Doximity, Inc. reported a significant increase in its financial performance for the three months ended June 30, 2025, with total revenue reaching $145.9 million, a 15% increase from $126.7 million in the same period last year. The company's net income also rose to $53.3 million, compared to $41.4 million in the prior year, resulting in a diluted earnings per share of $0.27, up from $0.21. The growth in revenue was primarily driven by a $17.9 million increase in subscription revenue, with 94% of total revenue derived from subscription customers.
In terms of operational metrics, Doximity's customer base with trailing 12-month subscription revenue exceeding $500,000 grew to 120, up from 103 a year earlier. The net revenue retention rate improved to 118%, compared to 114% in the previous year, indicating strong customer engagement and expansion. The company also reported an increase in average revenue per existing Marketing Solutions customer, which rose by approximately 14%.
Doximity's operating expenses increased to $75.6 million from $67.1 million, driven by higher research and development costs, which rose by 19% to $26.8 million, and a 34% increase in general and administrative expenses to $12.4 million. The company attributed these increases to stock-based compensation and higher personnel costs. Despite the rise in expenses, the gross margin remained stable at 89%, reflecting effective cost management in relation to revenue growth.
On the strategic front, Doximity announced the acquisition of Pathway Medical Inc., an AI-based medical knowledge platform, for $26 million, which closed in July 2025. This acquisition aligns with Doximity's mission to enhance its digital platform for healthcare professionals. The company also approved an equity award pool of $30 million, further emphasizing its commitment to attracting and retaining talent.
Looking ahead, Doximity expressed confidence in its financial outlook, supported by a strong cash position of $137.3 million in cash and cash equivalents, along with $703.7 million in marketable securities. The company anticipates that its existing resources will be sufficient to support its operational and capital expenditure needs for at least the next 12 months. However, it acknowledged potential challenges related to market conditions and competition, which could impact future growth.
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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