doximity Ask clinical AI assistant was the top‑performing U.S.-based model in the NOHARM benchmark and highlighted record engagement, with workflow active prescriber growth of more than 30% year‑over‑year and AI Search query growth of over 25% quarter‑over‑quarter. Doximity guides second‑quarter revenue to $170–$171 million and adjusted EBITDA to $80.5–$81.5 million, and full‑year revenue to $671–$681 million with adjusted EBITDA of $309–$329 million.

Positive

  • Workflow and AI usage are expanding rapidly, with workflow active prescriber growth of more than 30% year-over-year and AI Search query growth of over 25% quarter-over-quarter, indicating strong adoption of Doximity’s newer AI-driven tools.

Negative

  • Net income fell sharply to $24.3 million from $53.3 million year-over-year, reducing GAAP net margin to 15.5% from 36.5%.
  • Operating cash flow declined to $42.0 million from $62.1 million, a 32% year-over-year decrease, signaling weaker cash generation.
  • Free cash flow decreased to $39.6 million from $60.1 million, a 34% year-over-year decline, despite continued profitability.

Insights

Analyzing...

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, and exhibit attachments filed with this report.
Revenue $156.6 million Fiscal 2027 first quarter revenue, up 7% year-over-year from $145.9 million
Net income $24.3 million Fiscal 2027 first quarter GAAP net income, down from $53.3 million a year earlier
Adjusted EBITDA $74.8 million Fiscal 2027 first quarter adjusted EBITDA, 47.7% margin vs 54.7% last year
Free cash flow $39.6 million Fiscal 2027 first quarter free cash flow, a 34% year-over-year decrease from $60.1 million
Operating cash flow $42.0 million Fiscal 2027 first quarter cash from operations, down 32% year-over-year from $62.1 million
Cash and cash equivalents 273,604 Balance as of June 30, 2026 on condensed consolidated balance sheet (in thousands)
Marketable securities 414,185 Balance as of June 30, 2026 on condensed consolidated balance sheet (in thousands)
Repurchase of common stock 91,633 Cash used for share repurchases during the three months ended June 30, 2026 (in thousands)
Adjusted EBITDA financial
"Adjusted EBITDA of $74.8 million, versus $79.8 million"
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.
free cash flow financial
"operating cash flow of $42.0 million... and free cash flow of $39.6 million"
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.
net revenue retention rate financial
"Net revenue retention rate compares our subscription revenue from the same set of customers"
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.
stock-based compensation financial
"Costs and expenses include stock-based compensation expense as follows"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
contingent earn-out consideration liability financial
"change in fair value of contingent earn-out consideration liability"
Non-GAAP gross margin financial
"Non-GAAP gross margin represents non-GAAP gross profit as a percentage of revenue"
Non-GAAP gross margin is a measure of a company's profitability that shows how much money it makes from sales after subtracting the direct costs of producing its products or services, but without applying certain accounting adjustments required by standard rules. It helps investors understand the company's core earning ability by excluding items like one-time expenses or accounting changes. This metric provides a clearer picture of ongoing business performance beyond official financial reports.
Revenue $156.6 million Increase of 7% year-over-year from $145.9 million
Net income $24.3 million Down from $53.3 million, net margin 15.5% vs 36.5%
Adjusted EBITDA $74.8 million Down 6% year-over-year, margin 47.7% vs 54.7%
Free cash flow $39.6 million Down 34% year-over-year from $60.1 million
Guidance

Doximity projects fiscal Q2 2027 revenue of $170–$171 million and adjusted EBITDA of $80.5–$81.5 million, and fiscal 2027 revenue of $671–$681 million with adjusted EBITDA of $309–$329 million.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

What were Doximity (DOCS) fiscal 2027 first-quarter revenues and growth?
Doximity reported revenue of $156.6 million for fiscal 2027 Q1, a 7% year-over-year increase from $145.9 million. This reflects continued top-line growth while the company invests in product, sales, and AI capabilities.

