Doximity, Inc. (DOCS): ANSOFF MATRIX [Dec-2025 Updated]

Honestly, when a company like Doximity, Inc. (DOCS) already has over 80% of U.S. physicians on its platform, the question isn't if they can grow, but how they'll spend their $266.7 million in fiscal year 2025 free cash flow. I see the next moves clearly: do we stick to the low-risk path of increasing revenue from those 121 key customers, or do we take a calculated swing at new products, like monetizing that new AI suite, or even new geographies? We've mapped out the entire playbook-from deepening existing product usage to exploring a pilot in the UK-using the Ansoff Matrix, and you'll want to see the specific, actionable vectors tied to their $223.2 million fiscal year 2025 net income right below.

Doximity, Inc. (DOCS) - Ansoff Matrix: Market Penetration

You're looking at Doximity, Inc. (DOCS) and focusing on deepening its hold in the existing market of U.S. medical professionals and their associated enterprise clients. This strategy relies on getting current users to buy more and existing clients to adopt more of your product suite. It's about maximizing the value from the network you've already built, which is substantial.

The focus on the top-tier customers shows where the immediate revenue lift is targeted. For the second quarter of fiscal 2026, Doximity, Inc. had exactly 121 customers contributing at least $500,000 each in subscription-based revenue on a trailing 12-month basis, and these large accounts represented 84% of total revenues in that quarter. The action here is clearly to drive up the average revenue per user (ARPU) within this high-value cohort, though the specific ARPU increase percentage isn't public, the customer count growth from 104 a year ago signals success in expanding that base.

A major driver for this penetration is the success of bundling your services. Multi-module integrated offerings are clearly resonating, accounting for over 40% of Q2 bookings, a massive jump from less than 5% a year ago. This shows clients are moving toward deeper integration, which should translate directly into higher recurring revenue and stickiness.

For the core product usage among physicians, the Doximity Dialer telehealth tool already has significant reach, with roughly 45% of U.S. physicians using a paid version. The goal is to push that number higher, leveraging the fact that the Dialer product has been named Best in KLAS in the Video Conferencing Platforms segment for the fourth consecutive year. Remember, Doximity, Inc. connects with over 80% of U.S. physicians overall.

To capture more of the digital ad budget, especially from pharmaceutical clients, Doximity, Inc. needs to demonstrate superior return on investment compared to traditional channels. The financial results support this value proposition: fiscal year 2025 subscription revenue hit $543.8 million, growing at a 21% clip year-over-year. For Q2 2026, subscription revenues were $159.5 million, up 23% year-over-year. This growth, coupled with a non-GAAP gross margin of 92% in Q2 2026, makes the platform an efficient spend for pharma marketers.

Financially, Doximity, Inc. is in a strong position to fund aggressive moves in the enterprise space. Fiscal year 2025 generated $266.7 million in free cash flow, marking a 50% increase year-over-year. That cash pile is the fuel for offering aggressive pricing or incentives to lock in health system enterprise contracts, securing future revenue streams.

Here's a snapshot of the recent performance underpinning this strategy:

The immediate focus areas for market penetration are:

• Increase ARPU for the 121 large customers representing 84% of Q2 2026 revenue.
• Drive multi-module integrated offerings adoption, which was over 40% of Q2 bookings, up from less than 5% a year ago.
• Expand Doximity Dialer usage beyond the roughly 45% of U.S. physicians currently using a paid version.
• Shift pharmaceutical client spending by highlighting platform efficiency, evidenced by FY 2025 subscription revenue growth of 21%.
• Deploy the $266.7 million in fiscal year 2025 free cash flow to secure health system enterprise contracts.

What this estimate hides is the exact churn rate for the non-integrated customers, which is key to understanding the true net expansion rate. Finance: draft 13-week cash view by Friday.

Doximity, Inc. (DOCS) - Ansoff Matrix: Market Development

You're looking at how Doximity, Inc. can take its established U.S. physician network and push it into new territories or new professional segments. This is Market Development, and the numbers show where the immediate runway is.

Expanding the Existing U.S. User Base

Doximity, Inc. already has a commanding presence in the core U.S. physician market, reaching over 80% of U.S. physicians. The next logical step is digging deeper into the Advanced Practice Provider (APP) segment within the current geography. As of May 2024, the platform had already onboarded over 60% of the roughly 550,000 Nurse Practitioners (NPs) and Physician Assistants (PAs) in the U.S..

This leaves a clear target for market penetration within the existing service area. Targeting the remaining 40% of U.S. APPs represents an opportunity to add approximately 220,000 potential new users to the network, based on the 550,000 figure. The company's Net Revenue Retention (NRR) rate, which was 118% on a trailing 12-month basis in Q1 FY2026, shows existing customers are spending more, but new user acquisition in adjacent segments is key for top-line acceleration beyond core pharma spend.

