Docusign Announces Third Quarter Fiscal 2026 Financial Results

SAN FRANCISCO, Dec. 4, 2025 /PRNewswire/ -- Docusign, Inc. (NASDAQ: DOCU) today announced results for its fiscal quarter ended October 31, 2025. 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.

"Q3 was a strong quarter with growing customer investment into the IAM platform, where we now have more than 25,000 customers," said Allan Thygesen, CEO of Docusign. "Continued strong execution and improved efficiency led to one of the most robust top line growth and profitability quarters over the past two years."

Third Quarter Financial Highlights

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

Docusign Intelligent Agreement Management ("IAM") Platform Highlights:

New Capabilities within the IAM Platform:

Industry Recognition:

Guidance

The company currently expects the following guidance:

(in millions, except percentages)

Three Months Ended

January 31, 2026

YoY

Midpoint

Change

Total revenue [1]

$825

$829

7 %

Subscription revenue

$808

$812

7 %

Billings [2]

$992

$1,002

8 %

Non-GAAP gross margin

80.8 %

81.2 %

Non-GAAP operating margin

28.3 %

28.7 %

Non-GAAP diluted weighted-average shares outstanding

203

208

(in millions, except percentages)

Year Ended January 31,

2026

YoY

Midpoint

Change

Total revenue [1]

$3,208

$3,212

8 %

Subscription revenue

$3,140

$3,144

8 %

Billings [2]

$3,379

$3,389

9 %

Non-GAAP gross margin

81.7 %

81.8 %

Non-GAAP operating margin

29.8 %

29.9 %

Non-GAAP diluted weighted-average shares outstanding

208

211

[1] Excluding the impact of foreign currency exchange rates on year-over-year guided revenue growth, revenue guidance range would be approximately 0.7% points lower for the quarter ending January 31, 2026 and approximately neutral for the fiscal year ending January 31, 2026.

[2] Excluding the impact of foreign currency exchange rates on year-over-year guided growth, billings guidance range would be approximately 1.6% points lower for the quarter ending January 31, 2026 and approximately 0.9% points lower for the fiscal year ending January 31, 2026.

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 December 4, 2025 at 2:00 p.m. PST (5:00 p.m. EST) 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 (EST) December 18, 2025 using the passcode 13756132.

About Docusign

Docusign brings agreements to life. Nearly 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.

Investor Relations:

Docusign Investor Relations

[email protected]

Media Relations:

Docusign Corporate Communications

[email protected]

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 October 31, 2025, which we expect to file 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 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 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 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

October 31,

Nine Months Ended

October 31,

(in thousands, except per share data)

2025

2024

2025

2024

Revenue:

Subscription

$ 800,958

$ 734,693

$ 2,331,548

$ 2,143,542

Professional services and other

17,392

20,127

51,092

56,945

Total revenue

818,350

754,820

2,382,640

2,200,487

Cost of revenue:

Subscription

150,372

134,587

431,812

393,561

Professional services and other

20,174

21,950

61,466

67,887

Total cost of revenue

170,546

156,537

493,278

461,448

Gross profit

647,804

598,283

1,889,362

1,739,039

Operating expenses:

Sales and marketing

296,516

290,597

898,379

859,705

Research and development

167,626

151,101

496,703

432,992

General and administrative

98,307

97,555

283,443

277,162

Restructuring and other related charges

—

29,721

Total operating expenses

562,449

539,253

1,678,525

1,599,580

Income from operations

85,355

59,030

210,837

139,459

Interest expense

(654)

(462)

(1,960)

(1,150)

Interest income and other income, net

10,828

13,006

36,902

41,745

Income before provision for (benefit from) income taxes

95,529

71,574

245,779

180,054

Provision for (benefit from) income taxes

11,804

9,151

26,997

(804,340)

Net income

$ 83,725

$ 62,423

$ 218,782

$ 984,394

Net income per share attributable to common stockholders:

Basic

$ 0.41

$ 0.31

$ 1.08

$ 4.81

Diluted

$ 0.40

$ 0.30

$ 1.04

$ 4.69

Weighted-average shares used in computing net income per share:

Basic

201,954

203,567

202,619

204,674

Diluted

208,069

208,706

210,605

209,755

Stock-based compensation expense included in costs and expenses:

Cost of revenue—subscription

$ 15,018

$ 14,862

$ 42,439

$ 44,636

Cost of revenue—professional services and other

3,992

4,765

12,067

14,465

Sales and marketing

48,018

49,347

143,184

154,396

Research and development

60,806

53,184

177,102

150,816

General and administrative

32,808

31,070

91,984

91,239

Restructuring and other related charges

—

4,836

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

October 31, 2025

January 31, 2025

Assets

Current assets

Cash and cash equivalents

$ 583,291

$ 648,623

Investments—current

256,580

314,924

Accounts receivable, net

354,978

429,582

Contract assets—current

8,978

13,764

Prepaid expenses and other current assets

103,328

82,368

Total current assets

1,307,155

1,489,261

Investments—noncurrent

208,529

134,105

Property and equipment, net

343,636

299,370

Operating lease right-of-use assets

133,183

109,630

Goodwill

457,247

454,477

Intangible assets, net

60,816

76,388

Deferred contract acquisition costs—noncurrent

462,552

467,201

Deferred tax assets—noncurrent

838,694

840,470

Other assets—noncurrent

170,227

141,803

Total assets

$ 3,982,039

$ 4,012,705

Liabilities and Equity

Current liabilities

Accounts payable

$ 22,482

$ 30,697

Accrued expenses and other current liabilities

119,841

99,579

Accrued compensation

180,982

227,115

Contract liabilities—current

1,444,599

1,455,442

Operating lease liabilities—current

15,840

19,077

Total current liabilities

1,783,744

1,831,910

Contract liabilities—noncurrent

28,027

21,523

Operating lease liabilities—noncurrent

134,533

105,350

Deferred tax liability—noncurrent

18,497

20,596

Other liabilities—noncurrent

35,717

30,634

Total liabilities

2,000,518

2,010,013

Stockholders' equity

Common stock

Treasury stock

(3,387)

(2,871)

Additional paid-in capital

3,665,653

3,321,242

Accumulated other comprehensive loss

(12,045)

(28,376)

Accumulated deficit

(1,668,720)

(1,287,323)

Total stockholders' equity

1,981,521

2,002,692

Total liabilities and equity

$ 3,982,039

$ 4,012,705

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

October 31,

Nine Months Ended

October 31,

(in thousands)

2025

2024

2025

2024

Cash flows from operating activities:

Net income

$ 83,725

$ 62,423

$ 218,782

$ 984,394

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

30,399

27,569

89,648

79,097

Amortization of deferred contract acquisition and fulfillment costs

68,374

61,264

203,510

172,731

Amortization of debt discount and transaction costs

167

138

607

415

Non-cash operating lease costs

4,804

4,601

14,168

14,463

Stock-based compensation expense

160,642

153,228

466,776

460,388

Deferred income taxes

(2,347)

6,675

(815)

(817,886)

Other

634

1,149

2,139

6,472

Changes in operating assets and liabilities:

Accounts receivable

707

7,120

71,036

130,691

Prepaid expenses and other current assets

2,928

8,767

(20,079)

(8,300)

Deferred contract acquisition and fulfillment costs

(67,266)

(83,293)

(195,254)

(214,548)

Other assets

1,034

(1,060)

(301)

(16,118)

Accounts payable

12,477

10,061

(8,317)

(1,514)

Accrued expenses and other liabilities

19,178

1,014

23,978

(7,146)

Accrued compensation

(28,772)

(21,226)

(53,009)

(41,128)

Contract liabilities

8,610

(9,664)

(16,431)

Operating lease liabilities

(5,020)

(4,199)

(15,419)

(16,220)

Net cash provided by operating activities

290,274

234,326

787,786

709,360

Cash flows from investing activities:

Cash paid for acquisition, net of acquired cash

—

(143,611)

Purchases of marketable securities

(109,398)

(110,296)

(321,598)

(333,537)

Maturities of marketable securities

99,486

90,211

308,458

265,834

Purchases of strategic and other investments

(462)

—

(562)

(625)

Purchases of property and equipment

(27,374)

(23,613)

(79,423)

(68,646)

Net cash used in investing activities

(37,748)

(43,698)

(93,125)

(280,585)

Cash flows from financing activities:

Payment of revolving credit facility costs

—

(3,133)

—

Repurchases of common stock

(215,057)

(172,665)

(600,002)

(521,803)

Payment of tax withholding obligation on net RSU settlement and ESPP purchase

(74,254)

(51,051)

(206,211)

(132,134)

Proceeds from exercise of stock options

10,257

1,250

11,346

Proceeds from employee stock purchase plan

18,770

15,124

40,780

35,314

Net cash used in financing activities

(270,461)

(198,335)

(767,316)

(607,277)

Effect of foreign exchange on cash, cash equivalents and restricted cash

1,922

438

13,374

(2,239)

Net decrease in cash, cash equivalents and restricted cash

(16,013)

(7,269)

(59,281)