How profitable was Doximity (DOCS) in fiscal 2027 Q1?
Doximity generated GAAP net income of $24.3 million with a 15.5% net margin, down from $53.3 million and 36.5% a year earlier. Adjusted EBITDA was $74.8 million, representing a 47.7% margin.

How did Doximity (DOCS) cash flow change in fiscal 2027 Q1?
Operating cash flow was $42.0 million, down 32% year-over-year from $62.1 million. Free cash flow was $39.6 million, a 34% year-over-year decline, as lower net income and working-capital movements weighed on cash generation.

What liquidity position does Doximity (DOCS) report as of June 30, 2026?
As of June 30, 2026, Doximity held $273.6 million in cash and cash equivalents and $414.2 million in marketable securities. These balances provide a sizeable liquidity cushion alongside ongoing profitability and free cash flow.

What guidance did Doximity (DOCS) provide for Q2 and fiscal 2027?
For fiscal Q2 2027, Doximity guides revenue to $170–$171 million and adjusted EBITDA to $80.5–$81.5 million. For fiscal 2027, it expects revenue of $671–$681 million and adjusted EBITDA of $309–$329 million.

What operating and AI engagement metrics did Doximity (DOCS) highlight?
Management cited workflow active prescriber growth of more than 30% year-over-year and AI Search query growth of over 25% quarter-over-quarter. Doximity Ask, its clinical AI assistant, was described as the top-performing U.S.-based model in the NOHARM benchmark.
0001516513FALSE00015165132026-08-062026-08-06

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): August 6, 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 August 6, 2026, Doximity, Inc. (“Doximity”) issued a press release announcing its financial results for its fiscal quarter ended June 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 First Quarter Financial Results dated August 6, 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: August 6, 2026
DOXIMITY, INC.
By:
/s/ Matthew Sonefeldt
Matthew Sonefeldt
Chief Financial Officer



Exhibit 99.1
Doximity Announces Fiscal 2027 First Quarter Financial Results
Total 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%

SAN FRANCISCO, Calif., August 6, 2026 -- Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2027 first quarter ended June 30, 2026.
“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,” said 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.”
Fiscal 2027 First Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended June 30, 2025.
•Revenue: Revenue of $156.6 million, versus $145.9 million, an increase of 7% year-over-year.
•Net income and non-GAAP net income: Net income of $24.3 million, versus $53.3 million, representing a margin of 15.5%, versus 36.5%. Non-GAAP net income of $55.0 million, versus $71.9 million, representing a margin of 35.1%, versus 49.2%.
•Adjusted EBITDA: Adjusted EBITDA of $74.8 million, versus $79.8 million, a decrease of 6% year-over-year, representing adjusted EBITDA margins of 47.7%, versus 54.7%.
•Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.13, versus $0.27, while non-GAAP diluted net income per share was $0.29, versus $0.36.
•Operating cash flow and free cash flow: Operating cash flow of $42.0 million, versus $62.1 million, a decrease of 32% year-over-year, and free cash flow of $39.6 million, versus $60.1 million, a decrease of 34% year-over-year.
Financial Outlook
Doximity is providing guidance for its fiscal second quarter ending September 30, 2026 as follows:
•Revenue between $170 million and $171 million.
•Adjusted EBITDA between $80.5 million and $81.5 million.
Doximity is updating guidance for its fiscal year ending March 31, 2027 as follows:
•Revenue between $671 million and $681 million.
•Adjusted EBITDA between $309 million and $329 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 across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay current on medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. With new AI-powered clinical reference and search capabilities, Doximity also 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)
June 30, 2026March 31, 2026
Assets
Current assets:
Cash and cash equivalents$273,604 $219,178 
Marketable securities414,185 529,423 
Accounts receivable, net 177,575 144,783 
Prepaid expenses and other current assets48,614 50,880 
Total current assets913,978 944,264 
Property and equipment, net19,243 18,080 
Deferred income tax assets23,839 31,984 
Operating lease right-of-use assets6,752 7,140 
Intangible assets, net33,385 35,325 
Goodwill84,973 84,973 
Other assets1,675 1,921 
Total assets$1,083,845 $1,123,687 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$6,494 $4,009 
Accrued expenses and other current liabilities32,666 42,804 
Deferred revenue, current109,061 106,050 
Operating lease liabilities, current2,142 2,110 
Total current liabilities150,363 154,973 
Deferred revenue, non-current37 400 
Operating lease liabilities, non-current7,531 8,075 
Other liabilities, non-current9,844 9,402 
Total liabilities167,775 172,850 
Stockholders' Equity
Preferred stock— — 
Common stock180 183 
Additional paid-in capital1,035,282 1,001,688 
Accumulated other comprehensive income (loss)(348)28 
Accumulated deficit(119,044)(51,062)
Total stockholders’ equity
916,070 950,837 
Total liabilities and stockholders’ equity$1,083,845 $1,123,687 