Launching Specialized U.S. Professional Verticals

Moving beyond the physician and existing APP base means tailoring the platform for other licensed professionals. This is a new market for the existing core platform offering. Consider the market for pharmacists or physical therapists in the U.S. The platform's success with its core user base, evidenced by a fiscal year 2025 revenue of $570.4 million, up 20% year-over-year, suggests the workflow and communication tools have broad appeal.

Here's a look at the financial context for this expansion:

Geographic Expansion via Acquisition

Bypassing initial regulatory friction by acquiring an established local player is a classic Market Development move. Doximity, Inc. has already made a move in this direction by acquiring Pathway Medical, which is a Montreal-based medical AI startup. This acquisition immediately plants a flag in the Canadian market, which is an English-speaking, highly-regulated environment similar to the UK, testing platform localization and operational readiness outside the U.S. The company's SMS service is also noted as being available in Canada and the United Kingdom.

The financial strength supports this M&A strategy. Doximity exited Q1 FY2026 with cash and marketable securities of $878 million. This war chest allows for strategic tuck-in acquisitions like Pathway Medical to gain immediate market access and integrate technology, such as AI capabilities, which are central to the platform's value proposition.

• Acquisition of Pathway Medical in Montreal.
• SMS service availability noted in Canada and the UK.
• Cash and marketable securities totaled $878 million at period end (Q3 FY2026).
• The company is actively integrating AI capabilities post-acquisition.

The success of these moves will be measured against the company's overall growth trajectory, which saw revenue guidance raised for fiscal year 2026 to a range of $640 million to $646 million.

Testing International Localization

For a pilot program in a market like the UK, testing platform localization is crucial before a full-scale launch. The company's core business model relies on annual subscriptions, with 95% of revenue coming from these contracts. A successful pilot in a new English-speaking market would need to demonstrate similar subscription predictability. The company's Q3 FY2026 results showed a strong 23% year-over-year revenue surge, indicating high demand for its current offerings that can be tested abroad.

The focus remains on deepening engagement, as seen by the 121 large customers each generating at least $500,000 in trailing-12-month subscription revenue, accounting for 84% of total revenue. Any international pilot must prove it can replicate this high-value customer concentration.

Finance: draft the projected incremental revenue model for the Canadian market based on the 60% APP penetration rate achieved in the U.S. by Friday.

Doximity, Inc. (DOCS) - Ansoff Matrix: Product Development

You're looking at Doximity, Inc. (DOCS) and mapping out how they turn their massive user base-which includes more than 80% of U.S. physicians-into durable, high-margin revenue from new products. This is the Product Development quadrant: taking what you've built and selling it to the existing market of U.S. medical professionals and the health systems that employ them. The financial foundation for this push is solid; in fiscal year 2025, Doximity, Inc. reported a net income of $223.2 million on total revenues of $570.4 million, generating $266.7 million in free cash flow. That cash position provides the fuel for these new offerings.

The immediate focus is shifting AI tools from adoption drivers to revenue generators. Doximity, Inc. is prioritizing the monetization of its AI suite, which includes Scribe and Pathway AI. Scribe, the HIPAA-compliant ambient note-taking tool, has already seen significant traction, with over 10,000 beta testers, 75% of whom were using it weekly. The acquisition of Pathway Medical, which closed in July 2025 for $26 million in cash plus equity, bolsters the clinical reference side of the AI offering. This move positions the entire suite for an enterprise subscription transition, moving beyond the initial free-to-drive-engagement phase.

To capture revenue from individual physicians, the plan involves developing a premium, paid-tier subscription. This isn't entirely new territory; the acquired Pathway product previously had thousands of users paying $300 per year for its premium version. The new offering will integrate advanced AI-powered clinical reference and workflow tools, aiming to convert engaged free users into paying subscribers by offering indispensable utility directly at the point of care. This strategy mirrors the successful model of existing premium services like Doximity Dialer.

Deepening integration with Electronic Health Record (EHR) systems is critical to making workflow tools indispensable. While Doximity, Inc. has historical integrations with major systems like Epic and MEDITECH, the next step is ensuring the new AI and documentation tools flow seamlessly within the provider's primary system of record. This reduces friction and entrenches the platform in daily patient care coordination, which is the key to long-term retention. The momentum is there, as workflow engagement hit an all-time high in Q2 fiscal year 2026, with more than 650,000 unique prescribers using those tools.

Capturing a new revenue stream from health systems via a dedicated, HIPAA-compliant patient-to-physician messaging module is a clear expansion of the enterprise offering. This directly targets health system budgets for patient engagement and care coordination, an area where Doximity, Inc. has already seen success with its Dialer product. The company's overall subscription revenue for fiscal year 2025 was $543.8 million, showing the existing appetite for paid platform features from health systems and pharmaceutical clients.

