Doximity Inc (DOCS) Q2 2025 Earnings Report

Doximity delivered a standout Q2 FY2025 performance, underscored by a 20% year-over-year revenue increase to $136.8 million and an Adjusted EBITDA margin of 56% (approx. $76.1 million), reflecting high incremental profitability. The company benefited from broad-based growth across pharma, health systems, and digital workflow modules, with non-GAAP gross margin at 92% and a trailing-12-month net revenue retention (NRR) of 116% (top-20 customers at 124%). Management highlighted the accelerating monetization of new workflow tools (including formulary and point-of-care modules), continued momentum from the client portal, and a strong upsell season that contributed to resilient profitability despite significant expansion initiatives. Free cash flow surged to $66.8 million, supporting a sizeable stock repurchase program and a robust balance sheet with ample liquidity. Looking ahead, Doximity reaffirmed a constructive Q3 guidance (revenue of $152–$153 million; Adj EBITDA of $83–$84 million) and raised full-year targets to approximately $535–$540 million in revenue and $274–$279 million in Adj EBITDA, signaling confidence in durable organic growth and the continued monetization of higher-margin product offerings. The combination of a fortress balance sheet, high-margin recurring revenue, rapid adoption of AI-enabled tools, and a multi-year portal strategy positions Doximity to benefit from secular shifts toward digital, AI-powered physician engagement in healthcare marketing and information services.