Docusign Announces Second Quarter Fiscal 2026 Financial Results
DocuSign (NASDAQ: DOCU) reported strong Q2 fiscal 2026 results, with revenue reaching $800.6 million, up 9% year-over-year. Subscription revenue grew 9% to $784.4 million, while billings increased 13% to $818.0 million.
The company demonstrated solid profitability with GAAP net income per diluted share of $0.30 and non-GAAP net income per diluted share of $0.92. Free cash flow improved to $217.6 million, up from $197.9 million last year.
Notable developments include the launch of new AI-powered Intelligent Agreement Management capabilities, board changes with Mike Rosenbaum joining and James Beer appointed as next Board Chair. For fiscal 2026, DocuSign expects total revenue between $3,189-$3,201 million, representing 7% year-over-year growth.
DocuSign (NASDAQ: DOCU) ha pubblicato solidi risultati per il secondo trimestre dell'esercizio 2026: ricavi pari a $800.6 million, in crescita del 9% rispetto all'anno precedente. I ricavi da abbonamenti sono saliti del 9% a $784.4 million, mentre le fatturazioni sono aumentate del 13% a $818.0 million.
L'azienda ha mostrato una buona redditività con un utile netto GAAP per azione diluita di $0.30 e un utile netto non-GAAP per azione diluita di $0.92. Il flusso di cassa libero è migliorato a $217.6 million, rispetto ai $197.9 million dell'anno precedente.
Tra gli sviluppi più rilevanti si segnala il lancio di nuove funzionalità di Intelligent Agreement Management basate sull'IA e cambi nel consiglio di amministrazione, con l'ingresso di Mike Rosenbaum e la nomina di James Beer come prossimo presidente del consiglio. Per l'esercizio 2026 DocuSign prevede ricavi totali tra $3,189-$3,201 million, corrispondenti a una crescita annua del 7%.
DocuSign (NASDAQ: DOCU) presentó sólidos resultados del segundo trimestre fiscal 2026, con ingresos de $800.6 million, un aumento interanual del 9%. Los ingresos por suscripciones crecieron un 9% hasta $784.4 million, mientras que la facturación subió un 13% hasta $818.0 million.
La compañía mostró una rentabilidad sólida con un beneficio neto GAAP por acción diluida de $0.30 y un beneficio neto no GAAP por acción diluida de $0.92. El flujo de caja libre mejoró hasta $217.6 million, desde $197.9 million el año anterior.
Entre las novedades destaca el lanzamiento de nuevas capacidades de Intelligent Agreement Management impulsadas por IA y cambios en el consejo, con la incorporación de Mike Rosenbaum y el nombramiento de James Beer como próximo presidente del consejo. Para el año fiscal 2026 DocuSign espera ingresos totales entre $3,189-$3,201 million, lo que supone un crecimiento interanual del 7%.
DocuSign (NASDAQ: DOCU)는 2026 회계연도 2분기 실적에서 견조한 성과를 발표했습니다. 매출은 $800.6 million로 전년 대비 9% 증가했습니다. 구독 매출은 9% 증가한 $784.4 million이며, 청구액은 13% 증가한 $818.0 million입니다.
회사는 희석 주당 GAAP 순이익 $0.30 및 비GAAP 희석 주당 순이익 $0.92로 견실한 수익성을 보였습니다. 잉여현금흐름은 $217.6 million로 개선되어 전년의 $197.9 million에서 증가했습니다.
주요 진행 사항으로는 AI 기반의 Intelligent Agreement Management 기능 출시와 이사회 변화(마이크 로젠바움 합류, 제임스 비어 차기 이사회 의장 선임)가 있습니다. 2026 회계연도 매출은 총 $3,189-$3,201 million을 예상하며, 전년 대비 7% 성장 전망입니다.
DocuSign (NASDAQ: DOCU) a annoncé de solides résultats pour le deuxième trimestre fiscal 2026, avec un chiffre d'affaires de $800.6 million, en hausse de 9% sur un an. Les revenus d'abonnement ont progressé de 9% à $784.4 million, tandis que les billings ont augmenté de 13% à $818.0 million.
La société a affiché une bonne rentabilité, avec un bénéfice net GAAP par action diluée de $0.30 et un bénéfice net non-GAAP par action diluée de $0.92. Les flux de trésorerie disponibles se sont améliorés à $217.6 million, contre $197.9 million l'an dernier.
Parmi les faits marquants figurent le lancement de nouvelles capacités d'Intelligent Agreement Management propulsées par l'IA et des modifications du conseil d'administration, avec l'arrivée de Mike Rosenbaum et la nomination de James Beer comme futur président du conseil. Pour l'exercice 2026, DocuSign prévoit un chiffre d'affaires total compris entre $3,189-$3,201 million, soit une croissance annuelle de 7%.
