Cash flow conversion remains erratic, evidenced by an anomalous OCF/NI ratio of 5.73 in 2026Q4 and a significant $196.9M share repurchase outflow in 2026Q3 that complicates liquidity assessment.
| Cash from Operations | 326.46M | 273.26M | 184.1M | 179.6M | 126.58M | 82.97M | 26.2M | 15.31M |
| Operating CF Margin % | 50.62% | 47.91% | 38.72% | 42.86% | 36.84% | 40.1% | 22.51% | 17.86% |
| Operating CF Growth % | 19.47% | 48.44% | 2.5% | 41.89% | 52.55% | 216.7% | 71.17% | - |
| Net Income | 196.05M | 223.19M | 147.58M | 112.82M | 154.78M | 50.21M | 29.74M | 7.83M |
| Depreciation & Amortization | 14.38M | 10.66M | 10.27M | 10.28M | 5.04M | 10.59M | 900K | 551K |
| Stock-Based Compensation | 0 | 72.39M | 51.08M | 47.83M | 31.44M | 7.25M | 2.35M | 2.34M |
| Deferred Taxes | 32.14M | -11.59M | -8.59M | 13.23M | -41.25M | 4.99M | -7.1M | 480K |
| Other Non-Cash Items | 129.59M | 2.72M | 8.29M | 16.47M | 16.89M | -95K | 6.58M | 5.2M |
| Working Capital Changes | -45.7M | -24.1M | -24.52M | -21.03M | -40.33M | 10.03M | -6.27M | -1.1M |
| Change in Receivables | -16.88M | -27.21M | 3.99M | -26.24M | -31.02M | -20.45M | -12.04M | 2.53M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 1.21M | -6.93M | -4.07M |
| Change in Payables | 4.27M | -663K | 8.33M | -195K | 8.66M | -243K | 5.06M | 726K |
| Cash from Investing | 147.17M | -29.3M | 31.19M | -59.92M | -640.57M | -70.42M | -13.1M | -9.07M |
| Capital Expenditures | -8.96M | -6.53M | -147K | -6.18M | -5.7M | -4.61M | -4.24M | -1.19M |
| CapEx % of Revenue | 1.39% | 1.14% | 0.03% | 1.48% | 1.66% | 2.23% | 3.65% | 1.39% |
| Acquisitions | -26.53M | 0 | 0 | -53.5M | 0 | -27.45M | 3.96M | 1.08M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -5.65M | 0 | 595K | -12K | -3.96M | -1.08M |
| Cash from Financing | -464.06M | -131.14M | -276.52M | -74.46M | 560.41M | 5.41M | 1.72M | 985K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -417.98M | -96.99M | -280.72M | -85.32M | 551.21M | -2.02M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -431.65M | -120.29M | -280.72M | -85.32M | -2.7M | -2.02M | 0 | 0 |
| Other Financing | -46.09M | -34.15M | 4.19M | 10.86M | 9.21M | 7.43M | 1.72M | 985K |
| Net Change in Cash | 9.56M | 112.83M | -61.24M | 45.22M | 46.42M | 17.96M | 14.82M | 7.22M |
| Free Cash Flow | 0 | 266.74M | 178.29M | 173.42M | 120.88M | 78.36M | 21.95M | 14.12M |
| FCF Margin % | - | 46.76% | 37.5% | 41.38% | 35.19% | 37.88% | 18.86% | 16.47% |
| FCF Growth % | -100% | 49.61% | 2.81% | 43.47% | 54.25% | 256.93% | 55.53% | - |
| FCF per Share | - | 1.33 | 0.87 | 0.81 | 0.63 | 0.44 | 0.12 | 0.08 |
| FCF Conversion (FCF/Net Income) | 1.67x | 1.22x | 1.25x | 1.59x | 0.82x | 1.65x | 0.88x | 1.95x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 55.65M | 51.27M | 5.23M | 206K | 5.97M | 1.24M | 4K |
Aggressive share repurchase dilution
Based on reported financial statements, Doximity's OCF/NI ratio reached an anomalous 5.73 in 2026Q4, indicating that cash generation is increasingly decoupled from reported net income as non-cash charges and working capital fluctuations create significant divergence between accounting profits and actual liquidity inflows for the firm.
The extreme variance in the OCF/NI ratio suggests that investors should exercise caution when relying on net income as a proxy for operational health. This disconnect often points to heavy reliance on non-cash adjustments, which may obscure the underlying cash-generative capacity of the core business model.
As indicated by recent quarterly filings, Doximity's free cash flow trajectory has become increasingly erratic, with FCF margins swinging from 70.1% in 2025Q4 to near-zero levels in 2026Q4, reflecting a fundamental instability in the company's ability to convert revenue into sustained, predictable cash surpluses.
The sharp decline in FCF margin suggests that the company's operational efficiency is under pressure, potentially due to rising costs or shifts in revenue recognition timing. This volatility warrants further investigation into whether the business is experiencing a structural change in its cash conversion cycle.
According to historical cash flow data, Doximity has prioritized aggressive share repurchases, including a $196.9M outflow in 2026Q3, which appears to be outpacing the company's organic cash generation and potentially depleting the liquidity reserves necessary for future strategic investments or navigating sector-specific downturns.
The scale of these buybacks relative to net income suggests a management focus on supporting equity valuation rather than reinvesting in long-term growth levers. Investors should monitor whether this capital allocation strategy limits the firm's flexibility to respond to competitive threats or potential market saturation.
Based on quarterly cash flow reports, working capital changes have become a primary driver of liquidity volatility, with a $13.8M inflow in 2026Q4 contrasting sharply with a $39.7M outflow in 2026Q3, highlighting the sensitivity of Doximity's cash position to timing differences in client payments and operational expenses.
These fluctuations suggest that the company's cash flow is highly susceptible to the timing of pharmaceutical marketing campaigns and billing cycles. Such variability makes it difficult to forecast short-term liquidity, necessitating a closer look at the underlying accounts receivable and payable management practices.
Quick answers to the most common questions about buying DOCS stock.
Doximity, Inc. (DOCS) generated $326.5M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Doximity, Inc. (DOCS) reported negative free cash flow of $0.0M in 2026, indicating capital requirements exceeded cash from operations.
Doximity, Inc. (DOCS) spent $9.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Doximity, Inc. (DOCS) spent $431.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.