Executive Summary
DocuSign reported a solid QQ4 2025 with revenue of $776.3 million, up 9% year over year and 2.8% quarter over quarter, supported by a high gross margin of ~79.4%. Net income of $83.5 million and basic EPS of $0.41 reflect continued profitability execution, while operating income of $60.5 million yields an operating margin of ~7.8% on the quarter. EBITDA stood at $96.6 million (~12.4% margin). The company generated strong operating cash flow of $307.9 million and free cash flow of $279.6 million, contributing to a net cash position and substantial liquidity (cash and equivalents plus short-term investments ~ $964 million; net debt reported as negative). Management commentary (where available) emphasized ongoing AI-enabled products, multi-year enterprise deployments, and the continued transition toward a broader contract lifecycle management (CLM) platform beyond eSignature. The balance sheet remains robust, with low leverage and meaningful deferred revenue, signaling durable revenue recognition over time. Valuation remains elevated relative to peers, underscoring a growth/innovation premium and the need for continued margin improvement to support a durable earnings trajectory. Investors should monitor ARR growth, cross-sell of CLM and AI features, and the path to sustainable operating leverage as DocuSign scales beyond its legacy eSignature core.
Key Performance Indicators
QoQ: 33.75% | YoY:206.49%
QoQ: 32.26% | YoY:215.38%
Key Insights
Revenue: $776.252m (+YoY 8.97%, +QoQ 2.84%); Gross Profit: $616.041m (gross margin 79.36%); Operating Income: $60.469m (operating margin 7.79%); EBITDA: $96.594m (EBITDA margin 12.44%); Net Income: $83.491m (net margin 10.76%); EPS: $0.41 basic / $0.39 diluted; ROIC/ROA: ~2.08% / 2.08%; Cash Flow: Operating cash flow $307.912m; Free cash flow $279.570m; Cash & equivalents $648.623m; Cash & ST investments $963.547m; Total debt $124.427m; Net debt / Net cash position: negative net debt of ...
Financial Highlights
Revenue: $776.252m (+YoY 8.97%, +QoQ 2.84%); Gross Profit: $616.041m (gross margin 79.36%); Operating Income: $60.469m (operating margin 7.79%); EBITDA: $96.594m (EBITDA margin 12.44%); Net Income: $83.491m (net margin 10.76%); EPS: $0.41 basic / $0.39 diluted; ROIC/ROA: ~2.08% / 2.08%; Cash Flow: Operating cash flow $307.912m; Free cash flow $279.570m; Cash & equivalents $648.623m; Cash & ST investments $963.547m; Total debt $124.427m; Net debt / Net cash position: negative net debt of $524.196m; Deferred revenue (current): $1.455b; Total assets: $4.012b; Total stockholders’ equity: $2.002b; Current ratio: 0.791x; PV/FCF and high valuation metrics reflect growth premium; P/E: 59.31x; P/S: 25.52x; EV/Sales: ~199.6x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
776.25M |
8.97% |
2.84% |
| Gross Profit |
616.04M |
9.13% |
2.97% |
| Operating Income |
60.47M |
508.65% |
2.44% |
| Net Income |
83.49M |
206.49% |
33.75% |
| EPS |
0.41 |
215.38% |
32.26% |
Key Financial Ratios
operatingProfitMargin
7.79%
operatingCashFlowPerShare
$1.52
freeCashFlowPerShare
$1.38
Management Commentary
No earnings call transcript data provided in the input. Consequently, specific management quotes or theme-by-theme highlights could not be extracted. If you provide the transcript, I will add thematic highlights (strategy, operations, market conditions) with context and significance.
Forward Guidance
No formal forward-looking guidance was issued in the supplied materials. Given the quarterly results, the forward-looking assessment centers on growth drivers (enterprise ARR expansion, CLM and AI-enabled offerings, cross-sell into Salesforce ecosystems) and the potential for operating leverage as scale increases. Key factors investors should monitor include: (1) ARR growth and renewal rates across enterprise customers, (2) contribution margins from higher-margin CLM/AI modules versus legacy eSignature, (3) cadence of stock-based compensation versus required investment in go-to-market and product development, and (4) the pace of net new logo wins in larger global enterprises. Management commentary (if provided) would help refine the achievability of any implicit guidance and the sensitivity to macro IT spend and customer concentration risks.