DocuSign (NASDAQ: DOCU) meldete starke Zahlen für das zweite Quartal des Geschäftsjahres 2026: der Umsatz belief sich auf $800.6 million, ein Plus von 9% gegenüber dem Vorjahr. Die Abo-Umsätze wuchsen um 9% auf $784.4 million, die Billings stiegen um 13% auf $818.0 million.
Das Unternehmen zeigte solide Profitabilität mit einem GAAP-Nettogewinn je verwässerter Aktie von $0.30 und einem Non-GAAP-Nettogewinn je verwässerter Aktie von $0.92. Der Free Cashflow verbesserte sich auf $217.6 million gegenüber $197.9 million im Vorjahr.
Zu den bemerkenswerten Entwicklungen zählen die Einführung neuer KI-gestützter Intelligent Agreement Management-Funktionen sowie Veränderungen im Vorstand: Mike Rosenbaum tritt dem Board bei und James Beer wurde zum künftigen Board Chair ernannt. Für das Geschäftsjahr 2026 erwartet DocuSign einen Gesamtumsatz zwischen $3,189-$3,201 million, was einem jährlichen Wachstum von 7% entspricht.
- Revenue growth of 9% YoY to $800.6 million with strong subscription revenue
- Billings increased 13% YoY to $818.0 million
- Free cash flow improved to $217.6 million from $197.9 million last year
- Strong balance sheet with $1.1 billion in cash and investments
- Continued share repurchases of $201.5 million during the quarter
- Professional services revenue declined 13% year-over-year
- Non-GAAP gross margin slightly decreased to 82.0% from 82.2% last year
- Non-GAAP EPS declined to $0.92 from $0.97 in the same period last year
Insights
DocuSign delivered strong Q2 results with 9% revenue growth and 13% billings growth, demonstrating AI initiatives are gaining traction.
DocuSign posted impressive Q2 FY2026 results, with
The company's subscription revenue, which constitutes the bulk of their business at
Profitability metrics remain robust with non-GAAP gross margins at
Management's confidence is evident in their continued share repurchase program, with
The new AI-powered capabilities across their platform represent a strategic evolution beyond their core eSignature product. Features like Agreement Preparation, Custom Extractions in Navigator, and Workflow Templates are designed to capture more of the agreement lifecycle value chain. The IDC recognition as a leader in AI-Enabled Buy-Side CLM Applications validates their strategic direction in expanding beyond signatures into comprehensive agreement management.
The executive changes, including the addition of Guidewire CEO Mike Rosenbaum to the board and the appointment of James Beer as the next Board Chair, bring valuable enterprise SaaS and financial governance experience as DocuSign continues its platform expansion strategy.
"Q2 was an outstanding quarter, with AI innovation launches and recent go-to-market changes leading to strong performance across the eSignature, CLM, and IAM businesses," said Allan Thygesen, CEO of Docusign. "Q2 business results outperformed, leading to one of Docusign's highest growth and profitability quarters in recent years."
Second Quarter Financial Highlights
- Revenue was
$800.6 million 9% year-over-year increase with no material impact from foreign exchange rates. Subscription revenue was$784.4 million 9% year-over-year increase. Professional services and other revenue was$16.2 million 13% year-over-year decrease. - Billings were
$818.0 million 13% year-over-year increase including approximately1% positive impact of foreign currency exchange rates. - GAAP gross margin was
79.3% compared to78.9% in the same period last year. Non-GAAP gross margin was82.0% compared to82.2% in the same period last year. - GAAP net income per basic share was
$0.31 $4.34 - GAAP net income per diluted share was
$0.30 $4.26 - Non-GAAP net income per diluted share was
$0.92 $0.97 - Net cash provided by operating activities was
$246.1 million $220.2 million - Free cash flow was
$217.6 million $197.9 million - Cash, cash equivalents, and investments were
$1.1 billion - Repurchases of common stock were
$201.5 million $200.1 million
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures and Other Key Metrics."
Key Business Highlights
New Capabilities with the Intelligent Agreement Management ("IAM") Platform: Docusign launched new AI-powered IAM capabilities to help customers unlock the value of their agreements across the entire agreement management lifecycle.
Create:
- Agreement Preparation: Agreement Prep helps teams efficiently prepare custom, accurate, professional agreements within the Docusign IAM platform. This feature automatically detects the agreement type, builds a template, and suggests relevant fields.
Commit:
- Docusign ID Verification with CLEAR: Docusign's integration with CLEAR's biometric identity network makes ID verification fast and easy, allowing recipients to confirm their identity using their existing CLEAR profile.
