Doximity Q2 Retention Holds at 103% as Clinical AI Portfolio Expands

Doximity Inc. (NYSE: DOCS) reported resilient subscription-account trends for its fiscal second quarter ended September 30, 2026, with net revenue retention of 103% and continued expansion among its largest customers. The healthcare professional network is also broadening its clinical AI offerings as it seeks to deepen physician engagement and create additional opportunities within its marketing business.

The company had 124 customers generating more than $500,000 in trailing 12-month subscription revenue, up 3% from a year earlier. Net revenue retention, which incorporates renewals, expansion, contraction and churn, reached 106% among Doximity’s top 20 customers, compared with 103% for the company overall.

For the trailing 12 months through the fiscal second quarter, Doximity generated $661.6 million in revenue, $139.7 million in net income and $340.9 million in adjusted EBITDA. Its net income margin was 21%, while adjusted EBITDA margin was 52%. Adjusted EBITDA excludes items including stock-based compensation, depreciation and amortization, income taxes, certain legal expenses and other income.

Physician Reach and AI Expansion

Doximity said more than 85% of U.S. physicians were members of its network as of March 31, 2026, while approximately half of U.S. prescribers used its workflow tools during the September quarter. Those products include telehealth, digital fax, secure messaging, on-call scheduling and clinical AI tools.

The presentation highlighted Doximity’s acquisition of Pathway AI, whose technology uses a medical semantic model to connect clinical studies, drugs, outcomes and diseases. Doximity is incorporating AI across its free, HIPAA-compliant clinical suite, including Ask, Scribe and Dialer. The company is also developing an AI search offering that can include sponsored placements, extending AI into its commercial ecosystem.

Marketing solutions remain Doximity’s largest revenue source. The business sells subscription packages to pharmaceutical manufacturers and health systems, using professional specialty, audience size and content formats to tailor campaigns. As of March 31, Doximity had revenue relationships covering 53% of pharmaceutical brands with more than $100 million in U.S. sales, compared with 11% of brands generating between $1 million and $100 million.

The company identified further room to expand within both groups, particularly among mid-tier brands. Its broader commercial portfolio also includes hiring and enterprise workflow products designed to support clinician recruitment, telehealth, scheduling and clinical documentation.

Outlook and Risks

Doximity’s longer-term financial chart indicated a 13% revenue compound annual growth rate and a 15% adjusted EBITDA compound annual growth rate across the period presented, with fiscal 2027 estimates based on the midpoint of management’s guidance. The presentation did not disclose the underlying fiscal 2027 guidance ranges.

Management’s priorities include expanding AI-enabled workflow tools, increasing physician engagement and using data and AI orchestration to improve the reach and relevance of customer campaigns. More than 40% of Doximity’s 872 employees worked in research and development as of September 30, underscoring the company’s investment in its technology platform.

Doximity cautioned that its forward-looking expectations remain subject to substantial uncertainty. The company operates in a competitive and rapidly changing market, and actual results could differ materially from its projections. Its non-GAAP measures, including adjusted EBITDA and free cash flow, are supplemental to GAAP results and may not be comparable with similarly named measures used by other companies.