📊 DOCS Key Takeaways
Is Doximity, Inc. (DOCS) a Good Investment?
Doximity demonstrates exceptional financial health with a fortress balance sheet (zero debt, $219.2M cash), world-class profitability (89.1% gross margin, 30.4% net margin), and strong cash flow generation (50.6% FCF margin). However, the 12.2% YoY decline in net income despite 13.1% revenue growth signals margin compression and rising operational costs that require monitoring.
Doximity shows unusually strong software-style fundamentals: 20.0% revenue growth paired with 35.4% net margin and 43.4% free cash flow margin, indicating that growth is translating into real earnings and cash generation. The balance sheet is also very clean, with no long-term debt, high liquidity, and strong returns on equity and assets, which supports resilience and reinvestment capacity.
Doximity, Inc. Key Strengths (DOCS)
- Outstanding profitability: 89.1% gross margin and 33.3% operating margin among software/services peers
- Impeccable balance sheet: zero long-term debt, $219.2M cash, debt-to-equity ratio of 0.00x
- Exceptional cash generation: $326.5M operating cash flow with 50.6% FCF margin
- Solid revenue growth of 13.1% YoY in competitive software market
- Strong returns on capital: 20.6% ROE and 17.4% ROA
- Excellent liquidity: 6.09x current ratio provides strategic flexibility
- Exceptional profitability, including 89.8% gross margin, 38.1% operating margin, and 35.4% net margin
- High-quality growth, with revenue up 20.0% while net income and diluted EPS grew over 50% year over year
- Very strong financial health, including no long-term debt and 6.63x current and quick ratios
DOCS Stock Risks: Doximity, Inc. Investment Risks
- Earnings decline despite revenue growth: net income down 12.2% YoY and EPS down 11.7% indicates margin compression or uncontrolled cost growth
- Unexplained profitability headwinds: the divergence between strong top-line growth and declining bottom-line profits suggests operational challenges
- Potential capital expenditure underreporting: $0.00 CapEx appears implausible for software-as-a-service business and may indicate data quality issues
- Growth may moderate if monetization or customer expansion slows from current elevated levels
- Very high margins can be difficult to sustain if competition or sales and product investment increase
- Cash and earnings quality should be monitored to ensure recent profit acceleration remains durable across periods
Key Metrics to Watch
- Operating margin trend: verify whether margin compression continues or stabilizes in next quarter
- EPS trajectory: confirm whether earnings decline is cyclical or structural
- Operating expenses as percentage of revenue: identify whether cost inflation or specific expense categories are driving margin pressure
- Revenue growth relative to net income and free cash flow growth
- Operating margin and free cash flow margin sustainability
Doximity, Inc. (DOCS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 50.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 6.09x current ratio provides a solid financial cushion.
DOCS Profit Margin, ROE & Profitability Analysis
DOCS vs Technology Sector: How Doximity, Inc. Compares
How Doximity, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Doximity, Inc. Stock Overvalued? DOCS Valuation Analysis 2026
Based on fundamental analysis, Doximity, Inc. appears fundamentally strong relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Doximity, Inc. Balance Sheet: DOCS Debt, Cash & Liquidity
DOCS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Doximity, Inc.'s revenue has grown significantly by 88% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.72 reflects profitable operations.
DOCS Revenue Growth, EPS Growth & YoY Performance
DOCS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $168.6M | $61.6M | $0.31 |
| Q2 2026 | $136.8M | $44.2M | $0.22 |
| Q1 2026 | $126.7M | $41.4M | $0.21 |
| Q3 2025 | $135.3M | $48.0M | $0.24 |
| Q2 2025 | $113.6M | $30.6M | $0.15 |
| Q1 2025 | $108.5M | $28.4M | $0.13 |
| Q3 2024 | $115.3M | $33.5M | $0.16 |
| Q2 2024 | $102.2M | $26.3M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Doximity, Inc. Dividends, Buybacks & Capital Allocation
DOCS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Doximity, Inc. (CIK: 0001516513)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DOCS
What is the AI rating for DOCS?
Doximity, Inc. (DOCS) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DOCS's key strengths?
Claude: Outstanding profitability: 89.1% gross margin and 33.3% operating margin among software/services peers. Impeccable balance sheet: zero long-term debt, $219.2M cash, debt-to-equity ratio of 0.00x. ChatGPT: Exceptional profitability, including 89.8% gross margin, 38.1% operating margin, and 35.4% net margin. High-quality growth, with revenue up 20.0% while net income and diluted EPS grew over 50% year over year.
What are the risks of investing in DOCS?
Claude: Earnings decline despite revenue growth: net income down 12.2% YoY and EPS down 11.7% indicates margin compression or uncontrolled cost growth. Unexplained profitability headwinds: the divergence between strong top-line growth and declining bottom-line profits suggests operational challenges. ChatGPT: Growth may moderate if monetization or customer expansion slows from current elevated levels. Very high margins can be difficult to sustain if competition or sales and product investment increase.
What is DOCS's revenue and growth?
Doximity, Inc. reported revenue of $644.9M.
Does DOCS pay dividends?
Doximity, Inc. does not currently pay dividends.
Where can I find DOCS SEC filings?
Official SEC filings for Doximity, Inc. (CIK: 0001516513) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DOCS's EPS?
Doximity, Inc. has a diluted EPS of $0.98.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DOCS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Doximity, Inc. has a A grade with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DOCS stock overvalued or undervalued?
Valuation metrics for DOCS: ROE of 20.6% (sector avg: 22%), net margin of 30.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is DOCS's AI grade for 2026?
Our dual AI analysis gives Doximity, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DOCS's free cash flow?
Doximity, Inc.'s operating cash flow is $326.5M, with capital expenditures of $0.0. FCF margin is 50.6%.
How does DOCS compare to other Technology stocks?
Vs Technology sector averages: Net margin 30.4% (avg: 18%), ROE 20.6% (avg: 22%), current ratio 6.09 (avg: 2.5).