DocuSign (DOCU) Q3 2025 earnings summary

Executive summary

• Q3 revenue grew 8% year-over-year to $755 million, with subscription revenue at $735 million and international revenue representing 28% of total revenue.

• Billings reached $752 million, up 9% year-over-year, and free cash flow was $211 million, a 28% margin.

• Customer base grew 11% year-over-year to over 1.6 million, with 256,000 enterprise and commercial customers.

• IAM platform adoption accelerated, with rapid global expansion, new AI-powered features, and strong commercial segment engagement.

• Net income for the quarter was $62.4 million, up from $38.8 million, with diluted EPS at $0.30 GAAP and $0.90 non-GAAP.

Financial highlights

• Non-GAAP operating income was $223 million, with a 29.6%–30% margin; non-GAAP gross margin was 82.5%.

• Subscription revenue accounted for 97% of total revenue; professional services and other contributed 3%.

• Cash, cash equivalents, and investments totaled $1.1 billion with no debt.

• Billings for the quarter were $752.3 million, up from $691.8 million year-over-year.

• Free cash flow margin was 27.9%–28% in Q3.

Outlook and guidance

• Q4 revenue expected at $758–$762 million; full-year revenue guidance at $2.959–$2.963 billion.

• Q4 billings expected at $870–$880 million; full-year billings at $3.056–$3.066 billion.

• Non-GAAP gross margin guidance for Q4: 81.0%–82.0%; for fiscal 2025: 81.9%–82.1%.

• Non-GAAP operating margin guidance for Q4: 27.5%–28.5%; for fiscal 2025: 29.5%–29.7%.

• Management expects continued investment in product innovation, go-to-market channels, and operational efficiency to drive long-term growth.