0001516513FALSE00015165132026-05-132026-05-13
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): May 13, 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:
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☐ | 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 May 13, 2026, Doximity, Inc. (“Doximity”) issued a press release announcing its financial results for its fiscal quarter and year ended March 31, 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 5.02 - Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
On May 13, 2026, Doximity, Inc. (the “Company”) announced the appointment of Matthew Sonefeldt as Chief Financial Officer of the Company, effective May 13, 2026. In connection with this appointment, Siddharth Sitaram, Chief Accounting Officer, will continue to serve as the Company’s interim Principal Financial Officer through June 7, 2026. Mr. Sonefeldt will formally succeed Mr. Sitaram as the Company’s Principal Financial Officer (within the meaning of the Securities Exchange Act of 1934, as amended) effective June 8, 2026.
Additionally, the Company announced the appointment of Steven L. Zatz, M.D. as President of the Company, effective May 13, 2026.
Matthew Sonefeldt — Chief Financial Officer
Mr. Sonefeldt, age 46, brings 25 years of experience across investment management, investor relations, business operations, and strategy in the public and private venture markets. He has served at several leading public companies, including most recently as Head of Investor Relations at Docusign, Inc. from December 2024 to April 2026. Prior to Docusign, Mr. Sonefeldt served in multiple leadership roles at Atlassian Corporation Plc from December 2019 to January 2023, including Vice President of Investor Relations and Vice President of Strategy and Business Operations. Before Atlassian, he served as Head of Investor Relations at LinkedIn Corporation from 2011 to 2017. Mr. Sonefeldt also held various leadership roles in venture-backed and asset management companies, including Capital Research, Gusto, and Ethic Investments, and operated his own corporate advisory business. Mr. Sonefeldt holds a B.A. from UCLA and an M.B.A. from Presidio Graduate School.
There are no arrangements or understandings between Mr. Sonefeldt and any other persons pursuant to which he was appointed as the Chief Financial Officer of Doximity. There are no family relationships between Mr. Sonefeldt and any director, executive officer or any person nominated or chosen by Doximity to become a director or executive officer. No information is required to be disclosed with respect to Mr. Sonefeldt pursuant to Item 404(a) of Regulation S-K.
In connection with his appointment as Chief Financial Officer, on May 12, 2026, we entered into an offer letter with Mr. Sonefeldt (the “Offer Letter”). The Offer Letter provides for his at-will employment and sets forth his initial annual base salary of $400,000, a $400,000 annual incentive bonus based on performance goals, an initial equity grant of restricted stock units of the Company’s Class A common stock (“RSUs”) valued at $9,000,000 on the grant date, to vest quarterly over three years, and another RSU grant valued at $3,000,000 on the grant date to vest in equal amounts annually over three years based on performance goals to be established each year. In addition, Mr. Sonefeldt is eligible to participate in our employee benefit health and welfare plans. Mr. Sonefeldt also entered into Doximity’s standard form of indemnification agreement.
Steven L. Zatz, M.D. — President
Dr. Zatz, age 69, is a physician executive with over two decades of leadership experience in digital health and healthcare information technology. Most recently, he served as Chairman and Chief Executive Officer of HealthCentral Corporation from September 2022 to June 2025. Prior to HealthCentral Corporation, Dr. Zatz served in various leadership roles at WebMD Health Corp. from 1999 to 2018, including as President, Chief Executive Officer, and Director in the period from 2013 through 2019, where he led the company’s advertising and sponsorship business and oversaw its Medscape platform. Earlier in his career, Dr. Zatz held executive roles in healthcare technology, including as Chief Executive Officer of Physicians’ Online and as founder of US Quality Algorithms, Inc. Dr. Zatz received his M.D. from Cornell University Medical College and his undergraduate degree from Yale College.
There are no arrangements or understandings between Dr. Zatz and any other persons pursuant to which he was appointed as President of Doximity. There are no family relationships between Dr. Zatz and any director, executive officer or any person nominated or chosen by Doximity to become a director or executive officer. No information is required to be disclosed with respect to Dr. Zatz pursuant to Item 404(a) of Regulation S-K.
