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Doximity Rides on Telehealth Demand: Will This Drive Sales Further?
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Key Takeaways
DOCS reported Q4 revenues of $138.3M, up 17% YoY, driven by robust subscription revenue growth.
Record engagement came from DOCS' newsfeed and AI tools, with the latter growing more than 5x YoY
Sales to DOCS' top 20 clients jumped 23% in fiscal 2025, supporting sustained growth into fiscal 2026.
Doximity (DOCS - Free Report) ended the fiscal 2025 with robust growth in its top line. The performance is also likely to continue in fiscal 2026 as demand for telehealth and related services continues to rise. Total revenues for the fourth quarter of fiscal 2025 grew 17% year over year to $138.3 million. The top-line growth was driven by subscription revenues of $131.9 million, which rose 17% year over year. DOCS’ unique active users on a quarterly, monthly, weekly and daily basis all hit fresh highs in the fiscal fourth quarter. The company’s performance reflects continued demand as DOCS provides a wide range of online services, including workflow tools like telehealth, fax, scheduling and AI tools, to medical practitioners. The demand for these services hit fresh highs during the fiscal fourth quarter, with over 620,000 unique active prescribers. Doximity’s sales to the top 20 clients surged 23% during fiscal 2025, implying persistent strong sales growth going forward.
DOCS’ strong subscription growth in the fourth quarter was fueled by the momentum in its newsfeed and AI tools. The newsfeed, its most used and monetized product, drove engagement with record-high unique users and a 30% year-over-year increase in articles tapped. Meanwhile, AI tools, including Doximity GPT, were the fastest-growing segment, rising over 5x year over year. The company is now pivoting its focus from the client portal to clinical AI products, a shift that aligns with growing physician demand for productivity-enhancing tools. This strategic move positions Doximity to sustain and accelerate future growth by addressing physician burnout and unlocking new monetization avenues.
Other Telehealth Providers Also Witness Rising Demand
HealthEquity (HQY - Free Report) and Teladoc Health (TDOC - Free Report) , two major competitors in the telehealth and related service provider space, are also riding similar tailwinds supporting sales growth.
HealthEquity’s sales improved 15% in the first quarter of fiscal 2026 to a record high of $330.8 million. HQY’s enhanced member-first secure mobile experience to strengthen the security of members’ $31 billion of HSA Assets led to an increase in member resources.
Although TDOC’s operational revenues were down during the first quarter, it reported better-than-expected results due to growing international revenues and an expanding membership base in the Integrated Care segment. Revenues in the Integrated Care segment are forecasted to witness 0.25-2.75% year-over-year growth during the second quarter.
Doximity’s Price Performance, Valuation and Estimates
Shares of DOCS have gained 0.2% in the year-to-date period against the industry’s decline of 4.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Doximity trades at a forward price-to-earnings ratio of 36.05, above the industry average. But, it is still lower than its five-year median of 52.54. DOCS carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Doximity’s 2025 earnings implies a 2.8% rise from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Doximity Rides on Telehealth Demand: Will This Drive Sales Further?
Key Takeaways
Doximity (DOCS - Free Report) ended the fiscal 2025 with robust growth in its top line. The performance is also likely to continue in fiscal 2026 as demand for telehealth and related services continues to rise. Total revenues for the fourth quarter of fiscal 2025 grew 17% year over year to $138.3 million. The top-line growth was driven by subscription revenues of $131.9 million, which rose 17% year over year. DOCS’ unique active users on a quarterly, monthly, weekly and daily basis all hit fresh highs in the fiscal fourth quarter. The company’s performance reflects continued demand as DOCS provides a wide range of online services, including workflow tools like telehealth, fax, scheduling and AI tools, to medical practitioners. The demand for these services hit fresh highs during the fiscal fourth quarter, with over 620,000 unique active prescribers. Doximity’s sales to the top 20 clients surged 23% during fiscal 2025, implying persistent strong sales growth going forward.
DOCS’ strong subscription growth in the fourth quarter was fueled by the momentum in its newsfeed and AI tools. The newsfeed, its most used and monetized product, drove engagement with record-high unique users and a 30% year-over-year increase in articles tapped. Meanwhile, AI tools, including Doximity GPT, were the fastest-growing segment, rising over 5x year over year. The company is now pivoting its focus from the client portal to clinical AI products, a shift that aligns with growing physician demand for productivity-enhancing tools. This strategic move positions Doximity to sustain and accelerate future growth by addressing physician burnout and unlocking new monetization avenues.
Other Telehealth Providers Also Witness Rising Demand
HealthEquity (HQY - Free Report) and Teladoc Health (TDOC - Free Report) , two major competitors in the telehealth and related service provider space, are also riding similar tailwinds supporting sales growth.
HealthEquity’s sales improved 15% in the first quarter of fiscal 2026 to a record high of $330.8 million. HQY’s enhanced member-first secure mobile experience to strengthen the security of members’ $31 billion of HSA Assets led to an increase in member resources.
Although TDOC’s operational revenues were down during the first quarter, it reported better-than-expected results due to growing international revenues and an expanding membership base in the Integrated Care segment. Revenues in the Integrated Care segment are forecasted to witness 0.25-2.75% year-over-year growth during the second quarter.
Doximity’s Price Performance, Valuation and Estimates
Shares of DOCS have gained 0.2% in the year-to-date period against the industry’s decline of 4.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Doximity trades at a forward price-to-earnings ratio of 36.05, above the industry average. But, it is still lower than its five-year median of 52.54. DOCS carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Doximity’s 2025 earnings implies a 2.8% rise from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.