(180,741)

Cash, cash equivalents and restricted cash at beginning of period (1)

616,286

628,027

659,554

801,499

Cash, cash equivalents and restricted cash at end of period (1)

$ 600,273

$ 620,758

$ 600,273

$ 620,758

(1) Cash, cash equivalents and restricted cash included restricted cash of $17.0 million and $10.9 million at October 31, 2025 and January 31, 2025.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

Reconciliation of gross profit (loss) and gross margin:

Three Months Ended

October 31,

Nine Months Ended

October 31,

(in thousands)

2025

2024

2025

2024

GAAP gross profit

$ 647,804

$ 598,283

$ 1,889,362

$ 1,739,039

Add: Stock-based compensation

19,010

19,627

54,506

59,101

Add: Employer payroll tax on employee stock transactions

1,180

894

4,628

2,733

Add: Amortization of acquisition-related intangibles

1,495

3,566

6,622

8,703

Non-GAAP gross profit

$ 669,489

$ 622,370

$ 1,955,118

$ 1,809,576

GAAP gross margin

79.2 %

79.3 %

79.0 %

Non-GAAP adjustments

2.6 %

3.2 %

2.8 %

3.2 %

Non-GAAP gross margin

81.8 %

82.5 %

82.1 %

82.2 %

GAAP subscription gross profit

$ 650,586

$ 600,106

$ 1,899,736

$ 1,749,981

Add: Stock-based compensation

15,018

14,862

42,439

44,636

Add: Employer payroll tax on employee stock transactions

889

574

3,554

1,961

Add: Amortization of acquisition-related intangibles

1,495

3,566

6,622

8,703

Non-GAAP subscription gross profit

$ 667,988

$ 619,108

$ 1,952,351

$ 1,805,281

GAAP subscription gross margin

81.2 %

81.7 %

81.5 %

81.6 %

Non-GAAP adjustments

2.2 %

2.6 %

2.2 %

2.6 %

Non-GAAP subscription gross margin

83.4 %

84.3 %

83.7 %

84.2 %

GAAP professional services and other gross loss

$ (2,782)

$ (1,823)

$ (10,374)

$ (10,942)

Add: Stock-based compensation

3,992

4,765

12,067

14,465

Add: Employer payroll tax on employee stock transactions

291

320

1,074

772

Non-GAAP professional services and other gross profit

$ 1,501

$ 3,262

$ 2,767

$ 4,295

GAAP professional services and other gross margin

(16.0) %

(9.1) %

(20.3) %

(19.2) %

Non-GAAP adjustments

24.6 %

25.3 %

25.7 %

26.7 %

Non-GAAP professional services and other gross margin

8.6 %

16.2 %

5.4 %

7.5 %

Reconciliation of operating expenses:

Three Months Ended

October 31,

Nine Months Ended

October 31,

(in thousands)

2025

2024

2025

2024

GAAP sales and marketing

$ 296,516

$ 290,597

$ 898,379

$ 859,705

Less: Stock-based compensation

(48,018)

(49,347)

(143,184)

(154,396)

Less: Employer payroll tax on employee stock transactions

(2,356)

(1,618)

(9,258)

(5,351)

Less: Amortization of acquisition-related intangibles

(3,378)

(3,354)

(10,086)

(9,096)

Non-GAAP sales and marketing

$ 242,764

$ 236,278

$ 735,851

$ 690,862

GAAP sales and marketing as a percentage of revenue

36.2 %

38.4 %

37.7 %

39.1 %

Non-GAAP sales and marketing as a percentage of revenue

29.7 %

31.3 %

30.9 %

31.4 %

GAAP research and development

$ 167,626

$ 151,101

$ 496,703

$ 432,992

Less: Stock-based compensation

(60,806)

(53,184)

(177,102)

(150,816)

Less: Employer payroll tax on employee stock transactions

(1,918)

(1,273)

(9,599)

(5,592)

Non-GAAP research and development

$ 104,902

$ 96,644

$ 310,002

$ 276,584

GAAP research and development as a percentage of revenue

20.5 %

20.0 %

20.9 %

19.7 %

Non-GAAP research and development as a percentage of revenue

12.8 %

13.0 %

12.6 %

GAAP general and administrative

$ 98,307

$ 97,555

$ 283,443

$ 277,162

Less: Stock-based compensation

(32,808)

(31,070)

(91,984)

(91,239)

Less: Employer payroll tax on employee stock transactions

(728)

(489)

(3,004)

(1,774)

Less: Acquisition-related expenses

—

376

—

(4,340)

