DocuSign delivered a solid QQ2 2025 performance with a stabilizing core business and the meaningful first launch of the Intelligent Agreement Management (IAM) platform. Total revenue for the quarter was $736.0 million, up 7% year over year, while dollar net retention remained at a robust 99%, signaling durable customer value and stickiness. Non-GAAP operating margin reached a company record of 32.0%, supported by an 82.2% non-GAAP gross margin and free cash flow of approximately $198 million (FCF yield of ~27%), underscored by opportunistic share repurchases of $200 million. The quarter also featured IAM as a strategic catalyst, with early indicators showing higher win rates, larger deals, faster closes, and growing bookings, as management emphasized IAM’s potential to unlock trillions in value through improved agreement workflows.
Management reaffirmed a multi-year growth thesis anchored by IAM, alongside continued stabilization of the core eSignature/CLM business and expansion into international markets and enterprise segments. The company raised full-year guidance modestly, targeting total revenue of roughly $2.94–$2.952 billion for FY25 and billings of $2.99–$3.03 billion, with non-GAAP gross margin guided at 81–82% and non-GAAP operating margin of 28.5–29.5% for Q3 and 29.0–29.5% for FY25. Near-term risks include billings volatility tied to renewal timing, execution risk as IAM scales across regions and segments, and macro uncertainty; however, IAM’s early traction and the strength of DocuSign’s ecosystem (1.6 million customers, 1,066 customers with >$300k ACV) provide a favorable setup for durable growth if IAM accelerates as anticipated. Overall, the QM suggests a balance of near-term profitability focus with a longer-term growth engine powered by IAM, international expansion, and a broadened partner/self-serve go-to-market.