Doximity, Inc. (DOCS) | Investment Case

1. Company Snapshot

1.a. Company Description

Doximity, Inc.operates a cloud-based digital platform for medical professionals in the United States.The company's platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up to date with the latest medical news and research, and manage their careers.

It primarily serves pharmaceutical manufacturers and healthcare systems.The company was formerly known as 3MD Communications, Inc.and changed its name to Doximity, Inc.

in June 2010.Doximity, Inc.was incorporated in 2010 and is headquartered in San Francisco, California.

Show Full description

1.b. Last Insights on DOCS

Doximity, Inc.'s recent performance was negatively impacted by a decrease in investor confidence, as evident from Creative Planning's 6.2% reduction in its stake, selling 2,106 shares. Despite exceeding Q2 earnings and revenue estimates, with quarterly earnings of $0.45 per share, the company's growth prospects faced scrutiny. A "Hold" rating from brokerages, as reported by Marketbeat, citing 2 sell, 9 hold, and 10 buy ratings, also influenced the stock. Furthermore, a rise in AI-driven engagement, though beneficial, did not offset concerns.

1.c. Company Highlights

Last Price	50.96
Change Percentage	-0.68%
Open	51.33
Previous Close	51.31
Market Cap ( Millions)	9569
Volume	371562
Year High	85.21
Year Low	46.04
M A 50	61.83
M A 200	61.3

FCF Yield	3.31%
Dividend Yield	0.00%
ROE	23.90%
Debt / Equity	1.03%
Net Debt / EBIDTA	-59.68%
Price To Book	8.73
Price Earnings Ratio	37.8
Price To FCF	30.24
Price To sales	15.4
EV / EBITDA	35.55

2. Doximity's Q2 FY2026 Earnings: Strong Revenue Growth and Expanding AI Capabilities

Doximity reported revenue of $168.5 million for the second quarter of fiscal 2026, representing a 23% year-over-year increase and exceeding the high end of their guidance range. The company's adjusted EBITDA margin was 60%, with adjusted EBITDA of $100.8 million. Earnings per share (EPS) came in at $0.45, beating analyst estimates of $0.38. The company's free cash flow was $91.6 million, a 37% year-over-year increase.

Publication Date: Nov -10

                                    📋 Highlights
                                    Revenue Growth::
                                                Q2 revenue reached $168.5M, up 23% YoY, and $169M, exceeding high-end guidance by 7%.
Adjusted EBITDA Margin::
                                                Achieved 60% margin, a 15% beat over guidance, with $100.8M in adjusted EBITDA.
AI Product Expansion::
                                                DoxGPT integrated Pathway’s dataset, serving 650K+ prescribers and enabling peer-reviewed drug reference access.
Integrated Programs Growth::
                                                40% of Q2 bookings now come from integrated programs, up from 5% YoY, driving higher client ROI and sales optimization.
Telehealth & AI Adoption::
                                                Over 300,000 daily voice/video calls on the telehealth platform, with AI integration to enhance note-taking and assessments in early stages.

                                

Revenue Growth Drivers

The company's revenue growth was driven by its expanding network and increasing adoption of its AI-powered products. Doximity saw a record number of quarterly active prescribers on its news feed and double-digit growth in the number of articles read or tapped. The company's telehealth platform also continued to grow, with over 300,000 voice and video calls per day.

AI Strategy and Expansion

Doximity is making significant investments in AI, with a focus on optimizing sales and improving client engagement. The company's AI-powered tool, DoxGPT, has been integrated into its platform, providing peer-reviewed answers to important questions in medicine. According to Jeffrey Tangney, "AI is being used extensively in integrated programs to optimize sales. 40% of sales are now integrated programs, up from 5% a year ago." The company's AI capabilities are expected to drive long-term growth and improve its competitive position.

Valuation Metrics

Doximity's current valuation metrics indicate a premium price relative to its earnings and sales. The company's Price-to-Sales Ratio is 16.41, and its EV/EBITDA ratio is 37.91. Analysts estimate next year's revenue growth at 13.8%, which may not be sufficient to justify the current valuation multiples. The company's Return on Equity (ROE) is 23.9%, indicating strong profitability.

Guidance and Outlook

Doximity provided guidance for the third fiscal quarter of 2026, expecting revenue in the range of $180 million to $181 million. The company also updated its full-year revenue guidance to $640 million to $646 million, representing 13% growth at the midpoint. The company's guidance suggests continued strong revenue growth, driven by its expanding AI capabilities and increasing adoption of its products.

