DocuSign(DOCU) - 2026 Q2 - Quarterly Report

Note Regarding Forward-Looking Statements This section highlights that forward-looking statements involve substantial risks and uncertainties, with actual results potentially differing materially from projections - Forward-looking statements in this report involve substantial risks and uncertainties, and actual results may differ materially from projections[7][9] - Key factors influencing future performance include global macroeconomic conditions, market competition, ability to attract and retain customers, scaling platform with AI, and legal/regulatory compliance[8] PART I - FINANCIAL INFORMATION This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations Item 1. Financial Statements (unaudited) This section presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows Condensed Consolidated Balance Sheets Total assets slightly decreased from $4.01 billion to $3.95 billion, with a minor reduction in total stockholders' equity as of July 31, 2025 | Metric | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :-------------- | :--------------- | | Total assets | $3,949,923 | $4,012,705 | | Total liabilities | $1,961,948 | $2,010,013 | | Total stockholders' equity | $1,987,975 | $2,002,692 | | Cash and cash equivalents | $599,986 | $648,623 | | Accounts receivable, net | $356,943 | $429,582 | | Contract liabilities—current | $1,436,033 | $1,455,442 | | Additional paid-in capital | $3,544,127 | $3,321,242 | | Accumulated deficit | $(1,536,902) | $(1,287,323) | Condensed Consolidated Statements of Operations and Comprehensive Income Revenue increased, but net income significantly decreased for both periods ended July 31, 2025, due to a large prior-year income tax benefit | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenue | $800,636 | $736,027 | $1,564,290 | $1,445,667 | | Gross profit | $635,173 | $580,562 | $1,241,558 | $1,140,756 | | Income from operations | $65,227 | $57,801 | $125,482 | $80,429 | | Net income | $62,970 | $888,211 | $135,057 | $921,971 | | Basic EPS | $0.31 | $4.34 | $0.67 | $4.49 | | Diluted EPS | $0.30 | $4.26 | $0.64 | $4.40 | | Provision for (benefit from) income taxes | $13,490 | $(816,324) | $15,193 | $(813,491) | - The significant decrease in net income for both the three and six months ended July 31, 2025, compared to 2024, is primarily due to a large discrete tax benefit recognized in the prior year (2024) from the release of valuation allowance related to U.S. deferred tax assets[14][73][126] Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity decreased from $2.00 billion to $1.99 billion, influenced by common stock repurchases and accumulated deficit | Metric | Balances at Jan 31, 2025 | Balances at July 31, 2025 | | :-------------------------------- | :----------------------- | :----------------------- | | Total Stockholders' Equity | $2,002,692 | $1,987,975 | | Additional Paid-In Capital | $3,321,242 | $3,544,127 | | Accumulated Deficit | $(1,287,323) | $(1,536,902) | | Common Stock Repurchases (6 months) | N/A | $(384,636) | | Employee Stock-Based Compensation (6 months) | N/A | $335,860 | | Net Income (6 months) | N/A | $135,057 | - The company repurchased 4.89 million shares of common stock for $384.6 million during the six months ended July 31, 2025[18] Condensed Consolidated Statements of Cash Flows Operating cash flow increased to $497.5 million, investing cash flow significantly decreased, and financing cash flow increased from stock repurchases | Metric | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $497,512 | $475,034 | | Net cash used in investing activities | $(55,377) | $(236,887) | | Net cash used in financing activities | $(496,855) | $(408,942) | | Net decrease in cash, cash equivalents and restricted cash | $(43,268) | $(173,472) | - The decrease in cash used in investing activities was primarily due to the absence of a significant acquisition in 2025, compared to the $143.6 million acquisition of Lexion in 2024[140][141] - The increase in cash used in financing activities was mainly driven by higher common stock repurchases ($384.9 million in 2025 vs. $349.1 million in 2024) and increased tax withholding obligations on RSU settlements[142][143] Notes to Condensed Consolidated Financial Statements This section details accounting policies, revenue, fair value, property, debt, commitments, equity, restructuring, EPS, income taxes, and segment information Note 1. Summary of Significant Accounting Policies Docusign provides an IAM platform and eSignature solutions, with no material accounting policy changes, while evaluating new FASB ASUs - Docusign's core offerings include an IAM platform, eSignature, and CLM solutions, leveraging AI to automate agreement workflows and provide insights[28] - The company is evaluating new FASB Accounting Standards Updates (ASU 2023-09, ASU 2024-03, ASU 2025-05) related to income tax disclosures, expense disaggregation, and credit losses on current accounts