Manage:
- Custom Extractions in Docusign Navigator: Custom Extractions allow customers to capture organization-specific information from their agreement at scale. This guided process maximizes efficiency, reduces risk, and provides valuable insights by eliminating the need to manually review countless contracts.
Platform & Applications:
- System for Cross-domain Identity Management ("SCIM"): Addressing the enterprise need for efficient, secure, and scalable user management, SCIM for Docusign now allows customers to automatically provision and centrally manage users through integrations with Okta and Microsoft Entra.
- Maestro Workflow Templates: Maestro Workflow Templates allow IAM customers to leverage pre-built templates to quickly customize and deploy workflows. Templates make it simple to automate end-to-end agreement processes without writing any code.
Contract Lifecycle Management ("CLM") Product Releases and Highlights:
- A 2025 IDC MarketScape Leader for AI-Enabled Buy-Side CLM Applications: Docusign was recognized as a leader in IDC's MarketScape for AI-Enabled Buy-Side CLM Applications report, which acknowledged that "IAM is core to the Docusign strategy of replacing legacy and fragmented systems."
- Unified Task Management: Unified Task Management streamlines task completion by centralizing all Docusign tasks into a single, comprehensive view, providing better visibility into all tasks and allowing teams to prioritize tasks based on AI-extracted terms, such as due date, contract value, and parties.
Board of Directors and Governance Updates
- Mike Rosenbaum, CEO of Guidewire, has joined Docusign's board: In addition to his experience as CEO of a leading enterprise SaaS company, Rosenbaum brings valuable platform growth, product, and go-to-market experience to Docusign. Prior to Guidewire, Rosenbaum served as EVP of Product at Salesforce, leading product management and strategy for its core CRM offerings. "Mike's extensive experience in scaling platform SaaS businesses will be an immense resource for Docusign as we continue our transformation to an Intelligent Agreement Management company," said Allan Thygesen, CEO of Docusign. "The opportunity to continue to revolutionize agreement technology for the benefit of our customers is profound, and Mike's arrival will help us continue to capture that opportunity."
- James Beer has been appointed as Docusign's next Board Chair: He will succeed Maggie Wilderotter in this role at the end of the current fiscal year. Beer is a seasoned public company director with decades of CFO experience across American Airlines, Symantec, McKesson, and Atlassian. Beer has served on Docusign's Board and Audit Committee since 2020, and will bring deep finance and strategy experience to his role as independent Board Chair. "The introduction and growth of IAM represents a pivotal moment for Docusign as we pioneer a new software category fueled through advances in AI. It is an incredibly exciting time to lead the Board," said Beer. Wilderotter, who joined Docusign's Board in 2017 and has served as Chair since 2018, will remain an independent director. "Maggie's contribution to Docusign has been invaluable through a transformative period for the Company. I look forward to working with her as we continue to build an even stronger Company," said Allan Thygesen.
The company currently expects the following guidance:
(in millions, except percentages) | Three Months Ended | YoY | |||
Total revenue [1] | to | 7 % | |||
Subscription revenue | to | 7 % | |||
Billings [2] | to | 5 % | |||
Non-GAAP gross margin | 80.3 % | to | 81.3 % | NA | |
Non-GAAP operating margin | 28.0 % | to | 29.0 % | NA | |
Non-GAAP diluted weighted-average shares outstanding | 207 | to | 212 | NA | |
(in millions, except percentages) | Year Ended January 31, | YoY | |||
Total revenue [1] | to | 7 % | |||
Subscription revenue | to | 8 % | |||
Billings [2] | to | 7 % | |||
Non-GAAP gross margin | 81.0 % | to | 82.0 % | NA | |
Non-GAAP operating margin | 28.6 % | to | 29.6 % | NA | |
Non-GAAP diluted weighted-average shares outstanding | 207 | to | 212 | NA | |
[1] Impact of foreign currency exchange rates on year-over-year guided revenue growth for both the quarter ending October 31, 2025 and the fiscal year ending January 31, 2026 is expected to be approximately neutral. |
[2] Excluding the impact of foreign currency exchange rates on year-over-year guided growth, billings guidance range would be approximately |
A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by many factors, including the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release.
Webcast Conference Call Information
The company will host a conference call on September 4, 2025 at 2:00 p.m. PT (5:00 p.m. ET) to discuss its financial results. A live webcast of the event will be available on the Docusign Investor Relations website at investor.docusign.com. Prepared remarks and the news release with the financial results will also be accessible on Docusign's website prior to the webcast. A live dial-in will be available domestically at 877-407-0784 or internationally at 201-689-8560. A replay will be available domestically at 844-512-2921 or internationally at 412-317-6671 until midnight (EDT) September 18, 2025 using the passcode 13755371.