Non-GAAP general and administrative

$ 64,771

$ 66,372

$ 188,455

$ 179,809

GAAP general and administrative as a percentage of revenue

12.1 %

12.9 %

11.9 %

12.6 %

Non-GAAP general and administrative as a percentage of revenue

7.9 %

8.8 %

7.9 %

8.1 %

Reconciliation of income from operations and operating margin:

Three Months Ended

October 31,

Nine Months Ended

October 31,

(in thousands)

2025

2024

2025

2024

GAAP income from operations

$ 85,355

$ 59,030

$ 210,837

$ 139,459

Add: Stock-based compensation

160,642

153,228

466,776

455,552

Add: Employer payroll tax on employee stock transactions

6,182

4,274

26,489

15,450

Add: Amortization of acquisition-related intangibles

4,873

6,920

16,708

17,799

Add: Acquisition-related expenses

—

(376)

—

4,340

Add: Restructuring and other related charges

—

29,721

Non-GAAP income from operations

$ 257,052

$ 223,076

$ 720,810

$ 662,321

GAAP operating margin

10.4 %

7.8 %

8.8 %

6.3 %

Non-GAAP adjustments

21.0 %

21.8 %

21.5 %

23.8 %

Non-GAAP operating margin

31.4 %

29.6 %

30.3 %

30.1 %

Reconciliation of net income and net income per share, basic and diluted:

Three Months Ended

October 31,

Nine Months Ended

October 31,

(in thousands, except per share data)

2025

2024

2025

2024

GAAP net income

$ 83,725

$ 62,423

$ 218,782

$ 984,394

Add: Stock-based compensation

160,642

153,228

466,776

455,552

Add: Employer payroll tax on employee stock transactions

6,182

4,274

26,489

15,450

Add: Amortization of acquisition-related intangibles

4,873

6,920

16,708

17,799

Add: Acquisition-related expenses

—

(376)

—

4,340

Add: Restructuring and other related charges

—

29,721

Add: Income tax and other tax adjustments

(44,313)

(37,973)

(131,711)

(944,923)

Non-GAAP net income attributable to common stockholders

$ 211,109

$ 188,496

$ 597,044

$ 562,333

Numerator:

Non-GAAP net income attributable to common stockholders

$ 211,109

$ 188,496

$ 597,044

$ 562,333

Denominator:

Weighted-average common shares outstanding, basic

201,954

203,567

202,619

204,674

Effect of dilutive securities

6,115

5,139

7,986

5,081

Non-GAAP weighted-average common shares outstanding, diluted

208,069

208,706

210,605

209,755

GAAP net income per share, basic

$ 0.41

$ 0.31

$ 1.08

$ 4.81

GAAP net income per share, diluted

$ 0.40

$ 0.30

$ 1.04

$ 4.69

Non-GAAP net income per share, basic

$ 1.05

$ 0.93

$ 2.95

$ 2.75

Non-GAAP net income per share, diluted

$ 1.01

$ 0.90

$ 2.83

$ 2.68

Computation of free cash flow:

Three Months Ended

October 31,

Nine Months Ended

October 31,

(in thousands)

2025

2024

2025

2024

Net cash provided by operating activities

$ 290,274

$ 234,326

$ 787,786

$ 709,360

Less: Purchases of property and equipment

(27,374)

(23,613)

(79,423)

(68,646)

Non-GAAP free cash flow

$ 262,900

$ 210,713

$ 708,363

$ 640,714

Net cash used in investing activities

$ (37,748)

$ (43,698)

$ (93,125)

$ (280,585)

Net cash used in financing activities

$ (270,461)

$ (198,335)

$ (767,316)

$ (607,277)

Computation of billings:

Three Months Ended

October 31,

Nine Months Ended

October 31,

(in thousands)

2025

2024

2025

2024

Revenue

$ 818,350

$ 754,820

$ 2,382,640

$ 2,200,487

Add: Contract liabilities and refund liability, end of period

1,479,491

1,332,828

1,479,491

1,332,828

Less: Contract liabilities and refund liability, beginning of period

(1,468,618)

(1,334,461)

(1,479,266)

(1,343,792)

Add: Contract assets and unbilled accounts receivable, beginning of period

13,824

17,461

17,825

20,189

Less: Contract assets and unbilled accounts receivable, end of period

(13,588)

(18,341)

(13,588)

(18,341)

Add: Contract assets and unbilled accounts receivable by acquisitions

—

Less: Contract liabilities and refund liability contributed by acquisitions

—

(5,071)

Non-GAAP billings

$ 829,459

$ 752,307

$ 2,387,102

$ 2,186,353

SOURCE Docusign, Inc.