Doximity 2025 Q4 Earnings Strong Performance as Net Income Surges 53.8%

Doximity (DOCS) reported its fiscal 2025 Q4 earnings on May 15th, 2025. The company exceeded expectations with a substantial net income increase of 53.8% to $62.46 million, compared to $40.62 million in the previous year. This reflects strong business performance and stable profitability. The company also issued guidance for continued growth, anticipating a 10% revenue increase for the next fiscal year. Despite the positive results, Doximity's stock saw a slight decline in the immediate aftermath of the earnings release.

Revenue
The total revenue of Doximity increased by 17.1% to $138.29 million in 2025 Q4, up from $118.06 million in 2024 Q4.

Earnings/Net Income
Doximity's EPS rose 50.0% to $0.33 in 2025 Q4 from $0.22 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $62.46 million in 2025 Q4, marking 53.8% growth from $40.62 million in 2024 Q4. The Company has sustained profitability for 4 years over the corresponding fiscal quarter, reflecting stable business performance. The EPS growth demonstrates strong financial performance.

Price Action
The stock price of Doximity has edged down 1.76% during the latest trading day, has edged down 1.52% during the most recent full trading week, and has jumped 11.12% month-to-date.

Post-Earnings Price Action Review
The strategy of buying DOCS when revenue beats and holding for 30 days resulted in a modest 0.29% return, significantly underperforming the benchmark with a -22.32% excess loss and a Sharpe ratio of 0.00, indicating no risk premium was earned. The maximum drawdown of -71.53% highlights its high risk, making it unfeasible despite its simplicity. Investors should exercise caution with this strategy as it demonstrates substantial volatility and potential for loss, despite occasional gains in a short timeframe. The contrasting performance emphasizes the need for a more nuanced approach when considering investment strategies around earnings announcements.

CEO Commentary
Jeff Tangney, Co-Founder and CEO of Doximity, emphasized that the company achieved a fourth-quarter revenue of $138 million, exceeding guidance by 4%, and a full-year revenue of $570 million, growing 20% year-on-year. He highlighted the strong performance from their top 20 clients, which grew 23%. Tangney noted that their network growth and engagement reached new highs, particularly with their newsfeed and AI tools, which have become increasingly popular among physicians. He expressed excitement about the integration of AI in their offerings, stating, "As AI-assisted medicine becomes a reality, our future has never been brighter or more exciting."

Guidance
For the first fiscal quarter of 2026, Doximity expects revenue between $139 million and $140 million, reflecting a 10% growth at the midpoint. For the full fiscal year, the company anticipates revenue in the range of $619 million to $631 million, also representing 10% growth at the midpoint. Adjusted EBITDA is projected to be between $333 million and $345 million, indicating a 54% adjusted EBITDA margin. The company is cautious about potential macroeconomic impacts, assuming market growth could be on the lower end of the expected range of 5% to 7%.

Additional News
In recent weeks, Doximity has witnessed significant insider activity, with CEO Jeffrey Tangney and CFO Anna Bryson selling shares worth approximately $75.7 million and $18.6 million, respectively. These sales reflect ongoing executive stock transactions, which may affect investor sentiment. Additionally, BNP Paribas Financial Markets has acquired a new stake in Doximity, highlighting institutional interest in the company. This development points to a positive outlook from financial markets, despite the recent stock price fluctuations. Meanwhile, Doximity's stock forecast and analyst predictions suggest a future growth trajectory, with expected revenue and earnings increases over the next few years.