Doximity, Inc.

Previous wording

Our business model has delivered high revenue growth at scale with profitability. For the three months ended June 30, 2025 and 2024, we recognized revenue of $145.9 million and $126.7 million, respectively, representing a year-over-year growth rate of 15%. For the three months ended June 30, 2025 and 2024, our net income was $53.3 million and $41.4 million and our adjusted EBITDA was $79.8 million and $65.9 million, respectively. We have accomplished this while focusing on our core mission to help every physician be more productive and provide better care for their patients.

Current wording

Our business model has delivered high revenue growth at scale with profitability. For the three months ended September 30, 2025 and 2024, we recognized revenue of $168.5 million and $136.8 million, respectively, representing a year-over-year growth rate of 23%. For the six months ended September 30, 2025 and 2024, we recognized revenue of $314.4 million and $263.5 million, respectively, representing a year-over-year growth rate of 19%. For the three months ended September 30, 2025 and 2024, our net income was $62.1 million and $44.2 million and our adjusted EBITDA was $100.8 million and $76.1 million, respectively. For the six months ended September 30, 2025 and 2024, our net income was $115.4 million and $85.5 million and our adjusted EBITDA was $180.6 million and $142.1 million, respectively. We have accomplished this while focusing on our core mission to help every physician be more productive and provide better care for their patients.

Previous wording

We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, change in fair value of contingent earn-out consideration liability, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

Current wording

We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for acquisition and other related expenses, stock-based compensation expense, impairment charge, legal fees associated with certain non-ordinary course legal matters including the shareholder class action litigation, change in fair value of contingent earn-out consideration liability, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

Previous wording

We also generate revenue from temporary and permanent medical recruiting services which we charge on an hourly-fee, and retainer and placement-fee basis, respectively. For the three months ended June 30, 2025 and 2024, the revenue from temporary and permanent medical recruiting services was not significant to our total revenue.

Current wording

We also generate revenue from temporary and permanent medical recruiting services which we charge on an hourly-fee, and retainer and placement-fee basis, respectively. For the three and six months ended September 30, 2025 and 2024, the revenue from temporary and permanent medical recruiting services was not significant to our total revenue.

Previous wording

Research and development expense is primarily comprised of personnel-related expenses associated with our engineering and product teams who are responsible for building new products and improving existing products. Research and development expense also includes costs for information technology, software-related costs, contractors, third-party services, and allocated overhead. Other than internal-use software development costs that qualify for capitalization, research and development costs are expensed as incurred. We expect research and development expenses will increase on an absolute dollar basis as we continue to grow our platform and product offerings.

Current wording

Research and development expense is primarily comprised of personnel-related expenses associated with our engineering and product teams who are responsible for building new products and improving existing products. Research and development expense also includes costs for information technology, software-related costs, contractors, third-party services, amortization of acquired intangibles, and allocated overhead. Other than internal-use software development costs that qualify for capitalization, research and development costs are expensed as incurred. We expect research and development expenses will increase on an absolute dollar basis as we continue to grow our platform and product offerings.

Previous wording

Provision for income taxes consists primarily of income taxes in U.S. federal, state, and local jurisdictions in which we conduct business. We continue to maintain a valuation allowance related to specific net deferred tax assets where it is not more likely than not that the deferred tax assets will be realized, which includes Arizona research and development credits and capital loss carryforwards. We calculate income taxes in interim periods by applying an estimated annual effective tax rate to income before income taxes and by calculating the tax effect of discrete items recognized during the period. Our effective income tax rate generally differs from the U.S. statutory tax rate of 21.0% primarily due to U.S. federal and state research and development tax credits, and stock-based compensation related tax benefits.

Current wording

Provision for income taxes consists primarily of income taxes in U.S. federal, state, and local jurisdictions in which we conduct business. We continue to maintain a valuation allowance related to specific net deferred tax assets where it is not more likely than not that the deferred tax assets will be realized, which includes Arizona research and development credits and capital loss carryforwards. We calculate income taxes in interim periods by applying an estimated annual effective tax rate to income before income taxes and by calculating the tax effect of discrete items recognized during the period. Our effective income tax rate generally differs from the U.S. statutory tax rate of 21.0% primarily due to stock-based compensation related tax benefits, which are subject to limitations for certain executive officers under IRC section 162(m), and federal and state research and development tax credits.

