EX-99.1 2 q326ex-991er.htm EX-99.1 Document

DOCUSIGN, INC.
Exhibit 99.1

Docusign Announces Third Quarter Fiscal 2026 Financial Results

San Francisco – December 4, 2025 – 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

▪Revenue was $818.4 million, a 8% year-over-year increase including approximately 0.5% positive impact from foreign exchange rates. Subscription revenue was $801.0 million, a 9% year-over-year increase. Professional services and other revenue was $17.4 million, a 14% year-over-year decrease.
▪Billings were $829.5 million, a 10% year-over-year increase including approximately 0.5% positive impact of foreign currency exchange rates.
▪GAAP gross margin was 79.2% compared to 79.3% in the same period last year. Non-GAAP gross margin was 81.8% compared to 82.5% in the same period last year.
▪GAAP net income per basic share was $0.41 on 202 million shares outstanding compared to $0.31 on 204 million shares outstanding in the same period last year.
▪GAAP net income per diluted share was $0.40 on 208 million shares outstanding compared to $0.30 on 209 million shares outstanding in the same period last year.
▪Non-GAAP net income per diluted share was $1.01 on 208 million shares outstanding compared to $0.90 on 209 million shares outstanding in the same period last year.
▪Net cash provided by operating activities was $290.3 million compared to $234.3 million in the same period last year.
▪Free cash flow was $262.9 million compared to $210.7 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 $215.1 million compared to $172.7 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

Docusign Intelligent Agreement Management (“IAM”) Platform Highlights:
•Docusign surpassed 25,000 customers on its AI-native IAM platform. Those customers have approximately 150 million opted-in agreements in the Docusign Navigator repository, with an average of over 5,000 contracts per customer.
New Capabilities within the IAM Platform:
•Docusign AI ecosystem integrations: At its October Docusign Discover‘25 developer event, Docusign announced that IAM will be available in ChatGPT, and is now available in Anthropic Claude, Gemini Enterprise, GitHub Copilot, and Microsoft Copilot studio in a beta release of its Docusign Model Context Protocol (“MCP”) server.
•Navigator API and Maestro API: Also launched at Discover, Docusign Navigator and Maestro APIs allow developers to connect third-party systems and proprietary internal apps to the industry-leading Navigator repository and Maestro workflow builder.
•Docusign for Agentforce: Announced during Salesforce’s Dreamforce conference in October, Docusign for Agentforce integrates agreement generation, management, and AI-powered insights directly into Salesforce to accelerate deal cycles and boost sales team productivity.
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DOCUSIGN, INC.
•Enterprise Trust and Security: In Q3, Docusign achieved FedRAMP Moderate and GovRAMP authorization, while also expanding its identity portfolio by launching ID Verification with CLEAR and Risk-Based Verification.
•Docusign Navigator Language + Regional Expansion: Navigator is now available in two additional languages – Brazilian-Portuguese and Spanish – and in one additional region – Japan.
Industry Recognition:
•Gartner CLM Magic Quadrant 2025: Gartner named Docusign CLM as a Leader in its Magic Quadrant for Contract Lifecycle Management for the sixth year in a row.
•2025 Fortune 50 List: In September, Docusign’s AI innovation was recognized in the 2025 Fortune Future 50 list, which celebrates companies with the greatest long-term growth prospects.
•Inc. Power Partners Awards: In November, Docusign was named a 2025 Inc. Power Partner Award winner, which recognizes companies that have proven track records supporting entrepreneurs and helping startups grow.
•Salesforce Partner Innovation Award: During Dreamforce, Docusign received a Salesforce Partner Innovation Award in the tech category for the Docusign for Agentforce solution.

Guidance

The company currently expects the following guidance:

(in millions, except percentages)Three Months Ended January 31, 2026YoY Midpoint Change
Total revenue [1]
$825to$8297%
Subscription revenue$808to$8127%
Billings [2]
$992to$1,0028%
Non-GAAP gross margin80.8%to81.2%NA
Non-GAAP operating margin28.3%to28.7%NA
Non-GAAP diluted weighted-average shares outstanding203to208NA

(in millions, except percentages)Year Ended January 31, 2026YoY Midpoint Change
Total revenue [1]
$3,208to$3,2128%
Subscription revenue$3,140to$3,1448%
Billings [2]
$3,379to$3,3899%
Non-GAAP gross margin81.7%to81.8%NA
Non-GAAP operating margin29.8%to29.9%NA
Non-GAAP diluted weighted-average shares outstanding208to211NA

[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.

