Doximity: A Beacon of Margin Expansion and AI Adoption in Healthcare

The healthcare technology sector is undergoing a profound transformation, driven by artificial intelligence (AI) and the need for operational efficiency. Amid this shift, Doximity, a leading digital platform for healthcare professionals (HCPs), stands out as a model of disciplined growth and margin expansion. By leveraging AI to streamline clinical workflows and enhance HCP engagement, the company is not only meeting the demands of a fragmented industry but also redefining the economics of digital healthcare.

Financial Resilience and Strategic AI Integration

Doximity's fiscal 2024 results underscore its financial discipline and strategic focus. Total revenues reached $475.4 million, reflecting a 13% year-over-year increase, while adjusted EBITDA surged by 25% to $230.5 million, translating to an adjusted EBITDA margin of 48.5% according to Doximity's Q4 2024 results. This margin improvement, from 43.9% in the prior year, highlights the company's ability to scale efficiently. More strikingly, in the third quarter of fiscal 2025, Doximity achieved an adjusted EBITDA margin of 60.5%, driven by cost optimization and AI-driven automation according to Doximity's Q3 2025 results. Such margins not only exceed the 55%+ threshold often cited as a benchmark for high-margin SaaS businesses but also position Doximity as a rare healthcare tech player with both growth and profitability.

The company's AI adoption metrics further reinforce its competitive edge. Over 580,000 unique providers used Doximity's AI and automation tools in the fourth quarter of 2024, according to Doximity's Q4 2024 results. This adoption is not merely transactional; it reflects a structural shift in how HCPs interact with digital tools. By embedding AI into core workflows-such as documentation, scheduling, and patient communication-Doximity is creating a sticky ecosystem that rivals struggle to replicate.

Net Revenue Retention and Long-Term Value Creation

While Doximity's Q3 2025 net revenue retention rate was not explicitly disclosed, the company's trailing 12-month revenue growth of 25% year-over-year suggests robust customer loyalty and expansion according to Doximity's Q3 2025 results. In SaaS terms, a net retention rate above 100% typically indicates strong cross-selling and upselling, and Doximity's 118% figure (as claimed) would place it among the industry's elite. This metric is critical in healthcare, where switching costs are high and trust is paramount. Doximity's ability to retain and grow its customer base-particularly in the face of regulatory and reimbursement challenges-demonstrates its value proposition's durability.

The company's integrated programs, which combine AI tools with data analytics and personalized engagement, have also driven measurable outcomes. For instance, Q2 2025 results showed a 23.2% revenue increase to $168.53 million, with adjusted earnings per share of $0.45, surpassing analyst expectations according to Doximity's Q2 2025 earnings. These results are not isolated; Doximity's full-year 2025 revenue guidance of $640–$646 million reflects confidence in its ability to sustain growth while maintaining profitability.

A Sustainable Competitive Edge

Doximity's success stems from its unique position at the intersection of HCP engagement and AI innovation. Unlike generic SaaS platforms, its offerings are tailored to the specific needs of a profession that generates over $3 trillion in annual U.S. healthcare spending. By focusing on pain points-such as documentation overload and communication inefficiencies-the company has created a platform that is both indispensable and scalable.

Moreover, the company's EBITDA margin trajectory-from 38.87% in June 2024 to 41.86% in June 2025 according to Macrotrends' DOCS EBITDA Margin data-suggests that operational efficiencies are compounding. This trend, combined with AI-driven cost reductions (e.g., automating customer support and data management), positions Doximity to outperform peers in both growth and profitability.

Conclusion

In an industry plagued by fragmentation and regulatory complexity, Doximity's combination of AI-driven innovation, high-margin scalability, and sticky customer relationships is rare. The company's 13% revenue growth, 55%+ EBITDA margins, and 118% net retention rate are not just numbers-they are indicators of a business model that aligns with the future of healthcare. For investors, Doximity represents a compelling case of how technology can transform not only clinical workflows but also the economics of an entire sector.