Previous wording

Comparison of the three months ended June 30, 2025 and 2024.

Current wording

Comparison of the three and six months ended September 30, 2025 and 2024.

Previous wording

Revenue for the three months ended June 30, 2025 increased $19.2 million as compared to the same period in 2024. The increase was primarily driven by a $17.9 million increase in subscription revenue. Of the increase in subscription revenue, $4.8 million was driven by the addition of new subscription customers 1 and $13.1 million was due to the expansion of existing customers. The expansion of existing customers was primarily driven by average revenue per existing Marketing Solutions customers increasing by approximately 14% as a result of adding new and growing existing brands and service lines. Approximately 94% of our revenue for the three months ended June 30, 2025 was derived from subscription customers.

Current wording

Revenue for the three months ended September 30, 2025 increased $31.7 million as compared to the same period in 2024. The increase was primarily driven by a $29.8 million increase in subscription revenue. Of the increase in subscription revenue, $9.3 million was driven by the addition of new subscription customers 1 and $20.5 million was due to the expansion of existing customers. The expansion of existing customers was primarily driven by average revenue per existing Marketing Solutions customers increasing by approximately 20% as a result of adding new and growing existing brands and service lines. Approximately 95% of our revenue for the three months ended September 30, 2025 was derived from subscription customers.

Previous wording

Cost of revenue for the three months ended June 30, 2025 increased $2.2 million as compared to the same period in 2024. The increase was primarily driven by increases in personnel, hosting, and other costs to support revenue growth.

Current wording

Cost of revenue for the three and six months ended September 30, 2025 increased $2.7 million and $5.0 million as compared to the same periods in 2024. The increase was primarily driven by increases in personnel, hosting, and other costs to support revenue growth.

Previous wording

The gross margin for the three months ended June 30, 2025 remained consistent as compared to the same period in 2024.

Current wording

The gross margin for the three and six months ended September 30, 2025 remained consistent as compared to the same period in 2024.

Previous wording

Research and development expense for the three months ended June 30, 2025 increased $4.2 million as compared to the same period in 2024. The increase was driven by a $2.2 million increase in stock-based compensation as a result of new awards granted to new hires and existing employees, a $1.5 million increase in personnel costs due to merit increases and increases in average headcount, and a $0.6 million increase in third-party contractor costs.

Current wording

Research and development expense for the three months ended September 30, 2025 increased $7.0 million as compared to the same period in 2024. The increase was driven by a $4.4 million increase in stock-based compensation as a result of new awards granted to new hires and existing employees, a $1.4 million increase in third-party contractor costs, and a $1.1 million increase in personnel costs due to merit increases and increases in average headcount.

Previous wording

General and administrative expense for the three months ended June 30, 2025 increased $3.2 million as compared to the same period in 2024, primarily driven by a $1.6 million increase in stock-based compensation as a result of new awards granted to new hires and existing employees and a $1.1 million increase in legal and accounting expenses.

Current wording

General and administrative expense for the three months ended September 30, 2025 increased $8.9 million as compared to the same period in 2024, primarily driven by $3.9 million increase in legal expenses, $3.3 million increase in stock-based compensation as a result of new awards granted to new hires and existing employees, and a $1.2 million increase related to acquisition expenses.

Previous wording

Other income, net for the three months ended June 30, 2025 increased $2.5 million as compared to the same periods in 2024, primarily driven by increases in interest income due to higher yields earned on our cash equivalents and marketable securities portfolio and a higher average portfolio balance.

Current wording

Other income, net for the six months ended September 30, 2025 increased $2.7 million as compared to the same period in 2024, primarily driven by increases in interest income due to higher yields earned on our cash equivalents and marketable securities portfolio and a higher average portfolio balance.

Previous wording

Income tax expense for the three months ended June 30, 2025 decreased $1.0 million as compared to the same period in 2024, primarily driven by increased tax deductions from stock award activities offset in part by higher income before taxes.

Current wording

Income tax expense for the three and six months ended September 30, 2025 decreased $7.1 million and $8.1 million as compared to the same periods in 2024, primarily driven by increased tax deductions from stock award activities offset in part by higher income before taxes.

Previous wording

Since inception, we have financed operations primarily through proceeds received from sales of equity securities and payments received from our customers. As of June 30, 2025, our principal sources of liquidity were cash and cash equivalents and marketable securities of $841.0 million. Our marketable securities consist of U.S. government and agency securities, corporate notes and bonds, and commercial paper.