receivable[34][35][36] - No material changes to significant accounting policies were reported compared to the fiscal 2025 Annual Report on Form 10-K[32] Note 2. Revenue Subscription revenue constitutes approximately 98% of total revenue, with 57% of remaining performance obligations expected within 12 months - Subscription revenue accounted for approximately 98% of total revenue for the three and six months ended July 31, 2025, and 97% for the same periods in 2024[37] - As of July 31, 2025, the transaction price allocated to remaining performance obligations for contracts greater than one year was $2.3 billion, with 57% expected to be recognized within the next 12 months[38] - Contract assets decreased from $13.8 million (Jan 31, 2025) to $9.9 million (July 31, 2025), reflecting timing differences between revenue recognition and customer billing[39] Note 3. Fair Value Measurements Financial assets measured at fair value totaled $732.9 million, primarily Level 2 investments in money market funds, commercial paper, and corporate bonds | Category | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :-------------- | :--------------- | | Total Estimated Fair Value | $732,941 | $632,914 | | Level 1 Cash equivalents (Money market funds) | $271,366 | $183,885 | | Level 2 Cash equivalents (Commercial paper) | $8,242 | N/A | | Level 2 Available-for-sale securities (Commercial paper) | $25,055 | $31,371 | | Level 2 Available-for-sale securities (Corporate notes and bonds) | $390,330 | $399,178 | | Level 2 Available-for-sale securities (U.S. governmental securities) | $37,948 | $18,480 | - As of July 31, 2025, $244.5 million of available-for-sale securities are due in one year or less, and $208.9 million are due in one to two years[43] Note 4. Property and Equipment, Net Property and equipment, net, increased to $327.9 million from $299.4 million, driven by investments in software development | Metric | July 31, 2025 | January 31, 2025 | | :------------------------------------ | :-------------- | :--------------- | | Total Property and equipment, net | $327,953 | $299,370 | | Software, including capitalized software development costs | $332,190 | $278,918 | | Work in progress | $117,863 | $106,270 | - Capitalized internally developed software costs for the six months ended July 31, 2025, were $65.1 million, up from $51.5 million in the prior year, including $22.9 million in capitalized stock-based compensation expense[46] Note 5. Deferred Contract Acquisition and Fulfillment Costs Deferred contract acquisition costs slightly decreased to $462.9 million, while fulfillment costs increased to $27.6 million | Metric | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Deferred Contract Acquisition Costs (Ending balance) | $462,928 | $427,599 | | Additions to deferred contract acquisition costs | $103,383 | $113,172 | | Amortization of deferred contract acquisition costs | $(113,045) | $(92,644) | | Deferred Contract Fulfillment Costs (Ending balance) | $27,581 | $21,799 | | Additions to deferred contract fulfillment costs | $24,605 | $18,083 | | Amortization of deferred contract fulfillment costs | $(22,091) | $(18,823) | Note 6. Debt Docusign entered a new $750.0 million revolving credit facility in May 2025, with no outstanding borrowings as of July 31, 2025 - Docusign secured a new $750.0 million revolving credit facility in May 2025, with an option to increase by $250.0 million, maturing in May 2030[49] - As of July 31, 2025, there were no outstanding borrowings under the Credit Facility, and the company was in compliance with all covenants[50] Note 7. Commitments and Contingencies The company has $92.8 million in noncancelable contractual obligations and is involved in securities litigation, expecting no material adverse effect | Fiscal Period | Amount (in thousands) | | :------------ | :-------------------- | | 2026, remainder | $20,811 | | 2027 | $41,596 | | 2028 | $20,278 | | 2029 | $7,274 | | 2030 | $2,360 | | Thereafter | $469 | | Total | $92,788 | - The company has a remaining minimum commitment of $321.7 million through fiscal 2030 with a public cloud computing service provider, excluded from the table above[51] - Docusign is a defendant in a putative securities class action (Weston v. Docusign, Inc., et al.) and eight related shareholder derivative cases, alleging false and misleading statements and insider trading[57][58] - The company believes the final outcome of these legal matters will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows[56] Note 8. Stockholders' Equity 45.4 million shares available under equity plan, $1.3 billion in unrecognized RSU compensation, and $1.2 billion remaining for stock repurchases - As of July 31, 2025, 45.4 million shares were available for issuance under the 2018 Equity Incentive Plan, and 13.4 million shares were reserved for the Employee Stock Purchase Plan (ESPP)[61][64] - Total unrecognized compensation cost related to RSUs was $1.3 billion as of July 31, 2025, with a