Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: $136.8 million in Q2 FY2025, up 20% YoY and 8% QoQ per reported metrics. Gross profit: $123.156 million; gross margin 90.0% (non-GAAP gross margin 92% in Q2). Operating income: $53.142 million; operating margin 38.84%. Net income: $44.154 million; net income margin 32.26%. Adjusted EBITDA: $76.1 million; EBITDA margin 56.0%. EPS: $0.24 (GAAP) / $0.22 (diluted). Weighted-average shares: 186.252 million basic; 200.407 million diluted. Free cash flow: $66.8 million; cash flow from operatio...
Financial Highlights
Revenue: $136.8 million in Q2 FY2025, up 20% YoY and 8% QoQ per reported metrics. Gross profit: $123.156 million; gross margin 90.0% (non-GAAP gross margin 92% in Q2). Operating income: $53.142 million; operating margin 38.84%. Net income: $44.154 million; net income margin 32.26%. Adjusted EBITDA: $76.1 million; EBITDA margin 56.0%. EPS: $0.24 (GAAP) / $0.22 (diluted). Weighted-average shares: 186.252 million basic; 200.407 million diluted. Free cash flow: $66.8 million; cash flow from operations: $68.346 million; cash and equivalents plus marketable securities: $806.0 million. Cash taxes: expected 20–25% annually. Balance sheet: cash, cash equivalents and marketable securities $806 million; total current assets $957.7 million; total assets $1.119 billion; total liabilities $157.3 million; total stockholders’ equity $961.2 million. Operating cash flow per share: $0.367; free cash flow per share: $0.359. Net revenue retention (12M): 116%; Top-20 customers NR: 124%; 103 customers contributing at least $0.5 million in annualized revenue (12M basis), up from 92 a year ago (83% of revenue from these customers). Guidance: Q3 revenue $152–$153 million; Adj EBITDA $83–$84 million (≈55% margin). Full-year revenue $535–$540 million; Adj EBITDA $274–$279 million (≈51% margin).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
136.83M |
20.44% |
8.02% |
| Gross Profit |
123.16M |
22.11% |
8.87% |
| Operating Income |
53.14M |
57.26% |
15.39% |
| Net Income |
44.15M |
44.28% |
6.71% |
| EPS |
0.24 |
50.00% |
9.09% |
Key Financial Ratios
operatingProfitMargin
38.8%
operatingCashFlowPerShare
$0.37
freeCashFlowPerShare
$0.36
Management Commentary
Key management takeaways from the earnings call:
- Revenue growth and profitability: Jeff Tangney highlighted: “We delivered $137 million in revenue for the second quarter of our fiscal 2025, which represents 20% year-on-year growth and a 7% beat from the high end of our guidance range.” Anna Bryson emphasized profitability, noting: “Non-GAAP gross margin in the second quarter was 92% … Adjusted EBITDA for the second quarter was $76.1 million, and adjusted EBITDA margin was 56%.” These statements capture the core quarterly performance and margin strength that underpins the bullish outlook.
- Portal and workflow momentum: The executive team stressed the client portal’s expansion (now open to more than 40% of pharma brand clients) and the acceleration of workflow-related modules, with “20% of our pharma sales in Q2 came from our workflow-related modules.” Jeff also highlighted the NP audience extension and NP Navigator as rising growth vectors.
- Customer engagement and scale: CFO Anna Bryson noted a “net revenue retention rate of 116% on a trailing 12-month basis” and that 103 customers contributed at least $500k in subscription revenue, up 12% year over year, underscoring strong stickiness and monetization of top accounts. Management also cited record engagement metrics across daily, weekly, monthly, and quarterly active users, and the sustained upside from the latest AI features and real-time insights.
"We delivered $137 million in revenue for the second quarter of our fiscal 2025, which represents 20% year-on-year growth and a 7% beat from the high end of our guidance range."
— Jeff Tangney
"We finished the quarter with a net revenue retention rate of 116% on a trailing 12-month basis."
— Anna Bryson
Forward Guidance
Doximity’s forward guidance reflects a continued monetization trajectory driven by three pillars: (1) Client portal expansion and agency partnerships, (2) Higher-velocity adoption of point-of-care and formulary tools, and (3) Real-time AI-enabled workflows. For Q3 2025, management targets revenue of $152–$153 million and Adjusted EBITDA of $83–$84 million (about 55% margin). For the full year, they project revenue of $535–$540 million and Adjusted EBITDA of $274–$279 million (roughly 51% margin). These targets imply mid-teens revenue growth at the midpoint and a sustained high-margin profile, supported by a high gross margin base (~92% non-GAAP) and strong incremental profitability. The company cautioned that Q4 performance could be affected by shifts in calendar-year budgeting (digital HCP budgets tightened across year-end) and longer lead times for new workflow product launches, as customers shift spending to calendar-year budgets and pilot new offerings. The management’s emphasis on annual growth rate as the best metric to measure performance, and the expectation of stronger upfront season contributions, suggests that the company believes the mix shift toward newer products and portals will remain favorable but may introduce quarterly volatility. Investors should monitor: (a) the rate of portal rollout to remaining customers and the resulting upsell contributions; (b) the pace and profitability of new workflow modules; (c) the durability of customers’ digital budgeting discipline; and (d) the trajectory of pharma digital spend in 2025–2026 as macro and competitive dynamics evolve.