Doximity (DOCS) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached $185.1 million, up 10% year-over-year, with record engagement in newsfeed, workflow, and AI products.

• Net income was $61.6 million (33% margin), down from $75.2 million (44.6% margin) in the prior year quarter.

• Adjusted EBITDA was $111.4 million (60% margin), up 9% year-over-year and above guidance.

• Surpassed 3 million registered members, with over 85% of US physicians and two-thirds of NPs/PAs on the platform.

• 126 customers generated over $500,000 in trailing 12-month subscription revenue, accounting for 84% of total revenue.

Financial highlights

• Net revenue retention rate was 112% (trailing twelve months); top 20 customers at 117%.

• Non-GAAP gross margin was 91% in Q3, down from 93% due to increased AI infrastructure investment.

• Free cash flow was $58.5 million for the quarter; cash, equivalents, and marketable securities totaled $735 million.

• Quarterly revenue increased by $16.5 million year-over-year, primarily from new and expanded subscription customers.

• Net income margin for the quarter was 33%, and adjusted EBITDA margin was 60%.

Outlook and guidance

• Q4 revenue expected at $143–$144 million; Adjusted EBITDA $63.5–$64.5 million.

• FY26 revenue expected at $642.5–$643.5 million; Adjusted EBITDA $355.5–$356.5 million.

• Lower Q4 revenue and higher AI infrastructure investment due to usage; annual outlook midpoint unchanged.

• Management expects continued investment in cloud infrastructure, customer support, and product development to support growth.

• Expect double-digit growth exit rate for calendar 2026, driven by delayed budget releases and upcoming AI commercialization.