Doximity (DOCS) risk factors, FY2026 10-K

Risks Related to Our Business

1. 01If we fail to effectively manage our growth, we may be unable to execute our business plan, adequately address competitive challenges or maintain our corporate culture, and our business, financial condition, and results of operations could be harmed32% rewritten
2. 02Our investments in AI may not achieve the expected benefits and may expose us to additional risksNew
3. 03We have a limited operating history, which makes it difficult to evaluate our current business and future prospects and to predict our future operating results, and therefore increases the risk of investment
4. 04The size of our member base and our members’ level of engagement are critical to our success. Our financial performance has been and will continue to be significantly determined by our success in adding, retaining, and engaging members
5. 05If we do not continue to attract new customers, or if existing customers do not renew their subscriptions, renew on less favorable terms, or fail to purchase additional solutions, it could have a material adverse effect on our business, financial condition, and results of operations
6. 06Our revenue is relatively concentrated within a small number of key customers, and the loss of one or more of such key customers could slow the growth rate of our revenue or cause our revenue to decline86% rewritten
7. 07our largest customer contracts, either directly or through marketing agencies, could have a significant impact on our revenue, the growth rate of our revenue, our reputation, and our ability to obtain new customersNew
8. 08We expect to face increasing competition in the market for our solutions
9. 09If we are not able to maintain and enhance our reputation and brand recognition, our business, financial conditions, and results of operations will be harmed
10. 10Making business decisions that prioritize the interests of our members may adversely impact our financial results
11. 11If our members’ profiles are out-of-date, inaccurate, or lack the information that members and customers want to see, we may not be able to realize the full potential of our network, which could adversely impact the growth of our business
12. 12Our corporate culture has contributed to our success, and if we cannot maintain our corporate culture as we grow, we could lose the innovation, teamwork, passion, and focus on execution that we believe contribute to our success, and our business may be harmed
13. 13The loss of one or more of any of the pharmaceutical brands that purchase our solutions could cause our revenue to decline
14. 14We calculate certain operational metrics using internal systems and tools and do not independently verify such metrics. Certain metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business
15. 15Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business may not grow at similar rates, or at all
16. 16Certain of our operating results and financial metrics may be difficult to predict as a result of seasonality
17. 17Our operating results have in the past and may in the future continue to fluctuate on a quarterly and annual basis and if we fail to meet the expectations of analysts or investors, our stock price and the value of your investment could decline substantially
18. 18If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our results of operations could be adversely affected44% rewritten
19. 19In addition, laws, regulations, enforcement priorities and industry standards relating to AI, automated decision-making, privacy, data security, transparency and consumer protection are evolving and could increase our compliance costs or require changes to our products, services or business practicesNew
20. 20The complex and burdensome nature of these various obligations requires significant resources to ensure compliance, and may fundamentally affect our business activities, policies, and practices, potentially resulting in material harm to our business, financial condition, and results of operations74% rewritten
21. 21without limitation, regulatory investigations or enforcement actions, litigation, indemnity obligations, negative publicity, and financial lossNew
22. 22We may become subject to enforcement actions or litigation as a result of our or our members’ failure to comply with laws and regulations relating to communications, even though noncompliance was inadvertent or unintentional
23. 23We may incur liability as a result of information retrieved from or transmitted over the Internet or published using our platform and legislation regulating content on our platform may require us to change our solutions or business practices and may adversely affect our business and financial results
24. 24We may experience fluctuations in our tax obligations and effective tax rate, which could materially and adversely affect our results of operations
25. 25Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited
26. 26We depend on our talent to grow and operate our business, and if we are unable to hire, integrate, develop, motivate, and retain our personnel, we may not be able to grow effectively22% rewritten
27. 27Our development, deployment, and use of artificial intelligence may not achieve the expected benefits and may create operational, reputational, competitive, regulatory, legal, and liability risksNew
28. 28We may enter into collaborations, in-licensing arrangements, joint ventures, strategic alliances, or partnerships with third-parties that may not result in the development of commercially viable solutions or the generation of significant future revenue
29. 29We may be unable to successfully execute on our growth initiatives, business strategies, or operating plans
30. 30We rely on software-as-a-service, or SaaS, and AI technologies from third parties
31. 31Our growth depends in part on the success of our strategic relationships with third parties
32. 32Any restrictions on our use of, or ability to license, data, or our failure to license data and integrate third-party technologies, could have a material adverse effect on our business, financial condition, and results of operations
33. 33Changes in accounting rules, assumptions, and/or judgments could materially and adversely affect us
34. 34Changes in tax laws or regulations that are applied adversely to us or our customers may have a material adverse effect on our business, cash flow, and financial condition or result of operations60% rewritten
35. 35Our ability to limit our liabilities by contract or through insurance may be ineffective or insufficient to cover our future liabilities
36. 36Our business could be disrupted by a pandemic, epidemic, or outbreak of an infectious disease
37. 37Our business could be disrupted by catastrophic events such as power disruptions, data security breaches, and terrorism
38. 38We do not carry business interruption insurance sufficient to compensate us for the potentially significant losses, including the potential harm to our business, financial condition, and results of operations that may result from interruptions in access to our platform as a result of system failures
39. 39Our reputation and/or business could be negatively impacted by ESG matters and/or other reporting of such matters39% rewritten
40. 40Our risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk80% rewritten
41. 41We may incur significant additional costs and expenses, including costs and expenses associated with obligations relating to being a public company, which will require significant resources and management attention and may divert focus from our business operations, and we may generate losses in the future
42. 42If we are unable to implement and maintain effective internal controls over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports
43. 43We may become, and are subject to, litigation, which could have a material adverse effect on our business, financial condition, and results of operations83% rewritten