Finally, the commitment to next-generation AI features that automate clinical documentation will be funded by the strong profitability achieved in fiscal year 2025. A portion of the $223.2 million net income is earmarked for Research & Development (R&D). This investment is already showing results, as the overall AI tool suite adoption increased over 50% sequentially in Q2 fiscal year 2026, with Scribe users nearly tripling from Q1 to Q2 of that period.

Here's a look at the recent AI adoption and financial context supporting this product development push:

The product development roadmap hinges on converting these engagement metrics into recurring revenue streams. You should watch for specific announcements on the enterprise pricing structure for Scribe and Pathway AI, as that will be the clearest indicator of success in this strategy. The key actions tied to this quadrant are:

• Finalize enterprise subscription packaging for the combined AI suite (Scribe/Pathway AI).
• Launch the individual physician premium tier, benchmarked against the former $300 Pathway price point.
• Secure integration milestones with the top three EHR vendors by year-end.
• Allocate a specific dollar amount from the $223.2 million FY2025 net income to R&D for AI documentation automation.
• Establish initial revenue targets for the new patient-to-physician messaging module.

Finance: draft 13-week cash view by Friday.

Doximity, Inc. (DOCS) - Ansoff Matrix: Diversification

You're looking at growth beyond the core network, which makes sense when your existing platform is already generating $570.4 million in revenue for Fiscal Year 2025 and boasts a Non-GAAP gross margin of 92% as of Q2 Fiscal Year 2026. Diversification, in this context, means taking that established trust and technology stack into new, adjacent, or even completely separate revenue streams. Here's how we map out those potential moves.

Create a new direct-to-consumer (D2C) health information service

Leveraging the physician network for verified content means you are selling trust directly to the patient. This is a play into the broader digital health space, which was valued globally at $427.24 billion in 2025. The business-to-consumer (B2C) segment within digital health is expected to grow at a Compound Annual Growth Rate (CAGR) of 20.18% between 2025 and 2032. You could offer premium access to physician-vetted articles or symptom checkers, monetizing via a subscription model. Think about the current cash position; Doximity, Inc. ended Q2 Fiscal Year 2026 with $878 million in cash, equivalents, and marketable securities, providing a solid war chest for this type of market entry. This move would be a product development play on a new market segment (consumers) rather than just physicians.

Enter the medical education market

Offering accredited Continuing Medical Education (CME) courses directly targets the continuous professional development requirement for your existing user base, but monetizes it differently-through sponsorship or subscription rather than just workflow/recruiting fees. The global CME market was projected to be valued at $10.51 billion in 2025. In the U.S. alone, the market was valued at $3.35 billion in 2024. If Doximity, Inc. could capture even a small fraction of the e-learning segment, which held approximately 42.19% of the U.S. market share in 2024, the revenue potential is clear. Your current Adjusted EBITDA margin of 60% in Q2 Fiscal Year 2026 suggests you can build a high-margin education product, provided you manage accreditation costs effectively. This is a classic product development strategy, but the revenue stream is new.

Acquire a medical recruiting firm

Fully integrating career management tools into an end-to-end talent acquisition service is a vertical integration play, but acquiring a firm to do so is a diversification of capability that targets a high-margin service. The broader Healthcare Staffing Market was estimated at USD 45.75 billion in 2025. If Doximity, Inc. were to acquire a firm, it would be moving into a space where the existing business already has a strong foothold via its career tools. The goal here is margin capture; moving from a tool provider to a full-service talent acquisition partner. The company's Net Revenue Retention Rate of 118% on a trailing 12-month basis shows existing customers are spending more, but a full recruiting service could command higher, transaction-based fees. This is a move to capture more wallet share from the same customer base, but through a different service offering.

Launch a secure, professional networking platform for a different regulated vertical

Using the core technology stack to enter a new regulated vertical, like finance or legal professionals, is pure diversification-new product, new market. This strategy relies on the proven scalability of your platform architecture. For context on the scale of professional digital platforms, Doximity, Inc.'s own subscription revenue for FY 2025 was $543.8 million, showing the appetite for professional digital tools. A successful launch here would require significant initial investment, but the potential upside is tapping into an entirely new pool of high-value, regulated professionals. The company's current Free Cash Flow of $91.6 million in Q2 Fiscal Year 2026 suggests you have the internal capital to fund this kind of exploration, though it's the highest risk move. We need to be careful not to overextend, though the guidance for FY 2026 revenue is only $640 million to $646 million, indicating management is still focused on the core vertical for near-term growth. This move would defintely diversify the revenue base significantly.

• Quarterly Active Prescribers using AI tool suite increased over 50% sequentially in Q2 FY2026.
• Large customer cohort (>$500k subscription revenue) was 121 customers, up 16% year-over-year in Q2 FY2026.
• Non-GAAP diluted net income per share for FY 2025 was $1.42.
• Doximity, Inc. repurchased $21.9 million in shares in Q2 FY2026.