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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.

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1.b. Last Insights on DOCS

Breaking News: Doximity Inc reported Q3 earnings and revenues that beat estimates but its shares fell 38.5% after hours. The company's margins contracted and it lowered its FY26 revenue guidance. While top and bottom line numbers give insight into Q3 performance, key metrics comparisons to Wall Street estimates and year ago values are also important. Analysts recently weighed in on the stock and a financial comparison to Netskope was made. A number of research analysts forecast growth.

1.c. Company Highlights

2. Doximity's Q3 2026 Earnings: A Strong Beat on Revenue and Margin

Doximity reported revenue of $185.1 million, a 10% year-over-year growth, and a 2% beat from the high end of their guidance. Adjusted EBITDA margin was 60%, exceeding the high end of their guidance. The company's EPS came in at $0.46, beating estimates of $0.44. The strong financial performance was driven by robust network stats, with 3 million registered members, and 85% of US physicians on their platform.

Publication Date: 09:57

📋 Highlights
  • Revenue Growth & Margin: $185.1M revenue (+10% YoY), 60% adjusted EBITDA margin (exceeding guidance by 2%), and $58.5M free cash flow.
  • AI Adoption & Performance: 300,000 prescribers used AI tools; Docs GPT preferred over competitors at 2x rate in trials, leveraging 2,000 journal access.
  • User Engagement: 1M active newsfeed users (record high), 720K workflow users (largest sequential gain), and telehealth platform served 700K+ visits during snowstorms.
  • Market Position & Acquisitions: 3M registered members (85% US physicians), 10,000 peer-checked experts, and Pathway Medical acquisition outperformed expectations with semantic datasets.
  • 2026 Outlook: Revenue guidance $642.5M–$643.5M (13% growth midpoint), $355.5M adjusted EBITDA (55% margin), and 20% of health systems already using AI tools.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by strong engagement, with record usage of their news feed, workflow, and AI products. Their workflow users saw the largest sequential gain ever, and Doximity Dialer was ranked the number one telehealth platform by health system CIOs. The adjusted EBITDA margin expansion was a result of the company's continued investment in its products and its ability to drive growth while maintaining profitability.

AI Strategy and Competitive Advantage

Doximity's AI strategy is a key driver of its growth, with 300,000 unique prescribers using their AI products in Q3. The company's AI toolset, including Docs GPT, was preferred by doctors at over twice the rate of their nearest competitor in a head-to-head trial. As Jeffrey Tangney noted, "we delivered doctors a faster, higher-quality clinical answer," highlighting the company's focus on providing high-quality solutions to healthcare providers.

Valuation and Growth Expectations

Using the company's current valuation metrics, we can assess what's priced in. The P/S Ratio is 8.17, and the EV/EBITDA is 19.2, indicating a premium valuation. For 2026, the company expects revenue growth of 13% at the midpoint, and adjusted EBITDA margin of 55%. Analysts estimate next year's revenue growth at 9.5%. The company's ability to drive growth while maintaining profitability will be key to justifying its current valuation.

Outlook and Risks

The company's outlook is positive, with expected growth driven by its AI strategy and continued investment in its products. However, the company faces risks, including policy uncertainty affecting pharma customers and competition in the healthcare technology space. As Perry Gold noted, "funds not released earlier in the year will be released later, and the company will benefit from these funds, as well as the commercial AI product launching later in the year."

3. NewsRoom

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Doximity (NYSE:DOCS) Shares Gap Down – Here’s Why

Feb -08

Source: defenseworld.net

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Financial Comparison: Doximity (NYSE:DOCS) vs. Netskope (NASDAQ:NTSK)

Feb -08

Source: defenseworld.net

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Doximity Stock Falls Despite Q3 Earnings & Revenues Beat Estimates

Feb -06

Source: zacks.com

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Why Doximity Stock Plummeted Today

Feb -06

Source: fool.com

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Stock Market Today: Futures Point Higher After Indexes Dive; Nasdaq, S&P 500 Poised for Weekly Losses; Bitcoin Sinks Near $60,000 Before Rebounding

Feb -06

Source: investopedia.com

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Breakfast News: Amazon's AWS Special Delivery

Feb -06

Source: fool.com

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Doximity, Inc. (DOCS) Q3 2026 Earnings Call Transcript

Feb -06

Source: seekingalpha.com

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Here's What Key Metrics Tell Us About Doximity (DOCS) Q3 Earnings

Feb -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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Progyny

A-Score: 5.3/10

Value: 3.6

Growth: 8.1

Quality: 6.6

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
HealthEquity

A-Score: 5.1/10

Value: 2.0

Growth: 8.2

Quality: 8.2

Yield: 0.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Doximity

A-Score: 4.6/10

Value: 1.3

Growth: 8.9

Quality: 9.5

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
GoodRx

A-Score: 3.8/10

Value: 6.5

Growth: 5.9

Quality: 7.1

Yield: 0.0

Momentum: 1.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Certara

A-Score: 3.5/10

Value: 3.3

Growth: 5.9

Quality: 5.7

Yield: 0.0

Momentum: 3.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
10x Genomics

A-Score: 3.4/10

Value: 5.8

Growth: 3.1

Quality: 4.0

Yield: 0.0

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.64$

Current Price

26.64$

Potential

-0.00%

Expected Cash-Flows