Doximity, Inc. (DOCS): BCG Matrix [Dec-2025 Updated]

You're mapping Doximity, Inc. (DOCS) onto the BCG Matrix, and what we see is a rare beast: a high-margin platform where the core business is so dominant it acts as both a Star and a Cash Cow. As of fiscal year 2025, that core subscription revenue pulled in $543.8 million while delivering an exceptional 55.0% Adjusted EBITDA margin, yet new product contributions are already over 20% of pharma sales, signaling major growth potential. Keep reading to see the precise breakdown of where Doximity's massive network-connecting over 80% of U.S. physicians-is generating reliable cash versus where the high-growth, unproven bets are sitting.

Background of Doximity, Inc. (DOCS)

You're looking at Doximity, Inc. (DOCS), which is the leading digital platform for medical professionals across the United States. Honestly, the company's core purpose is pretty straightforward: its mission is to help every physician be more productive and provide better care for their patients. That focus on physician enablement is what drives their entire business model.

The network itself is quite extensive; as of their fiscal year 2025 reporting, Doximity's membership included more than 80% of U.S. physicians across every specialty and practice area. What they offer members are digital tools built specifically for medicine. These tools help doctors collaborate with colleagues, keep up with the newest medical news and research, manage their careers, and streamline administrative paperwork, including virtual patient visits.

When we look at where the money comes from, it's a powerful, sticky subscription model. The vast majority of Doximity's revenue comes from selling these services to pharmaceutical companies, health systems, and medical recruiting firms. For the fiscal year ended March 31, 2025, the company reported total revenue of $570.4 million, which was a solid 20% increase year-over-year. Subscription revenue, which is the high-quality, predictable part, hit $543.8 million, growing at a 21% clip.

What's really compelling about Doximity, Inc. is how well they convert that revenue into cash. For fiscal year 2025, net income soared to $223.2 million, marking a massive increase of about 51.23% from the prior year. Plus, they generated $266.7 million in free cash flow, which was up 50% year-over-year. That kind of operational success, with an Adjusted EBITDA margin hitting 55.0% for the full year, shows a business scaling profitably.

Still, you want the freshest data, right? In their second quarter of fiscal year 2026, Doximity reported revenue of $168.5 million, beating guidance with a 23% year-over-year growth rate. Even better, their operational efficiency improved, with the Adjusted EBITDA margin expanding to 60% for that quarter. This momentum is supported by strong adoption of their newer AI tools and workflow enhancements, which are helping doctors save time.

Doximity, Inc. (DOCS) - BCG Matrix: Stars

You're looking at the engine room of Doximity, Inc. (DOCS) growth-the Stars quadrant. These are the areas where high market share meets a rapidly expanding market, demanding heavy investment to maintain leadership. For Doximity, Inc. (DOCS), this is clearly where the newest, most engaging workflow tools reside.

The adoption of AI-powered workflow tools is a prime example of a Star. In the third quarter of fiscal year 2025 (Q3 FY2025), these tools generated significant usage, with over 1.8 million prompts recorded. This figure represented a substantial 60% growth quarter-over-quarter, showing rapid clinician buy-in and high market penetration for these new offerings. Also, the overall unique active prescribers using workflow tools-which include AI, telehealth, fax, and scheduling-hit over 610,000 unique users in that same quarter. This engagement is key; it's what keeps the product sticky and growing its share in the digital health space.

The strength of Doximity, Inc. (DOCS) in securing and expanding its most valuable relationships is another clear Star indicator. The net revenue retention rate (NRR) for the top 20 clients in Q3 FY2025 was 122% on a trailing twelve-month basis. This means that cohort of your biggest customers spent 22% more with you this year than they did last year. This is supported by the overall NRR for all existing customers, which stood at 117% for the same period. These integrated program offerings, which bundle multiple modules, are what drive that high retention, leading to larger deal sizes and faster revenue recognition.

