Doximity Inc., the largest professional medical network in the US, faces a challenging period. Stock has fallen 60% in six months, trading at $19.94 vs. 52-week high of $76.51.
Fiscal Q4 results in May 2026 showed modest beats on revenue and EBITDA, but FY2027 guidance disappointed. 13 analysts lowered estimates. Revenue projected at $664-676 million (~4% growth), roughly 4% below consensus. EBITDA guidance of $323-335 million came 12% below Street estimates.
New leadership: Matt Sonefeldt (CFO) and Dr. Steve Zatz (president). They must balance near-term profitability with long-term AI investments. AI spending will compress EBITDA margins from 55% to ~49% in FY2027. Gross profit margins remain strong at 89%.
AI products: AI Search (for pharma companies), Scribe (physician AI tool), Pathways (clinical decision-making). AI Search expected to contribute meaningfully in H2 FY2027. Competition: OpenEvidence (~$110M revenue) and EHR vendors.
Active prescribers using workflow tools up 30% YoY. Over 300 large health systems partnered. Company holds $766M cash, zero debt. P/E ratio 18.93, market cap $3.65B. Long-term growth rate estimated at 9%.
