Revenue growth decelerated to 7.3% year-over-year in 2027Q1, while gross margin fell to 84.9% from 91.6% in 2025Q3, and operating margin contracted to 21.5% from 47.4%, reflecting rising costs and an EPS miss of $0.13 versus $0.30 estimate.
Doximity, Inc. (DOCS) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 |
|---|
| Sales/Revenue | 661.58M | 644.86M | 570.4M | 475.42M | 419.05M | 343.55M | 206.9M | 116.39M | 85.69M |
| Revenue Growth % | 6.48% | 13.05% | 19.98% | 13.45% | 21.98% | 66.05% | 77.76% | 35.82% | - |
| Cost of Goods Sold | 87.15M | 70.33M | 55.87M | 50.67M | 53.49M | 39.79M | 31.2M | 14.9M | 10.89M |
| COGS % of Revenue | - | 10.91% | 9.8% | 10.66% | 12.76% | 11.58% | 15.08% | 12.8% | 12.71% |
| Gross Profit | 574.43M | 574.54M | 514.52M | 424.75M | 365.56M | 303.76M | 175.7M | 101.49M | 74.81M |
| Gross Margin % | 86.83% | 89.09% | 90.2% | 89.34% | 87.24% | 88.42% | 84.92% | 87.2% | 87.29% |
| Gross Profit Growth % | - | 11.66% | 21.14% | 16.19% | 20.35% | 72.89% | 73.12% | 35.67% | - |
| Operating Expenses | 400.15M | 359.62M | 286.73M | 260.88M | 240.45M | 190.22M | 122.4M | 79.33M | 67.89M |
| OpEx % of Revenue | - | 55.77% | 50.27% | 54.87% | 57.38% | 55.37% | 59.16% | 68.16% | 79.22% |
| Selling, General & Admin | 246.01M | 228.91M | 191.38M | 170.96M | 160.27M | 127.88M | 78.53M | 46.89M | 40.39M |
| SG&A % of Revenue | - | 35.5% | 33.55% | 35.96% | 38.25% | 37.22% | 37.95% | 40.29% | 47.13% |
| Research & Development | 154.14M | 130.7M | 93.04M | 81.98M | 80.19M | 62.35M | 43.87M | 32.44M | 27.5M |
| R&D % of Revenue | - | 20.27% | 16.31% | 17.24% | 19.14% | 18.15% | 21.21% | 27.87% | 32.09% |
| Other Operating Expenses | 0 | 0 | 2.3M | 7.94M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 174.29M | 214.92M | 227.8M | 163.88M | 125.11M | 113.54M | 53.3M | 22.16M | 6.92M |
| Operating Margin % | 26.34% | 33.33% | 39.94% | 34.47% | 29.85% | 33.05% | 25.76% | 19.04% | 8.08% |
| Operating Income Growth % | - | -5.65% | 39.01% | 30.99% | 10.19% | 113% | 140.5% | 220.23% | - |
| EBITDA | 191.05M | 229.3M | 238.46M | 174.14M | 135.39M | 118.58M | 57.01M | 23.06M | 7.47M |
| EBITDA Margin % | 28.88% | 35.56% | 41.81% | 36.63% | 32.31% | 34.52% | 27.55% | 19.82% | 8.72% |
| EBITDA Growth % | -26.11% | -3.84% | 36.93% | 28.62% | 14.18% | 108.01% | 147.17% | 208.66% | - |
| D&A (Non-Cash Add-back) | 16.76M | 14.38M | 10.66M | 10.27M | 10.28M | 5.04M | 3.7M | 900K | 551K |
| EBIT | 203.61M | 250M | 230.1M | 171.81M | 133.16M | 114M | 53.8M | 22.16M | 6.92M |
| Net Interest Income | 30.07M | 35.7M | 35.85M | 21.66M | 9.29M | 2.15M | 301K | 1.46M | 1.07M |
| Interest Income | 30.07M | 35.7M | 35.85M | 21.66M | 9.29M | 2.15M | 301K | 1.46M | 1.07M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 29.32M | 35.09M | 35.77M | 21.32M | 8.05M | 469K | 4.47M | 1.35M | 1.01M |
| Pretax Income | 203.61M | 250M | 263.57M | 185.2M | 133.16M | 114M | 57.77M | 23.51M | 7.93M |
| Pretax Margin % | 30.78% | 38.77% | 46.21% | 38.96% | 31.78% | 33.18% | 27.92% | 20.2% | 9.25% |
| Income Tax | 63.89M | 53.95M | 40.39M | 37.62M | 20.34M | -40.78M | 7.56M | -6.22M | 98K |
| Effective Tax Rate % | 31.38% | 21.58% | 15.32% | 20.31% | 15.27% | -35.77% | 13.08% | -26.47% | 1.24% |
| Net Income | 139.72M | 196.05M | 223.19M | 147.58M | 112.82M | 154.78M | 50.21M | 29.74M | 7.83M |
| Net Margin % | 21.12% | 30.4% | 39.13% | 31.04% | 26.92% | 45.05% | 24.27% | 25.55% | 9.14% |
| Net Income Growth % | -44.78% | -12.16% | 51.23% | 30.81% | -27.11% | 208.27% | 68.85% | 279.64% | - |
| Net Income (Continuing) | 139.72M | 196.05M | 223.19M | 147.58M | 112.82M | 154.78M | 50.21M | 29.74M | 7.83M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.74 | 0.98 | 1.11 | 0.72 | 0.53 | 0.70 | 0.12 | 0.06 | 0.00 |
| EPS Growth % | -42.86% | -11.71% | 54.17% | 35.85% | -24.29% | 483.33% | 101.34% | - | - |
| EPS (Basic) | - | 1.05 | 1.19 | 0.78 | 0.58 | 0.81 | 0.12 | 0.06 | 0.00 |
| Diluted Shares Outstanding | 187.8M | 199.05M | 201.21M | 205.73M | 213.43M | 191.02M | 178.21M | 181.7M | 181.7M |
| Basic Shares Outstanding | 178.67M | 187.01M | 186.84M | 190.17M | 193.18M | 163.48M | 178.21M | 181.7M | 181.7M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying DOCS stock.
