Doximity, Inc. Q2 FY2026 earnings call

• Financials: Second quarter revenue grew 23% year-over-year, adjusted EBITDA margin was 60%, free cash flow up 37% year-on-year.
• Network growth and engagement: News feed had all-time record number of quarterly active prescribers and double-digit growth in articles read/tapped. Workflow tools had over 650,000 unique prescribers in Q2, an all-time high. AI tools saw quarterly active prescribers up over 50% from prior quarter.
• Pathway acquisition and AI scribe: Fully integrated Pathway's medical data set and AI models into DoxGPT. AI scribe's quarterly active users nearly tripled versus Q1. Portal positively influences purchasing decisions, with multi-module integrated offerings representing over 40% of bookings in Q2 compared to less than 5% last year.

In the second quarter of fiscal 2026, Doximity delivered $169 million of revenue, representing 23% year-on-year growth and a 7% beat from the high end of the guidance range. The adjusted EBITDA was $101 million with a margin of 60%, up 15% from the high end of guidance. Free cash flow was up 37% year-on-year. Non-GAAP gross margin in the second quarter was 92%. Existing customers continued to lead growth, with a net revenue retention rate of 118% on a trailing 12-month basis. There were 121 customers contributing at least $500,000 each in subscription-based revenue on a trailing 12-month basis, accounting for 84% of total revenue.

• Third fiscal quarter 2026: Expect revenue in the range of $180 million to $181 million, representing 7% growth at the midpoint, and adjusted EBITDA in the range of $103 million to $104 million, representing a 57% adjusted EBITDA margin.
• Full fiscal year 2026: Now expect revenue in the range of $640 million to $646 million, representing 13% growth at the midpoint, and adjusted EBITDA in the range of $351 million to $357 million, representing a 55% adjusted EBITDA margin. Driven by outperformance of pharma business during upsell season, client portal influence, and multi-module integrated offerings. However, client discussions suggest uncertainty over policy changes on annual budgets, and will take a measured approach to unbooked revenue. Will continue to invest in AI in the back half of the year while maintaining over 55% adjusted EBITDA margin.

• Policy changes: Uncertainty over how recent policy changes may influence annual budgets, which are expected to be finalized over the next 2 months.
• D2C advertising: Direct-to-consumer ad dollars are usually controlled by different ad agencies than those that control the HCP dollars, leading to delay in locking in final budgets for next year.
• Litigation: Ongoing litigation with Open Evidence, although Doximity is confident in the Pathway acquisition and its integration benefits.

Q: Brian Peterson asked about uncertainty around budget discussions, specifically related to calendar 2026 budgets and where people may be uncertain.

A: Anna Bryson responded that they are primarily talking about calendar 2026 budgets, the general environment has slowed big decisions like annual budgets, and there could be more caution in the upfront cycle, but client engagement with the platform remains very high and interest in integrated programs continues to build.

Q: Brian Peterson followed up with Jeff Tangney about how far Doximity plans to take AI and if the opportunity is significantly bigger than today.

A: Jeff Tangney said they're going to take it all the way, excited about AI QAUs growth and scribe user tripling, and winning decisively in AI answer quality with partnerships like Research Solutions for full medical journal access.

Q: Michael Cherny asked about budget allocation and D2C advertising impact.

A: Perry Gold responded that it's early in the process with D2C ad dollars controlled by different agencies, but they've had conversations with agency partners about courting D2C brands, and client engagement with the platform remains high.

Q: Allen Lutz asked about budget flush and AI strategy.

A: Anna Bryson explained that transition to integrated programs has helped clients deploy upsell dollars earlier, and Jeff Tangney talked about AI use in integrated programs, portal growth, and telehealth AI integration potential.

Q: Ryan Daniels asked about targeting agency partners for SMB growth and integrated offerings visibility.

A: Perry Gold said the agency partnership program is going well with SMB growth up 100% year-on-year, and Anna Bryson clarified that integrated offerings represented 40% of Q2 bookings, giving better visibility with clients checking ROI monthly.