Doximity, Inc.

Last but not least, we're pleased to announce the acquisition of Pathway, a six-person, -year-old Montreal startup specializing in AI clinical reference. Trained at McGill, Johns Hopkins, and Harvard, physicians make up half the team at Pathway. From a postdoc program at the prestigious Miele AI Institute, they founded Pathway five years before CHET GPT even existed. To help answer the ICU bedside questions they faced every day. Together, they painstakingly built one of the best and largest medical AI datasets around, spanning nearly every guideline, drug, journal, and landmark trial. They call this their corpus. And what makes it powerful is its cross-linked structure that lets AI quickly get accurate answers for doctors. It's much more than an LLM. It understands complex drug interactions and scores the strength of medical evidence, such as weighing a validated clinical trial more than a case study. The net result is industry-leading accuracy and speed. This May, Pathway's AI model scored a record high, 96%, on the U.S. medical licensing exam, outperforming their competitors. With almost no marketing budget, Pathway has grown to hundreds of thousands of registered users worldwide, with thousands paying $300 per year for their premium version. Above all, this AI native aqua-hire has been a great culture and mission fit for us. Over the past month, we've spent many a late night working with the Pathway team at our San Francisco offices. They're smart, honest, and hardworking, and we just couldn't like them more. We've already learned a lot from John, Louis, Chris, Kudder, Hove, and Peter. And yes, I'm calling them out here not just to thank them, but also to help them get visas to move here. The fruits of our collaboration are already on display. In record time, our engineering teams have integrated Pathway's corpus and fine-tuned AI into our free Doximity GPT product. Thousands of physician beta testers are already using it and liking its accuracy and speed. I'm personally excited to be back working in clinical reference again. It's where I began my career with apocrates over 20 years ago. Clinical reference is a key part of physician workflow that once again seems right for tech innovation. Looking ahead, we believe clinical AI is still in its early innings. We recently surveyed 1,800 US physicians, and more than half have yet to use any clinical AI. But many are interested. We're here to help. We launched Doximity GPT, the first HIPAA-compliant physician AI, just three months after CHAP GPT is released. We've since learned a lot from our beta testers and physician advisory summits about what doctors want most from AI. So our physician AI suite is now taking shape. GRIBE takes your notes, GPT writes your letters, Pathway's corpus helps answer your questions, and they all work together in a free HIPAA-compliant suite that's private to each physician. In sum, we're excited to make AI our next act here at Doximity. Okay, as always, I'd like to end by thanking my Doximity teammates who continue to work incredibly hard to care for those who care for us. And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and guidance. Anna?

Thanks, Jeff, and thanks to everyone on the call today. First quarter revenue grew to $145.9 million, up 15% year over year, and exceeding the high end of our guidance range. Similar to prior quarters, our existing customers continued to lead our growth. We finished the quarter with a net revenue retention rate of 118% on a trailing 12-month basis. For our top 20 customers, net revenue retention was higher, at 119%. So our biggest, most sophisticated customers remain our fastest growing. We ended the quarter with 120 customers contributing at least $500,000 each in subscription-based revenue on a trailing 12-month basis. This is a roughly 17% increase from the 103 customers we had in this cohort a year ago, and these customers accounted for 84% of our total revenue. Turning to our profitability, non-GAAP growth margin in the first quarter was 91% versus 92% in the prior year period. Adjusted EBITDA for the first quarter was 79.8 million, and adjusted EBITDA margin was 55%, compared to 65.9 million and a 52% margin in the prior year period. We are proud to continue to run a very profitable business with margin expansion. Now turning to our balance sheet cash flow and an update on our share repurchase program. We generated free cash flow in the first quarter of 60.1 million, compared to 39.5 million in the prior year period, an increase of 52% year over year. Going forward, we expect our free cash flow to be positively impacted by the new tax law reversing the need to capitalize R&D. We expect our cash tax rate to drop to roughly 10 to 15% starting this fiscal year. We ended the quarter with 841 million of cash, cash equivalents, and marketable securities. During the first quarter, we repurchased $122.3 million worth of shares at an average price of $53.99. We believe repurchasing our shares is a valuable use of the incremental cash we generate above what's needed to reinvest in the business. As of June 30th, we have 302 million remaining in our existing repurchase program. Now we'll provide additional details on our pathway acquisitions, as well as an update on stock-based compensation. We recently closed our acquisition of Pathway for 26 million in cash and up to 37 million in additional equity grants. Since we will offer our clinical reference tools free of charge, we expect no revenue contribution from Pathway this year. The non-GAP expense impact will be modest, estimated at just over 2 million in fiscal 2026, primarily related to personnel and infrastructure costs. Additionally, we expect stock-based compensation to increase to the high teams as a percentage of revenue in fiscal 2026 and 2027, and then trend back down to the mid-teens starting in 2028. This is primarily the result of our pathway acquisition, as well as one-time performance-based grants for our growing AI team. That said, we expect dilution from these new awards to be more than offset by our share repurchases this year. Now moving on to our outlook. For the second fiscal quarter of 2026, we expect revenue in the range of 157 to 158 million, representing 15 percent growth at the midpoint. And we expect adjusted EBITDA in the range of 87 to 88 million, representing a 56 percent adjusted EBITDA margin. For the full fiscal year, we now expect revenue in the range of 628 to 636 million, representing 11 percent growth at the midpoint. And we now expect adjusted EBITDA in the range of 341 to 349 million, representing a 55 percent adjusted EBITDA margin. Our increased outlook is due to broad-based strengths across our entire business. Specific to our pharma customers, we saw a promising start to the upsell season, which we believe is due to a couple of factors. First, our expanded commercial product portfolio continues to resonate with clients. In Q1, both our workflow and new speed modules saw strong growth. Second, the client portal continues to provide deeper insight into program performance and drive favorable purchasing decisions. In particular, by leveraging the portal, our agency partners have helped broaden our reach amongst SMB customers, contributing to bookings growth in this cohort of over 100 percent year over year in Q1. We are proud of our Q1 performance and are encouraged that despite the continued policy uncertainty, we have not yet seen any slowdown in our business. That said, we recognize there is still a lot of runway left in the year, and we will continue to take a measured approach to the revenue we have yet to book, which is reflected in our outlook for the back half of fiscal 2026. Looking ahead, we are incredibly excited by how our recent investments in AI, particularly our pathway acquisition and the launch of Scribe, will help drive our long-term growth. More importantly, we are excited to be building products that align with our mission of helping physicians be more productive so that they can provide better care for their patients. With that, I will turn it over to the operator for questions.

Thank you. And everyone, if you have a question today, please press star 1 on your telephone keypad. We ask that you limit yourselves to one question and one follow-up. The first question comes from Brian Peterson, Raymond James.