3

DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30,
20262025
Revenue$156,618 $145,913 
Cost of revenue(1)
23,692 15,793 
Gross profit132,926 130,120 
Operating expenses(1):
Research and development38,477 26,799 
Sales and marketing45,049 36,365 
General and administrative15,756 12,439 
Total operating expenses99,282 75,603 
Income from operations33,644 54,517 
Other income, net6,719 9,630 
Income before income taxes40,363 64,147 
Provision for income taxes16,048 10,827 
Net income$24,315 $53,320 
Net income per share attributable to Class A and Class B common stockholders:
Basic$0.13 $0.28 
Diluted$0.13 $0.27 
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic182,569 187,984 
Diluted191,169 201,158 
(1) Costs and expenses include stock-based compensation expense as follows (in thousands):
Three Months Ended June 30,
20262025
Cost of revenue$3,192 $2,980 
Research and development15,559 6,649 
Sales and marketing12,425 7,710 
General and administrative5,576 4,526 
Total stock-based compensation expense$36,752 $21,865 
4

DOXIMITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended June 30,
20262025
Cash flows from operating activities
Net income$24,315 $53,320 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization4,287 2,794 
Stock-based compensation, net of amounts capitalized36,752 21,865 
Non-cash lease expense387 450 
Accretion of discount on marketable securities, net(568)(2,488)
Amortization of deferred contract costs4,300 3,896 
Other(338)(408)
Changes in operating assets and liabilities:
Accounts receivable(33,334)(13,381)
Prepaid expenses and other assets9,125 (4,234)
Deferred contract costs(2,642)(1,965)
Accounts payable, accrued expenses and other liabilities(2,433)(165)
Deferred revenue2,648 2,973 
Operating lease liabilities(512)(556)
Net cash provided by operating activities41,987 62,101 
Cash flows from investing activities
Purchases of property and equipment(62)— 
Internal-use software development costs(2,322)(1,966)
Purchases of marketable securities(14,746)(139,934)
Maturities of marketable securities126,071 144,579 
Sales of marketable securities4,049 — 
Net cash provided by investing activities112,990 2,679 
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants
3,080 2,398 
Taxes paid related to net share settlement of equity awards(6,974)(11,927)
Repurchase of common stock(91,633)(122,355)
Payment of contingent consideration related to a business combination(5,024)(5,249)
Net cash used in financing activities(100,551)(137,133)
Net increase (decrease) in cash and cash equivalents54,426 (72,353)
Cash and cash equivalents, beginning of period219,178 209,614 
Cash and cash equivalents, end of period
$273,604 $137,261 
Supplemental disclosures of cash flow information
Cash paid for taxes, net of refunds
$3,990 $4,978 