In connection with his appointment as President, on May 12, 2026, we entered into an offer letter with Dr. Zatz (the “Offer Letter”). The Offer Letter provides for his at-will employment and sets forth his initial annual base salary of $400,000, a $500,000 annual incentive bonus, to be paid quarterly, based on established performance goals, an initial equity grant of restricted stock units of the Company’s Class A common stock (“RSUs”) valued at $1,000,000 on the grant date, to vest quarterly over one year, and another RSU grant valued at $1,700,000 on the grant date to vest in one year based on established performance goals. In addition, Dr. Zatz is eligible to participate in our employee benefit health and welfare plans. Dr. Zatz also entered into Doximity’s standard form of indemnification agreement.
Item 9.01 – Financial Statements and Exhibits
(d) Exhibits
| | | | | | | | |
| Exhibit Number | | Description |
| 99.1 | | Press Release entitled “Doximity Announces Fourth Quarter and Fiscal Year 2026 Financial Results dated May 13, 2026” |
| 104 | | Cover 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: May 13, 2026
| | | | | | | | |
| DOXIMITY, INC. |
| | |
| By: | /s/ Siddharth Sitaram |
| | Siddharth Sitaram Chief Accounting Officer (Principal Accounting Officer and Interim Principal Financial Officer) |
Exhibit 99.1
Doximity Announces Fourth Quarter and Fiscal Year 2026 Financial Results
Fiscal year 2026 total revenues of $644.9 million, up 13% year-over-year
Fiscal year 2026 operating cash flows of $326.5 million, up 19% year-over-year
Fiscal year 2026 free cash flow of $317.5 million, up 19% year-over-year
SAN FRANCISCO, Calif., May 13, 2026 -- Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2026 fourth quarter and fiscal year ended March 31, 2026.
“We’re thrilled to announce that we reached a new engagement record of over 800,000 active prescribers using our workflow tools in Q4. Nearly half of those providers used our clinical AI last quarter, while our prompts per user nearly doubled from January to April alone,” said Jeff Tangney, co-founder and CEO of Doximity.
“Our new partnerships with Aledade and Photon build on that momentum, bringing our Clinical AI Suite to thousands of independent practices and enabling seamless in-workflow prescribing for the first time. I'm also thrilled to welcome Matt Sonefeldt as our new CFO and Dr. Steve Zatz as our new President, two exceptional leaders whose experience and relationships will be instrumental as we continue to scale.”
Fiscal 2026 Fourth Quarter Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended March 31, 2025.
•Revenue: Revenue of $145.4 million, versus $138.3 million, an increase of 5% year-over-year.
•Net income and non-GAAP net income: Net income of $19.1 million, versus $62.5 million, representing a margin of 13.1%, versus 45.2%. Non-GAAP net income of $49.8 million, versus $77.7 million, representing a margin of 34.2%, versus 56.2%.
•Adjusted EBITDA: Adjusted EBITDA of $65.8 million, versus $69.7 million, a decrease of 6% year-over-year, representing adjusted EBITDA margins of 45.3%, versus 50.4%.
•Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.10, versus $0.31, while non-GAAP diluted net income per share was $0.26, versus $0.38.
•Operating cash flow and free cash flow: Operating cash flow of $109.5 million, versus $98.5 million, an increase of 11% year-over-year, and free cash flow of $107.3 million, versus $97.0 million, an increase of 11% year-over-year.
Fiscal Year 2026 Financial Highlights
All comparisons, unless otherwise noted, are to the fiscal year ended March 31, 2025.
•Revenue: Revenue of $644.9 million, versus $570.4 million, an increase of 13% year-over-year.
•Net income and non-GAAP net income: Net income of $196.1 million, versus $223.2 million, representing a margin of 30.4%, versus 39.1%. Non-GAAP net income of $302.7 million, versus $286.1 million, representing a margin of 46.9%, versus 50.2%.
•Adjusted EBITDA: Adjusted EBITDA of $357.8 million, versus $313.8 million, an increase of 14%, representing adjusted EBITDA margins of 55.5%, versus 55.0%.
•Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.98, versus $1.11, while non-GAAP diluted net income per share was $1.52, versus $1.42.