3. NewsRoom

Edgestream Partners L.P. Buys 38,540 Shares of Doximity, Inc. $DOCS

Dec -03

Source: defenseworld.net

Doximity, Inc. $DOCS Shares Sold by Creative Planning

Nov -26

Source: defenseworld.net

Wall Street is Pounding the Table Over NVDA, CVNA, DOCS

Nov -21

Source: 247wallst.com

Dr Martens drops despite results in line with forecasts

Nov -20

Source: proactiveinvestors.co.uk

Doximity Stock Down Despite Q2 Earnings Beat, Revenues Up Y/Y

Nov -07

Source: zacks.com

Doximity, Inc. (DOCS) Q2 2026 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

Compared to Estimates, Doximity (DOCS) Q2 Earnings: A Look at Key Metrics

Nov -07

Source: zacks.com

Doximity (DOCS) Tops Q2 Earnings and Revenue Estimates

Nov -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.14%)

6. Segments

Subscription

Expected Growth: 12.0%

Doximity's subscription growth of 12.0% is driven by increasing adoption of its digital platform among medical professionals, expansion into new markets, and rising demand for telemedicine services. Additionally, the company's strong network effects, high customer retention rates, and growing revenue from pharmaceutical companies also contribute to its robust growth.

Other

Expected Growth: 14.0%

Doximity's 14.0% growth is driven by increasing adoption of its digital platform among healthcare professionals, expansion into new markets, and growing demand for telemedicine services. Additionally, the company's strategic partnerships and investments in artificial intelligence and machine learning are enhancing its offerings, leading to increased revenue and user engagement.

7. Detailed Products

Doximity Talent Finder

A recruitment platform that helps healthcare organizations find and hire top medical talent

Doximity Career Navigator

A career development platform that provides physicians and advanced practitioners with personalized job matching and career guidance

Doximity Dialer

A telemedicine platform that enables healthcare providers to conduct virtual patient consultations and remote care

Doximity Fax

A digital fax solution that enables secure and HIPAA-compliant transmission of patient records and medical documents

Doximity Residency Navigator

A residency program research and application platform that helps medical students find and apply to residency programs

8. Doximity, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Doximity's services are highly specialized and tailored to the needs of medical professionals, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While Doximity's customers have some bargaining power due to their large numbers, the company's strong brand and network effects mitigate this power.

Bargaining Power Of Suppliers

Doximity's suppliers, such as data providers and infrastructure vendors, have limited bargaining power due to the company's scale and negotiating power.

Threat Of New Entrants

While there are barriers to entry in the healthcare technology space, new entrants could potentially disrupt Doximity's business model with innovative solutions.

Intensity Of Rivalry

The healthcare technology space is highly competitive, with multiple players vying for market share, which increases the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	1.59%
Debt Cost	3.95%
Equity Weight	98.41%
Equity Cost	9.87%
WACC	9.78%
Leverage	1.61%

11. Quality Control: Doximity, Inc. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Progyny

A-Score: 5.2/10

Value: 4.0

Growth: 8.1

Quality: 6.5

Yield: 0.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

Doximity

A-Score: 5.1/10

Value: 0.3

Growth: 8.9

Quality: 9.5

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

HealthEquity

A-Score: 4.8/10

Value: 1.4

Growth: 8.3

Quality: 7.1

Yield: 0.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

Certara

A-Score: 4.0/10

Value: 2.3

Growth: 5.9

Quality: 5.7

Yield: 0.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

GoodRx

A-Score: 3.5/10

Value: 5.2

Growth: 5.9

Quality: 5.9

Yield: 0.0

Momentum: 2.0

Volatility: 1.7

1-Year Total Return ->

10x Genomics

A-Score: 2.9/10

Value: 5.9

Growth: 3.2

Quality: 3.8

Yield: 0.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

14.51%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.78%

Doximity, Inc. - US26622P1075

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DOCS

1.c. Company Highlights

Better Quality

Higher Growth

Expensive

Earnings Beats

Revenues Beats

Revenues Miss

2. Doximity's Q2 FY2026 Earnings: Strong Revenue Growth and Expanding AI Capabilities

Revenue Growth Drivers

AI Strategy and Expansion

Valuation Metrics

Guidance and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.14%)

6. Segments

Subscription

Expected Growth: 12.0%

Other

Expected Growth: 14.0%

7. Detailed Products

Doximity Talent Finder

Doximity Career Navigator

Doximity Dialer

Doximity Fax

Doximity Residency Navigator

8. Doximity, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Doximity, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.96$

Current Price

50.96$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA