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Docusign Announces First Quarter Fiscal 2027 Financial ResultsJune 4, 2026 4:05 PM
PR Newswire (US) SAN FRANCISCO, June 4, 2026 /PRNewswire/ -- Docusign, Inc. (NASDAQ: DOCU) today announced results for its fiscal quarter ended April 30, 2026. Prepared remarks and the news release with the financial results will be accessible on Docusign's website at investor.docusign.com prior to its webcast. "In Q1, we saw continued growing demand for Docusign's AI-native IAM platform with 40,000 customers investing in our rapidly expanding roadmap," said Allan Thygesen, CEO of Docusign. "We delivered significant innovation this quarter while driving strong financial results through durable revenue growth, substantial free cash flow, and record share buybacks."First Quarter Financial HighlightsRevenue was $830.2 million, a 9% year-over-year increase including approximately 1.6% positive impact from foreign exchange rates.Intelligent Agreement Management ("IAM") represented 12.6% of our total Annual Recurring Revenue ("ARR") as of April 30, 2026, compared to 10.8% of our total ARR as of January 31, 2026.GAAP gross margin was 79.4% for both periods. Non-GAAP gross margin was 81.5% compared to 82.3% in the same period last year.GAAP net income per basic share was $0.40 on 195 million shares outstanding compared to $0.35 on 203 million shares outstanding in the same period last year.GAAP net income per diluted share was $0.40 on 196 million shares outstanding compared to $0.34 on 213 million shares outstanding in the same period last year.Non-GAAP net income per diluted share was $1.09 on 196 million shares outstanding compared to $0.90 on 213 million shares outstanding in the same period last year.Net cash provided by operating activities was $321.7 million compared to $251.4 million in the same period last year.Free cash flow was $289.4 million compared to $227.8 million in the same period last year.Cash, cash equivalents, and investments were $1.0 billion at the end of the quarter.Repurchases of common stock were $317.5 million compared to $183.4 million in the same period last year.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 AI-Powered Intelligent Agreement Management ("IAM") announcements: In May at our annual Momentum conference, Docusign announced new IAM capabilities powered by Iris, our agreement AI engine:Iris assistant and agents: Iris is Docusign's AI engine for agreements, which helps teams work smarter, faster, and trigger actions using natural language. Customers can now:Move faster through reviews: Agents can check agreements against company standards, suggest edits, and automatically request the right approvals in minutes.Keep work moving automatically: Agents can monitor contracts in the background and flag risks, track obligations, and trigger next steps without manual follow-up.Build agents for specific workflows: With Docusign Agent Studio, teams can create and deploy custom agents tailored to how they manage deals, renewals, approvals, and more.Docusign IAM platform ecosystem: Docusign connects agreement work across the systems and teams that run the business. Instead of contracts living in silos, Docusign brings them into the tools people already use:AI where teams work: Through our open platform and Model Context Protocol (MCP) server, Docusign connects with leading frontier models like Anthropic Claude, Gemini, and OpenAI ChatGPT – so teams can create, review, and manage agreements using natural language within the tools they already use.Deep integrations across business systems: Docusign integrates with core applications like Coupa, Microsoft Copilot, Salesforce, SAP, and Slack – so agreement workflows happen seamlessly across systems teams use every day, from triggering actions to surfacing completed agreements and the insights they contain.A connected legal AI ecosystem: Docusign is also partnering with leading legal AI platforms, including Harvey, Legora, and CoCounsel by Thomson Reuters. These integrations will bring legal research, document analysis, and contract review directly into agreement workflows across sales, procurement, HR, and finance.Docusign IAM platform end-to-end workflows:IAM for HR: Employee agreements span the entire lifecycle, from hiring to role changes, but the work behind them is often fragmented and manual. IAM for HR spans the often manual HR lifecycle from hiring to role changes. Mobile I-9 verification simplifies compliance, while integrations with HCM platforms help HR teams move faster and improve the employee experience from day one onward.IAM for Sales: IAM for Sales brings the full agreement lifecycle directly into CRMs like HubSpot, Microsoft Dynamics 365, and Salesforce. New CRM-embedded experiences for Agreement Desk, Agreement Prep, and Agreement Manager keep workflows, collaboration, and signed agreements connected in one place.Instant Form Creation for Customer Experience: AI-powered Web Forms transform static documents into interactive, shareable forms in seconds, so people can complete them quickly without manual re-entry.Executive Appointment: Docusign announced Graham Sheldon as its incoming Chief Product Officer. Most recently, Sheldon served as Chief Product Officer at UiPath Inc., a leading enterprise-grade agentic automation platform. Before that, Sheldon spent more than 20 years at Microsoft Corp., including as Corporate Vice President of Product for Microsoft Teams.GuidanceThe company currently expects the following guidance:(in millions, except percentages)Three Months Ended
July 31, 2026
YoY
Midpoint
ChangeRevenue [1]$865to$869
8 %Non-GAAP gross margin81.5 %to81.7 %
NANon-GAAP operating margin29.7 %to30.2 %
NANon-GAAP diluted weighted-average shares outstanding191to196
NA
(in millions, except percentages)Year Ended January 31,
2027
YoY
Midpoint
ChangeRevenue [1]$3,490to$3,502
9 %Annual recurring revenue year-over-year growth rate8.25 %to8.75 %
8.50 %Non-GAAP gross margin81.5 %to82.0 %
NANon-GAAP operating margin30.5 %to31.0 %
NANon-GAAP diluted weighted-average shares outstanding 190to195
NA
[1] Excluding the impact of foreign currency exchange rates on year-over-year guided revenue growth, revenue guidance range would be approximately 1.4% points lower for the quarter ending July 31, 2026 and 1.3% points lower for the fiscal year ending January 31, 2027.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 InformationThe company will host a conference call on June 4, 2026 at 2:00 p.m. PDT (5:00 p.m. EDT) 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) June 18, 2026 using the passcode 13760337.About DocusignDocusign brings agreements to life. Nearly 1.9 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 AI-native 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 2026. 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 StatementsThis 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, our 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, annual recurring revenue, free cash flow, non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted weighted-average shares outstanding, 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; the evolution, 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 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, 2026, filed on March 18, 2026, our quarterly report on Form 10-Q for the quarter ended April 30, 2026, which we expect to file on June 5, 2026 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 MetricsTo supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. 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, 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. For the three months ended April 30, 2026 and 2025, we have determined the projected non-GAAP tax rate to be 21% and 20%, respectively.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.Annual Recurring Revenue: We calculate ARR as the annualized value of active customer contracts as of the measurement date. This calculation assumes that any contract expiring within the next 12 months renews on its existing terms, and excludes non-recurring revenue streams recognized at a point in time. When evaluating ARR on a product basis for contracts spanning multiple product lines, we allocate the support contract value to each product offering based on its proportional share of the total contract value. To annualize contracts, we divide the total committed contract value by the number of months in the subscription term and multiply by twelve. For international contracts denominated in foreign currencies, ARR is translated into U.S. dollars using a fixed exchange rate set at the beginning of each fiscal year. We adjust previously reported ARR annually to reflect these exchange rate changes for comparative purposes. We believe ARR measures our business performance and serves as a leading indicator of future revenue growth. We report total ARR annually at the end of the fiscal year. Because quarterly net new ARR represents only a fraction of our overall book of business, it is subject to timing volatility and can be highly volatile on a year-over-year basis. Because the objective of ARR is to evaluate the long-term growth of our business, these quarterly timing fluctuations can detract from the insight and usefulness of ARR. ARR is an operating metric and should be viewed independently of revenue, deferred revenue, and remaining performance obligations; it does not represent revenue under U.S. GAAP on an annual basis.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
April 30,(in thousands, except per share data)2026
2025Revenue$ 830,235
$ 763,654Cost of revenue171,270
157,269Gross profit658,965
606,385Operating expenses:
Sales and marketing296,175
296,413Research and development159,586
159,447General and administrative91,895
90,270Total operating expenses547,656
546,130Income from operations111,309
60,255Interest expense(551)
(478)Interest income and other income, net6,998
14,013Income before provision for income taxes 117,756
73,790Provision for income taxes39,559
1,703Net income$ 78,197
$ 72,087Net income per share attributable to common stockholders:Basic$ 0.40
$ 0.35Diluted$ 0.40
$ 0.34Weighted-average shares used in computing net income per share:Basic195,489
203,280Diluted196,480
212,812
Stock-based compensation expense included in costs and expenses:Cost of revenue15,309
16,904Sales and marketing43,026
46,085Research and development54,476
54,431General and administrative28,566
28,176 CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
(in thousands)April 30, 2026
January 31, 2026Assets
Current assets
Cash and cash equivalents$ 548,027
$ 602,442Investments—current266,152
264,084Accounts receivable, net300,684
516,429Contract assets—current8,024
10,782Prepaid expenses and other current assets132,729
97,101Total current assets1,255,616
1,490,838Investments—noncurrent209,897
208,393Property and equipment, net387,946
361,808Operating lease right-of-use assets160,090
165,578Goodwill459,148
458,446Intangible assets, net56,659
61,394Deferred contract acquisition costs—noncurrent468,452
474,628Deferred tax assets—noncurrent805,136
835,245Other assets—noncurrent181,061
173,220Total assets$ 3,984,005
$ 4,229,550Liabilities and Equity
Current liabilities
Accounts payable$ 23,970
$ 17,419Accrued expenses and other current liabilities 108,002
113,358Accrued compensation175,575
260,840Contract liabilities—current1,564,942
1,631,168Operating lease liabilities—current16,055
16,623Total current liabilities1,888,544
2,039,408Contract liabilities—noncurrent29,735
29,956Operating lease liabilities—noncurrent167,278
168,496Deferred tax liability—noncurrent24,205
21,507Other liabilities—noncurrent54,495
52,363Total liabilities2,164,257
2,311,730Stockholders' equity
Common stock19
20Additional paid-in capital3,920,519
3,777,995Accumulated other comprehensive loss(3,960)
(3,712)Accumulated deficit(2,096,830)
(1,856,483)Total stockholders' equity1,819,748
1,917,820Total liabilities and equity$ 3,984,005
$ 4,229,550 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
Three Months Ended
April 30,(in thousands)2026
2025Cash flows from operating activities:
Net income$ 78,197
$ 72,087Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization32,208
30,369Amortization of deferred contract acquisition and fulfillment costs67,358
66,482Non-cash operating lease costs4,864
4,660Stock-based compensation expense141,377
145,596Deferred income taxes33,032
(3,465)Other1,920
1,861Changes in operating assets and liabilities:
Accounts receivable214,448
121,003Prepaid expenses and other current assets(31,832)
(28,551)Deferred contract acquisition and fulfillment costs(65,491)
(56,648)Other assets2,320
844Accounts payable3,222
(6,764)Accrued expenses and other liabilities(5,460)
4,625Accrued compensation(88,415)
(61,451)Contract liabilities(65,553)
(34,240)Operating lease liabilities(507)
(4,969)Net cash provided by operating activities321,688
251,439Cash flows from investing activities:
Purchases of marketable securities(97,408)
(92,563)Maturities of marketable securities93,024
91,262Purchases of strategic and other investments(2,610)
—Purchases of property and equipment(32,253)
(23,624)Net cash used in investing activities(39,247)
(24,925)Cash flows from financing activities:
Repurchases of common stock(317,510)
(183,431)Payment of tax withholding obligation on net RSU settlement and ESPP purchase (39,536)
(62,793)Proceeds from exercise of stock options53
699Proceeds from employee stock purchase plan22,799
22,010Other(220)
—Net cash used in financing activities(334,414)
(223,515)Effect of foreign exchange on cash, cash equivalents and restricted cash(481)
9,923Net increase (decrease) in cash, cash equivalents and restricted cash(52,454)
12,922Cash, cash equivalents and restricted cash at beginning of period (1)618,150
659,554Cash, cash equivalents and restricted cash at end of period (1)$ 565,696
$ 672,476
(1) Cash, cash equivalents and restricted cash included restricted cash of $17.7 million and $15.7 million at April 30, 2026 and January 31, 2026. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited)
Reconciliation of gross profit and gross margin:
Three Months Ended
April 30,(in thousands)2026
2025GAAP gross profit$ 658,965
$ 606,385Add: Stock-based compensation15,309
16,904Add: Employer payroll tax on employee stock transactions1,126
1,873Add: Amortization of acquisition-related intangibles1,495
3,565Non-GAAP gross profit$ 676,895
$ 628,727GAAP gross margin79.4 %
79.4 %Non-GAAP adjustments2.1 %
2.9 %Non-GAAP gross margin81.5 %
82.3 %
Reconciliation of operating expenses:
Three Months Ended
April 30,(in thousands)2026
2025GAAP sales and marketing$ 296,175
$ 296,413Less: Stock-based compensation(43,026)
(46,085)Less: Employer payroll tax on employee stock transactions(2,470)
(3,940)Less: Amortization of acquisition-related intangibles(3,240)
(3,354)Non-GAAP sales and marketing$ 247,439
$ 243,034GAAP sales and marketing as a percentage of revenue35.7 %
38.8 %Non-GAAP sales and marketing as a percentage of revenue29.8 %
31.8 %
GAAP research and development$ 159,586
$ 159,447Less: Stock-based compensation(54,476)
(54,431)Less: Employer payroll tax on employee stock transactions(3,687)
(5,081)Non-GAAP research and development$ 101,423
$ 99,935GAAP research and development as a percentage of revenue19.2 %
20.9 %Non-GAAP research and development as a percentage of revenue 12.2 %
13.1 %
GAAP general and administrative$ 91,895
$ 90,270Less: Stock-based compensation(28,566)
(28,176)Less: Employer payroll tax on employee stock transactions(902)
(1,365)Non-GAAP general and administrative$ 62,427
$ 60,729GAAP general and administrative as a percentage of revenue11.1 %
11.8 %Non-GAAP general and administrative as a percentage of revenue7.5 %
7.9 %
Reconciliation of income from operations and operating margin:
Three Months Ended
April 30,(in thousands)2026
2025GAAP income from operations$ 111,309
$ 60,255Add: Stock-based compensation141,377
145,596Add: Employer payroll tax on employee stock transactions8,185
12,259Add: Amortization of acquisition-related intangibles4,735
6,919Non-GAAP income from operations$ 265,606
$ 225,029GAAP operating margin13.4 %
7.9 %Non-GAAP adjustments18.6 %
21.6 %Non-GAAP operating margin32.0 %
29.5 %
Reconciliation of net income and net income per share, basic and diluted:
Three Months Ended
April 30,(in thousands, except per share data)2026
2025GAAP net income$ 78,197
$ 72,087Add: Stock-based compensation141,377
145,596Add: Employer payroll tax on employee stock transactions8,185
12,259Add: Amortization of acquisition-related intangibles4,735
6,919Add: Income tax and other tax adjustments(17,572)
(46,010)Non-GAAP net income attributable to common stockholders$ 214,922
$ 190,851
Numerator:
Non-GAAP net income attributable to common stockholders$ 214,922
$ 190,851
Denominator:
Weighted-average common shares outstanding, basic195,489
203,280Effect of dilutive securities991
9,532Non-GAAP weighted-average common shares outstanding, diluted196,480
212,812
GAAP net income per share, basic$ 0.40
$ 0.35GAAP net income per share, diluted$ 0.40
$ 0.34Non-GAAP net income per share, basic$ 1.10
$ 0.94Non-GAAP net income per share, diluted$ 1.09
$ 0.90
Computation of free cash flow:
Three Months Ended
April 30,(in thousands)2026
2025Net cash provided by operating activities$ 321,688
$ 251,439Less: Purchases of property and equipment(32,253)
(23,624)Non-GAAP free cash flow$ 289,435
$ 227,815Net cash used in investing activities$ (39,247)
$ (24,925)Net cash used in financing activities$ (334,414)
$ (223,515) View original content to download multimedia:https://www.prnewswire.com/news-releases/docusign-announces-first-quarter-fiscal-2027-financial-results-302791972.htmlSOURCE Docusign, Inc. Original: Docusign Announces First Quarter Fiscal 2027 Financial Results
US Market News
1月前
Docusign Announces 2026 Global Customer Award WinnersApril 27, 2026 11:00 AM
PR Newswire (US)
Celebrating the Visionaries Transforming the Future of AgreementsSAN FRANCISCO, April 27, 2026 /PRNewswire/ -- Docusign (Nasdaq: DOCU) today announced the winners of its 2026 Customer Awards, recognizing an elite group of organizations that are leading the shift toward Intelligent Agreement Management. These visionaries are redefining how agreements are created, managed, and put to work for their business.
This year's winners represent a new generation of leaders who have turned static agreements into sources of insights that power business automation, impact, and growth. From accelerating revenue to improving operations and customer experience with the power of AI, these organizations are setting a new standard for how work gets done."Our award winners this year are doing something powerful; they're not just signing agreements faster, they're using IAM to transform how their businesses operate," said Paula Hansen, President & Chief Revenue Officer at Docusign. "They're automating workflows, extracting insights from agreement data, and driving real results. This is what intelligent agreements actually look like in practice."The 2026 Champions of Agreement Innovation
This year's recipients were selected for their excellence across six global categories. Champions of AI Innovation
Honoring teams using AI to transform agreement management into smarter, insight-driven processes.Aon, a leading global professional services firm, is implementing Docusign IAM to help unlock insights from legacy agreements and make relevant information more accessible for its colleagues. This initiative is intended to improve visibility and efficiency as the firm's colleagues focus on supporting clients."Docusign's smart document repository supports how we make existing information more usable for our colleagues. It's an example of how we're strengthening access to insights across the firm to advance better, more confident decision making." – Mindy Simon, Chief Operating Officer at AonExperian, a global data and technology company, partnered with Docusign to help simplify their ecosystem."As a result, we've significantly reduced contract cycle times from roughly 10 days to hours, made contract data easier to access and understand, and enabled our teams to serve clients more quickly and make better-informed decisions." – Gary Sonnethal, Vice President and Global Quote to Contract Product Owner at ExperianCrete United, a national network of leading Mechanical, Electrical, Plumbing and Building Automation specialists, implemented Docusign with AI-Assisted Review to reduce contract negotiation times by 80% and improve deal execution speed by 90%. Their use of AI playbooks has resulted in a 90% acceptance rate for redlines from counterparties."With Docusign, our teams have gained greater visibility into financial risk and contractual obligations, enabling a more disciplined approach to redline reviews and better informed decision making. This delivers meaningful value not only for our organization, but also for our customers."– Andy Swanson, Chief Revenue Officer at Crete UnitedIGA, a Brazilian beyond-banking company in the Itaú Unibanco ecosystem, transformed contract management into a strategic, data-driven capability. As the first company in Latin America to put Docusign AI-Assisted Review into production, IGA integrated CLM with CRM, connected contracts to the revenue cycle, and combined legal playbooks with strong AI governance. The initiative reduced average contract formalization time by 32% and cut the data engineering effort required for structuring and cleansing contract data by an estimated 90%, setting a strong benchmark for responsible AI innovation and risk mitigation."Docusign has helped us transform contract management from an operational process into a strategic business capability, bringing together governance, data, and efficiency. With CLM, CRM integration, and AI-Assisted Review, we have gained greater speed, traceability, and scale to support the business with consistency and confidence." – Ticiane Andrade, legal executive at IGA Champions of Business Transformation
Celebrating leaders who inspire adoption, drive innovation, and guide teams to reach their full potential.The Estée Lauder Companies Inc., a manufacturer and marketer of prestige beauty products, consolidated dozens of decentralized accounts into one enterprise platform. This move reduced cost, improved financial predictability, and established a unified governance model across its global brands."By centralizing Docusign into a single enterprise platform, we transformed this process into a streamlined, governed solution, delivering significant cost savings while also improving visibility, user experience, and operational efficiency." – Joe DeSimone, Technical Executive Director: HR, Finance, and Corporate functions at The Estée Lauder Companies Inc.Yum! Brands, the world's largest restaurant company with operations in 155 countries, uses Docusign to boost productivity and simplify franchising by harmonizing & standardizing contract templates and ways-of-working across multiple departments, streamlining the agreement lifecycle for its worldwide franchise network."Yum!'s Franchise Digital Exchange, built on Docusign CLM, has transformed how we create, manage, and govern agreements by centralizing contracts, automating workflows, and delivering greater visibility and consistency across our global organization." – Michael Nilevsky, Head of Global Franchising at Yum! BrandsSandoz, a newly independent pharmaceutical company, achieved technology independence following its spinoff by deploying a new Docusign ecosystem designed to support GxP and regulatory compliance. Since go-live in 2024, in an organization with $11 billion in annual revenue, the transition has enabled 20,000 global users to complete 350,000 envelopes, achieving a 90% completion rate and an average turnaround time of under two days.Champions of Operations
Honoring teams that turn complexity into clarity by streamlining workflows, cutting manual steps, and transforming operations into effortless, connected motion.Payworks, a leading provider of workforce management solutions, integrated Docusign IAM with Salesforce to reduce processing time. This resulted in a dramatic drop from 45 minutes to just 7.5 minutes, reclaiming over 9,300 labor hours annually. This automation also significantly increased their 24-hour contract completion rate from 55% to 87%, allowing 4,800 more agreements to be finalized within a 24-hour window each year."At Payworks, delivering a consistent, high-quality client experience is core to our success, reflected in our 98% client retention and 55+ NPS. Through our partnership with Docusign, we're transforming contract and customer onboarding with embedded, automated workflows—driving greater speed, consistency, and a better overall client experience." – Maureen Kinnear, Chief Technology Officer at PayworksThrive Market centralized its legal operations on Docusign to eliminate email-heavy intake and manual bottlenecks. Automated workflows dramatically reduced contract turnaround times, and teams across the company now use a searchable repository to track renewals."Docusign streamlined our legal operation. Contracts close faster, teams track renewals without chasing them down, and everyone finds what they need in one place." – Wade Johnson, Associate General Counsel at Thrive MarketFreshworks, a customer and employee engagement solutions provider, embedded Docusign into its CRM to reduce document turnaround times from days to minutes. The digital-first workflow has significantly reduced administrative costs and strengthened compliance by providing a secure audit trail."Using Docusign has helped me eliminate unnecessary delays and reduce the friction that typically comes with manual document handling. The ability to send, sign, and track agreements seamlessly has not only improved turnaround times for me but also made the entire process more secure and reliable." – Vishnu Vardhan, Strategic Consultant at Australia & New ZealandChampions of Growth
Recognizing businesses that scale smarter, work faster, and unlock new levels of growth and competitive advantage.Kindsight, a provider of modern technology solutions for fundraising organizations, adopted Docusign IAM for Sales to automate agreement generation within Salesforce, shortening sales cycles by one full week. The system saves the IT team up to three days per interaction and ensures 100% of agreements are digitized."Kindsight's adoption of Docusign IAM for Sales has been a game-changer for our operations, enabling our IT team to concentrate on strategic priorities while ensuring smooth, fully digitized agreement workflows that optimize processes and boost efficiency across the board." – Kris O'Brien, Director of Information Technology, KindsightMilky Moo is a Brazilian milkshake franchising powerhouse born during the pandemic. The company evolved from eSignature to Docusign IAM to scale its operations across Brazil and the USA. By digitizing its entire legal and sales workflow, Milky Moo saved over 1,000 hours of manual work in 2025 alone—proving that hyper-growth and operational excellence go hand-in-hand."The adoption of Docusign IAM has strengthened legal security for Milky Moo and our entire franchise network, while streamlining the closing of new business deals. This transformation has already generated projected savings of approximately $14,000 in 2025 within our legal department alone." – Silvia Mundim, Legal Director at Milky MooChampions of Customer Experience
Celebrating teams that create seamless, trusted, and memorable experiences, setting a new standard for customer happiness.LOCAM, a leasing subsidiary of Crédit Agricole, tripled its digital agreement usage to 120,000 envelopes annually while automating complex regulatory compliance checks. Local regulations are enforced automatically, without manual intervention, reducing error risk and ensuring consistent application at scale.Bank of Queensland, an Australian retail and commercial banking group, integrated Docusign into its cloud-based digital bank to digitise and scale its multi-brand Digital Home Loans capability – reducing per-loan packet costs by 83%, cutting approval times to as little as 1–2 days, and enabling 86% of loan documents to be signed and returned by customers within 24 hours."Our work with Docusign has helped us create a simpler, faster experience for our customers while directly advancing our commitment to carbon neutrality and our sustainability goals." – Michael Sokolich, Head of Everyday Banking and Home Lending Transformation at Bank of QueenslandChampions of Social Impact
Recognizing organizations driving sustainability, uplifting communities, and creating meaningful, lasting impact.NYC Public Schools, the largest school system in the United States, used Docusign to digitize family consent forms and offer them in over 10 languages for nearly one million students. This reduced turnaround times by 77% and recaptured 400,000 labor hours."With more than 800,000 students, the volume of essential forms our district processes is staggering. Docusign has allowed us to modernize the way we connect with our community. By providing a secure, seamless digital signing experience, we've made it significantly easier for our families to submit vital paperwork and for our educators to manage their administrative duties. It's a vital step forward in making our school system more accessible and responsive for everyone involved." – Ali Khan, Deputy Chief Information Officer at NYCPSThe Greater Philadelphia YMCA seeks to connect more people to healthy living through community-focused services, wellness, and childcare. With 15 branch locations, dozens of childcare and camp sites, and more than 4,000 employees, the challenge was how to centralize and manage 8,000 new agreements annually. With Docusign IAM, the Y brings all these agreements into a secure AI-powered repository. By automating internal approvals and renewal tracking, the organization has protected institutional knowledge, improved procurement efficiency, and removed bottlenecks."Docusign IAM has delivered a scalable, secure, and simple platform that marries efficiency and volume in one place. We have been able to establish a simple request, review, approve, and sign process that is tailored to each of the business area's operational requirements. Using AI makes the process easier for our teams and enables a No-Code journey to continue to expand and evolve." – Mark Morrison, Senior VP of Information Technology at YMCAExperience the Future of Agreements
Many of this year's winners will be featured at Docusign's annual event, Momentum NYC, taking place May 20-21, 2026, at the Javits Center. Join us to hear their stories first-hand and see the debut of the latest agentic agreement innovations. Learn more here.For more information on our 2026 winners and the solutions they use, visit our Docusign blog and follow Docusign on LinkedIn and Instagram.About Docusign
Docusign brings agreements to life. More than 1.8 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.Media Contact:
Docusign Corporate Communications
media@docusign.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/docusign-announces-2026-global-customer-award-winners-302753764.htmlSOURCE Docusign, Inc.
Original: Docusign Announces 2026 Global Customer Award Winners
US Market News
3月前
Docusign Announces Fourth Quarter and Fiscal Year 2026 Financial Results; Announces $2.0 Billion Increase to Share Repurchase ProgramMarch 17, 2026 4:05 PM
PR Newswire (US)
SAN FRANCISCO, March 17, 2026 /PRNewswire/ -- Docusign, Inc. (NASDAQ: DOCU) today announced results for its fourth quarter and fiscal year ended January 31, 2026. Prepared remarks and the news release with the financial results will be accessible on Docusign's website at investor.docusign.com prior to its webcast.
"Docusign's AI-native IAM platform has established clear market leadership as the agreement system of action for companies of all sizes," said Allan Thygesen, CEO of Docusign. "In 2026, customers using IAM represented over $350 million in ARR, and Docusign reached record highs for operating margin and free cash flow."Fourth Quarter Financial HighlightsTotal revenue was $836.9 million, an 8% year-over-year increase including approximately 0.8% positive impact from foreign exchange rates. Subscription revenue was $819.0 million, an 8% year-over-year increase. Professional services and other revenue was $17.9 million, a 3% year-over-year decrease.Billings were $1.0 billion, a 10% year-over-year increase including approximately 2.3% positive impact of foreign currency exchange rates.GAAP gross margin was 79.7% compared to 79.4% in the same period last year. Non-GAAP gross margin was 81.8% compared to 82.3% in the same period last year.GAAP net income per basic share was $0.45 on 200 million shares outstanding compared to $0.41 on 203 million shares outstanding in the same period last year.GAAP net income per diluted share was $0.44 on 205 million shares outstanding compared to $0.39 on 215 million shares outstanding in the same period last year.Non-GAAP net income per diluted share was $1.01 on 205 million shares outstanding compared to $0.86 on 215 million shares outstanding in the same period last year.Net cash provided by operating activities was $377.2 million compared to $307.9 million in the same period last year.Free cash flow was $350.2 million compared to $279.6 million in the same period last year.Cash, cash equivalents, restricted cash and investments were $1.1 billion at the end of the quarter.Repurchases of common stock were $269.1 million compared to $161.7 million in the same period last year.Fiscal 2026 Financial HighlightsTotal revenue was $3.2 billion, an 8% year-over-year increase, including approximately 0.2% positive impact from foreign exchange rates. Subscription revenue was $3.2 billion, a 9% year-over-year increase. Professional services and other revenue was $68.9 million, a 9% year-over-year decrease.Billings were $3.4 billion, a 10% year-over-year increase including approximately 1.1% positive impact from foreign exchange rates.Annual Recurring Revenue ("ARR") was $3,272 million as of January 31, 2026, and $3,030 million as of January 31, 2025, an 8.0% year-over-year increase. Intelligent Agreement Management ("IAM") represented 10.8% of our total ARR as of January 31, 2026, and 2.3% of our total ARR as of January 31, 2025.GAAP gross margin was 79.4% compared to 79.1% in the prior year. Non-GAAP gross margin was 82.0% compared to 82.2% in the prior year.GAAP net income per basic share was $1.53 on 202 million shares outstanding compared to $5.23 on 204 million shares outstanding in fiscal 2025.GAAP net income per diluted share was $1.48 on 209 million shares outstanding compared to $5.08 on 210 million shares outstanding in fiscal 2025. Non-GAAP net income per diluted share was $3.84 on 209 million shares outstanding compared to $3.55 on 210 million shares outstanding in fiscal 2025.Repurchases of common stock were $869.1 million compared to $683.5 million in the same period last year.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:Expanded IAM Platform and eSignature Capabilities: Docusign continued to evolve IAM into an end-to-end platform for customers' agreement workflows. In Q4, Docusign delivered on its roadmap to integrate AI-native experiences across the entire agreement lifecycle. Key updates include:Agreement Desk: Now generally available, Agreement Desk is a central hub for teams to request, track, review, and manage agreements from intake to signature. It creates visibility across stakeholders, and allows teams across legal, sales, and procurement to collaborate in real time.AI-Assisted Review: AI-Assisted Review leverages pre-approved company playbooks and provides instant redline suggestions and clause generation to ensure that all team members within an organization can negotiate agreements in compliance with company standards.AI-Powered eSignature: In January, Docusign launched a re-imagined eSignature experience powered by AI. The launch provides customers with:AI-Assisted Agreement Summaries: To drive efficiencies in daily workflows, Docusign launched AI-Assisted Agreement Summaries in eSignature. This feature allows signers to quickly grasp the core components of complex contracts without manual review.Automated Agreement Preparation: AI-driven tools that streamline the setup and tagging of documents.3rd-Party Data Verification: Seamless integration of external data sources to verify signer information and agreement accuracy.Increase to Stock Repurchase Program:Docusign's Board of Directors has authorized an increase to its existing stock repurchase program of an additional amount of up to $2.0 billion of Docusign's outstanding common stock. The program has no minimum purchase commitment and no mandated end date. As of March 17, 2026, our total remaining authorization under our stock repurchase program is up to $2.6 billion.Repurchases under the program are expected to be executed, subject to general business and market conditions and other investment opportunities, through open market purchases, and other transactions in accordance with applicable securities laws. The timing and the amount of any repurchased common stock will be determined by Docusign's management based on its evaluation of market conditions and other factors. The repurchase program does not obligate Docusign to acquire any particular amount of common stock and the repurchase program may be suspended or discontinued at any time at Docusign's discretion without prior notice.Board of Directors and Governance UpdatesBoard Leadership Transition: As previously announced, James Beer assumed the role of Board Chair on February 1, 2026, succeeding Maggie Wilderotter, who continues to serve as an independent director.Brian Roberts, a general partner at Andreessen Horowitz, has joined Docusign's Board: Roberts, who previously served as CFO of Splunk and Lyft, joined Andreessen Horowitz in 2024, where he advises a range of companies building AI-native applications. "Brian brings extensive finance and strategy expertise to our Board, and a unique combination of operating and investor perspectives," said Allan Thygesen, CEO of Docusign. "His experience in funding and leading transformative businesses will be invaluable to Docusign as we harness AI to pursue our Intelligent Agreement Management strategy."GuidanceThe company currently expects the following guidance:
(in millions, except percentages)Three Months Ended
April 30, 2026
YoY
Midpoint
ChangeTotal revenue [1]$822to$826
8 %Non-GAAP gross margin80.8 %to81.2 %
NANon-GAAP operating margin29.0 %to29.5 %
NANon-GAAP diluted weighted-average shares outstanding 196to201
NA
(in millions, except percentages)Year Ended January 31,
2027
YoY
Midpoint
ChangeTotal revenue [1]$3,484to$3,496
8 %Annual recurring revenue year-over-year growth rate8.25 %to8.75 %
8.50 %Non-GAAP gross margin81.5 %to82.0 %
NANon-GAAP operating margin30.0 %to30.5 %
NANon-GAAP diluted weighted-average shares outstanding190to195
NA
[1] Excluding the impact of foreign currency exchange rates on year-over-year guided growth, revenue guidance range would be approximately 1.6% point lower for the quarter ending April 30, 2026 and 1.4% point lower for the fiscal year ending January 31, 2027.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 InformationThe company will host a conference call on March 17, 2026 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) March 31, 2026, using the passcode 13758812.About DocusignDocusign brings agreements to life. Over 1.8 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.comMedia Relations:
Docusign Corporate Communications
media@docusign.comForward-Looking StatementsThis 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, annual recurring revenue, free cash flow, non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted weighted-average shares outstanding, 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; the evolution, 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 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 October 31, 2025, filed on December 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 MetricsTo 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, 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 20% for fiscal 2025 and 21% for fiscal 2026 due to the impact of the One Big Beautiful Bill Act.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 considered billings to measure our periodic performance, when taking into consideration the timing aspects of customer renewals, which represent 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 used billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. Beginning in the first fiscal quarter of 2027, we will no longer report or guide to billings.Annual Recurring Revenue: We calculate Annual Recurring Revenue ("ARR") as the annualized value of active customer contracts as of the measurement date. This calculation assumes that any contract expiring within the next 12 months renews on its existing terms, and excludes non-recurring revenue streams recognized at a point in time. When evaluating ARR on a product basis for contracts spanning multiple product lines, we allocate the support contract value to each product offering based on its proportional share of the total contract value. To annualize contracts, we divide the total committed contract value by the number of months in the subscription term and multiply by twelve. For international contracts denominated in foreign currencies, ARR is translated into U.S. dollars using a fixed exchange rate set at the beginning of each fiscal year. We adjust previously reported ARR annually to reflect these exchange rate changes for comparative purposes. We believe ARR measures our business performance and serves as a leading indicator of future revenue growth. ARR is an operating metric and should be viewed independently of revenue, deferred revenue, and remaining performance obligations; it does not represent revenue under U.S. GAAP on an annual basis.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
January 31,
Year Ended January
31,(in thousands, except per share data)2026
2025
2026
2025Revenue:
Subscription$ 819,003
$ 757,767
$ 3,150,551
$ 2,901,309Professional services and other17,857
18,485
68,949
75,430Total revenue836,860
776,252
3,219,500
2,976,739Cost of revenue:
Subscription149,246
138,884
581,058
532,445Professional services and other20,538
21,327
82,004
89,214Total cost of revenue169,784
160,211
663,062
621,659Gross profit667,076
616,041
2,556,438
2,355,080Operating expenses:
Sales and marketing305,506
301,288
1,203,885
1,160,993Research and development168,282
155,463
664,985
588,455General and administrative105,546
98,821
388,989
375,983Restructuring and other related charges—
—
—
29,721Total operating expenses579,334
555,572
2,257,859
2,155,152Income from operations87,742
60,469
298,579
199,928Interest expense(586)
(400)
(2,546)
(1,550)Interest income and other income, net14,393
7,818
51,295
49,563Income before provision for (benefit from) income taxes 101,549
67,887
347,328
247,941Provision for (benefit from) income taxes11,246
(15,604)
38,243
(819,944)Net income$ 90,303
$ 83,491
$ 309,085
$ 1,067,885Net income per share attributable to common stockholders:
Basic$ 0.45
$ 0.41
$ 1.53
$ 5.23Diluted$ 0.44
$ 0.39
$ 1.48
$ 5.08Weighted-average shares used in computing net income per share:
Basic200,477
203,299
202,079
204,329Diluted204,675
214,507
209,118
210,339
Stock-based compensation expense included in costs and expenses:
Cost of revenue—subscription$ 14,062
$ 13,712
$ 56,501
$ 58,348Cost of revenue—professional services and other3,829
4,174
15,896
18,639Sales and marketing46,464
48,213
189,648
202,609Research and development59,678
53,422
236,780
204,238General and administrative31,512
30,426
123,496
121,665Restructuring and other related charges—
—
—
4,836 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands)January 31,
2026
January 31,
2025Assets
Current assets
Cash and cash equivalents$ 602,442
$ 648,623Investments—current264,084
314,924Accounts receivable, net516,429
429,582Contract assets—current10,782
13,764Prepaid expenses and other current assets97,101
82,368Total current assets1,490,838
1,489,261Investments—noncurrent208,393
134,105Property and equipment, net361,808
299,370Operating lease right-of-use assets165,578
109,630Goodwill458,446
454,477Intangible assets, net61,394
76,388Deferred contract acquisition costs—noncurrent474,628
467,201Deferred tax assets—noncurrent835,245
840,470Other assets—noncurrent173,220
141,803Total assets$ 4,229,550
$ 4,012,705Liabilities and Equity
Current liabilities
Accounts payable$ 17,419
$ 30,697Accrued expenses and other current liabilities 113,358
99,579Accrued compensation260,840
227,115Contract liabilities—current1,631,168
1,455,442Operating lease liabilities—current16,623
19,077Total current liabilities2,039,408
1,831,910Contract liabilities—noncurrent29,956
21,523Operating lease liabilities—noncurrent168,496
105,350Deferred tax liability—noncurrent21,507
20,596Other liabilities—noncurrent52,363
30,634Total liabilities2,311,730
2,010,013Stockholders' equity
Common stock20
20Treasury stock—
(2,871)Additional paid-in capital3,777,995
3,321,242Accumulated other comprehensive loss(3,712)
(28,376)Accumulated deficit(1,856,483)
(1,287,323)Total stockholders' equity1,917,820
2,002,692Total liabilities and equity$ 4,229,550
$ 4,012,705 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
Three Months Ended
January 31,
Year Ended January 31,(in thousands)2026
2025
2026
2025Cash flows from operating activities:
Net income$ 90,303
$ 83,491
$ 309,085
$ 1,067,885Adjustments to reconcile net income to net cash provided by operating
activities
Depreciation and amortization26,433
28,707
116,081
107,804Amortization of deferred contract acquisition and fulfillment costs67,557
64,486
271,067
237,217Amortization of debt discount and transaction costs168
139
775
554Non-cash operating lease costs4,735
4,602
18,903
19,065Stock-based compensation expense155,545
149,947
622,321
610,335Deferred income taxes5,528
(22,103)
4,713
(839,989)Other819
(361)
2,958
6,111Changes in operating assets and liabilities
Accounts receivable(162,778)
(128,616)
(91,742)
2,075Prepaid expenses and other current assets4,879
(9,334)
(15,200)
(17,634)Deferred contract acquisition and fulfillment costs(76,290)
(87,618)
(271,544)
(302,166)Other assets(1,640)
(5,884)
(1,941)
(22,002)Accounts payable(6,831)
9,152
(15,148)
7,638Accrued expenses and other liabilities2,279
10,081
26,257
2,935Accrued compensation82,524
70,364
29,515
29,236Contract liabilities186,867
146,285
177,203
129,854Operating lease liabilities(2,877)
(5,426)
(18,296)
(21,646)Net cash provided by operating activities377,221
307,912
1,165,007
1,017,272Cash flows from investing activities:
Cash paid for acquisition, net of acquired cash—
—
—
(143,611)Purchases of marketable securities(88,001)
(77,699)
(409,599)
(411,236)Maturities of marketable securities81,531
74,500
389,989
340,334Purchases of strategic and other investments(164)
(750)
(726)
(1,375)Purchases of property and equipment(27,022)
(28,342)
(106,445)
(96,988)Net cash used in investing activities(33,656)
(32,291)
(126,781)
(312,876)Cash flows from financing activities:
Payment of revolving credit facility costs—
—
(3,133)
—Repurchases of common stock(269,084)
(161,725)
(869,086)
(683,528)Payment of tax withholding obligation on net RSU settlement and
ESPP purchase(63,502)
(81,148)
(269,713)
(213,282)Proceeds from exercise of stock options—
11,359
1,250
22,705Proceeds from employee stock purchase plan—
—
40,780
35,314Net cash used in financing activities(332,586)
(231,514)
(1,099,902)
(838,791)Effect of foreign exchange on cash, cash equivalents and restricted
cash6,898
(5,311)
20,272
(7,550)Net increase (decrease) in cash, cash equivalents and restricted cash 17,877
38,796
(41,404)
(141,945)Cash, cash equivalents and restricted cash at beginning of period (1)600,273
620,758
659,554
801,499Cash, cash equivalents and restricted cash at end of period (1)$ 618,150
$ 659,554
$ 618,150
$ 659,554
(1) Cash, cash equivalents and restricted cash included restricted cash of $15.7 million and $10.9 million as of January 31, 2026 and January 31, 2025. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited)
Reconciliation of gross profit (loss) and gross margin:
Three Months Ended
January 31,
Year Ended January 31,(in thousands)2026
2025
2026
2025GAAP gross profit$ 667,076
$ 616,041
$ 2,556,438
$ 2,355,080Add: Stock-based compensation17,891
17,886
72,397
76,987Add: Amortization of acquisition-related intangibles(1,699)
3,564
4,923
12,267Add: Employer payroll tax on employee stock
transactions868
1,176
5,496
3,909Non-GAAP gross profit$ 684,136
$ 638,667
$ 2,639,254
$ 2,448,243GAAP gross margin79.7 %
79.4 %
79.4 %
79.1 %Non-GAAP adjustments2.1 %
2.9 %
2.6 %
3.1 %Non-GAAP gross margin81.8 %
82.3 %
82.0 %
82.2 %
GAAP subscription gross profit$ 669,757
$ 618,883
$ 2,569,493
$ 2,368,864Add: Stock-based compensation14,062
13,712
56,501
58,348Add: Amortization of acquisition-related intangibles(1,699)
3,564
4,923
12,267Add: Employer payroll tax on employee stock
transactions647
921
4,201
2,882Non-GAAP subscription gross profit$ 682,767
$ 637,080
$ 2,635,118