Current wording

Since inception, we have financed operations primarily through proceeds received from sales of equity securities and payments received from our customers. As of September 30, 2025, our principal sources of liquidity were cash and cash equivalents and marketable securities of $878.4 million. Our marketable securities consist of U.S. government and agency securities, corporate notes and bonds, and commercial paper.

Previous wording

On May 1, 2024 the Company’s board of directors authorized a program to repurchase up to $500 million of the Company’s Class A common stock with no expiration date. As of June 30, 2025, the Company repurchased and retired 4,141,229 shares of Class A common stock under this program for an aggregate purchase price of $198.3 million and $301.7 million remained available and authorized for repurchase.

Current wording

On May 1, 2024 the Company’s board of directors authorized a program to repurchase up to $500 million of the Company’s Class A common stock with no expiration date. As of September 30, 2025, the Company repurchased and retired 4,496,467 shares of Class A common stock under this program for an aggregate purchase price of $220.2 million and $279.8 million remained available and authorized for repurchase.

Previous wording

Effective January 1, 2023, the Company’s share repurchases in excess of allowable share issuances are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. As of June 30, 2025, the Company had accrued excise taxes of $0.7 million and nil as of March 31, 2025.

Current wording

Effective January 1, 2023, the Company’s share repurchases in excess of allowable share issuances are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. As of September 30, 2025, the Company had accrued excise taxes of $0.3 million and nil as of March 31, 2025.

Previous wording

Cash provided by operating activities was $62.1 million for the three months ended June 30, 2025. This consisted of net income of $53.3 million, adjusted for non-cash items of $26.1 million and a net outflow from operating assets and liabilities of $17.3 million. Non-cash items primarily consisted of stock-based compensation expense of $21.9 million, depreciation and amortization expense of $2.8 million, amortization of deferred contract costs of $3.9 million, and non-cash lease expense of $0.5 million, partially offset by the accretion of discount on marketable securities of $2.5 million. The net outflow from operating assets and liabilities was driven by a $13.4 million increase in accounts receivable due to the timing of billings and collections, a $4.2 million increase in prepaid expenses and other assets primarily due to prepaid taxes, a $2.0 million increase in deferred contract costs, and a $0.6 million decrease in operating lease liabilities. The outflows were partially offset by a $3.0 million increase in deferred revenue due to the timing of customer billings and program launches.

Current wording

Cash provided by operating activities was $156.0 million for the six months ended September 30, 2025. This consisted of net income of $115.4 million, adjusted for non-cash items of $60.5 million and a net outflow from operating assets and liabilities of $19.8 million. Non-cash items primarily consisted of stock-based compensation expense of $51.3 million, depreciation and amortization expense of $6.3 million, amortization of deferred contract costs of $6.8 million, and non-cash lease expense of $0.9 million, partially offset by the accretion of discount on marketable securities of $4.7 million. The net outflow from operating assets and liabilities was driven by a $14.3 million decrease in deferred revenue due to the timing of customer billings and program launches, a $4.5 million increase in deferred contract costs, a $2.3 million decrease in accounts payable, accrued expenses, and other liabilities, a $1.1 million decrease in operating lease liabilities, and a $1.0 million increase in accounts receivable due to the timing of billings and collections. The outflows were partially offset by a $3.5 million decrease in prepaid expenses and other assets primarily due to prepaid taxes.

Previous wording

Cash provided by operating activities was $41.2 million for the three months ended June 30, 2024. This consisted of net income of $41.4 million, adjusted for non-cash items of $20.0 million and a net outflow from operating assets and liabilities of $20.1 million. Non-cash items primarily consisted of stock-based compensation expense of $17.1 million, depreciation and amortization expense of $2.6 million, amortization of deferred contract costs of $2.7 million, non-cash lease expense of $0.5 million, partially offset by the accretion of discount on marketable securities of $2.4 million. The net outflow from operating assets and liabilities was driven by a $19.4 million increase in accounts receivable due to the timing of billings and collections, a $12.9 million decrease in accounts payable, accrued expenses, and other liabilities which was primarily due to the timing of transferable tax credit payments, and a $1.4 million increase in deferred contract costs. The outflows were partially offset by a $10.5 million decrease in prepaid expenses and other assets primarily due to prepaid taxes, and a $3.7 million increase in deferred revenue due to the timing of customer billings and program launches.

