Doximity's Q3 2025 Earnings Call: Contradictions in Pharma Budget Growth, Client Portal Impact, and Revenue Expectations

These are the key contradictions discussed in Doximity's latest 2025 Q3 earnings call, specifically including: Pharma budget growth expectations and the impact of the client portal on revenue growth, Pharma and Health System Revenue Growth Expectations, and The Impact of the Self-Service Portal:



Revenue and Earnings Growth:
- Doximity reported $169 million in revenue for Q3 of Fiscal 2025, representing a 25% year-on-year growth and a 10% beat from the high end of their guidance range.
- This growth was driven by strong performance from their top 20 clients, who grew their engagement by 122% on a trailing 12-month basis.

Profitability and EBITDA Margin:
- Doximity achieved a record adjusted EBITDA margin of 61% or $102 million, which was up 39% year-on-year and 21% above the high end of their guidance.
- The increase in profitability is attributed to strong revenue growth and high incremental margins, as almost all performance outperformance flows through to the bottom line.

User Engagement and Network Growth:
- Doximity's unique active users on a quarterly, monthly, and weekly basis hit fresh highs in Q3, with double-digit percent growth year-on-year.
- This growth was driven by increased engagement in news feed usage, with over 1 million of unique active prescribers scrolling the feed, and AI tools, which grew over 60% quarter-on-quarter.

Product Innovation and Integrated Programs:
- Doximity's new point of care and formulary products grew over 100% in Q3, generating over 20% of their pharmaceutical sales.
- The strong performance of these products and integrated programs was attributed to increased demand for customized and dynamic client strategies and the successful launch of integrated offerings during the upfront season.