•Operating cash flow and free cash flow: Operating cash flow of $326.5 million, versus $273.3 million, an increase of 19% year-over-year, and free cash flow of $317.5 million, versus $266.7 million, an increase of 19% year-over-year.
Financial Outlook
Doximity is providing guidance for its fiscal first quarter ending June 30, 2026 as follows:
•Revenue between $151 million and $152 million.
•Adjusted EBITDA between $68.5 million and $69.5 million.
Doximity is providing guidance for its fiscal year ending March 31, 2027 as follows:
•Revenue between $664 million and $676 million.
•Adjusted EBITDA between $323 million and $335 million.
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 archived 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
Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking 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 (i) the timing and scope of anticipated stock repurchases; (ii) the impact of uncertainty in the current economic environment and macroeconomic uncertainty; (iii) our ability to retain existing members or add new members to our platform and maintain or grow their engagement with our platform; (iv) our ability to attract new customers or retain existing customers; (v) the impact of our prioritization of our members’ interests; (vi) breaches in our security measures or unauthorized access to members’ data; (vii) our ability to maintain or manage our growth, and other risks and factors that are beyond our control including, without limitation, those set forth in the section entitled “Risk Factors” in the Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2025. Additional information will be provided in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026. 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:
Amanda Cox
pr@doximity.com
DOXIMITY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited) | | | | | | | | | | | |
| March 31, 2026 | | March 31, 2025 |
| Assets | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 219,178 | | | $ | 209,614 | |
| Marketable securities | 529,423 | | | 706,050 | |
| Accounts receivable, net | 144,783 | | | 128,354 | |
| Prepaid expenses and other current assets | 50,880 | | | 44,602 | |
| | | |
| Total current assets | 944,264 | | | 1,088,620 | |
| Property and equipment, net | 18,080 | | | 13,656 | |
| Deferred income tax assets | 31,984 | | | 60,014 | |
| Operating lease right-of-use assets | 7,140 | | | 8,886 | |
| Intangible assets, net | 35,325 | | | 23,072 | |
| Goodwill | 84,973 | | | 67,940 | |
| Other assets | 1,921 | | | 2,121 | |
| Total assets | $ | 1,123,687 | | | $ | 1,264,309 | |
| Liabilities and Stockholders’ Equity | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 4,009 | | | $ | 1,356 | |
| Accrued expenses and other current liabilities | 42,804 | | | 38,405 | |
| Deferred revenue, current | 106,050 | | | 114,285 | |
| Operating lease liabilities, current | 2,110 | | | 2,211 | |
| | | |
| Total current liabilities | 154,973 | | | 156,257 | |
| Deferred revenue, non-current | 400 | | | 280 | |
| Operating lease liabilities, non-current | 8,075 | | | 10,185 | |
| Contingent earn-out consideration liability, non-current | — | | | 5,579 | |
| Other liabilities, non-current | 9,402 | | | 9,383 | |
| Total liabilities | 172,850 | | | 181,684 | |
| | | |
| | | |
| Stockholders' Equity | | | |
| Preferred stock | — | | | — | |
| Common stock | 183 | | | 189 | |
| Additional paid-in capital | 1,001,688 | | | 894,225 | |
| Accumulated other comprehensive income | 28 | | | 1,323 | |
| Retained earnings (accumulated deficit) | (51,062) | | | 186,888 | |
Total stockholders’ equity | 950,837 | | | 1,082,625 | |