About Docusign
Docusign brings agreements to life. Over 1.7 million customers and more than a billion people in over 180 countries use Docusign solutions to accelerate the process of doing business and simplify people's lives. With intelligent agreement management, Docusign unleashes business critical data that is trapped inside of documents. Until now, these were disconnected from business systems of record, costing businesses time, money, and opportunity. Using Docusign's IAM platform, companies can create, commit, and manage agreements with solutions created by the #1 company in e-signature and CLM. Learn more at www.docusign.com.
Copyright 2025. Docusign, Inc. is the owner of DOCUSIGN® and all its other marks (www.docusign.com/IP).
Investor Relations:
Docusign Investor Relations
investors@docusign.com
Media Relations:
Docusign Corporate Communications
media@docusign.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management's beliefs and assumptions and on information currently available to management, and which statements involve substantial risk and uncertainties. All statements contained in this press release other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth and trends, objectives for future operations, and the impact of such assumptions on our financial condition and results of operations are forward-looking statements. Forward-looking statements in this press release also include, among other things, statements under "Guidance" above and any other statements about expected financial metrics, such as revenue, billings, free cash flow, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating expenses, and non-financial metrics, as well as statements related to our expectations regarding: the impact of foreign exchange rates; the timing and extent of customer renewals; the effectiveness of changes to our sales force and go-to-market strategy; the effects of seasonality; the timing and impact of our cloud migration transition; the benefits, the timing or rollout of future products and capabilities; customer demand and adoption of the Docusign IAM platform; and our utilization of our stock repurchase program, including the expected timing, duration, volume and nature of share repurchase under such program. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions.
Forward-looking statements contained in this press release include, but are not limited to, statements about: our expectations regarding global macro-economic conditions, including the effects of inflation, volatile interest rates or foreign exchange rates, and market volatility on the global economy; our inability to accurately estimate our market opportunity; our ability to compete effectively in an evolving and competitive market; the impact of any interruptions or delays in performance of our technical infrastructure, or data breaches, cyberattacks or other fraudulent or malicious activity attempting to exploit our technology systems, platform or brand name; our ability to effectively sustain and manage our growth and future expenses and maintain or increase profitability; our ability to attract new customers and retain and expand our existing customer base, including our ability to attract large organizations as users; our ability to scale and update our platform to respond to customers' needs and rapid technological change, including our ability to successfully incorporate generative artificial intelligence into our existing and future products and to successfully deploy them; our ability to successfully develop, launch and sell IAM solutions; our ability to expand use cases within existing customers and vertical solutions; our ability to expand our operations and increase adoption of our platform internationally; our ability to strengthen and foster our relationships with developers; our ability to retain our direct sales force, customer success team and strategic partnerships around the world; our ability to identify targets for and execute potential acquisitions and to successfully integrate and realize the anticipated benefits of such acquisitions; our ability to maintain, protect and enhance our brand; the sufficiency of our cash, cash equivalents and capital resources to satisfy our liquidity needs; limitations on us due to obligations we have under our credit facility; our ability to realize the anticipated benefits of our stock repurchase program; our failure or the failure of our software to comply with applicable industry standards, laws and regulations; our ability to maintain, protect and enhance our intellectual property; our ability to successfully defend litigation against us; our ability to maintain our corporate culture; our ability to offer high-quality customer support; our ability to hire, retain and motivate qualified personnel, including executive level management; our ability to successfully manage and integrate executive management transitions; uncertainties regarding the impact of general economic and market conditions, including as a result of geopolitical conflict or changes in trade policies and practices; and our ability to maintain proper and effective internal controls.
Additional risks and uncertainties that could affect our financial results are included in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K for the fiscal year ended January 31, 2025, filed on March 18, 2025, our quarterly report on Form 10-Q for the quarter ended July 31, 2025, which we expect to file on September 5, 2025 with the Securities and Exchange Commission (the "SEC"), and other filings that we make from time to time with the SEC. The forward-looking statements made in this press release relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date of this press release or to conform such statements to actual results or revised expectations, except as required by law.
Non-GAAP Financial Measures and Other Key Metrics
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We present these non-GAAP measures to assist investors in seeing our financial performance using a management view, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, these non-GAAP measures are not intended to be considered in isolation from, a substitute for, or superior to our GAAP results.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP net income per share: We define these non-GAAP financial measures as the respective GAAP measures, excluding expenses related to stock-based compensation, employer payroll tax on employee stock transactions, amortization of acquisition-related intangibles, acquisition-related expenses, restructuring and other related charges, as these costs are not reflective of ongoing operations and, as applicable, other special items. The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of the business. When evaluating the performance of our business and making operating plans, we do not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution rather than the accounting charges associated with such grants). We believe it is useful to exclude these expenses in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies and over multiple periods. In addition to these exclusions, we subtract an assumed provision for income taxes to calculate non-GAAP net income. We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. We have determined the projected non-GAAP tax rate to be
Free cash flow: We define free cash flow as net cash provided by operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment, for operational expenses, investment in our business, and to make acquisitions. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.