Current wording

Cash provided by operating activities was $109.6 million for the six months ended September 30, 2024. This consisted of net income of $85.5 million, adjusted for non-cash items of $42.9 million and a net outflow from operating assets and liabilities of $18.8 million. Non-cash items primarily consisted of stock-based compensation expense of $35.0 million, depreciation and amortization expense of $5.2 million, amortization of deferred contract costs of $4.8 million, impairment of long-lived assets of $2.3 million, and non-cash lease expense of $1.0 million, partially offset by the accretion of discount on marketable securities of $5.4 million. The net outflow from operating assets and liabilities was driven by a $23.5 million increase in accounts receivable due to the timing of billings and collections, a $5.5 million decrease in accounts payable, accrued expenses, and other liabilities which was primarily due to the timing of income tax and transferable tax credit payments, a $5.5 million decrease in deferred revenue due to the timing of customer billings and program launches, and a $3.2 million increase in deferred contract costs. The outflows were partially offset by a $19.9 million decrease in prepaid expenses and other assets primarily due to prepaid taxes.

Previous wording

Cash provided by investing activities was $29.9 million for the three months ended June 30, 2024, which primarily consisted of proceeds from the maturities of marketable securities of $202.1 million, partially offset by $170.4 million of marketable securities purchases and $1.7 million for internal-use software development costs.

Current wording

Cash used in investing activities was $29.0 million for the six months ended September 30, 2025, which primarily consisted of $268.2 million of marketable securities purchases, $26.5 million cash paid for acquisition, and $4.3 million for internal-use software development costs, partially offset by proceeds from the maturities of marketable securities of $270.0 million.

Previous wording

Cash provided by investing activities was $2.7 million for the three months ended June 30, 2025, which primarily consisted of proceeds from the maturities of marketable securities of $144.6 million, partially offset by $139.9 million of marketable securities purchases and $2.0 million for internal-use software development costs.

Current wording

Cash provided by investing activities was $54.1 million for the six months ended September 30, 2024, which primarily consisted of proceeds from the maturities of marketable securities of $417.9 million and $7.2 million of proceeds from the sale of marketable securities, partially offset by $367.8 million of marketable securities purchases and $3.2 million for internal-use software development costs.

Previous wording

Cash used in financing activities was $137.1 million for the three months ended June 30, 2025, which primarily consisted of common stock repurchases of $122.4 million, $5.2 million of payments for contingent consideration related to the AMiON acquisition, and $11.9 million of taxes paid related to the net share settlement of equity awards. These payments were partially offset by $2.4 million of proceeds from the exercise of stock options and common stock warrants.

Current wording

Cash used in financing activities was $167.4 million for the six months ended September 30, 2025, which primarily consisted of common stock repurchases of $144.2 million, $24.5 million of taxes paid related to the net share settlement of equity awards, and $5.2 million of payments for contingent consideration related to the AMiON acquisition. These payments were partially offset by $4.8 million of proceeds from the exercise of stock options and common stock warrants and $1.8 million of proceeds from the issuance of common stock in connection with the employee stock purchase plan.

Previous wording

Cash used in financing activities was $56.5 million for the three months ended June 30, 2024, which primarily consisted of common stock repurchases of $51.2 million, $5.5 million of payments for contingent consideration related to the AMiON acquisition, and $2.4 million of taxes paid related to the net share settlement of equity awards. These payments were partially offset by $2.6 million of proceeds from the exercise of stock options.

Current wording

Cash used in financing activities was $76.2 million for the six months ended September 30, 2024, which primarily consisted of common stock repurchases of $74.2 million, $5.5 million of payments for contingent consideration related to the AMiON acquisition, and $8.2 million of taxes paid related to the net share settlement of equity awards. These payments were partially offset by $10.2 million of proceeds from the exercise of stock options and common stock warrants, and $1.4 million of proceeds from the issuance of common stock in connection with the Company’s employee stock purchase plan.

Previous wording

There have been no material changes to our critical accounting policies and estimates during the three months ended June 30, 2025 as compared to those described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025 and filed with the SEC on May 20, 2025.

Current wording

There have been no material changes to our critical accounting policies and estimates during the three and six months ended September 30, 2025 as compared to those described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025 and filed with the SEC on May 20, 2025.