| Total liabilities and stockholders’ equity | $ | 1,123,687 | | | $ | 1,264,309 | |
DOXIMITY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2026 | | 2025 |
| Revenue | $ | 145,372 | | | $ | 138,288 | | | $ | 644,863 | | | $ | 570,399 | |
Cost of revenue(1) | 19,407 | | | 14,467 | | | 70,326 | | | 55,874 | |
| Gross profit | 125,965 | | | 123,821 | | | 574,537 | | | 514,525 | |
Operating expenses(1): | | | | | | | |
| Research and development | 39,106 | | | 24,803 | | | 130,702 | | | 93,038 | |
| Sales and marketing | 45,910 | | | 37,611 | | | 163,648 | | | 145,713 | |
| General and administrative | 16,123 | | | 12,727 | | | 65,267 | | | 45,670 | |
| Impairment charge | — | | | — | | | — | | | 2,304 | |
| Total operating expenses | 101,139 | | | 75,141 | | | 359,617 | | | 286,725 | |
| Income from operations | 24,826 | | | 48,680 | | | 214,920 | | | 227,800 | |
| Other income, net | 7,295 | | | 9,714 | | | 35,085 | | | 35,774 | |
| Income before income taxes | 32,121 | | | 58,394 | | | 250,005 | | | 263,574 | |
| Provision for (benefit from) income taxes | 13,007 | | | (4,064) | | | 53,954 | | | 40,389 | |
| Net income | $ | 19,114 | | | $ | 62,458 | | | $ | 196,051 | | | $ | 223,185 | |
| Net income per share attributable to Class A and Class B common stockholders: | | | | | | | |
| Basic | $ | 0.10 | | | $ | 0.33 | | | $ | 1.05 | | | $ | 1.19 | |
| Diluted | $ | 0.10 | | | $ | 0.31 | | | $ | 0.98 | | | $ | 1.11 | |
| Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | | | | | | | |
| Basic | 184,852 | | | 188,362 | | | 187,014 | | | 186,841 | |
| Diluted | 195,026 | | | 202,987 | | | 199,048 | | | 201,208 | |
(1) Cost of revenue and operating expenses include stock-based compensation expense as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2026 | | 2025 |
| Cost of revenue | $ | 2,957 | | | $ | 2,628 | | | $ | 11,680 | | | $ | 11,001 | |
| Research and development | 15,994 | | | 4,792 | | | 46,159 | | | 19,394 | |
| Sales and marketing | 11,253 | | | 6,442 | | | 39,397 | | | 26,323 | |
| General and administrative | 6,538 | | | 4,198 | | | 24,391 | | | 15,668 | |
| | | | | | | |
| Total stock-based compensation expense | $ | 36,742 | | | $ | 18,060 | | | $ | 121,627 | | | $ | 72,386 | |
DOXIMITY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited) | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2026 | | 2025 |
| Cash flows from operating activities | | | | | | | |
| Net income | $ | 19,114 | | | $ | 62,458 | | | $ | 196,051 | | | $ | 223,185 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | |
| Depreciation and amortization | 4,131 | | | 2,829 | | | 14,383 | | | 10,659 | |
| Deferred income taxes | 32,138 | | | (13,788) | | | 32,138 | | | (11,592) | |
| Stock-based compensation, net of amounts capitalized | 36,742 | | | 18,060 | | | 121,627 | | | 72,386 | |
| Non-cash lease expense | 384 | | | 446 | | | 1,747 | | | 1,838 | |
| Accretion of discount on marketable securities, net | (1,130) | | | (2,919) | | | (7,581) | | | (11,655) | |
| | | | | | | |
| Amortization of deferred contract costs | 4,207 | | | 3,423 | | | 13,478 | | | 9,967 | |
Impairment of long-lived assets | — | | | — | | | — | | | 2,304 | |
| | | | | | | |
| | | | | | | |
| Other | 133 | | | (19) | | | 314 | | | 270 | |
Changes in operating assets and liabilities: | | | | | | | |
| Accounts receivable | 11,720 | | | 9,258 | | | (16,879) | | | (27,206) | |
| Prepaid expenses and other assets | 1,105 | | | (18,489) | | | (8,272) | | | 2,762 | |
| Deferred contract costs | (3,231) | | | (2,982) | | | (14,490) | | | (12,051) | |
| Accounts payable, accrued expenses and other liabilities | (35,254) | | | (4,535) | | | 4,268 | | | (663) | |
| Deferred revenue | 39,969 | | | 45,295 | | | (8,115) | | | 15,210 | |