For fiscal year 2026, Doximity, Inc. (DOCS) reported total revenue of $644.9M. This represents a 652.5% increase compared to $85.7M in 2019.
Doximity, Inc. (DOCS) is profitable, generating $196.1M in net income for the fiscal year ending 2026 with a net profit margin of 30.4%.
Doximity, Inc. (DOCS) reported an operating income of $214.9M, resulting in an operating profit margin of 33.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Doximity, Inc. (DOCS) generated $574.5M in gross profit for the year, representing a gross profit margin of 89.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
EPS miss and margin compression
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Pharma Budget Cycles
Revenue growth slowed to 7.3% year-over-year in 2027Q1, down from 23.2% in 2026Q2, according to recent financial statements, suggesting a maturing core marketing niche.
The sequential deceleration from 23.2% to 7.3% over four quarters indicates that the platform's penetration among pharmaceutical advertisers may be approaching saturation. While the maintained forward guidance of $170M-$171M suggests some demand visibility, the reliance on U.S. pharma budgets exposes growth to annual planning cycles and potential patent cliffs.
Gross Margin Erosion from Peak Levels
Gross margin fell to 84.9% in 2027Q1 from 91.6% in 2025Q3, as reported in quarterly filings, indicating rising cost pressures or a shift in revenue mix.
The 670 basis point decline in gross margin over six quarters is notable for a software business with historically high incremental margins. This may reflect increased investment in AI infrastructure or higher third-party content costs, but the trend warrants monitoring as it directly impacts operating leverage.
Operating Leverage Reverses Sharply
Operating margin contracted to 21.5% in 2027Q1 from 47.4% in 2025Q3, based on reported figures, as R&D and SG&A grew faster than revenue.
The 25.9 percentage point drop in operating margin indicates that the company's fixed cost base is no longer being leveraged by revenue growth. R&D expenses increased 71% year-over-year in 2027Q1, while SG&A rose 37%, far outpacing the 7.3% revenue growth, suggesting a deliberate investment phase that is compressing near-term profitability.
Earnings Quality Clouded by SBC and Tax Anomalies
Net income of $24.3M in 2027Q1 was boosted by a $36.8M stock-based compensation expense, as per income statement data, which obscures true cash profitability.
SBC exceeded net income in 2027Q1, indicating that reported earnings are not fully reflective of cash generation. Additionally, the effective tax rate appears unusually low in some quarters (e.g., 2025Q4 net income exceeded operating income), which may be due to one-time tax benefits; investors should adjust for these items to assess sustainable earnings power.
R&D and SG&A Escalation Pressures Margins
Combined R&D and SG&A expenses reached $99.3M in 2027Q1, up from $67.1M in 2025Q1, as disclosed in financial statements, reflecting aggressive investment in AI and sales capacity.
The 48% increase in operating expenses over two years, while revenue grew only 24%, suggests that management is prioritizing long-term product development and market expansion over short-term profitability. This may be justified by the need to integrate AI features like Doximity Ask, but it is compressing margins and may not yield immediate returns.
What Could Invalidate the Bull Case
The significant EPS miss in 2027Q1 ($0.13 vs. $0.30 estimate) and decelerating growth suggest that the market's premium valuation may be at risk if margin recovery fails.
Short-sellers could argue that the company's high gross margins are being eroded by rising costs, and that the growth deceleration indicates a maturing market. The reliance on pharmaceutical marketing spend, which is cyclical and subject to regulatory changes, adds further risk. If the company cannot translate its AI investments into revenue growth, the current valuation may prove unsustainable.