Doximity (DOCS) AI Stock Analysis

• Market Cap: $7.05B
• Dividend Yield: N/A
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.39
• Revenue Growth: 20.21%
• EPS Growth: 44.14%
• Country: US
• Employees: 827
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.45
• Shares Outstanding: 137,373,860
• 10 Day Avg. Volume: 2,150,148
• 30 Day Avg. Volume: 2,277,165
• PEG Ratio: 0.92
• Price to Book (P/B): 10.01
• Price to Sales (P/S): 19.01
• P/FCF Ratio: 40.65
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 11.07
• Enterprise Value/Gross Profit: 12.27
• Enterprise Value/Ebitda: 24.64
• 1Y Price Target: $60.82
• Price Target Upside: 62.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.58
• Revenue Forecast (FY): $644.82M

• Rating: 73 Outperform
• Price Target: $43.00 ▲(14.76% Upside)

The score is driven primarily by strong financial fundamentals (high margins, strong cash conversion, low leverage) and a constructive earnings update with revenue/EBITDA beats and raised outlook. Offsetting these positives, technical signals are notably weak (below major moving averages with negative MACD), and valuation remains demanding at a ~35.6 P/E. The proposed insurance-funded litigation settlement is a modest additional positive.

Positive Factors

High profitability margins

Sustained very high gross and net margins indicate a scalable, software-driven business with strong pricing power and low incremental costs. This margin profile supports reinvestment, durable free cash flow generation, and resilience to cyclical revenue swings over months to years.

Strong cash generation and low leverage

Robust cash conversion and minimal debt provide financial flexibility to fund R&D, AI investments, or M&A while withstanding variable client budgets. Low leverage reduces refinancing risk and preserves the balance sheet through multi-month budget or market disruptions.

High client retention and engagement

Strong net revenue retention and a growing cohort of large customers reflect platform stickiness and successful upsells. Enterprise client expansion and cross-sell across recruitment, marketing, and workflow tools create durable, contract-based revenue that supports predictable medium-term growth.

Negative Factors

Moderating revenue growth

A slowdown to mid-single-digit TTM revenue growth signals approaching market saturation or tougher comps. Persistently slower top-line expansion can limit the pace of margin and cash-flow improvement, making sustained investment returns and expectations harder to achieve over the coming months.

Dependence on life-sciences marketing cycles

Significant exposure to pharmaceutical and biotech marketing budgets makes revenue sensitive to external funding cycles and policy changes. Calendar-year budget uncertainty and shifting client priorities can cause durable variability in campaign demand and enterprise renewals over multi-month horizons.

Rising AI investment and operating costs

Higher ongoing AI development and compute costs can compress margins and delay incremental free cash flow unless monetization scales rapidly. Even with strategic benefits, persistent AI OPEX raises the bar for sustained ROI and increases execution risk over the medium term.

Doximity Business Overview & Revenue Model

Company Description

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company's platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up to date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical manufacturers and healthcare systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

How the Company Makes Money

Doximity generates revenue through a diversified business model primarily based on subscription services and advertising. The company offers premium subscription plans to healthcare organizations, which provide access to advanced features and analytics tools. Additionally, Doximity earns significant revenue from its advertising services, targeting pharmaceutical companies and medical device manufacturers looking to reach healthcare professionals. These partnerships enable Doximity to leverage its extensive user base for targeted marketing campaigns. The company may also benefit from collaborations with healthcare institutions and universities, enhancing its offerings and expanding its market reach.

Doximity Financial Statement Overview

Summary

Strong profitability (TTM gross margin 90.2%, net margin 40.7%) and excellent cash generation (operating cash flow to net income 2.28; free cash flow growth 9.4%). Balance sheet risk is low with minimal leverage (debt-to-equity 0.01) and solid ROE (23.9%), though revenue growth is noted as moderating (TTM 5.4%).

Income Statement

Doximity demonstrates strong profitability with a high gross profit margin of 90.2% and a net profit margin of 40.7% in the TTM period, indicating efficient cost management and strong pricing power. The revenue growth rate of 5.4% in the TTM period shows moderate growth, which is a slowdown compared to previous years. However, the company maintains robust EBIT and EBITDA margins, reflecting solid operational efficiency.

Balance Sheet

The company exhibits a very low debt-to-equity ratio of 0.01, highlighting minimal leverage and financial risk. The return on equity (ROE) of 23.9% in the TTM period is impressive, indicating effective use of equity capital. The equity ratio is strong, suggesting a stable financial structure with a high proportion of equity financing.

Cash Flow

Doximity's cash flow performance is excellent, with a free cash flow growth rate of 9.4% in the TTM period and a high operating cash flow to net income ratio of 2.28, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is nearly 1, showing efficient conversion of profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	621.33M	570.40M	475.42M	419.05M	343.55M	206.90M
Gross Profit	560.46M	514.52M	424.75M	365.56M	303.76M	175.70M
EBITDA	279.14M	240.76M	182.08M	135.39M	118.58M	57.01M
Net Income	253.03M	223.19M	147.58M	112.82M	154.78M	50.21M
Balance Sheet
Total Assets	1.26B	1.26B	1.08B	1.14B	991.36M	251.72M
Cash, Cash Equivalents and Short-Term Investments	878.37M	915.66M	762.90M	841.00M	798.11M	142.53M
Total Debt	11.27M	12.40M	14.55M	15.64M	1.09M	1.25M
Total Liabilities	161.58M	181.68M	177.98M	170.77M	112.76M	184.98M
Stockholders Equity	1.10B	1.08B	901.40M	966.12M	878.59M	66.74M
Cash Flow
Free Cash Flow	314.48M	266.74M	178.29M	173.42M	120.88M	78.36M
Operating Cash Flow	319.72M	273.26M	184.10M	179.60M	126.58M	82.97M
Investing Cash Flow	-112.43M	-29.30M	31.19M	-59.92M	-640.57M	-70.42M
Financing Cash Flow	-222.29M	-131.14M	-276.52M	-74.46M	560.41M	5.41M

Doximity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCS, the sentiment is Negative. The current price of 37.47 is below the 20-day moving average (MA) of 41.65, below the 50-day MA of 44.63, and below the 200-day MA of 57.61, indicating a bearish trend. The MACD of -2.01 indicates Positive momentum. The RSI at 26.72 is Positive, neither overbought nor oversold. The STOCH value of 12.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOCS.

Doximity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCS	73 Outperform	$7.05B	29.89	24.61%	―	20.21%	44.14%
OMCL	71 Outperform	$2.18B	113.74	1.62%	―	10.67%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TEM	51 Neutral	$10.64B	-50.54	-72.61%	―	72.58%	76.81%
DH	49 Neutral	$328.63M	-1.38	-47.69%	―	-5.30%	46.01%
EVH	48 Neutral	$358.24M	-2.05	-13.63%	―	-16.65%	-71.92%
TDOC	47 Neutral	$967.23M	-4.26	-15.42%	―	-2.37%	77.85%

Doximity Corporate Events

Doximity Reaches Proposed Settlement in Securities Litigation Case

On December 24, 2025, Doximity, Inc. and certain of its directors and officers reached a proposed settlement agreement to resolve a securities litigation case pending in the U.S. District Court for the Northern District of California. The agreement calls for a $31 million aggregate settlement payment, to be fully funded by insurance, and provides for the dismissal of all claims against the company and the named individuals without any admission of liability, fault, or wrongdoing, subject to stockholder notification, court approval, and other customary conditions, potentially removing a significant legal overhang for the company and its stakeholders.

The most recent analyst rating on (DOCS) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Doximity stock, see the DOCS Stock Forecast page.