| Operating lease liabilities | (506) | | | (550) | | | (2,211) | | | (2,149) | |
| | | | | | | |
| Net cash provided by operating activities | 109,522 | | | 98,487 | | | 326,458 | | | 273,265 | |
| Cash flows from investing activities | | | | | | | |
| Cash paid for acquisition | — | | | — | | | (26,528) | | | — | |
| | | | | | | |
Purchases of intangible assets | — | | | — | | | (62) | | | — | |
| Internal-use software development costs | (2,253) | | | (1,507) | | | (8,901) | | | (6,525) | |
| Purchases of marketable securities | (8,037) | | | (143,724) | | | (389,159) | | | (675,557) | |
| Maturities of marketable securities | 148,267 | | | 118,180 | | | 561,434 | | | 635,401 | |
| Sales of marketable securities | — | | | 2,578 | | | 10,386 | | | 17,383 | |
| | | | | | | |
| | | | | | | |
| Net cash provided by (used in) investing activities | 137,977 | | | (24,473) | | | 147,170 | | | (29,298) | |
| Cash flows from financing activities | | | | | | | |
Proceeds from issuance of common stock upon exercise of stock options and common stock warrants | 2,767 | | | 5,827 | | | 9,784 | | | 19,732 | |
| Proceeds from issuance of common stock in connection with the employee stock purchase plan | 2,076 | | | 2,147 | | | 3,892 | | | 3,569 | |
| Taxes paid related to net share settlement of equity awards | (7,477) | | | (10,856) | | | (40,839) | | | (27,185) | |
| Repurchase of common stock | (90,525) | | | (26,788) | | | (431,652) | | | (120,293) | |
| Payment of contingent consideration related to a business combination | — | | | — | | | (5,249) | | | (5,470) | |
Payment of excise taxes on share repurchases | — | | | — | | | — | | | (1,491) | |
| | | | | | | |
| Net cash used in financing activities | (93,159) | | | (29,670) | | | (464,064) | | | (131,138) | |
| Net increase in cash and cash equivalents | 154,340 | | | 44,344 | | | 9,564 | | | 112,829 | |
| Cash and cash equivalents, beginning of period | 64,838 | | | 165,270 | | | 209,614 | | | 96,785 | |
Cash and cash equivalents, end of period | $ | 219,178 | | | $ | 209,614 | | | $ | 219,178 | | | $ | 209,614 | |
| Supplemental disclosures of cash flow information | | | | | | | |
Cash paid for taxes, net of refunds | $ | 792 | | | $ | 19,840 | | | $ | 21,814 | | | $ | 55,654 | |
Non-GAAP Financial Measures
To supplement our 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, impairment charge, 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, impairment charge, 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 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.
Key Business Metrics
•Net revenue retention rate: 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 compares our subscription revenue from the same set of customers across comparable periods, and reflects customer renewals, expansion, contraction, and churn. 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 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 key performance indicator of our platform’s adoption and long-term growth potential among 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 Doximity GPT, 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
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 March 31, | | Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2026 | | 2025 |
| (unaudited) |
| (in thousands, except percentages) |
| Net income | $ | 19,114 | | | $ | 62,458 | | | $ | 196,051 | | | $ | 223,185 | |
| Adjusted to exclude the following: | | | | | | | |
| Acquisition and other related expenses | — | | | — | | | 1,616 | | | — | |
| Stock-based compensation | 36,742 | | | 18,060 | | | 121,627 | | | 72,386 | |
| Depreciation and amortization | 4,131 | | | 2,829 | | | 14,383 | | | 10,659 | |