Billings: We define billings as total revenues plus the change in our contract liabilities and refund liability less contract assets and unbilled accounts receivable in a given period. Billings reflects sales to new customers plus subscription renewals and additional sales to existing customers. Only amounts invoiced to a customer in a given period are included in billings. We believe billings can be used to measure our periodic performance, when taking into consideration the timing aspects of customer renewals, which represents a large component of our business. Given that most of our customers pay in annual installments one year in advance, but we typically recognize a majority of the related revenue ratably over time, we use billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers.
For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||
Revenue: | |||||||
Subscription | $ 784,388 | $ 717,366 | |||||
Professional services and other | 16,248 | 18,661 | 33,700 | 36,818 | |||
Total revenue | 800,636 | 736,027 | 1,564,290 | 1,445,667 | |||
Cost of revenue: | |||||||
Subscription | 144,097 | 132,372 | 281,440 | 258,974 | |||
Professional services and other | 21,366 | 23,093 | 41,292 | 45,937 | |||
Total cost of revenue | 165,463 | 155,465 | 322,732 | 304,911 | |||
Gross profit | 635,173 | 580,562 | 1,241,558 | 1,140,756 | |||
Operating expenses: | |||||||
Sales and marketing | 305,450 | 287,464 | 601,863 | 569,108 | |||
Research and development | 169,630 | 147,571 | 329,077 | 281,891 | |||
General and administrative | 94,866 | 87,129 | 185,136 | 179,607 | |||
Restructuring and other related charges | — | 597 | — | 29,721 | |||
Total operating expenses | 569,946 | 522,761 | 1,116,076 | 1,060,327 | |||
Income from operations | 65,227 | 57,801 | 125,482 | 80,429 | |||
Interest expense | (828) | (544) | (1,306) | (688) | |||
Interest income and other income, net | 12,061 | 14,630 | 26,074 | 28,739 | |||
Income before provision for (benefit from) income taxes | 76,460 | 71,887 | 150,250 | 108,480 | |||
Provision for (benefit from) income taxes | 13,490 | (816,324) | 15,193 | (813,491) | |||
Net income | $ 62,970 | $ 888,211 | $ 135,057 | $ 921,971 | |||
Net income per share attributable to common stockholders: | |||||||
Basic | $ 0.31 | $ 4.34 | $ 0.67 | $ 4.49 | |||
Diluted | $ 0.30 | $ 4.26 | $ 0.64 | $ 4.40 | |||
Weighted-average shares used in computing net income per share: | |||||||
Basic | 202,644 | 204,604 | 202,957 | 205,231 | |||
Diluted | 210,956 | 208,274 | 211,878 | 209,559 | |||
Stock-based compensation expense included in costs and expenses: | |||||||
Cost of revenue—subscription | $ 14,425 | $ 15,593 | $ 27,421 | $ 29,774 | |||
Cost of revenue—professional services and other | 4,167 | 4,998 | 8,075 | 9,700 | |||
Sales and marketing | 49,081 | 58,778 | 95,166 | 105,049 | |||
Research and development | 61,865 | 53,430 | 116,296 | 97,632 | |||
General and administrative | 31,000 | 31,649 | 59,176 | 60,169 | |||
Restructuring and other related charges | — | 208 | — | 4,836 | |||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||
(in thousands) | July 31, 2025 | January 31, 2025 | |
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 599,986 | $ 648,623 | |
Investments—current | 244,469 | 314,924 | |
Accounts receivable, net | 356,943 | 429,582 | |
Contract assets—current | 9,892 | 13,764 | |
Prepaid expenses and other current assets | 107,760 | 82,368 | |
Total current assets | 1,319,050 | 1,489,261 | |
Investments—noncurrent | 208,864 | 134,105 | |
Property and equipment, net | 327,953 | 299,370 | |
Operating lease right-of-use assets | 109,953 | 109,630 | |
Goodwill | 456,368 | 454,477 | |
Intangible assets, net | 64,553 | 76,388 | |
Deferred contract acquisition costs—noncurrent | 462,928 | 467,201 | |
Deferred tax assets—noncurrent | 836,641 | 840,470 | |
Other assets—noncurrent | 163,613 | 141,803 | |
Total assets | $ 3,949,923 | $ 4,012,705 | |
Liabilities and Equity | |||
Current liabilities | |||
Accounts payable | $ 10,643 | $ 30,697 | |
