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Doximity Inc (DOCS)

Fair Value
HealthcareHealth Information ServicesUnited States

Fundamental

78

Price

$28.34

Market Cap

$4.67B

Part 1 · What the company is worth

Overview

Doximity runs the largest professional network for U.S. medical professionals. The platform is free for doctors: as of 31 March 2026 it had over 3 million registered members, representing more than 85% of U.S. physicians, about two-thirds of nurse practitioners and physician assistants, and roughly 90% of graduating medical students. Members get a verified professional profile, a medical news feed, colleague search, on-call scheduling, digital fax, telehealth (Dialer), an ambient AI note-taker (Scribe) and a clinical question-answering tool (Ask). The people who pay are not the doctors but pharmaceutical manufacturers, hospitals, health systems and medical recruiting firms, which buy access to that audience through Marketing, Hiring and Workflow Solutions. Fiscal 2026 revenue was $644.9 million, up 13% year over year, with 880 full-time-equivalent employees.

How it makes money

Almost all revenue is subscription-based: $608.4 million of the $644.9 million of fiscal 2026 revenue came from subscriptions, with $36.5 million classified as other. Pharmaceutical manufacturers and health systems buy annual subscription modules to place sponsored clinical content in front of targeted specialties; health systems and recruiting firms subscribe to the hiring tools (which also include Curative Talent, a staffing firm); workflow tools are sold to individual clinicians and to health-system enterprises, and are free for most members. Contracts are invoiced ahead of delivery — deferred revenue was $106.5 million at 31 March 2026 — and the company measures how much existing customers expand: the net revenue retention rate was 109% in fiscal 2026, against 119% in 2025 and 114% in 2024.

Competitive moat

Network effects · Narrow

The filing describes a self-reinforcing loop: more members make the network more useful to doctors, which makes the audience more valuable to pharmaceutical and health-system customers, whose spending funds more tools. Reaching more than 85% of U.S. physicians on a verified, credential-checked basis is hard to replicate, and the proprietary data set built from member activity adds to it. The advantage looks narrow rather than wide because the company competes for the same marketing, hiring and health-system IT budgets against Medscape, newer entrants such as OpenEvidence, staffing firms, and general-purpose vendors including Zoom, Microsoft Teams, Teladoc, Abridge, OpenAI and Anthropic — and because net revenue retention fell from 119% to 109% in one year.

What drives demand

Moderately cyclical

Demand rests on pharmaceutical marketing budgets, drug launch calendars and health-system hiring and IT spending. The filing says macroeconomic events and policy uncertainty may slow decision-making and budget allocation and reduce discretionary marketing spend at pharmaceutical companies, and that this could affect revenue, receivables and cash flow. Subscription contracts and a member base that uses the free clinical tools daily soften the swings, but the paying side is discretionary marketing money, so it is neither defensive nor deeply cyclical. The company also reports some seasonality tied to the timing of marketing programmes, subscription launches on the platform and customers' budget cycles for additional modules.

Key risks

  • Revenue concentrated in few customers — The company states that its revenue is relatively concentrated within a small number of key customers, and that losing one or more of them could slow revenue growth or cause revenue to decline. One customer accounted for 10% or more of total revenue in fiscal 2026 (11%), whereas no customer crossed that threshold in fiscal 2025 or 2024. Some customers also buy indirectly through marketing agencies that represent several of them at once.
  • Renewals and expansion may not continue — Doximity warns that if it does not keep attracting new customers, or if existing customers fail to renew, renew on less favourable terms, or stop buying additional solutions, the effect on business, financial condition and results could be material. Revenue growth is explicitly tied to the net revenue retention rate, which the company says fluctuates with the growth rate.
  • Growth rate already decelerating — The filing states that past growth is not indicative of future growth and that the growth rate may decline, citing its own figures: revenue grew 13% in fiscal 2026 after 20% in fiscal 2025. Management adds that investment in the business, including AI, may raise expenses and push net income and adjusted EBITDA margins down.
  • Dependence on member retention and engagement — If Doximity fails to retain existing members or add new ones, revenue, results and financial condition may be significantly harmed — the commercial solutions are only worth what the physician audience is worth. The company also flags that decisions taken to protect members' interests may hurt its own financial results.
  • Increasing competition — The company expects to face increasing competition, noting that many competitors and potential competitors have far greater financial and technological resources, wider name recognition and more established distribution. It names Medscape and OpenEvidence in marketing, staffing firms and job boards in hiring, and Zoom, Microsoft Teams, Teladoc, American Well, QGenda, Abridge, OpenAI and Anthropic around health-system IT budgets.
  • Artificial intelligence may not deliver — Doximity discloses that developing, deploying and using AI may not achieve the expected benefits and may create operational, reputational, competitive, regulatory, legal and liability risks. It also depends on evolving technology and network infrastructure, where interruptions, undetected errors or design faults could hurt the business.
  • Dual-class shares concentrate voting power — The dual class structure concentrates voting control with executive officers, including the CEO, directors and their affiliates, which the company says will limit or preclude an outside shareholder's ability to influence corporate matters.