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DOCUSIGN, INC.
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.

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.com

Media Relations:
Docusign Corporate Communications
media@docusign.com
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DOCUSIGN, INC.
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.

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DOCUSIGN, INC.
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.
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DOCUSIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended October 31,Nine Months Ended October 31,
(in thousands, except per share data)2025202420252024
Revenue:
Subscription$800,958 $734,693 $2,331,548 $2,143,542 
Professional services and other17,392 20,127 51,092 56,945 
Total revenue818,350 754,820 2,382,640 2,200,487 
Cost of revenue:
Subscription150,372 134,587 431,812 393,561 
Professional services and other20,174 21,950 61,466 67,887 
Total cost of revenue170,546 156,537 493,278 461,448 
Gross profit647,804 598,283 1,889,362 1,739,039 
Operating expenses:
Sales and marketing296,516 290,597 898,379 859,705 
Research and development167,626 151,101 496,703 432,992 
General and administrative98,307 97,555 283,443 277,162 
Restructuring and other related charges— — — 29,721 
Total operating expenses562,449 539,253 1,678,525 1,599,580 
Income from operations85,355 59,030 210,837 139,459 
Interest expense(654)(462)(1,960)(1,150)
Interest income and other income, net10,828 13,006 36,902 41,745 
Income before provision for (benefit from) income taxes95,529 71,574 245,779 180,054 
Provision for (benefit from) income taxes11,804 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:
Basic201,954 203,567 202,619 204,674 
Diluted208,069 208,706 210,605 209,755 
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 other3,992 4,765 12,067 14,465 
Sales and marketing48,018 49,347 143,184 154,396 
Research and development60,806 53,184 177,102 150,816 
General and administrative32,808 31,070 91,984 91,239 
Restructuring and other related charges— — — 4,836 

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DOCUSIGN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)October 31, 2025January 31, 2025
Assets
Current assets
Cash and cash equivalents$583,291 $648,623 
Investments—current256,580 314,924 
Accounts receivable, net354,978 429,582 
Contract assets—current8,978 13,764 
Prepaid expenses and other current assets103,328 82,368 
Total current assets1,307,155 1,489,261 
Investments—noncurrent208,529 134,105 
Property and equipment, net343,636 299,370 
Operating lease right-of-use assets133,183 109,630 
Goodwill457,247 454,477 
Intangible assets, net60,816 76,388 
Deferred contract acquisition costs—noncurrent462,552 467,201 
Deferred tax assets—noncurrent838,694 840,470 
Other assets—noncurrent170,227 141,803 
Total assets$3,982,039 $4,012,705 
Liabilities and Equity
Current liabilities
Accounts payable$22,482 $30,697 
Accrued expenses and other current liabilities119,841 99,579 
Accrued compensation180,982 227,115 
Contract liabilities—current1,444,599 1,455,442 
Operating lease liabilities—current15,840 19,077 
Total current liabilities1,783,744 1,831,910 
Contract liabilities—noncurrent28,027 21,523 
Operating lease liabilities—noncurrent134,533 105,350 
Deferred tax liability—noncurrent18,497 20,596 
Other liabilities—noncurrent35,717 30,634 
Total liabilities2,000,518 2,010,013 
Stockholders’ equity
Common stock20 20 
Treasury stock(3,387)(2,871)
Additional paid-in capital3,665,653 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 

