Doximity Reports Q3 FY2026 Engagement Gains but Omits Key Financial Details

What happened

Doximity announced its fiscal 2026 third quarter results, highlighting record engagement with over 1 million quarterly active prescribers in its newsfeed. The press release emphasized strong profits and a record quarter-over-quarter jump in workflow products to 720,000 users, along with nascent AI products exceeding 30, but notably omitted specific revenue and adjusted EBITDA figures. This lack of financial disclosure contrasts with the DeepValue report's Q3 guidance of $180–$181 million in revenue and $103–$104 million in adjusted EBITDA, which were critical watch items for assessing execution. While the engagement metrics align with Doximity's strategy to deepen network effects and expand workflow adoption, the absence of hard numbers raises red flags about potential margin pressures or guidance misses amid pharma budget sensitivity and legal risks. Investors must await full financial results to determine if this engagement translates into sustainable profitability and supports the existing investment thesis.

Implication

The record engagement in newsfeed prescribers and workflow products suggests Doximity is successfully growing its user base, which could enhance long-term monetization and support network effects. However, the omission of financial details in the press release is a critical oversight, preventing immediate evaluation of key performance indicators like revenue growth and EBITDA margins against the $180–$181 million and $103–$104 million guidance. This lack of transparency may indicate management is downplaying potential shortfalls, especially given the DeepValue report's warnings on pharma budget sensitivity and competitive threats in the crowded AI scribe market. The nascent AI product growth, while positive, is too early to assess its impact on revenue diversification or competitive positioning. Investors should closely monitor the full earnings release for updates on net revenue retention, large customer cohorts, and any regulatory developments to gauge the durability of growth and margin health.

Thesis delta

The strong engagement metrics reinforce Doximity's competitive moat and network effects, aligning with the positive aspects of the DeepValue thesis that supports a POSSIBLE BUY rating. However, the lack of financial disclosure introduces uncertainty around guidance achievement and margin health, potentially delaying an upgrade to STRONG BUY until clearer data validates sustained reacceleration and risk mitigation.