Doximity's Tepid Revenue Forecast Outweighs Q4 Beat, But Retail Traders Snap Up After-Hours Dip

The company reported a strong Q4 with 17% revenue growth but saw shares drop 20% after hours following conservative FY26 revenue and Q1 guidance that missed analyst estimates.

Doximity saw increased retail buzz on Thursday following its fourth-quarter (Q4) earnings report, which displayed strong performance but offered conservative revenue forecasts for fiscal 2026.

The digital health platform predicts FY26 revenue between $619 million and $631 million, which stays under the Street consensus projection of $639.41 million. 

The company said its Adjusted EBITDA for fiscal year 2026 will be between $333 million and $345 million. 

Expected revenue for the first quarter is between $139 million and $140 million, which falls short of the market's anticipated $143.41 million. Adjusted EBITDA projections indicate a range of $71 million to $72 million.

Doximity shares closed 1.8% lower at $58.45 on Wednesday, before plunging another 20.7% to $46.36 in after-hours trading.

Still, Doximity delivered a solid fiscal Q4. 

In Q4, Doximity recorded a 17% year-on-year revenue growth of $138.3 million.

The company also saw subscription revenue rise from $112.7 million to $131.9 million, resulting in a 17% growth rate.

Doximity's net income increased to $62.5 million from $40.6 million, while its net margin percentage rose to 45.2% from 34.4%.

The company's Non-GAAP net income grew to $77.7 million from $51 million, while net margin percentage rose from 43.2% to 56.2%.

Adjusted EBITDA saw a 24% increase to $69.7 million, and margins expanded from 47.8% to 50.4%.

Diluted earnings per share grew to $0.31 from $0.20, and non-GAAP diluted EPS improved to $0.38 from $0.25, surpassing analyst estimates of $0.27.

The operating cash flow saw a 54% increase to $98.5 million, alongside a 56% growth in free cash flow, which hit $97 million.

On Stocktwits, retail sentiment was ‘extremely bullish’ amid a 6,200% surge in 24-hour message volume.

Some traders warned that the stock could see further downside, pointing to longer-term technical trends and suggesting a drop below $40 was likely. 

Others remained optimistic, noting that Doximity has a history of guiding conservatively and then outperforming expectations.

The stock has risen 9.1% so far in 2025.

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