Doximity, Inc. reported its financial results for the first quarter of fiscal 2027, ending June 30, 2026, revealing a revenue of $156.6 million, a 7% increase from $145.9 million in the same period last year. The company's net income for the quarter was $24.3 million, down from $53.3 million in the prior year, reflecting a significant decrease in profitability. The decline in net income was attributed to increased operating expenses, particularly in research and development and sales and marketing, which rose by 44% and 24%, respectively, compared to the previous year.
The company's total operating expenses for the quarter reached $99.3 million, up from $75.6 million in the prior year, driven by higher stock-based compensation and investments in AI initiatives. Doximity's gross profit increased slightly to $132.9 million, but the gross margin fell to 85% from 89% due to rising costs associated with cloud hosting and software. The company reported an adjusted EBITDA of $74.8 million, down from $79.8 million a year earlier, indicating a margin of 48%.
Doximity's user engagement metrics showed positive trends, with a 32% year-over-year increase in quarterly unique active providers using its workflow tools. The company reported 127 customers with trailing 12-month subscription revenue exceeding $500,000, contributing to approximately 83% of total revenue. However, the net revenue retention rate declined to 107% from 118%, indicating a slight contraction in revenue from existing customers.
In terms of cash flow, Doximity generated $42.0 million from operating activities, a decrease from $62.1 million in the same quarter last year. The company also reported a significant increase in cash provided by investing activities, totaling $113.0 million, primarily from the maturities of marketable securities. Doximity's cash and cash equivalents, along with marketable securities, amounted to $687.8 million as of June 30, 2026, providing a solid liquidity position.
Looking ahead, Doximity remains focused on enhancing its platform and expanding its customer base. The company plans to continue investing in AI-driven solutions and improving its workflow tools to better serve healthcare professionals. Despite the challenges in profitability, Doximity's strong cash position and commitment to innovation position it well for future growth in the competitive healthcare technology landscape.
About Doximity, Inc.
Doximity is a leading digital platform serving U.S. medical professionals, offering a professional network, communication tools, and clinical workflow solutions. It provides members with networking, news, career management, and telehealth services, while enabling pharmaceutical companies and health systems to engage through marketing, hiring, and workflow solutions. Its physician-first approach and extensive network create a trusted ecosystem that enhances clinical productivity and healthcare collaboration.
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