Risks Related to Intellectual Property

1. 44We may not be able to halt the operations of entities that copy our intellectual property or that aggregate our data as well as data from other companies, including social networks, or copycat online services that may misappropriate our data. These activities could harm our brand and our business
2. 45Third parties may initiate legal proceedings alleging that we are infringing or otherwise violating their intellectual property rights, the outcome of which would be uncertain and could have a material adverse effect on our business, financial condition, and results of operations
3. 46Failure to maintain, protect, or enforce our intellectual property rights could harm our business and results of operations
4. 47We believe that our brand is critical to the success of our business, and we utilize trademark registration and other means to protect it. Our business would be harmed if we were unable to protect our brand against infringement and its value was to decrease as a result
5. 48If we are unable to protect the confidentiality of our trade secrets, our business and competitive position could be harmed
6. 49Our solutions utilize open source software, and any failure to comply with the terms of one or more of these open source licenses could adversely affect our business
7. 50If we fail to comply with our obligations under license or technology agreements with third parties, we may be required to pay damages and we could lose license rights that are critical to our business
8. 51If we cannot license rights to use technologies on reasonable terms, we may not be able to commercialize new solutions or services in the future
9. 52We rely on third-party platforms, such as the Apple App Store and Google Play App Store, to distribute our platform and offerings55% rewritten

Risks Related to the Healthcare Industry

1. 53The healthcare regulatory and political framework is uncertain and evolving44% rewritten
2. 54ended March 31, 2026, similar policy developments, pricing pressures, reimbursement changes, regulatory initiatives, or other industry-wide uncertainty could cause pharmaceutical companies and other healthcare customers to delay, reduce, or reallocate marketing, advertising, hiring, or other spending with usNew
3. 55Consolidation in the healthcare industry could have a material adverse effect on our business, financial condition, and results of operations
4. 56If we or our customers fail to comply with federal and state healthcare laws, including those governing fee-splitting, our business, and financial relationships, we or our customers may be subject to significant administrative, civil, and criminal penalties
5. 57Our solutions address heavily regulated functions within the life sciences industry, and failure to comply with applicable laws and regulations could lessen the demand for our solutions or subject us to significant claims and losses
6. 58Evolving government regulations may increase our costs or adversely affect our results of operations

Risks Related to Ownership of Our Class A Common Stock

1. 59Our stock price may be volatile or may decline regardless of our operating performance, resulting in substantial losses for investors of our Class A common stock
2. 60The dual class structure of our common stock has the effect of concentrating voting control with our executive officers (including our Chief Executive Officer) and directors and their affiliates; this will limit or preclude your ability to influence corporate matters
3. 61Future sales and issuances of our Class A common stock or rights to purchase Class A common stock, including pursuant to our equity incentive plans, could result in additional dilution of the percentage ownership of our stockholders and could cause the stock price of our Class A common stock to decline
4. 62If a substantial number of shares become available for sale and are sold in a short period of time, the market price of our Class A common stock could decline
5. 63If securities or industry analysts do not publish or cease publishing research or reports about our business, or they publish negative reports about our business, our share price and trading volume could decline
6. 64Delaware law and provisions in our amended and restated certificate of incorporation and amended and restated bylaws could make a merger, tender offer, or proxy contest more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our Class A common stock
7. 65Moreover, Section 203 of the Delaware General Corporation Law may discourage, delay or prevent a change in control of our company. Section 203 imposes certain restrictions on mergers, business combinations and other transactions between us and holders of 15% or more of our common stock
8. 66Our amended and restated bylaws designate specific state or federal courts located as the exclusive forum for certain litigation that may be initiated by our stockholders, which could limit stockholders’ ability to obtain a favorable judicial forum for disputes with us
9. 67We do not intend to pay dividends for the foreseeable future
10. 68We could be subject to further securities class action litigation