$ 2,442,361GAAP subscription gross margin81.8 %
81.7 %
81.6 %
81.6 %Non-GAAP adjustments1.6 %
2.4 %
2.0 %
2.6 %Non-GAAP subscription gross margin83.4 %
84.1 %
83.6 %
84.2 %
GAAP professional services and other gross loss$ (2,681)
$ (2,842)
$ (13,055)
$ (13,784)Add: Stock-based compensation3,829
4,174
15,896
18,639Add: Employer payroll tax on employee stock
transactions221
255
1,295
1,027Non-GAAP professional services and other gross
income$ 1,369
$ 1,587
$ 4,136
$ 5,882GAAP professional services and other gross margin(15.0) %
(15.4) %
(18.9) %
(18.3) %Non-GAAP adjustments22.7 %
24.0 %
24.9 %
26.1 %Non-GAAP professional services and other gross
margin7.7 %
8.6 %
6.0 %
7.8 % Reconciliation of operating expenses:
Three Months Ended
January 31,
Year Ended January 31,(in thousands)2026
2025
2026
2025GAAP sales and marketing$ 305,506
$ 301,288
$ 1,203,885
$ 1,160,993Less: Stock-based compensation(46,464)
(48,213)
(189,648)
(202,609)Less: Amortization of acquisition-related intangibles(1,122)
(3,354)
(11,208)
(12,450)Less: Employer payroll tax on employee stock
transactions(1,608)
(2,242)
(10,866)
(7,593)Non-GAAP sales and marketing$ 256,312
$ 247,479
$ 992,163
$ 938,341GAAP sales and marketing as a percentage of revenue 36.5 %
38.8 %
37.3 %
39.0 %Non-GAAP sales and marketing as a percentage
of revenue30.6 %
31.9 %
30.8 %
31.5 %
GAAP research and development$ 168,282
$ 155,463
$ 664,985
$ 588,455Less: Stock-based compensation(59,678)
(53,422)
(236,780)
(204,238)Less: Employer payroll tax on employee stock
transactions(1,423)
(1,421)
(11,022)
(7,013)Non-GAAP research and development$ 107,181
$ 100,620
$ 417,183
$ 377,204GAAP research and development as a percentage of
revenue20.1 %
20.0 %
20.7 %
19.8 %Non-GAAP research and development as a
percentage of revenue12.8 %
13.0 %
13.0 %
12.7 %
GAAP general and administrative$ 105,546
$ 98,821
$ 388,989
$ 375,983Less: Stock-based compensation(31,512)
(30,426)
(123,496)
(121,665)Less: Employer payroll tax on employee stock
transactions(518)
(1,504)
(3,522)
(3,278)Less: Acquisition-related expenses—
—
—
(4,340)Non-GAAP general and administrative$ 73,516
$ 66,891
$ 261,971
$ 246,700GAAP general and administrative as a percentage of
revenue12.6 %
12.8 %
12.1 %
12.4 %Non-GAAP general and administrative as a
percentage of revenue8.9 %
8.6 %
8.1 %
8.2 % Reconciliation of income from operations and operating margin:
Three Months Ended
January 31,
Year Ended January
31,(in thousands)2026
2025
2026
2025GAAP income from operations$ 87,742
$ 60,469
$ 298,579
$ 199,928Add: Stock-based compensation155,545
149,947
622,321
605,499Add: Amortization of acquisition-related intangibles(577)
6,918
16,131
24,717Add: Employer payroll tax on employee stock transactions 4,417
6,343
30,906
21,793Add: Acquisition-related expenses—
—
—
4,340Add: Restructuring and other related charges—
—
—
29,721Non-GAAP income from operations$ 247,127
$ 223,677
$ 967,937
$ 885,998GAAP operating margin10.5 %
7.8 %
9.3 %
6.7 %Non-GAAP adjustments19.0 %
21.0 %
20.8 %
23.1 %Non-GAAP operating margin29.5 %
28.8 %
30.1 %
29.8 % Reconciliation of net income and net income per share, basic and diluted:
Three Months Ended
January 31,
Year Ended January
31,(in thousands, except per share data)2026
2025
2026
2025GAAP net income$ 90,303
$ 83,491
$ 309,085
$ 1,067,885Add: Stock-based compensation155,545
149,947
622,321
605,499Add: Amortization of acquisition-related intangibles(577)
6,918
16,131
24,717Add: Employer payroll tax on employee stock transactions 4,417
6,343
30,906
21,793Add: Acquisition-related expenses—
—
—
4,340Add: Restructuring and other related charges—
—
—
29,721Add: Income tax and other tax adjustments(43,550)
(61,823)
(175,261)
(1,006,746)Non-GAAP net income$ 206,138
$ 184,876
$ 803,182
$ 747,209
Numerator:
Non-GAAP net income attributable to common stockholders$ 206,138
$ 184,876
$ 803,182
$ 747,209
Denominator:
Weighted-average common shares outstanding, basic200,477
203,299
202,079
204,329Effect of dilutive securities4,198
11,208
7,039
6,010Non-GAAP weighted-average common shares
outstanding, diluted204,675
214,507
209,118
210,339
GAAP net income per share, basic$ 0.45
$ 0.41
$ 1.53
$ 5.23GAAP net income per share, diluted$ 0.44
$ 0.39
$ 1.48
$ 5.08Non-GAAP net income per share, basic$ 1.03
$ 0.91
$ 3.97
$ 3.66Non-GAAP net income per share, diluted$ 1.01
$ 0.86
$ 3.84
$ 3.55 Computation of free cash flow:
Three Months Ended
January 31,
Year Ended January 31,(in thousands)2026
2025
2026
2025Net cash provided by operating activities$ 377,221
$ 307,912
$ 1,165,007
$ 1,017,272Less: Purchases of property and equipment (27,022)
(28,342)
(106,445)
(96,988)Non-GAAP free cash flow350,199
279,570
1,058,562
920,284Net cash used in investing activities(33,656)
(32,291)
(126,781)
(312,876)Net cash used in financing activities$ (332,586)
$ (231,514)
$ (1,099,902)
$ (838,791) Computation of billings:
Three Months Ended
January 31,
Year Ended January 31,(in thousands)2026
2025
2026
2025Revenue$ 836,860
$ 776,252
$ 3,219,500
$ 2,976,739Add: Contract liabilities and refund liability, end of period1,663,128
1,479,266
1,663,128
1,479,266Less: Contract liabilities and refund liability, beginning of
period(1,479,491)
(1,332,828)
(1,479,266)
(1,343,792)Add: Contract assets and unbilled accounts receivable,
beginning of period13,588
18,341
17,825
20,189Less: Contract assets and unbilled accounts receivable,
end of period(14,905)
(17,825)
(14,905)
(17,825)Add: Contract assets and unbilled accounts receivable
contributed by acquisitions—
—
—
53Less: Contract liabilities and refund liability contributed by
acquisitions—
—
—
(5,071)Non-GAAP billings$ 1,019,180
$ 923,206
$ 3,406,282
$ 3,109,559
View original content to download multimedia:https://www.prnewswire.com/news-releases/docusign-announces-fourth-quarter-and-fiscal-year-2026-financial-results-announces-2-0-billion-increase-to-share-repurchase-program-302716496.htmlSOURCE Docusign, Inc.
Original: Docusign Announces Fourth Quarter and Fiscal Year 2026 Financial Results; Announces $2.0 Billion Increase to Share Repurchase Program