DocuSign (DOCU) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 was transformative, marked by the global launch and rapid adoption of the Intelligent Agreement Management (IAM) platform, driving innovation, operational improvements, and strong customer traction.

• Q4 revenue reached $776 million, up 9% year-over-year; full-year revenue was $3 billion, up 8% year-over-year.

• IAM adoption accelerated, becoming the fastest-growing new product in company history and contributing significantly to new customer deals and engagement.

• Dollar net retention improved to 101% in Q4, the highest in six quarters, reflecting better gross retention and customer usage.

• Major stock repurchases exceeded $684 million for the year, with 75% of free cash flow returned to shareholders.

Financial highlights

• Q4 total revenue: $776 million (+9% YoY); subscription revenue: $758 million (+9% YoY), representing 98% of total revenue.

• Q4 billings: $923 million (+11% YoY); full-year billings: $3.11 billion (+7% YoY).

• Q4 non-GAAP operating income: $224 million (+25% YoY), margin 28.8%; full-year non-GAAP operating margin: 29.8%.

• Q4 free cash flow: $280 million (36% margin); full-year free cash flow: $920 million (31% margin).

• Full-year non-GAAP diluted EPS: $3.55 (vs. $2.98); GAAP diluted EPS: $5.08 (vs. $0.36), boosted by a tax valuation allowance release.

Outlook and guidance

• Fiscal 2026 revenue guidance: $3.129–$3.141 billion (+5% YoY at midpoint), with a 0.7% FX headwind.

• Subscription revenue guidance: $3.062–$3.074 billion (+6% YoY at midpoint).

• Billings guidance: $3.300–$3.354 billion (+7% YoY at midpoint), with a 1% FX headwind.

• Non-GAAP gross margin expected at 80.5–81.5%; non-GAAP operating margin at 27.8–28.8% for fiscal 2026.

• Guidance includes headwinds from FX, leap year, and reduced early renewals due to GTM changes.