Medical professional network Doximity (NYSE: DOCS) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 7.3% year on year to $156.6 million. The company expects next quarter’s revenue to be around $170.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.29 per share was 4.2% below analysts’ consensus estimates.
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Doximity (DOCS) Q2 CY2026 Highlights:
- Revenue: $156.6 million vs analyst estimates of $151.3 million (7.3% year-on-year growth, 3.5% beat)
- Adjusted EPS: $0.29 vs analyst expectations of $0.30 (4.2% miss)
- Adjusted EBITDA: $74.77 million vs analyst estimates of $69.59 million (47.7% margin, 7.4% beat)
- The company slightly lifted its revenue guidance for the full year to $676 million at the midpoint from $670 million
- EBITDA guidance for the full year is $319 million at the midpoint, below analyst estimates of $329.2 million
- Operating Margin: 21.5%, down from 37.4% in the same quarter last year
- Free Cash Flow Margin: 25.3%, down from 73.8% in the previous quarter
- Billings: $159.3 million at quarter end, up 7% year on year
- Market Capitalization: $3.89 billion
Company Overview
With over 80% of U.S. physicians as members of its digital community, Doximity (NYSE: DOCS) operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Doximity’s sales grew at a decent 21.9% compounded annual growth rate over the last five years. Its growth was slightly above the average software company and shows its offerings resonate with customers.
Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. Doximity’s annualized revenue growth of 15.2% over the last two years is below its five-year trend, but we still think the results were respectable. 
This quarter, Doximity reported year-on-year revenue growth of 7.3%, and its $156.6 million of revenue exceeded Wall Street’s estimates by 3.5%. Company management is currently guiding for a 1.2% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 3.6% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Doximity’s billings came in at $159.3 million in Q2, and over the last four quarters, its growth was underwhelming as it averaged 7.9% year-on-year increases. This alternate topline metric grew slower than total sales, meaning the company recognizes revenue faster than it collects cash - a headwind for its liquidity that could also signal a slowdown in future revenue growth. 
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.
Doximity is extremely efficient at acquiring new customers, and its CAC payback period checked in at 6 months this quarter. The company’s rapid recovery of its customer acquisition costs means it can attempt to spur growth by increasing its sales and marketing investments.
Key Takeaways from Doximity’s Q2 Results
We were impressed by how significantly Doximity blew past analysts’ adjusted operating income expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its full-year EBITDA guidance missed and its EBITDA guidance for next quarter fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $20.71 immediately following the results.
Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
