11/6/2025

speaker
Operator
Conference Operator

Thank you, Operator.

speaker
Barry
Investor Relations Host

Hello and welcome to Doximity's fiscal 2026 second quarter earnings call. With me on the call today are Jeff Tangney, co-founder and CEO of Doximity, and Anna Bryson, CFO. A complete disclosure of our results can be found in our press release issued earlier today, as well as in our related form 8K, along with a copy of our prepared remarks, all available on our website at investors.doximity.com. As a reminder, today's call is being recorded and a replay will be available on our website As part of our comments today, we will be making forward-looking statements. These statements are based on management's current views, expectations, and assumptions, and are subject to various risks and uncertainties. Actual results may differ materially, and we disclaim any obligation to update any forward-looking statements or outlook. Please refer to the risk factors in our annual report on Form 10-K, any subsequent Form 10-Qs, and our other reports and filings with the SEC that may be filed from time to time, including our upcoming filing on Form 10-Q. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, November 6, 2025. Of note, it is Doximity's policy to neither reiterate nor adjust the financial guidance provided on today's call unless it is also done through a public disclosure, such as a press release or through the filing of a Form 8-K. Today, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A historical reconciliation to comparable gap metrics can be found in today's earnings release. Finally, during the call, we may offer incremental metrics to provide greater insights into the dynamics of our business. These details may be one time in nature, and we may or may not provide updates on those metrics in the future. I would now like to turn the call over to our co-founder and CEO, Jeff Tangney.

speaker
Jeff Tangney
Co-founder and CEO

Thanks, Barry, and thank you, everyone, for joining our second quarter earnings call. We have three updates today, our financials, network growth, and AI products. First, our top line. We delivered $169 million in revenue for the second quarter of our fiscal 2026, which represents 23% year-on-year growth and a 7% beat from the high end of our guidance range. Our bottom line was also strong in Q2. with an adjusted EBITDA margin of 60% for $101 million, which was 15% above the high end of our guidance. Our adjusted EBITDA grew 32% year-on-year, while our free cash flow was up 37% year-on-year. In short, we had a better-than-expected first half, led by our AI-optimized integrated programs and our portal. Our CFO, Anna, will provide more detail on that in just a minute. Okay, turning now to our network growth and engagement, which reached new highs in Q2. Our newsfeed led the way with an all-time record number of quarterly active prescribers and double-digit growth in the number of articles read or tapped. Physicians really liked our new Ask Docs GPT feature, which allows them to ask follow-up questions and dive deeper into clinical topics directly from our newsfeed. On the workflow side, more than 650,000 unique prescribers used our workflow tools in Q2, which was also an all-time high. As a reminder, our workload tools include our telehealth, scheduling, digital facts, and AI tools for clinical reference and documentation. Our AI tools once again grew the fastest with quarterly active prescribers up more than 50% from the prior quarter. We're proud to be both the newsfeed of medicine and the go-to platform for AI-powered clinical workflows. Okay. Now for an update on our pathway acquisition and AI scribe growth. Just seven weeks after announcing our acquisition, we fully integrated Pathway's entire medical data set and AI models into DocsGPT, now live across both our web and mobile apps. We believe this integration gives us a couple of firsts in medical AI. Unlike others, DocsGPT has a fully integrated drug reference. And when a physician taps the mic and asks a drug-related question, peer-reviewed answers will appear instantly in under a second. Clinicians on the go can now just ask DocsGPT on their phone to check for dosing, side effects, or interaction. We're also the first medical AI to provide direct, full-text PDF access to over 2,000 medical journals, including all the top titles, through a unique referral with research solutions software. Doctors can now go from question to summary to the original peer-reviewed source in just a few clicks. No paywalls, proxies, or library logins. I began my career over 20 years ago in clinical reference at Hippocrates, and it's gratifying to see how far this point-of-care technology has now come. With our recent upgrades, we believe we're the fastest, best real-world AI medical reference in the market today. Our new AI Scribe is also becoming a clinician favorite. As a reminder, Doximity Scribe is our HIPAA compliant ambient note-taking tool. And in Q2, our number of quarterly active users nearly tripled versus Q1. This rapid uptake is a testament to the power of our platform. Our market-leading telehealth tool, Doximity Dialer, added Scribe integration last quarter. So now for the over 300,000 voice and video visits we conduct on an average weekday, doctors can add our Scribe with one click and give full focus to their patients, not their keyboards. As one of our family medicine doctors put it, I just love Scribe. I saw 22 patients today till 5 p.m. and was out of the office by 5.15. Amen to that. AI that gets you home in time for dinner. We're proud to help clinicians reduce their admins and cut down on pajama time. 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. From record engagement to major leaps in AI, we're building tools that help doctors provide better care for their patients. I couldn't be more proud of the work we're doing for the team behind it. And with that, I'll hand it over to our CFO, Anna Bryson, to discuss our financials and guidance. Anna?

Disclaimer

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