# Docusign, Inc. (DOCU) Q2 2026 Financial Results Summary
Docusign, Inc. (NASDAQ: DOCU) released its financial results for the second quarter of fiscal 2026 on September 4, 2025. The results showcase a quarter marked by strong revenue growth and strategic advancements in their business operations.
## Financial Highlights
– **Total Revenue**:
– **$800.6 million**, representing a **9% year-over-year increase.**
– **Subscription Revenue**: **$784.4 million**, also a **9% increase** from the same quarter last year.
– **Professional Services and Other Revenue**: **$16.2 million**, which is a **13% year-over-year decrease.**
– **Billings**:
– Total billings reached **$818.0 million**, marking a **13% year-over-year increase**, with approximately **1% positive impact** from foreign currency exchange rates.
– **Gross Margin**:
– **GAAP Gross Margin**: **79.3%**, an increase from **78.9%** year-over-year.
– **Non-GAAP Gross Margin**: **82.0%**, slightly down from **82.2%** in the prior year.
– **Net Income**:
– **GAAP Net Income per Basic Share**: **$0.31**, down from **$4.34** in Q2 2025.
– **GAAP Net Income per Diluted Share**: **$0.30**, decreased from **$4.26** year-over-year.
– **Non-GAAP Net Income per Diluted Share**: **$0.92**, a slight decline from **$0.97** the previous year.
– **Cash Flow**:
– **Net Cash Provided by Operating Activities**: **$246.1 million**, compared to **$220.2 million** in Q2 2025.
– **Free Cash Flow**: **$217.6 million**, an increase from **$197.9 million** in the same quarter of last year.
– **Cash Position**:
– **Cash, cash equivalents, and investments** totaled **$1.1 billion** at the end of the quarter.
– **Share Repurchase**:
– The company repurchased **$201.5 million** worth of common stock, relatively consistent with **$200.1 million** in the same quarter of 2025.
## Key Business Highlights
– Docusign introduced new capabilities within the **Intelligent Agreement Management (IAM)** platform, focusing on driving efficiency in agreement processes.
– Launched AI-powered features to enhance agreement preparation, ID verification, and custom data extractions.
– Recognized in the **2025 IDC MarketScape** as a leader in AI-enabled buy-side CLM applications, underlining the strategic direction towards replacing outdated systems with advanced agreement management technology.
– The company launched the **Maestro Workflow Templates** designed to streamline agreement processes, enabling users to quickly implement and customize workflows without coding.
## Leadership and Governance
– **Mike Rosenbaum**, CEO of Guidewire, joined Docusign’s board, bringing valuable SaaS experience to bolster the company’s growth strategy.
– **James Beer** was appointed as the next Board Chair following **Maggie Wilderotter** at the conclusion of the fiscal year, poised to guide Docusign through its transformation phase.
## Guidance
Docusign provided the following guidance for the upcoming quarters:
### For the quarter ending October 31, 2025:
– **Total Revenue**: $804 to $808 million, indicating a projected **7% growth** year-over-year.
– **Subscription Revenue**: Expected to be between $786 to $790 million, also reflecting a **7% increase**.
– **Billings**: Guidance between $785 to $795 million, representing a **5% year-over-year growth**.
– **Non-GAAP Gross Margin**: Anticipated between **80.3% and 81.3%.**
### For the fiscal year ending January 31, 2026:
– **Total Revenue**: Expected between $3,189 to $3,201 million, projecting a **7% growth**.
– **Subscription Revenue**: Forecasted between $3,121 to $3,133 million, translating to an **8% increase**.
– **Billings**: Estimated between $3,325 to $3,355 million, indicating a **7% growth**.
This summary reflects an overall positive trend in Docusign’s financial performance, showcasing resilience and growth in critical areas despite challenges in professional services revenue. The company’s focus on innovation and market expansion remains evident as it seeks to solidify its role in the digital agreement space.
Here are the extracted tables in HTML format:
### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands)
| (in thousands, except per share data) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 |
|---|---|---|---|---|
| Revenue: | ||||
| Subscription | $ 784,388 | $ 717,366 | $ 1,530,590 | $ 1,408,849 |
| 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 (in thousands)
| (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 |