| Provision for (benefit from) income taxes | 13,007 | | | (4,064) | | | 53,954 | | | 40,389 | |
| Impairment charge | — | | | — | | | — | | | 2,304 | |
| Change in fair value of contingent earn-out consideration liability | 79 | | | 167 | | | 417 | | | 680 | |
| Legal expenses | 40 | | | — | | | 4,853 | | | — | |
| Other income, net | (7,295) | | | (9,714) | | | (35,085) | | | (35,774) | |
| Adjusted EBITDA | $ | 65,818 | | | $ | 69,736 | | | $ | 357,816 | | | $ | 313,829 | |
| | | | | | | |
| Revenue | $ | 145,372 | | | $ | 138,288 | | | $ | 644,863 | | | $ | 570,399 | |
| Net income margin | 13.1 | % | | 45.2 | % | | 30.4 | % | | 39.1 | % |
| Adjusted EBITDA margin | 45.3 | % | | 50.4 | % | | 55.5 | % | | 55.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2026 | | 2025 |
| (unaudited) |
| (in thousands) |
| Net cash provided by operating activities | $ | 109,522 | | | $ | 98,487 | | | $ | 326,458 | | | $ | 273,265 | |
| Purchases of intangible assets | — | | | — | | | (62) | | | — | |
| | | | | | | |
| Internal-use software development costs | (2,253) | | | (1,507) | | | (8,901) | | | (6,525) | |
| Free cash flow | $ | 107,269 | | | $ | 96,980 | | | $ | 317,495 | | | $ | 266,740 | |
| Other cash flow components: | | | | | | | |
| Net cash provided by (used in) investing activities | $ | 137,977 | | | $ | (24,473) | | | $ | 147,170 | | | $ | (29,298) | |
| Net cash used in financing activities | $ | (93,159) | | | $ | (29,670) | | | $ | (464,064) | | | $ | (131,138) | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2026 | | 2025 |
| (unaudited) |
| (in thousands, except per share data and percentages) |
| GAAP cost of revenue | $ | 19,407 | | | $ | 14,467 | | | $ | 70,326 | | | $ | 55,874 | |
| Adjusted to exclude the following: | | | | | | | |
| | | | | | | |
| Stock-based compensation | (2,957) | | | (2,628) | | | (11,680) | | | (11,001) | |
| Amortization of acquired intangibles | (935) | | | — | | | (935) | | | — | |
| Non-GAAP cost of revenue | $ | 15,515 | | | $ | 11,839 | | | $ | 57,711 | | | $ | 44,873 | |
| | | | | | | |
| GAAP gross profit | $ | 125,965 | | | $ | 123,821 | | | $ | 574,537 | | | $ | 514,525 | |
| Adjusted to exclude the following: | | | | | | | |
| | | | | | | |
| Stock-based compensation | 2,957 | | | 2,628 | | | 11,680 | | | 11,001 | |
| Amortization of acquired intangibles | 935 | | | — | | | 935 | | | — | |
| Non-GAAP gross profit | $ | 129,857 | | | $ | 126,449 | | | $ | 587,152 | | | $ | 525,526 | |
| | | | | | | |
| GAAP gross margin | 86.7 | % | | 89.5 | % | | 89.1 | % | | 90.2 | % |
| Non-GAAP gross margin | 89.3 | % | | 91.4 | % | | 91.1 | % | | 92.1 | % |
| | | | | | | |
| GAAP research and development expense | $ | 39,106 | | | $ | 24,803 | | | $ | 130,702 | | | $ | 93,038 | |
| Adjusted to exclude the following: | | | | | | | |
| | | | | | | |
| Stock-based compensation | (15,994) | | | (4,792) | | | (46,159) | | | (19,394) | |
| Amortization of acquired intangibles | — | | | — | | | (1,558) | | | — | |
| Non-GAAP research and development expense | $ | 23,112 | | | $ | 20,011 | | | $ | 82,985 | | | $ | 73,644 | |
| | | | | | | |
| GAAP sales and marketing expense | $ | 45,910 | | | $ | 37,611 | | | $ | 163,648 | | | $ | 145,713 | |
| Adjusted to exclude the following: | | | | | | | |
| | | | | | | |
| Stock-based compensation | (11,253) | | | (6,442) | | | (39,397) | | | (26,323) | |
| Amortization of acquired intangibles | (1,005) | | | (1,061) | | | (4,014) | | | (4,244) | |
| Change in fair value of contingent earn-out consideration liability | (79) | | | (167) | | | (417) | | | (680) | |
| Non-GAAP sales and marketing expense | $ | 33,573 | | | $ | 29,941 | | | $ | 119,820 | | | $ | 114,466 | |
