The quarter cleared the company’s own bar by a wide margin. Doximity guided to $151–152 million of revenue and $68.5–69.5 million of adjusted EBITDA; it delivered $156.6 million and $74.8 million, respectively. That is roughly $4.6–5.6 million above the revenue range and $5.3–6.3 million above the EBITDA range.
| Metric | Q1 FY27 | Q1 FY26 | Change / expectation |
|---|---|---|---|
| Revenue | $156.6M | $145.9M | +7.3%; above $151–152M guide (Income Statement) |
| GAAP net income | $24.3M | $53.3M | -54.4%; 15.5% margin vs. 36.5% (Income Statement) |
| Non-GAAP net income | $55.0M | $71.9M | -23.5%; 35.1% margin vs. 49.2% (Non-GAAP reconciliation) |
| Diluted non-GAAP EPS | $0.29 | $0.36 | Below the published consensus of roughly $0.30 (Non-GAAP reconciliation) |
| Adjusted EBITDA | $74.8M | $79.8M | -6.3%; 47.7% margin vs. 54.7% (Adjusted EBITDA reconciliation) |
| Operating cash flow | $42.0M | $62.1M | -32.4% (Cash Flow statement) |
| Free cash flow | $39.6M | $60.1M | -34.1% (Free Cash Flow reconciliation) |
The operating result was better than feared, but the earnings quality was less clean. Revenue accelerated to 7.3% year over year, while workflow-active prescribers grew more than 30% and AI Search queries rose more than 25% sequentially (Company commentary). However, GAAP operating expenses jumped 31%, including a 68% increase in research and development and a 24% increase in sales and marketing (Income Statement). Stock-based compensation also rose to $36.8 million from $21.9 million (Stock-Based Compensation table), helping explain why adjusted EBITDA declined despite higher revenue.
The main deterioration is margin, not demand. GAAP gross margin fell to 84.9% from 89.2%, and adjusted EBITDA margin dropped to 47.7% from 54.7% (Non-GAAP reconciliation). Free cash flow also fell by one-third, partly reflecting a $33.3 million increase in accounts receivable (Cash Flow statement). Those trends temper the headline beat: Doximity is growing and monetizing engagement, but it is spending substantially more to do so.
The net read is positive because the revenue and EBITDA outperformance outweigh the profitability giveback. The filing shows a meaningful beat versus the standing quarterly guide, while diluted non-GAAP EPS was approximately in line to slightly below the published consensus. The $91.6 million share repurchase reduced diluted weighted-average shares to 191.2 million from 201.2 million, and cash plus marketable securities remained roughly $688 million at quarter-end (Balance Sheet; Cash Flow statement). The key change is therefore stronger near-term execution than expected, offset by evidence that AI and workflow expansion are currently carrying a higher cost and cash-flow burden.
Read the original 8-K on SEC EDGAR ↗