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Jan 31, 2025
DocuSign Q4 2025 Earnings Report
DocuSign reported strong revenue growth and profitability in Q4 FY25.
Key Takeaways
DocuSign achieved a 9% YoY revenue increase, reaching $776.3 million. Net income and free cash flow saw substantial growth. The company also expanded its AI-powered Intelligent Agreement Management platform globally.
Total revenue increased by 9% YoY to $776.3 million.
Net income rose significantly to $83.5 million.
Non-GAAP EPS reached $0.86, up from $0.76 in Q4 FY24.
Free cash flow improved to $279.6 million, reflecting strong cash generation.
Revenue by Segment
Forward Guidance
DocuSign expects stable revenue growth in FY26, driven by continued AI adoption and expansion of its IAM platform.
Positive Outlook
- Total revenue expected between $3.129 billion and $3.141 billion for FY26.
- Subscription revenue forecasted between $3.062 billion and $3.074 billion.
- Billings projected between $3.3 billion and $3.354 billion.
- Non-GAAP gross margin expected to be between 80.5% and 81.5%.
- Non-GAAP operating margin projected to reach 27.8% to 28.8%.
Challenges Ahead
- Foreign exchange fluctuations may impact revenue growth by approximately 0.7 percentage points.
- Billings growth could be reduced by 1.0 percentage points due to FX impact.
- Potential macroeconomic uncertainty affecting enterprise spending.
- Increased investments in AI and expansion efforts could pressure margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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