Yahoo Finance

• Q4 Revenue: $138 million, 4% above guidance.

• Full Year Revenue: $570 million, 20% year-on-year growth.

• Top 20 Clients Growth: 23% in fiscal 2025.

• Q4 Adjusted EBITDA Margin: 50%, $70 million, 10% above guidance.

• Q4 Free Cash Flow: $97 million, up 56% year-on-year.

• Full Year Adjusted EBITDA: $314 million, 36% growth.

• Full Year Adjusted EBITDA Margin: 55%, up from 48% prior year.

• Full Year Free Cash Flow: $267 million, 50% increase year-on-year.

• Net Revenue Retention Rate: 119% overall, 123% for top 20 customers.

• Customers with $500K+ Revenue: 116 customers, 17% increase from last year.

• Q4 Non-GAAP Gross Margin: 91%, flat year-over-year.

• Full Year Non-GAAP Gross Margin: 92%, up from 91% last year.

• Cash and Equivalents: $916 million at year-end.

• Share Repurchase: $26.8 million in Q4, $116.2 million for the full year.

• Q1 2026 Revenue Guidance: $139 million to $140 million, 10% growth at midpoint.

• Q1 2026 Adjusted EBITDA Guidance: $71 million to $72 million, 51% margin.

• Full Year 2026 Revenue Guidance: $619 million to $631 million, 10% growth at midpoint.

• Full Year 2026 Adjusted EBITDA Guidance: $333 million to $345 million, 54% margin.

• Warning! GuruFocus has detected 3 Warning Signs with RNXT.

Release Date: May 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Doximity Inc (NYSE:DOCS) reported $138 million in revenue for Q4 2025, exceeding the high end of their guidance by 4%.

• The company achieved a 20% year-over-year revenue growth for the full fiscal year, reaching $570 million.

• Adjusted EBITDA margin for Q4 was 50%, surpassing guidance by 10%, and for the full year, it was 55%, up from 48% the previous year.

• Unique active users across all timeframes hit new highs, with significant growth in their news feed and AI tools.

• Doximity's integrated offerings and AI-powered tools are gaining traction, leading to larger deal sizes and improved client engagement.

Negative Points

• Despite strong performance, Doximity Inc (NYSE:DOCS) is cautious about potential macroeconomic uncertainties affecting future growth.

• The company anticipates a tougher year-over-year comparison for fiscal 2026 due to the strategic shift in program launches.

• There is a reliance on a small number of large clients, with the top 20 customers contributing significantly to revenue growth.

• The market growth rate for the pharma HCP digital market is expected to be on the lower end of the 5% to 7% range.

• Doximity Inc (NYSE:DOCS) is still in the early stages of AI investment, and the long-term impact on margins and efficiency remains uncertain.