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Investing.com -- Doximity Inc (NYSE:DOCS) reported better-than-expected fourth quarter earnings and revenue, but shares tumbled 20.5% as the company provided weak guidance for the upcoming quarter and fiscal year.
The digital platform for U.S. medical professionals posted adjusted earnings per share of $0.38 for Q4, surpassing analyst estimates of $0.27. Revenue came in at $138.3 million, beating the consensus of $134.03 million and representing a 17% increase YoY.
Despite the strong quarterly results, Doximity’s outlook disappointed investors. The company forecasts Q1 2026 revenue between $139 million and $140 million, below analyst expectations of $143.4 million. For fiscal year 2026, Doximity projects revenue of $619-631 million, falling short of the $639.4 million consensus estimate.
"We closed out fiscal 2025 on a high note, with record engagement, strong profits, and 20% annual revenue growth," said Jeff Tangney, co-founder and CEO of Doximity. "Our newsfeed, workflow, and AI tools all hit fresh highs in Q4, helping doctors save time and provide the best care for their patients."
The company reported Q4 operating cash flow of $98.5 million, up 54% YoY, and free cash flow of $97.0 million, a 56% increase YoY. For the full fiscal year 2025, Doximity’s revenue grew 20% to $570.4 million.
Despite the positive quarterly results, the weak guidance overshadowed the report, leading to the sharp decline in Doximity’s stock price following the earnings release.