Doximity (DOCS) Q2 2026: AI-Optimized Programs Jump to 40% of Bookings, Reshaping Revenue Cadence

November 6, 2025 | By EarningsIQ Research

Doximity’s rapid shift to AI-optimized, integrated programs is fundamentally altering both client buying patterns and the company’s revenue visibility, with 40% of Q2 bookings now driven by these offerings. The Pathway acquisition and deepening AI tool adoption are accelerating workflow engagement and stickiness among clinicians. Despite policy and budget uncertainties, Doximity’s predictable margin profile and expanding health system traction position it to outpace industry growth into 2026.

Summary

• Integrated Program Shift: AI-optimized offerings now anchor Doximity’s upsell and revenue cadence.
• Workflow Engagement Surge: Clinician adoption of AI tools and Scribe is accelerating platform stickiness.
• Margin Consistency: Strong profitability and cash flow provide a buffer against macro and policy risk.

Performance Analysis

Doximity delivered 23% year-over-year revenue growth in Q2, outpacing guidance and demonstrating robust demand for its platform-led model. The business continues to be anchored by its core subscription cohort, with 121 customers generating at least $500,000 each, representing 84% of total revenue and growing 16% YoY. Net revenue retention (NRR) remains high at 118%, reflecting the company’s ability to expand wallet share with existing clients.

Profitability remains a core strength, with adjusted EBITDA margin expanding to 60% and free cash flow up 37% YoY. Doximity’s non-GAAP gross margin held steady at 92%, underscoring the high incremental margin nature of its digital and AI-driven business. Notably, the company repurchased $21.9 million in shares, signaling capital return discipline even as it invests in AI and platform expansion. The balance sheet remains strong, with $878 million in cash and equivalents.

• AI-Optimized Programs Drive Upsell: Integrated offerings accounted for 40% of Q2 bookings, up from 5% last year, smoothing revenue seasonality.
• SMB Expansion Accelerates: Bookings from small and mid-sized pharma clients doubled YoY, aided by agency partnerships and self-service portal adoption.
• Workflow Tools Gain Traction: Over 650,000 unique prescribers used workflow solutions, with AI Scribe user count nearly tripling sequentially.

This quarter’s outperformance was driven by both existing client expansion and new workflow adoption, but management expects a more measured sequential growth rate as upsell timing normalizes due to earlier program launches.

Executive Commentary

Strategic Positioning

1. Integrated, AI-Optimized Programs Transform Revenue Flow

Doximity’s pivot to integrated, AI-optimized programs is reshaping client purchasing behavior and revenue predictability. These offerings, which bundle modules like newsfeed, telehealth, and workflow tools, now comprise 40% of bookings, up sharply from 5% a year ago. Clients are now deploying upsell dollars earlier and more evenly, reducing historic year-end “budget flush” volatility and smoothing Doximity’s revenue cadence.

2. Workflow and AI Adoption Deepen Platform Moat

AI-powered workflow tools, especially Scribe and DocsGPT, are driving record engagement and expanding Doximity’s clinical utility. Over 650,000 unique prescribers used workflow solutions this quarter, and AI Scribe’s user base nearly tripled sequentially. The Pathway acquisition has enabled instant, peer-reviewed drug reference and full-text journal access, further differentiating Doximity’s platform from competitors and reinforcing its “newsfeed of medicine” positioning.

3. SMB and Agency Channel Expansion Fuels Diversification

Agency-driven SMB growth is accelerating, with bookings in this cohort up 100% YoY. Doximity’s client portal and agency partnerships are enabling smaller pharma clients to access advanced ROI analytics and audience targeting, unlocking new revenue streams and reducing reliance on a handful of large customers.

4. Health System and Recruiting Solutions Show Emerging Strength

Enterprise and recruiting solutions are gaining traction, with health system business among the fastest-growing segments. Paid adoption of on-call scheduling and telehealth is expanding, and AI suite renewals are underway across top-tier hospital systems, signaling long-term opportunity beyond pharma.

5. Capital Allocation Remains Balanced

Disciplined share repurchases and a robust cash position enable continued investment in AI and tuck-in M&A without sacrificing profitability. Management remains open to both organic and inorganic expansion as AI capabilities and competitive dynamics evolve.

Key Considerations

Doximity’s Q2 marks a strategic inflection point, as integrated, AI-optimized programs fundamentally change both client behavior and the company’s revenue model. The platform’s deepening engagement and workflow adoption, balanced by prudent capital allocation, are positioning Doximity for sustained outperformance—yet policy and budget risks remain material as 2026 approaches.

Key Considerations:

• AI-Driven Revenue Smoothing: Earlier, more even upsell deployment reduces historic Q4 volatility and improves visibility.
• Expanding SMB Base: Agency partnerships are scaling small and mid-sized client adoption, diversifying revenue sources.
• Workflow Engagement as Moat: Rapid AI Scribe and DocsGPT adoption deepen physician stickiness and cross-sell potential.
• Health System Channel Potential: Enterprise and recruiting solutions are emerging as meaningful growth vectors beyond pharma.
• Margin Durability: 55%+ adjusted EBITDA margin guidance signals resilience even as AI investment ramps.

Risks

Policy uncertainty and delayed client budget finalization for 2026 remain the largest near-term risks, potentially impacting upfront bookings and growth pacing. Regulatory shifts in direct-to-consumer advertising, competitive intensity in HCP engagement, and ongoing litigation (including open evidence) add further complexity. Management’s measured approach to unbooked revenue reflects these headwinds.

Forward Outlook

For Q3 2026, Doximity guided to:

• Revenue of $180 to $181 million
• Adjusted EBITDA of $103 to $104 million (57% margin)

For full-year 2026, management raised guidance:

• Revenue of $640 to $646 million (13% YoY growth at midpoint)
• Adjusted EBITDA of $351 to $357 million (55% margin)

Management highlighted:

• AI-optimized integrated programs as the primary driver of improved visibility and smoother upsell cycles
• Potential budget caution from clients as policy changes and DTC advertising uncertainty persist

Takeaways

Doximity’s Q2 demonstrates a decisive shift to AI-optimized, integrated programs, which are smoothing revenue seasonality and deepening client engagement. The rapid scaling of workflow tools and SMB expansion add new vectors for durable growth, while margin consistency and capital discipline provide downside protection.

• AI Integration Redefines Revenue Flow: Integrated programs now anchor bookings, smoothing historic Q4 spikes and improving business predictability.
• Workflow and Health System Expansion: Accelerating adoption of Scribe and telehealth tools is deepening platform utility and opening new enterprise opportunities.
• 2026 Watchpoints: Monitor client budget finalization, health system traction, and the pace of AI tool monetization as key drivers of upside or risk.

Conclusion

Doximity’s transformation into an AI-optimized, platform-centric business is yielding both operational leverage and strategic flexibility. While budget and policy uncertainty may create near-term noise, the company’s diversified growth engines and strong margin profile set a high floor for future performance.

Industry Read-Through

Doximity’s rapid adoption of integrated, AI-optimized programs signals a broader shift in healthcare marketing and workflow digitization, with implications for all digital HCP engagement platforms. The early success of agency-driven SMB expansion and workflow AI tools suggests that scalable, platform-based models will increasingly outpace legacy, channel-specific approaches. Competitors in digital health, pharma marketing, and clinical workflow will need to accelerate their own integration and AI investment to keep pace with Doximity’s evolving value proposition and client expectations.

DOCS Healthcare Digital Health AI Workflow Platform SMB Integrated Programs