Executive Summary
Doximity delivered a standout QQ3 2025 performance, underscoring a durable and highly profitable platform with substantial growth levers. Revenue reached $168.6 million, up 25% year over year, and the company reported an adjusted EBITDA margin of 61% on the quarter, reflecting material upsell activity and a favorable mix from higher-margin products. Management highlighted the continued strength of the network effects—NRR at 117% (trailing twelve months)—and the accelerating adoption of new modules outside the core news feed, including point-of-care and formulary tools, which grew more than 100% in Q3 and accounted for more than 20% of pharmaceutical revenue. Free cash flow was strong at $63.4 million, and the balance sheet remains exceptionally solid with $845 million in cash, cash equivalents, and marketable securities and minimal gross debt. The company signaled a robust year-end upsell cycle and an increased full-year outlook, driven by larger multi-module integrated programs, faster launches, and better revenue visibility.
Strategically, Doximity is leveraging AI-driven tooling and a client portal to deepen engagement with pharma brands and health systems. The management commentary consistently framed AI as an additive, non-monetized growth engine with meaningful efficiency gains (e.g., doctors saving time with AI prompts and automation). The near-term guidance implies continued momentum, with Q4 revenue guidance of $132.5–$133.5 million and adjusted EBITDA of $62.5–$63.5 million, alongside a full-year outlook of roughly $565 million in revenue and mid-50% adjusted EBITDA margins. Taken together, the QQ3 results position Doximity as a high-margin software-enabled marketing platform with a large, expanding wallet share among pharma brands and healthcare providers, supported by a robust cash generation profile and a capital-return program.
Key Performance Indicators
Key Insights
Revenue: $168.6M in Q3 2025, up 25% YoY; QoQ +~23% (per company disclosures). Gross margin: 91.6% (non-GAAP gross margin 93%); EBITDA: Adjusted EBITDA $102.0M, margin 61% (Q3); Operating income: $79.9M (margin ~47.4%); Net income: $75.2M (net margin ~44.6%); EPS: $0.40 GAAP, $0.37 diluted; NRR: 117% (TTM); Top customers: 114 customers contributing at least $0.5M in ARR (TTM), comprising ~84% of revenue; Free cash flow: $63.4M in Q3; Cash and marketable securities: $845M; Net cash position: net c...
Financial Highlights
Revenue: $168.6M in Q3 2025, up 25% YoY; QoQ +~23% (per company disclosures). Gross margin: 91.6% (non-GAAP gross margin 93%); EBITDA: Adjusted EBITDA $102.0M, margin 61% (Q3); Operating income: $79.9M (margin ~47.4%); Net income: $75.2M (net margin ~44.6%); EPS: $0.40 GAAP, $0.37 diluted; NRR: 117% (TTM); Top customers: 114 customers contributing at least $0.5M in ARR (TTM), comprising ~84% of revenue; Free cash flow: $63.4M in Q3; Cash and marketable securities: $845M; Net cash position: net cash (debt negligible, net debt negative). Share repurchases: $19.2M in Q3 at $48.62; remaining authorization: $451M. Upfront/contract dynamics: Q3 benefited from strong upsells and higher upfront bookings; guidance embeds continued January-module launches and multi-module integrated programs. 2025 full-year guidance: Revenue $564.6–$565.6M; Adj. EBITDA $306.6–$307.6M; Q4 guidance: Revenue $132.5–$133.5M; Adj. EBITDA $62.5–$63.5M.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
168.60M |
24.63% |
23.22% |
| Gross Profit |
154.42M |
25.45% |
25.39% |
| Operating Income |
79.93M |
36.50% |
50.40% |
| Net Income |
75.20M |
56.80% |
70.30% |
| EPS |
0.40 |
53.85% |
66.67% |
Key Financial Ratios
operatingProfitMargin
47.4%
operatingCashFlowPerShare
$0.35
freeCashFlowPerShare
$0.34
Management Commentary
- Strategy and product evolution: Jeff Tangney highlighted a 25% YoY revenue increase and a 10% beat to the high end of guidance, with a narrative around expanding multi-module programs and a patient-centric, integrated product suite. Quote: “We delivered $169 million in revenue for the third quarter of our fiscal 2025, which represents 25% year-on-year growth and a 10% beat from the high end of our guidance range.” (Jeff Tangney)
- AI and workflow leverage: Management emphasized AI-driven prompts and workflow tools as growth accelerants, with non-GAAP gross margins remaining high and AI adoption expanding, supported by a large physician advisory ecosystem. Quote: “Our AI tools grew the fastest in Q3 with over 1.8 million prompts. Outperforming Microsoft Teams, Zoom, and many others.” (Jeff Tangney)
- Financial discipline and capital allocation: CFO Anna Bryson underscored strong cash generation, a solid balance sheet, and active buybacks, with a 30% YoY increase in free cash flow and $845M in cash and investments. Quote: “We generated free cash flow in the third quarter of $63.4 million... We ended the quarter with $845 million of cash, cash equivalents, and marketable securities.” (Anna Bryson)
- Customer engagement and NRR emphasis: The company reiterated high retention and expanding customer spend, including more than 114 customers contributing $0.5M+ ARR and NRR of 117%. Quote: “We finished the quarter with a net revenue retention rate of 117% on a trailing twelve-month basis. Our top twenty customers remained our fastest growing, with a net revenue retention rate of 122%.” (Anna Bryson)
"We delivered $169 million in revenue for the third quarter of our fiscal 2025, which represents 25% year-on-year growth and a 10% beat from the high end of our guidance range."
— Jeff Tangney
"We generated free cash flow in the third quarter of $63.4 million compared to $48.7 million in the prior year period, an increase of 30% year over year."
— Anna Bryson
Forward Guidance
- Near-term outlook: Q4 2025 revenue guidance of $132.5–$133.5 million implies mid-teens year-over-year increase at the midpoint, with adjusted EBITDA guidance of $62.5–$63.5 million (approx. 47% margin). Full-year guidance of $564.6–$565.6 million revenue and $306.6–$307.6 million Adjusted EBITDA (~54% margin) reflects stronger-than-expected Q3 upsell performance and larger multi-module programs.
- Market backdrop: Management expects pharma HCP digital market growth to run at roughly 5–7% going forward; Doximity’s growth is being driven more by share gains and higher ASPs from integrated offerings than a broad market acceleration. The company anticipates continued adoption of Point-of-Care/ formulary modules and a ramp in the client portal, supported by a larger roster of agency partners.
- Execution risk and catalysts: The company highlighted faster January launches due to content preapproval and integrated programs, which could improve visibility and revenue recognition in the current year. The key variables to monitor include the pace of portal onboarding across customers, the velocity of upfront contracts converting to revenue, the evolution of AI monetization, and any regulatory developments influencing pharma marketing spend. Overall, the management tone remains confident in continued share gains and a durable, high-margin growth profile, albeit with caution on macro-driven volatility in digital pharma spend.