Accrued expenses and other current liabilities | 100,579 | 99,579 | |
Accrued compensation | 208,005 | 227,115 | |
Contract liabilities—current | 1,436,033 | 1,455,442 | |
Operating lease liabilities—current | 21,185 | 19,077 | |
Total current liabilities | 1,776,445 | 1,831,910 | |
Contract liabilities—noncurrent | 27,428 | 21,523 | |
Operating lease liabilities—noncurrent | 105,757 | 105,350 | |
Deferred tax liability—noncurrent | 19,064 | 20,596 | |
Other liabilities—noncurrent | 33,254 | 30,634 | |
Total liabilities | 1,961,948 | 2,010,013 | |
Stockholders' equity | |||
Common stock | 20 | 20 | |
Treasury stock | (3,192) | (2,871) | |
Additional paid-in capital | 3,544,127 | 3,321,242 | |
Accumulated other comprehensive loss | (16,078) | (28,376) | |
Accumulated deficit | (1,536,902) | (1,287,323) | |
Total stockholders' equity | 1,987,975 | 2,002,692 | |
Total liabilities and equity | $ 3,949,923 | $ 4,012,705 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Cash flows from operating activities: | |||||||
Net income | $ 62,970 | $ 888,211 | $ 135,057 | $ 921,971 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 28,880 | 27,022 | 59,249 | 51,528 | |||
Amortization of deferred contract acquisition and fulfillment costs | 68,654 | 57,255 | 135,136 | 111,467 | |||
Amortization of debt discount and transaction costs | 302 | 139 | 440 | 277 | |||
Non-cash operating lease costs | 4,704 | 4,984 | 9,364 | 9,862 | |||
Stock-based compensation expense | 160,538 | 164,656 | 306,134 | 307,160 | |||
Deferred income taxes | 4,997 | (826,038) | 1,532 | (824,561) | |||
Other | (218) | 3,851 | 1,505 | 5,323 | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (50,674) | (7,068) | 70,329 | 123,571 | |||
Prepaid expenses and other current assets | 5,544 | (6) | (23,007) | (17,067) | |||
Deferred contract acquisition and fulfillment costs | (71,340) | (68,183) | (127,988) | (131,255) | |||
Other assets | (2,179) | (16,975) | (1,335) | (15,058) | |||
Accounts payable | (14,030) | (10,412) | (20,794) | (11,575) | |||
Accrued expenses and other liabilities | 175 | (4,680) | 4,800 | (8,160) | |||
Accrued compensation | 37,214 | 25,146 | (24,237) | (19,902) | |||
Contract liabilities | 15,966 | (11,553) | (18,274) | (16,526) | |||
Operating lease liabilities | (5,430) | (6,141) | (10,399) | (12,021) | |||
Net cash provided by operating activities | 246,073 | 220,208 | 497,512 | 475,034 | |||
Cash flows from investing activities: | |||||||
Cash paid for acquisition, net of acquired cash | — | (143,611) | — | (143,611) | |||
Purchases of marketable securities | (119,637) | (103,603) | (212,200) | (223,241) | |||
Maturities of marketable securities | 117,710 | 93,509 | 208,972 | 175,623 | |||
Purchases of strategic and other investments | (100) | (125) | (100) | (625) | |||
Purchases of property and equipment | (28,425) | (22,280) | (52,049) | (45,033) | |||
Net cash used in investing activities | (30,452) | (176,110) | (55,377) | (236,887) | |||
Cash flows from financing activities: | |||||||
Payment of revolving credit facility costs | (3,133) | — | (3,133) | — | |||
Repurchases of common stock | (201,514) | (200,076) | (384,945) | (349,138) | |||
Payment of tax withholding obligation on net RSU settlement and ESPP purchase | (69,164) | (39,446) | (131,957) | (81,083) | |||
Proceeds from exercise of stock options | 471 | 454 | 1,170 | 1,089 | |||
Proceeds from employee stock purchase plan | — | — | 22,010 | 20,190 | |||
Net cash used in financing activities | (273,340) | (239,068) | (496,855) | (408,942) | |||
Effect of foreign exchange on cash, cash equivalents and restricted cash | 1,529 | 238 | 11,452 | (2,677) | |||
Net decrease in cash, cash equivalents and restricted cash | (56,190) | (194,732) | (43,268) | (173,472) | |||
Cash, cash equivalents and restricted cash at beginning of period (1) | 672,476 | 822,759 | 659,554 | 801,499 | |||
Cash, cash equivalents and restricted cash at end of period (1) | $ 616,286 | $ 628,027 | $ 616,286 | $ 628,027 | |||