| | | | | | | |
| GAAP general and administrative expense | $ | 16,123 | | | $ | 12,727 | | | $ | 65,267 | | | $ | 45,670 | |
| Adjusted to exclude the following: | | | | | | | |
| Acquisition and other related expenses | — | | | — | | | (1,616) | | | — | |
| Stock-based compensation | (6,538) | | | (4,198) | | | (24,391) | | | (15,668) | |
| Legal expenses | (40) | | | — | | | (4,853) | | | — | |
| | | | | | | |
| Non-GAAP general and administrative expense | $ | 9,545 | | | $ | 8,529 | | | $ | 34,407 | | | $ | 30,002 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2026 | | 2025 |
| (unaudited) |
| (in thousands, except per share data and percentages) |
| GAAP operating expense | $ | 101,139 | | | $ | 75,141 | | | $ | 359,617 | | | $ | 286,725 | |
| Adjusted to exclude the following: | | | | | | | |
| Acquisition and other related expenses | — | | | — | | | (1,616) | | | — | |
| Stock-based compensation | (33,785) | | | (15,432) | | | (109,947) | | | (61,385) | |
| Amortization of acquired intangibles | (1,005) | | | (1,061) | | | (5,572) | | | (4,244) | |
| Change in fair value of contingent earn-out consideration liability | (79) | | | (167) | | | (417) | | | (680) | |
| Legal expenses | (40) | | | — | | | (4,853) | | | — | |
| Impairment charge | — | | | — | | | — | | | (2,304) | |
| Non-GAAP operating expense | $ | 66,230 | | | $ | 58,481 | | | $ | 237,212 | | | $ | 218,112 | |
| | | | | | | |
| | | | | | | |
| GAAP operating income | $ | 24,826 | | | $ | 48,680 | | | $ | 214,920 | | | $ | 227,800 | |
| Adjusted to exclude the following: | | | | | | | |
| Acquisition and other related expenses | — | | | — | | | 1,616 | | | — | |
| Stock-based compensation | 36,742 | | | 18,060 | | | 121,627 | | | 72,386 | |
| Amortization of acquired intangibles | 1,940 | | | 1,061 | | | 6,507 | | | 4,244 | |
| Change in fair value of contingent earn-out consideration liability | 79 | | | 167 | | | 417 | | | 680 | |
| Legal expenses | 40 | | | — | | | 4,853 | | | — | |
| Impairment charge | — | | | — | | | — | | | 2,304 | |
| Non-GAAP operating income | $ | 63,627 | | | $ | 67,968 | | | $ | 349,940 | | | $ | 307,414 | |
| | | | | | | |
| GAAP net income | $ | 19,114 | | | $ | 62,458 | | | $ | 196,051 | | | $ | 223,185 | |
| Adjusted to exclude the following: | | | | | | | |
| Acquisition and other related expenses | — | | | — | | | 1,616 | | | — | |
| Stock-based compensation | 36,742 | | | 18,060 | | | 121,627 | | | 72,386 | |
| Amortization of acquired intangibles | 1,940 | | | 1,061 | | | 6,507 | | | 4,244 | |
| Change in fair value of contingent earn-out consideration liability | 79 | | | 167 | | | 417 | | | 680 | |
| Legal expenses | 40 | | | — | | | 4,853 | | | — | |
| Impairment charge | — | | | — | | | — | | | 2,304 | |
Income tax effect of non-GAAP adjustments (1) | (8,148) | | | (4,050) | | | (28,354) | | | (16,719) | |
| Non-GAAP net income | $ | 49,767 | | | $ | 77,696 | | | $ | 302,717 | | | $ | 286,080 | |
| Non-GAAP net income margin | 34.2 | % | | 56.2 | % | | 46.9 | % | | 50.2 | % |
| | | | | | | |
| Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | | | | | | | |
| Basic | 184,852 | | | 188,362 | | | 187,014 | | | 186,841 | |
| Diluted | 195,026 | | | 202,987 | | | 199,048 | | | 201,208 | |
| | | | | | | |
| Non-GAAP net income per share attributable to Class A and Class B stockholders: | | | | | | | |
| Basic | $ | 0.27 | | | $ | 0.41 | | | $ | 1.62 | | | $ | 1.53 | |
| Diluted | $ | 0.26 | | | $ | 0.38 | | | $ | 1.52 | | | $ | 1.42 | |
| | | | | | | |
(1) For the three months and fiscal years ended March 31, 2026 and 2025, management used an estimated annual effective non-GAAP tax rate of 21.0%.
