Medical professional network Doximity (NYSE: DOCS) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 5.1% year on year to $145.4 million. On the other hand, next quarter’s revenue guidance of $151.5 million was less impressive, coming in 1.1% below analysts’ estimates. Its non-GAAP profit of $0.26 per share was 7.9% below analysts’ consensus estimates.
Is now the time to buy Doximity? Find out by accessing our full research report, it’s free.
Doximity (DOCS) Q1 CY2026 Highlights:
- Revenue: $145.4 million vs analyst estimates of $145 million (5.1% year-on-year growth, in line)
- Adjusted EPS: $0.26 vs analyst expectations of $0.28 (7.9% miss)
- Adjusted Operating Income: $63.63 million vs analyst estimates of $62.02 million (43.8% margin, 2.6% beat)
- Revenue Guidance for Q2 CY2026 is $151.5 million at the midpoint, below analyst estimates of $153.1 million
- EBITDA guidance for the upcoming financial year 2027 is $329 million at the midpoint, below analyst estimates of $373.3 million
- Operating Margin: 17.1%, down from 35.2% in the same quarter last year
- Free Cash Flow Margin: 73.8%, up from 31.7% in the previous quarter
- Billings: $185.3 million at quarter end, in line with the same quarter last year
- Market Capitalization: $4.89 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
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Doximity’s sales grew at a solid 25.5% compounded annual growth rate over the last five years. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Doximity’s annualized revenue growth of 16.5% over the last two years is below its five-year trend, but we still think the results were respectable. 
This quarter, Doximity grew its revenue by 5.1% year on year, and its $145.4 million of revenue was in line with Wall Street’s estimates. Company management is currently guiding for a 3.8% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 7.5% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
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 $185.3 million in Q1, and over the last four quarters, its growth was underwhelming as it averaged 9.7% 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 represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.
Doximity is extremely efficient at acquiring new customers, and its CAC payback period checked in at 6.5 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 Q1 Results
We were impressed by how significantly Doximity blew past analysts’ billings expectations this quarter. We were also happy its EBITDA outperformed Wall Street’s estimates. On the other hand, its revenue guidance for next year suggests a significant slowdown in demand and its full-year revenue guidance fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 11.1% to $21.02 immediately following the results.
Doximity may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