Customer concentration

Top customers account for 11% of revenue

In fiscal 2026 one customer (labelled Customer B in the concentration note) accounted for 11% of revenue; no customer reached 10% in fiscal 2025 or 2024, and a different customer represented 12% of accounts receivable at 31 March 2025. Concentration is broader than that single name: the 125 customers with trailing-12-month subscription revenue above $500,000 accounted for approximately 83% of fiscal 2026 revenue, up from 118 such customers a year earlier. The company counts as one customer an entity buying directly or indirectly through a marketing agency.

The case for

Buyers argue that a network already reaching more than 85% of U.S. physicians is close to impossible to rebuild, and that pharmaceutical companies have to go where the doctors are. They point to the economics the filing shows: revenue of $644.9 million in fiscal 2026 with subscriptions at $608.4 million, net income of $196.1 million and free cash flow of $317.5 million, plus a customer base above $500,000 of annual spend that grew from 118 to 125 names. They also argue that the free clinical tools — telehealth, on-call scheduling, the ambient AI scribe and the clinical answer engine — deepen daily physician usage and open health-system IT budgets alongside the marketing budgets the company already sells into.

The case against

Sellers fear that the growth engine is losing force: revenue growth halved from 20% in fiscal 2025 to 13% in fiscal 2026, net revenue retention fell from 119% to 109%, and net margin dropped from 39.1% to 30.4%. They note that the paying side is a handful of pharmaceutical budgets — one customer at 11% of revenue in fiscal 2026 and roughly 83% of revenue from 125 accounts — which can be cut when drug launches slip or policy and macro uncertainty slows spending, exactly the mechanism the company describes in its own filing. They also fear that AI-native entrants such as OpenEvidence and general-purpose assistants can reach the same physicians without owning the network, and that the dual-class structure leaves outside shareholders no lever if management's answer disappoints.

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

Direct competitors

Who this company fights with for the same customers

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

WebMD Health Corp. (Medscape)Not tracked

Named by Doximity in its own 10-K as a competitor for marketing customers: Medscape reaches the same U.S. physician audience and sells the same pharmaceutical brand-advertising and sponsored-education budgets.

OpenEvidence (Xyla, Inc.)Not tracked

The other company Doximity names in its 10-K competition section: its clinical AI tool is free for verified U.S. physicians and is monetised with pharma and medical-device advertising, exactly the revenue line that produces most of Doximity's sales.

Sermo, Inc.Not tracked

A rival verified-physician network of over one million members that sells pharmaceutical companies access to the same doctors for market research and promotional campaigns.

LinkedIn CorporationNot tracked

Cited by Doximity as competition for members and it also competes with Doximity Hiring Solutions, since hospitals and recruiters can post clinical vacancies and source physicians there instead.

Teladoc Health, Inc.TDOC

Named in Doximity's 10-K among competitors for its workflow tools: both sell U.S. health systems virtual-visit and clinician communication software.