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 login 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 anesthetist (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 June 30,
20262025
(unaudited)
(in thousands, except percentages)
Net income$24,315 $53,320 
Adjusted to exclude the following:
Acquisition and other related expenses— 428 
Stock-based compensation36,752 21,865 
Depreciation and amortization4,287 2,794 
Provision for income taxes16,048 10,827 
Change in fair value of contingent earn-out consideration liability90 168 
Other income, net(6,719)(9,630)
Adjusted EBITDA$74,773 $79,772 
Revenue$156,618 $145,913 
Net income margin15.5 %36.5 %
Adjusted EBITDA margin47.7 %54.7 %

Three Months Ended June 30,
20262025
(unaudited)
(in thousands)
Net cash provided by operating activities$41,987 $62,101 
Purchases of property and equipment(62)— 
Internal-use software development costs(2,322)(1,966)
Free cash flow$39,603 $60,135 
Other cash flow components:
Net cash provided by investing activities$112,990 $2,679 
Net cash used in financing activities$(100,551)$(137,133)
8

Three Months Ended June 30,
2026
2025
(unaudited)
(in thousands, except per share data and percentages)
GAAP cost of revenue$23,692 $15,793 
Adjusted to exclude the following:
Stock-based compensation(3,192)(2,980)
Amortization of acquired intangibles(935)— 
Non-GAAP cost of revenue$19,565 $12,813 
GAAP gross profit$132,926 $130,120 
Adjusted to exclude the following:
Stock-based compensation3,192 2,980 
Amortization of acquired intangibles935 — 
Non-GAAP gross profit$137,053 $133,100 
GAAP gross margin84.9 %89.2 %
Non-GAAP gross margin87.5 %91.2 %
GAAP research and development expense$38,477 $26,799 
Adjusted to exclude the following:
Stock-based compensation(15,559)(6,649)
Non-GAAP research and development expense$22,918 $20,150 
GAAP sales and marketing expense$45,049 $36,365 
Adjusted to exclude the following:
Stock-based compensation(12,425)(7,710)
Amortization of acquired intangibles(1,005)(1,002)
Change in fair value of contingent earn-out consideration liability(90)(168)
Non-GAAP sales and marketing expense$31,529 $27,485 
GAAP general and administrative expense$15,756 $12,439 
Adjusted to exclude the following:
Acquisition and other related expenses— (428)
Stock-based compensation(5,576)(4,526)
Non-GAAP general and administrative expense$10,180 $7,485 
GAAP operating expense$99,282 $75,603 
Adjusted to exclude the following:
Acquisition and other related expenses— (428)
Stock-based compensation(33,560)(18,885)
Amortization of acquired intangibles(1,005)(1,002)
Change in fair value of contingent earn-out consideration liability(90)(168)
Non-GAAP operating expense$64,627 $55,120 
9

Three Months Ended June 30,
2026
2025
(unaudited)
(in thousands, except per share data and percentages)
GAAP operating income$33,644 $54,517 
Adjusted to exclude the following:
Acquisition and other related expenses— 428 
Stock-based compensation36,752 21,865 
Amortization of acquired intangibles1,940 1,002 
Change in fair value of contingent earn-out consideration liability90 168 
Non-GAAP operating income$72,426 $77,980 
GAAP net income$24,315 $53,320 
Adjusted to exclude the following:
Acquisition and other related expenses— 428 
Stock-based compensation36,752 21,865 
Amortization of acquired intangibles1,940 1,002 
Change in fair value of contingent earn-out consideration liability90 168 
Income tax effect of non-GAAP adjustments (1)
(8,144)(4,927)
Non-GAAP net income$54,953 $71,856 
Non-GAAP net income margin35.1 %49.2 %
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:
Basic182,569 187,984 
Diluted191,169 201,158 
Non-GAAP net income per share attributable to Class A and Class B stockholders:
Basic$0.30 $0.38 
Diluted$0.29 $0.36 
(1) For the three months ended June 30, 2026 and 2025, management used an estimated annual effective non-GAAP tax rate of 21.0%.
10

Source: View Original Filing on SEC EDGAR

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