(1) Cash, cash equivalents and restricted cash included restricted cash of |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) | |||||||
Reconciliation of gross profit (loss) and gross margin: | |||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
GAAP gross profit | $ 635,173 | $ 580,562 | $ 1,241,558 | $ 1,140,756 | |||
Add: Stock-based compensation | 18,592 | 20,591 | 35,496 | 39,474 | |||
Add: Employer payroll tax on employee stock transactions | 1,575 | 816 | 3,448 | 1,839 | |||
Add: Amortization of acquisition-related intangibles | 1,562 | 3,067 | 5,127 | 5,137 | |||
Non-GAAP gross profit | $ 656,902 | $ 605,036 | $ 1,285,629 | $ 1,187,206 | |||
GAAP gross margin | 79.3 % | 78.9 % | 79.4 % | 78.9 % | |||
Non-GAAP adjustments | 2.7 % | 3.3 % | 2.8 % | 3.1 % | |||
Non-GAAP gross margin | 82.0 % | 82.2 % | 82.2 % | 82.0 % | |||
GAAP subscription gross profit | $ 640,291 | $ 584,994 | $ 1,249,150 | $ 1,149,875 | |||
Add: Stock-based compensation | 14,425 | 15,593 | 27,421 | 29,774 | |||
Add: Employer payroll tax on employee stock transactions | 1,220 | 595 | 2,665 | 1,387 | |||
Add: Amortization of acquisition-related intangibles | 1,562 | 3,067 | 5,127 | 5,137 | |||
Non-GAAP subscription gross profit | $ 657,498 | $ 604,249 | $ 1,284,363 | $ 1,186,173 | |||
GAAP subscription gross margin | 81.6 % | 81.5 % | 81.6 % | 81.6 % | |||
Non-GAAP adjustments | 2.2 % | 2.7 % | 2.3 % | 2.6 % | |||
Non-GAAP subscription gross margin | 83.8 % | 84.2 % | 83.9 % | 84.2 % | |||
GAAP professional services and other gross loss | $ (5,118) | $ (4,432) | $ (7,592) | $ (9,119) | |||
Add: Stock-based compensation | 4,167 | 4,998 | 8,075 | 9,700 | |||
Add: Employer payroll tax on employee stock transactions | 355 | 221 | 783 | 452 | |||
Non-GAAP professional services and other gross profit (loss) | $ (596) | $ 787 | $ 1,266 | $ 1,033 | |||
GAAP professional services and other gross margin | (31.5) % | (23.8) % | (22.5) % | (24.8) % | |||
Non-GAAP adjustments | 27.8 % | 28.0 % | 26.3 % | 27.6 % | |||
Non-GAAP professional services and other gross margin | (3.7) % | 4.2 % | 3.8 % | 2.8 % | |||
Reconciliation of operating expenses: | |||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
GAAP sales and marketing | $ 305,450 | $ 287,464 | $ 601,863 | $ 569,108 | |||
Less: Stock-based compensation | (49,081) | (58,778) | (95,166) | (105,049) | |||
Less: Employer payroll tax on employee stock transactions | (2,962) | (1,595) | (6,902) | (3,733) | |||
Less: Amortization of acquisition-related intangibles | (3,354) | (3,113) | (6,708) | (5,742) | |||
Non-GAAP sales and marketing | $ 250,053 | $ 223,978 | $ 493,087 | $ 454,584 | |||
GAAP sales and marketing as a percentage of revenue | 38.2 % | 39.1 % | 38.5 % | 39.4 % | |||
Non-GAAP sales and marketing as a percentage of revenue | 31.2 % | 30.4 % | 31.6 % | 31.4 % | |||
GAAP research and development | $ 169,630 | $ 147,571 | $ 329,077 | $ 281,891 | |||
Less: Stock-based compensation | (61,865) | (53,430) | (116,296) | (97,632) | |||
Less: Employer payroll tax on employee stock transactions | (2,600) | (1,754) | (7,681) | (4,319) | |||
Non-GAAP research and development | $ 105,165 | $ 92,387 | $ 205,100 | $ 179,940 | |||
GAAP research and development as a percentage of revenue | 21.2 % | 20.0 % | 21.1 % | 19.5 % | |||
Non-GAAP research and development as a percentage of revenue | 13.1 % | 12.6 % | 13.1 % | 12.4 % | |||
GAAP general and administrative | $ 94,866 | $ 87,129 | $ 185,136 | $ 179,607 | |||
Less: Stock-based compensation | (31,000) | (31,649) | (59,176) | (60,169) | |||
Less: Employer payroll tax on employee stock transactions | (911) | (607) | (2,276) | (1,285) | |||
Less: Acquisition-related expenses | — | (3,358) | — | (4,716) | |||
Non-GAAP general and administrative | $ 62,955 | $ 51,515 | $ 123,684 | $ 113,437 | |||
GAAP general and administrative as a percentage of revenue | 11.8 % | 11.8 % | 11.8 % | 12.4 % | |||
Non-GAAP general and administrative as a percentage of revenue | 7.9 % | 7.0 % | 7.9 % | 7.8 % | |||
