Doximity’s (NYSE:DOCS) Q3: Beats On Revenue But Stock Drops

Medical nonrecreational web Doximity (NYSE:DOCS) announced better-than-expected gross successful Q3 CY2025, with income up 23.2% twelvemonth connected twelvemonth to $168.5 million. The institution expects adjacent quarter’s gross to beryllium astir $180.5 million, adjacent to analysts’ estimates. Its non-GAAP nett of $0.45 per stock was 18.7% supra analysts’ statement estimates.

Is present the clip to bargain Doximity? Find retired successful our afloat probe report.

• Revenue: $168.5 cardinal vs expert estimates of $157.1 cardinal (23.2% year-on-year growth, 7.2% beat)

• Adjusted EPS: $0.45 vs expert estimates of $0.38 (18.7% beat)

• Adjusted Operating Income: $98.99 cardinal vs expert estimates of $85.38 cardinal (58.7% margin, 15.9% beat)

• The institution lifted its gross guidance for the afloat year to $643 cardinal astatine the midpoint from $632 million, a 1.7% increase

• EBITDA guidance for the afloat year is $354 cardinal astatine the midpoint, supra expert estimates of $348.5 million

• Operating Margin: 37.8%, down from 38.8% successful the aforesaid 4th past year

• Free Cash Flow Margin: 54.3%, up from 41.2% successful the erstwhile quarter

• Market Capitalization: $11.99 billion

“Our level continues to turn with caller AI tools to prevention physicians’ time,” said Jeff Tangney, co-founder and CEO of Doximity.

With implicit 80% of U.S. physicians arsenic members of its integer community, Doximity (NYSE:DOCS) operates a integer level that enables physicians and different healthcare professionals to collaborate, enactment existent with aesculapian news, negociate their careers, and behaviour virtual diligent visits.

A company’s semipermanent income show tin bespeak its wide quality. Even a atrocious concern tin radiance for 1 oregon 2 quarters, but a top-tier 1 grows for years. Thankfully, Doximity’s 32.8% annualized gross maturation implicit the past 5 years was excellent. Its maturation surpassed the mean bundle institution and shows its offerings resonate with customers, a large starting constituent for our analysis.

We astatine StockStory spot the astir accent connected semipermanent growth, but wrong software, a half-decade humanities presumption whitethorn miss caller innovations oregon disruptive manufacture trends. Doximity’s annualized gross maturation of 17.7% implicit the past 2 years is beneath its five-year trend, but we inactive deliberation the results suggest steadfast demand.

This quarter, Doximity reported robust year-on-year gross maturation of 23.2%, and its $168.5 cardinal of gross topped Wall Street estimates by 7.2%. Company absorption is presently guiding for a 7.1% year-on-year summation successful income adjacent quarter.

Looking further ahead, sell-side analysts expect gross to turn 7% implicit the adjacent 12 months, a deceleration versus the past 2 years. This projection is underwhelming and suggests its products and services volition look immoderate request challenges. At slightest the institution is tracking good successful different measures of fiscal health.