DocuSign Inc (0XNH.L) Q2 2026 Earnings Report

DocuSign reported QQ2 2026 revenue of $800.6 million, up 8.8% year-over-year and 4.8% quarter-over-quarter, underscoring continued demand for its eSignature and contract lifecycle management (CLM) platform. Gross profit reached $635.2 million with a robust gross margin of 79.3%, while operating income was $65.2 million and EBITDA stood at $174.8 million, yielding an EBITDA margin of 21.8%. Net income was $63.0 million, equating to a net margin of 7.9% and diluted earnings per share (EPS) of $0.30-$0.31 for the quarter. The company generated strong free cash flow of $217.6 million and cash from operations of approximately $256.5 million, supporting a liquid balance sheet with cash and cash equivalents of about $600 million and total cash and investments of roughly $844 million. Despite solid top-line growth and cash generation, net income declined roughly 93% YoY, driven by higher operating costs and continued investment in GTM and product development. DocuSign’s balance sheet remains liquidity-rich, with a net cash position (net debt negative) around $473 million, and a sizable deferred revenue base (~$1.44 billion on current deferrals), which provides revenue visibility going forward. Management continues to emphasize AI-enabled capabilities and platform breadth, including CLM, real estate and mortgage Rooms, and regulated-market offerings (e.g., FedRAMP and life sciences modules), to drive ARR expansion and cross-sell across large enterprise accounts. Key questions for investors include the sustainability of revenue growth amid competitive pressure, the trajectory of gross and operating margins as the product mix shifts toward higher-value CLM AI modules, and the pace of operating-expense discipline aligned with longer-term profitability goals. The near-term risk factors include competitive intensity from players like Adobe and Microsoft, as well as macro headwinds that could affect enterprise IT spending.