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DOCUSIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended October 31,Nine Months Ended October 31,
(in thousands)2025202420252024
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 amortization30,399 27,569 89,648 79,097 
Amortization of deferred contract acquisition and fulfillment costs68,374 61,264 203,510 172,731 
Amortization of debt discount and transaction costs167 138 607 415 
Non-cash operating lease costs4,804 4,601 14,168 14,463 
Stock-based compensation expense160,642 153,228 466,776 460,388 
Deferred income taxes(2,347)6,675 (815)(817,886)
Other634 1,149 2,139 6,472 
Changes in operating assets and liabilities:
Accounts receivable707 7,120 71,036 130,691 
Prepaid expenses and other current assets2,928 8,767 (20,079)(8,300)
Deferred contract acquisition and fulfillment costs(67,266)(83,293)(195,254)(214,548)
Other assets1,034 (1,060)(301)(16,118)
Accounts payable12,477 10,061 (8,317)(1,514)
Accrued expenses and other liabilities19,178 1,014 23,978 (7,146)
Accrued compensation(28,772)(21,226)(53,009)(41,128)
Contract liabilities8,610 95 (9,664)(16,431)
Operating lease liabilities(5,020)(4,199)(15,419)(16,220)
Net cash provided by operating activities290,274 234,326 787,786 709,360 
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 securities99,486 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 options80 10,257 1,250 11,346 
Proceeds from employee stock purchase plan18,770 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 cash1,922 438 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.
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DOCUSIGN, INC.
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)2025202420252024
GAAP gross profit$647,804$598,283$1,889,362$1,739,039
Add: Stock-based compensation19,01019,62754,50659,101
Add: Employer payroll tax on employee stock transactions1,1808944,6282,733
Add: Amortization of acquisition-related intangibles1,4953,5666,6228,703
Non-GAAP gross profit$669,489$622,370$1,955,118$1,809,576
GAAP gross margin79.2 %79.3 %79.3 %79.0 %
Non-GAAP adjustments2.6 %3.2 %2.8 %3.2 %
Non-GAAP gross margin81.8 %82.5 %82.1 %82.2 %
GAAP subscription gross profit$650,586$600,106$1,899,736$1,749,981
Add: Stock-based compensation15,01814,86242,43944,636
Add: Employer payroll tax on employee stock transactions8895743,5541,961
Add: Amortization of acquisition-related intangibles1,4953,5666,6228,703
Non-GAAP subscription gross profit$667,988$619,108$1,952,351$1,805,281
GAAP subscription gross margin81.2 %81.7 %81.5 %81.6 %
Non-GAAP adjustments2.2 %2.6 %2.2 %2.6 %
Non-GAAP subscription gross margin83.4 %84.3 %83.7 %84.2 %
GAAP professional services and other gross loss$(2,782)$(1,823)$(10,374)$(10,942)
Add: Stock-based compensation3,9924,76512,06714,465
Add: Employer payroll tax on employee stock transactions2913201,074772
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 adjustments24.6 %25.3 %25.7 %26.7 %
Non-GAAP professional services and other gross margin8.6 %16.2 %5.4 %7.5 %

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DOCUSIGN, INC.
Reconciliation of operating expenses:
Three Months Ended October 31,Nine Months Ended October 31,
(in thousands)2025202420252024
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 revenue36.2 %38.4 %37.7 %39.1 %
Non-GAAP sales and marketing as a percentage of revenue29.7 %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 revenue20.5 %20.0 %20.9 %19.7 %
Non-GAAP research and development as a percentage of revenue12.8 %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 revenue12.1 %12.9 %11.9 %12.6 %
Non-GAAP general and administrative as a percentage of revenue7.9 %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)2025202420252024
GAAP income from operations$85,355$59,030$210,837$139,459
Add: Stock-based compensation160,642153,228466,776455,552
Add: Employer payroll tax on employee stock transactions6,1824,27426,48915,450
Add: Amortization of acquisition-related intangibles4,8736,92016,70817,799
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 margin10.4 %7.8 %8.8 %6.3 %
Non-GAAP adjustments21.0 %21.8 %21.5 %23.8 %
Non-GAAP operating margin31.4 %29.6 %30.3 %30.1 %

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DOCUSIGN, INC.
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)2025202420252024
GAAP net income$83,725 $62,423 $218,782 $984,394 
Add: Stock-based compensation160,642 153,228 466,776 455,552 
Add: Employer payroll tax on employee stock transactions6,182 4,274 26,489 15,450 
Add: Amortization of acquisition-related intangibles4,873 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, basic201,954 203,567 202,619 204,674 
Effect of dilutive securities6,115 5,139 7,986 5,081 
Non-GAAP weighted-average common shares outstanding, diluted208,069 208,706 210,605 209,755 
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)2025202420252024
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)
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DOCUSIGN, INC.
Computation of billings:
Three Months Ended October 31,Nine Months Ended October 31,
(in thousands)2025202420252024
Revenue$818,350 $754,820 $2,382,640 $2,200,487 
Add: Contract liabilities and refund liability, end of period1,479,491 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 period13,824 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— — — 53 
Less: Contract liabilities and refund liability contributed by acquisitions— — — (5,071)
Non-GAAP billings$829,459 $752,307 $2,387,102 $2,186,353 

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