Canaccord has adjusted its price target for Doximity (DOCS, Financial), reducing it from $71 to $50, while maintaining a Hold rating on the stock. Despite this adjustment, the firm acknowledged Doximity's strong performance in its fiscal year 2025. Although the results did not surpass expectations as dramatically as in the third quarter, the company still achieved notable increases in revenue and adjusted EBITDA, exceeding estimates by approximately 4% and 10% respectively.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Doximity Inc (DOCS, Financial) is $71.53 with a high estimate of $88.00 and a low estimate of $55.00. The average target implies an upside of 22.38% from the current price of $58.45. More detailed estimate data can be found on the Doximity Inc (DOCS) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Doximity Inc's (DOCS, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Doximity Inc (DOCS, Financial) in one year is $55.40, suggesting a downside of 5.22% from the current price of $58.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Doximity Inc (DOCS) Summary page.
DOCS Key Business Developments
Release Date: May 15, 2025
- Q4 Revenue: $138 million, 4% above guidance.
- Full Year Revenue: $570 million, 20% year-on-year growth.
- Top 20 Clients Growth: 23% in fiscal 2025.
- Q4 Adjusted EBITDA Margin: 50%, $70 million, 10% above guidance.
- Q4 Free Cash Flow: $97 million, up 56% year-on-year.
- Full Year Adjusted EBITDA: $314 million, 36% growth.
- Full Year Adjusted EBITDA Margin: 55%, up from 48% prior year.
- Full Year Free Cash Flow: $267 million, 50% increase year-on-year.
- Net Revenue Retention Rate: 119% overall, 123% for top 20 customers.
- Customers with $500K+ Revenue: 116 customers, 17% increase from last year.
- Q4 Non-GAAP Gross Margin: 91%, flat year-over-year.
- Full Year Non-GAAP Gross Margin: 92%, up from 91% last year.
- Cash and Equivalents: $916 million at year-end.
- Share Repurchase: $26.8 million in Q4, $116.2 million for the full year.
- Q1 2026 Revenue Guidance: $139 million to $140 million, 10% growth at midpoint.
- Q1 2026 Adjusted EBITDA Guidance: $71 million to $72 million, 51% margin.
- Full Year 2026 Revenue Guidance: $619 million to $631 million, 10% growth at midpoint.
- Full Year 2026 Adjusted EBITDA Guidance: $333 million to $345 million, 54% margin.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Doximity Inc (DOCS, Financial) reported $138 million in revenue for Q4 2025, exceeding the high end of their guidance by 4%.
- The company achieved a 20% year-over-year revenue growth for the full fiscal year, reaching $570 million.
- Adjusted EBITDA margin for Q4 was 50%, surpassing guidance by 10%, and for the full year, it was 55%, up from 48% the previous year.
- Unique active users across all timeframes hit new highs, with significant growth in their news feed and AI tools.
- Doximity's integrated offerings and AI-powered tools are gaining traction, leading to larger deal sizes and improved client engagement.
Negative Points
- Despite strong performance, Doximity Inc (DOCS) is cautious about potential macroeconomic uncertainties affecting future growth.
- The company anticipates a tougher year-over-year comparison for fiscal 2026 due to the strategic shift in program launches.
- There is a reliance on a small number of large clients, with the top 20 customers contributing significantly to revenue growth.
- The market growth rate for the pharma HCP digital market is expected to be on the lower end of the 5% to 7% range.
- Doximity Inc (DOCS) is still in the early stages of AI investment, and the long-term impact on margins and efficiency remains uncertain.
