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, including 256,000 enterprise and commercial customers.

• IAM platform adoption accelerated, with 10x sequential deal growth and rapid expansion in commercial and enterprise segments.

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

Financial highlights

• Subscription revenue accounted for 97% of total revenue, increasing 8% year-over-year; professional services and other revenue contributed 3%.

• Non-GAAP operating income was $223 million, with a 29.6% margin, up nearly 300 basis points year-over-year.

• Non-GAAP gross margin was 82.5%, slightly down from 83.0% last year due to cloud migration costs.

• Free cash flow was $211 million, and cash, cash equivalents, and investments totaled $1.1 billion with no debt.

• Billings for the quarter were $752 million, up from $691.8 million year-over-year.

Outlook and guidance

• Q4 revenue expected at $758–$762 million (7% year-over-year growth at midpoint); full-year revenue guidance at $2.959–$2.963 billion (7% growth at midpoint).

• Q4 billings expected at $870–$880 million (5% growth at midpoint); full-year billings at $3.056–$3.066 billion (5% growth at midpoint).

• 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.