Robbins LLP is Investigating Allegations that Doximity, Inc. Failed to Disclose to Investors it Was Losing Market Share to its Competitors With More Favorable Pricing and Engagement Models

Robbins LLP informs investors that a class action was filed on behalf of persons and entities who purchased or otherwise acquired Doximity, Inc. (NYSE: DOCS) common stock August 8, 2024 and May 13, 2026, inclusive (the Class Period). Doximity is a digital platform for medical professionals that combines health care news, workflow products, and clinician networking.

Why Was Doximity Sued?

The complaint alleges that during the Class Period defendants claimed the Company's Newsfeed was its "biggest revenue driver." Specifically, defendants claimed that the Company’s growth was “led by our Newsfeed, which is both our most used and most monetized product” and told investors that the Newsfeed was consistently “reach[ing] new highs,” with “an all-time record of quarterly active prescribers and double-digit growth in the number of articles read or tapped.” In addition, Doximity touted its “deep engagement,” assuring investors that Doximity does not “bombard physicians with ads and messages in hopes of getting lucky” and assured investors that “[Doximity does not] have an e-newsletter product.” In truth, Doximity overstated the impact that its Newsfeed had on its revenue growth, and the Company was losing market share to its competitors with more favorable pricing and engagement models. Additionally, notwithstanding its frequent statements to the contrary, Doximity relied heavily on both banner ads and email newsletters as advertising methods.

Why Did Doximity Stock Drop?

Plaintiff alleges that on November 6, 2025, despite reporting strong second quarter results, Doximity expressed a degree of caution regarding the outlook for ad spending and implied a slowdown in sales growth in the second half of the 2026 fiscal year, which ended on March 31, 2026. As a result of these disclosures, the price of Doximity common stock declined by $8.29 per share, or 13%.

Then, on February 5, 2026, Doximity lowered its revenue guidance for 2026 full fiscal year, which ended on March 31, 2026, and announced that its sales growth had decelerated while its net income had contracted, which will negatively impact its 2026 fiscal fourth quarter. Following these poor financial results, analysts noted that “uncertainty is lingering. This is not widespread, meaning not all pharma[ceutical] clients are holding back” on their advertising spend. Analysts also began to posit that the reason for Doximity’s slowing growth was that the Company was actually losing market share to its competitors. Specifically, an analyst at Evercore noted that older companies, such as Doximity, “are losing share while programmatic, social, and other new formats are gaining share.” As a result of these disclosures, the price of Doximity common stock declined by $5.59 per share, or 17%.

Then, on May 13, 2026, Doximity announced that it missed its already-reduced revenue guidance and projected a significantly slower pace of growth for its 2027 fiscal year, which ends on March 31, 2027. As a result, several analysts downgraded Doximity stock citing issues specific to the Company’s business. For example, Freeman Capital Markets described the news as “a tough pill to swallow” as shares fell to “an all-time low” and Jefferies placed the stock in the “penalty box.” Leerink Partners also put Doximity “in the penalty box” following the “eye-catching” guidance paired with the “shock value” of “[a]ll of the dynamics that lead to the guidance, including market softness, timing of commitments and the spend to ramp its AI products.” RBC Capital Markets noted that Doximity’s stalled net revenue retention suggested an “increasingly competitive market.” As a result of these disclosures, the price of Doximity common stock declined by $5.38 per share, or 23%.

Who May Be Eligible to Participate in the Doximity Class Action?

The lawsuit seeks to represent investors who purchased or otherwise acquired Doximity, Inc. common stock between August 8, 2024 and May 13, 2026. Investors who suffered losses during that period may have legal rights under the federal securities laws. Submit a form for information.

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