Here's a quick look at the performance metrics tied to these high-growth areas in Q3 FY2025:

The market context for the Telehealth/Dialer platform further solidifies its Star status. While the prompt suggests a 22% CAGR, market data for the broader telehealth sector projects a growth rate of 22.94% between 2025 and 2032. This high-growth environment means Doximity, Inc. (DOCS) must continue to invest heavily to capture and defend its share. The platform itself is already recognized as a leader, earning the #1 Best in KLAS ranking for Telehealth Video Platform, outperforming competitors like Microsoft Teams and Zoom. This market leadership, combined with the high growth, means Doximity, Inc. (DOCS) is spending cash to keep its lead, which is exactly what a Star requires.

The success of these integrated offerings is evident in the pharmaceutical sales mix:

• New products, including Point-of-Care and Formulary, grew over 100% year-over-year in Q3.
• These new modules accounted for over 20% of total pharmaceutical sales in Q3 FY2025.
• The company reported achieving $102.0 million in Adjusted EBITDA in Q3 FY2025, with a record margin of 61%, showing that these investments are translating into strong profitability even while being scaled.

Doximity, Inc. (DOCS) - BCG Matrix: Cash Cows

You're looking at Doximity, Inc. (DOCS) and seeing a business unit that has clearly established market leadership in a mature, yet essential, segment of the healthcare technology space. The core of this strength lies in its massive, entrenched user base, which provides a highly predictable revenue stream. This is the classic Cash Cow profile: high market share in a market that, while growing, is now established enough that the primary focus shifts to maximizing cash extraction rather than hyper-growth spending.

Here are the key financial metrics that cement this position for Doximity, Inc. for the fiscal year 2025, which ended March 31, 2025:

The profitability metrics are what really stand out here. Doximity, Inc. achieved an Adjusted EBITDA margin of 55.0% for the full fiscal year 2025, a significant jump from 48.5% the prior year. Honestly, that kind of margin expansion while still growing revenue at 20% shows incredible operating leverage. This high margin is a direct result of having a dominant network; the cost to serve an additional physician or pharma client is relatively low compared to the revenue they bring in, especially since the core network is already built. The subscription revenue, which is the backbone of this stability, accounted for approximately 95.3% of total revenue, hitting $543.8 million. This high stickiness means promotion and placement investments can be strategically lower because the market is already saturated with Doximity, Inc. users.

This operational efficiency translates directly into massive cash generation. You saw Free Cash Flow (FCF) hit $266.7 million in FY2025, marking a 50% increase year-over-year. That's the definition of milking the cow; the business unit consumes less cash to maintain its position than it spits out. This cash is what funds the rest of the portfolio-it covers corporate overhead, services debt, and provides the capital to invest in those Question Marks that might become Stars later. The company used this strength to repurchase $116.2 million worth of shares during the full fiscal year.

The characteristics defining this Cash Cow segment for Doximity, Inc. are clear:

• Dominant U.S. physician network reach, connecting over 80% of all U.S. physicians.
• Core subscription revenue from Pharma/Health Systems generated $543.8 million in FY2025.
• Exceptionally high profitability, evidenced by a 55.0% Adjusted EBITDA margin in FY2025.
• Massive free cash flow generation of $266.7 million in FY2025, up 50% year-over-year.
• High incremental margins allow for increased cash flow from infrastructure support, like AI tools which saw 5x year-over-year usage growth.

Finance: draft 13-week cash view by Friday.

Doximity, Inc. (DOCS) - BCG Matrix: Dogs

You're analyzing Doximity, Inc. (DOCS) portfolio, and the 'Dogs' quadrant represents those business activities that consume management attention without delivering significant market share or growth. These are the areas where capital is tied up for minimal return, and the strategy is generally to minimize exposure or divest.

For Doximity, Inc. as of fiscal year 2025, the most concrete representation of a 'Dog' segment is the non-subscription revenue stream. This segment is small, non-core, and by definition, not part of the high-growth, high-margin subscription engine that drives the majority of the company's financial success. The core business is clearly subscription-based, leaving the remainder as the likely candidate for this quadrant.

Here's a look at the revenue composition for the fiscal year ended March 31, 2025, which clearly isolates the minor segment:

The implied Non-Subscription/Other Revenue is calculated as Total Revenue ($570.4 million) minus Subscription Revenue ($543.8 million) for FY2025. This 4.7% contribution aligns perfectly with the low-market-share characteristic of a Dog.

