Q1 2026 Doximity Inc Earnings Call Transcript
Key Points
- Doximity Inc (DOCS) reported $146 million in revenue for Q1 fiscal 2026, representing a 15% year-on-year growth and a 4% beat from the high end of their guidance range.
- The company achieved an adjusted EBITDA margin of 55%, which was 11% above the high end of their guidance, with adjusted EBITDA growing 21% year-on-year.
- Free cash flow growth was strong, up 52% year-on-year, indicating robust financial health.
- Doximity's AI scribe, which launched recently, has been well-received, with over 75% of users returning weekly, highlighting its stickiness and potential for long-term engagement.
- The acquisition of Pathway, an AI clinical reference startup, is expected to enhance Doximity's AI capabilities, with Pathway's AI model scoring a record high 96% on the US medical licensing exam.
- Non-GAAP gross margin slightly decreased to 91% from 92% in the prior year period, indicating a slight decline in profitability.
- Despite strong Q1 performance, the company remains cautious about the rest of the fiscal year due to policy uncertainties and has taken a measured approach to revenue guidance.
- The integration of Pathway is expected to add over $2 million to operating expenses in fiscal 2026, impacting short-term profitability.
- Stock-based compensation is expected to increase to the high 10s as a percentage of revenue in fiscal 2026 and 2027, potentially diluting shareholder value.
- The company has not yet seen any slowdown in business, but the ongoing policy uncertainty could pose risks to future growth and financial performance.
Look good day everyone, and welcome to Doximity's first quarter 2026 conference call. At this time, I would like to hand the call over to Mr. Perry Gold. Please go ahead, sir.
Thank you, operator. Hello and welcome to Doximity's fiscal 2026 1st quarter earnings call. With me on the call today are Jeff Tangney, co-founder and CEO of Doximity, and Anna Bryson, CFO. A complete disclosure of our results can be found in their press release issued earlier today, as well as in our related form 8k, along with a copy of our prepared remarks, all available on our website at investors dot dotsimony.com.
As a reminder, today's call is being recorded and a replay will be available on our website. As part of our comments today, we will be making forward-looking statements. These statements are based on management's current views, expectations, and assumptions and are subject to various risks and uncertainties.
Actual results may differ materially, and we disclaim any obligation to update any
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