Doximity (DOCS) Q4 2026 earnings summary

Executive summary

• Q4 revenue reached $145.4 million, up 5% year-over-year, exceeding guidance; full-year revenue was $645 million, up 13% year-over-year.

• Adjusted EBITDA margin was 45% in Q4 and 55% for the full year; free cash flow hit a record $107 million in Q4 and $317 million for the year, up 19% year-over-year.

• AI engagement accelerated, with over 800,000 unique quarterly active prescribers, up 30% year-over-year; nearly half used AI tools in Q4, and prompts per user nearly doubled from January to April.

• Launched commercial AI Search offering, with early deals closed and strong pharma interest, but minimal AI revenue expected in the near term.

• Announced new CFO Matt Sonefeldt and President Dr. Steve Zatz, both bringing significant industry experience.

Financial highlights

• Q4 non-GAAP gross margin was 89% (down from 91% last year), impacted by higher AI compute costs; full-year non-GAAP gross margin was 91%.

• Adjusted EBITDA for Q4 was $66 million (45% margin), down from $70 million (50% margin) last year due to increased AI investment.

• Net revenue retention rate was 109% for all customers and 114% for the top 20 customers.

• 125 customers contributed at least $500,000 each in subscription revenue, accounting for 83% of total revenue.

• Ended the year with $749 million in cash equivalents and marketable securities.

Outlook and guidance

• Fiscal Q1 2027 revenue expected at $151–$152 million (4% growth at midpoint); adjusted EBITDA margin projected at 46%.

• Full-year fiscal 2027 revenue guidance is $664–$676 million (4% growth at midpoint); adjusted EBITDA margin expected at 49%.

• Stock-based compensation to rise to low 20s as a % of revenue in fiscal 2027, then trend down in 2028.

• Market growth expected to be modest (at or below 5%) due to policy and macro uncertainty; 65% of subscription-based revenue guidance already booked.

• AI Search revenue contribution expected to ramp in the fiscal back half, with minimal impact in the first half.