Reconciliation of income from operations and operating margin: | |||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
GAAP income from operations | $ 65,227 | $ 57,801 | $ 125,482 | $ 80,429 | |||
Add: Stock-based compensation | 160,538 | 164,448 | 306,134 | 302,324 | |||
Add: Employer payroll tax on employee stock transactions | 8,048 | 4,772 | 20,307 | 11,176 | |||
Add: Amortization of acquisition-related intangibles | 4,916 | 6,180 | 11,835 | 10,879 | |||
Add: Acquisition-related expenses | — | 3,358 | — | 4,716 | |||
Add: Restructuring and other related charges | — | 597 | — | 29,721 | |||
Non-GAAP income from operations | $ 238,729 | $ 237,156 | $ 463,758 | $ 439,245 | |||
GAAP operating margin | 8.1 % | 7.9 % | 8.0 % | 5.6 % | |||
Non-GAAP adjustments | 21.7 % | 24.3 % | 21.6 % | 24.8 % | |||
Non-GAAP operating margin | 29.8 % | 32.2 % | 29.6 % | 30.4 % | |||
Reconciliation of net income and net income per share, basic and diluted: | |||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||
GAAP net income | $ 62,970 | $ 888,211 | $ 135,057 | $ 921,971 | |||
Add: Stock-based compensation | 160,538 | 164,448 | 306,134 | 302,324 | |||
Add: Employer payroll tax on employee stock transactions | 8,048 | 4,772 | 20,307 | 11,176 | |||
Add: Amortization of acquisition-related intangibles | 4,916 | 6,180 | 11,835 | 10,879 | |||
Add: Acquisition-related expenses | — | 3,358 | — | 4,716 | |||
Add: Restructuring and other related charges | — | 597 | — | 29,721 | |||
Add: Income tax and other tax adjustments | (41,387) | (866,572) | (87,397) | (906,950) | |||
Non-GAAP net income attributable to common stockholders | $ 195,085 | $ 200,994 | $ 385,936 | $ 373,837 | |||
Numerator: | |||||||
Non-GAAP net income attributable to common stockholders | $ 195,085 | $ 200,994 | $ 385,936 | $ 373,837 | |||
Denominator: | |||||||
Weighted-average common shares outstanding, basic | 202,644 | 204,604 | 202,957 | 205,231 | |||
Effect of dilutive securities | 8,312 | 3,670 | 8,921 | 4,328 | |||
Non-GAAP weighted-average common shares outstanding, diluted | 210,956 | 208,274 | 211,878 | 209,559 | |||
GAAP net income per share, basic | $ 0.31 | $ 4.34 | $ 0.67 | $ 4.49 | |||
GAAP net income per share, diluted | $ 0.30 | $ 4.26 | $ 0.64 | $ 4.40 | |||
Non-GAAP net income per share, basic | $ 0.96 | $ 0.98 | $ 1.90 | $ 1.82 | |||
Non-GAAP net income per share, diluted | $ 0.92 | $ 0.97 | $ 1.82 | $ 1.78 | |||
Computation of free cash flow: | |||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Net cash provided by operating activities | $ 246,073 | $ 220,208 | $ 497,512 | $ 475,034 | |||
Less: Purchases of property and equipment | (28,425) | (22,280) | (52,049) | (45,033) | |||
Non-GAAP free cash flow | $ 217,648 | $ 197,928 | $ 445,463 | $ 430,001 | |||
Net cash used in investing activities | $ (30,452) | $ (176,110) | $ (55,377) | $ (236,887) | |||
Net cash used in financing activities | $ (273,340) | $ (239,068) | $ (496,855) | $ (408,942) | |||
Computation of billings: | |||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Revenue | $ 800,636 | $ 736,027 | |||||
Add: Contract liabilities and refund liability, end of period | 1,468,618 | 1,334,461 | 1,468,618 | 1,334,461 | |||
Less: Contract liabilities and refund liability, beginning of period | (1,450,718) | (1,340,680) | (1,479,266) | (1,343,792) | |||
Add: Contract assets and unbilled accounts receivable, beginning of period | 13,319 | 17,179 | 17,825 | 20,189 | |||
Less: Contract assets and unbilled accounts receivable, end of period | (13,824) | (17,461) | (13,824) | (17,461) | |||
Add: Contract assets and unbilled accounts receivable by acquisitions | — | 53 | — | 53 | |||
Less: Contract liabilities and refund liability contributed by acquisitions | — | (5,071) | — | (5,071) | |||
Non-GAAP billings | $ 818,031 | $ 724,508 | |||||
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SOURCE Docusign, Inc.
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