Balance Sheet & Liquidity

Revenue

$656M

Trailing 12 months (through 6/30/2026)

Net Income

$167M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$326M

Total Equity

$951M

Total Liabilities

$173M

Current Ratio

6.08

Interest Coverage

-

Debt/EBITDA

0.04

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$34.13

Current Price

$28.34

Margin of Safety

+17.0%

Fair Value Range

$22.18 - $46.08

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$29.94
Discounted cash flow (DCF):$63.57
Earnings multiple (P/E):$16.35
Graham growth formula:$43.24
Earnings power value (EPV):$6.76
Justified P/B:$8.02
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:$18.72
Mid-cycle earnings:$23.72
Revenue multiple:$13.51
Analyst Consensus:Buy (14B / 12H / 2S)
Last Earnings Surprise:-6.66%

Valuation Metrics

P/E Ratio

33.74

ROE

20.6%

P/B Ratio

5.56

P/FCF

14.43

Gross Margin

88.1%

ROIC

16.4%

Profitability Radar

Value Creation (Economic Moat)

ROIC

16.4%

WACC

11.8%

ROIC − WACC

+4.6 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • EPS CAGR 40.03%
  • ROIC 16.4%
  • Gross Margin 88.1%
  • P/FCF 14.43
  • Debt/Equity ratio
  • Operating Margin 29.6%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 17.0%
  • Revenue Growth 5Y 25.5%
  • Analyst Consensus 50% Buy
  • PEG Ratio 0.98
  • Earnings Quality (OCF/NI) 1.83
  • Share Dilution -0.5%
  • Piotroski F-Score 5/9

Failed (7)

  • Price CAGR -12.59%
  • P/B Ratio 5.56
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg 0.2%
  • Net Margin Trend 25.5% vs 39.9%

Unavailable (2)

  • Dividend Payout NaN%
  • Interest Coverage

Piotroski F-Score

5/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.83

High quality: earnings backed by cash

Share Dilution

-0.5%

Buying back shares. Shareholder friendly

Institutional Holdings

No institutional filings reported for this company.

Governance

Executive Team

NameTitleAge
Mr. Jeffrey A. TangneyCo-Founder, CEO & Chairperson52
Mr. Siddharth SitaramChief Accounting Officer47
Mr. John T. VaughanGeneral Counsel, Corporate Secretary & Chief Compliance Officer50
Dr. Steven L. Zatz M.D.President68
Mr. Matthew SonefeldtCFO & Principal Financial Officer45
Mr. Jey BalachandranChief Technology Officer-
Mr. Perry Scott GoldHead of Investor Relations-
Mr. Bruno MirandaSenior Vice President of Engineering-
Mr. Joel DavisSenior Vice President of Product-
Mr. Ben GreenbergSenior VP & GM Commercial Products-

Audit Risk

2

Board Risk

10

Compensation Risk

9

Shareholder Rights Risk

10

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-05-19

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-06

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-02

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for DOCS, sourced from Markets Gazette.

  • 8/7/2026POSITIVE
    Doximity’s stock skyrockets 50% on medical AI excitement. Can the rally last?

    Doximity Inc. experienced a remarkable 50% surge in its stock price, fueled by significant investor enthusiasm surrounding its advancements in medical artificial intelligence. This rapid ascent highlights the market's positive reception to the company's AI initiatives. However, contrasting opinions from analysts introduce a note of caution. While one expert sees a 'compelling AI opportunity,' another raises concerns about potential cannibalization of Doximity's established medical networking business. Investors are now closely watching to see if the current rally is sustainable amidst these divergent views and the inherent risks associated with integrating new AI technologies into existing business models.

  • 5/13/2026NEUTRAL
    Doximity Q4 2026 Earnings Call Transcript

    Doximity Inc. held its Q4 2026 earnings call on May 13, 2026. While the transcript is available, no specific financial results, forward-looking statements, or significant strategic announcements were detailed in the provided snippet. The call likely covered performance metrics and future outlook for the company, which operates a digital platform for medical professionals. Investors would typically look for revenue growth, profitability, user engagement, and guidance for the upcoming fiscal year. Without these details, the immediate market impact remains uncertain.

via Markets Gazette