Summary
- Doximity delivered strong 2Q26 results, beating EPS and revenue estimates with 23% year-over-year growth, driven by robust adoption of AI-enabled workflow tools.
- DOCS maintains exceptional profitability, with adjusted EBITDA margins near 60% and free cash flow margins above 40%, supported by a strong cash position and minimal debt.
- Despite solid financials, shares declined due to client budget uncertainty from healthcare po…
Summary
- Doximity delivered strong 2Q26 results, beating EPS and revenue estimates with 23% year-over-year growth, driven by robust adoption of AI-enabled workflow tools.
- DOCS maintains exceptional profitability, with adjusted EBITDA margins near 60% and free cash flow margins above 40%, supported by a strong cash position and minimal debt.
- Despite solid financials, shares declined due to client budget uncertainty from healthcare policy changes, leading to cautious near-term guidance and potential revenue turbulence.
- I maintain a hold rating on DOCS, as premium valuation (29.3x forward P/E, 12.1x EV/revenue) reflects high-growth expectations amid near-term policy-driven headwinds.
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Thesis
Doximity, Inc. (DOCS) reported a 2Q26 non-GAAP EPS of $0.45. It’s a figure that beat estimates by about $0.07. Revenue also came in above expectations, beating consensus by $10.91 with a figure of $168.5 million. Revenue was also up 23.2% year-over-year. The
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