These Dog-like components are typically commoditized utilities or legacy offerings that have low barriers to entry and offer little pricing power. Expensive turn-around plans here rarely pay off when the core business is already so profitable, boasting a non-GAAP gross margin of 92% for the full fiscal year 2025. You should avoid sinking significant R&D dollars into these areas.

The specific elements that fit the profile of Doximity, Inc.'s Dogs include:

• Non-subscription revenue, which represented only about 4.7% of total FY2025 revenue of $570.4 million.
• Basic, non-monetized features like simple peer-to-peer messaging or fax, which are commoditized utilities with low growth potential.
• Any legacy or non-HIPAA-compliant services that have been deprioritized for investment, as management focuses on AI tools like Doximity GPT.
• Low-engagement, non-personalized newsfeed content that does not drive high-value advertising clicks, contrasting sharply with the high engagement seen in the core Newsfeed.

The focus on high-value subscription customers, where 116 clients contributed at least $500,000 each in trailing twelve-month subscription revenue in Q4 FY2025, confirms that resources are being directed away from these low-return areas. Finance: draft a proposal for sunsetting the lowest-grossing non-subscription service line by end of Q1 FY2026.

Doximity, Inc. (DOCS) - BCG Matrix: Question Marks

You're looking at Doximity, Inc. (DOCS) and trying to map out where the company is pouring cash for future returns-the classic high-growth, low-share bets that define the Question Marks quadrant. These are areas where the market is expanding rapidly, but Doximity, Inc. hasn't yet secured a dominant revenue position, meaning they consume cash now for potential Star status later.

The core business, driven by subscription revenue, was strong in fiscal year 2025, hitting $570.4 million in total revenue, with subscription revenue making up about 95.3% of that total at $543.8 million. Still, the following areas represent the high-risk, high-reward investments that fit the Question Mark profile.

International Expansion Efforts

Honestly, specific revenue or investment figures for international expansion efforts aren't explicitly broken out in the latest filings, suggesting this remains an unquantified, low-share opportunity. The focus remains heavily domestic, as evidenced by the platform being the leading digital platform for U.S. medical professionals. If you were to map this, it's a market with near-infinite growth potential but a current market share of effectively zero, requiring heavy investment to gain any foothold.

Dedicated Medical Recruiting and Career Services

Recruiting is bundled within the subscription revenue stream, which grew 21% year-over-year in fiscal 2025 to $543.8 million. While Doximity, Inc. serves medical recruiting firms, this specific segment's contribution to the total revenue of $570.4 million (FY2025) isn't separately reported. In the competitive landscape for physician hiring, this represents a high-growth market where Doximity, Inc. must invest to quickly capture share from established players.

New, Unproven AI Applications Beyond Doximity GPT

Investment in AI is clearly high, but returns are still being proven outside the core Doximity GPT. The AI tools saw significant traction, with 1.8 million prompts reported in Q3 fiscal 2025, marking a 60% quarter-over-quarter increase. More recently, in Q2 fiscal 2026, quarterly active prescribers using AI tools were up more than 50% sequentially, and the Doximity Scribe users nearly tripled versus Q1. These growth rates signal a high-growth market, but the R&D spend required to maintain this pace-especially post-acquisition integration-is a cash drain until monetization scales.

Monetization of Workflow Tools

This is where you see the high usage but the early innings of monetization. As of Q4 fiscal 2025, over 620,000 unique active prescribers used workflow tools, a number that grew to more than 650,000 by Q2 fiscal 2026. However, the revenue contribution from these tools is still nascent compared to the core business. In Q2 fiscal 2025, workflow tools accounted for only 20% of pharmaceutical sales. This gap between high adoption and relatively low revenue contribution is the textbook definition of a Question Mark. The company is successfully driving adoption, but the path to turning that engagement into a dominant revenue share is the key investment decision now.

Here's a quick look at the engagement metrics for these high-growth, low-share areas:

The company is clearly investing heavily in these areas, evidenced by their strong balance sheet with $878 million in cash, cash equivalents, and marketable securities as of the end of Q2 fiscal 2026. Finance: draft the 13-week cash view incorporating the projected R&D spend for the AI roadmap by Friday.