weighted-average recognition period of approximately 2.61 years[62] | Period | Number of shares repurchased | Aggregate purchase price | | :-------------------- | :--------------------------- | :----------------------- | | 3 Months Ended July 31, 2025 | 2,623 | $200,798 | | 3 Months Ended July 31, 2024 | 3,809 | $201,736 | | 6 Months Ended July 31, 2025 | 4,888 | $384,636 | | 6 Months Ended July 31, 2024 | 6,345 | $350,798 | - As of July 31, 2025, the total remaining authorization under the stock repurchase plan is up to $1.2 billion[66] Note 9. Restructuring and Other Related Charges The 2025 Restructuring Plan was substantially completed in Q2 fiscal 2025, with prior-year charges mainly for employee termination benefits - The 2025 Restructuring Plan, aimed at improving financial and operational efficiency, was substantially completed in the second quarter of fiscal 2025[68] - Restructuring and other related charges for the six months ended July 31, 2024, totaled $29.7 million, mainly for employee termination benefits, including $4.8 million in stock-based compensation[69] Note 10. Net Income Per Share Attributable to Common Stockholders Diluted EPS significantly decreased for both periods ended July 31, 2025, due to the prior year's discrete tax benefit | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income attributable to common stockholders | $62,970 | $888,211 | $135,057 | $921,971 | | Basic EPS | $0.31 | $4.34 | $0.67 | $4.49 | | Diluted EPS | $0.30 | $4.26 | $0.64 | $4.40 | | Weighted-average common shares outstanding, diluted | 210,956 | 208,274 | 211,878 | 209,559 | - Potentially dilutive securities (RSUs and ESPP) totaling 4.51 million for the three months and 2.92 million for the six months ended July 31, 2025, were excluded from diluted EPS calculations as they would have been antidilutive[71] Note 11. Income Taxes Income tax provision significantly increased in 2025 due to the absence of a large prior-year tax benefit from valuation allowance release | Period | 2025 (in millions) | 2024 (in millions) | | :--------------------------- | :----------------- | :----------------- | | 3 Months Ended July 31 | $13.5 | $(816.3) | | 6 Months Ended July 31 | $15.2 | $(813.5) | - The significant increase in tax expense in 2025 is primarily due to a $837.7 million discrete tax benefit recognized in 2024 from the release of valuation allowance related to U.S. deferred tax assets, and the impact of the One Big Beautiful Bill Act (OBBBA) in fiscal 2026[73][74][75] - As of July 31, 2025, gross unrecognized tax benefits totaled $82.7 million, with $66.2 million impacting the effective tax rate if recognized[75] Note 12. Segment and Geographic Information Docusign operates as a single segment, with international revenue increasing to 29% of total revenue for the periods ended July 31, 2025 - Docusign operates in one operating and reportable segment, with the CEO making operating decisions based on consolidated financial information[77] - International revenue increased by 12% for the six months ended July 31, 2025, and represented 29% of total revenue for both the three and six months ended July 31, 2025, up from 28% in the prior year[81][98] | Region | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :----------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | U.S. | $567,611 | $529,452 | $1,113,819 | $1,042,178 | | International | $233,025 | $206,575 | $450,471 | $403,489 | | Total revenue | $800,636 | $736,027 | $1,564,290 | $1,445,667 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Docusign's financial condition, results of operations, liquidity, cash flows, critical accounting policies, and non-GAAP measures Executive Overview of Second Quarter Results Docusign's IAM platform and eSignature serve over 1.7 million customers, with subscription revenue at 98% and growing high-value customer accounts - Docusign's IAM platform, eSignature, and CLM solutions are utilized by over 1.7 million customers and more than a billion users worldwide[84] - Subscription revenue constitutes approximately 98% of total revenue for the three and six months ended July 31, 2025[85] - The number of customers with greater than $300,000 in annualized contract value increased to 1,137 as of July 31, 2025, from 1,066 as of July 31, 2024[89] - Docusign is investing in three go-to-market channels: direct sales, partner-assisted sales, and digital self-service purchasing, expecting the IAM platform to be offered across all[87] Key Factors Affecting Our Performance Growth strategy focuses on product innovation (IAM, AI), omnichannel go-to-market, and operational efficiency, expanding customer base and international revenue - Docusign's growth strategy is built on three pillars: accelerating product innovation (IAM platform, AI capabilities), strengthening omnichannel go-to-market (direct, partner, digital), and enhancing operational/financial efficiency[91][92][93] - Total customers grew to over 1.7 million as of July 31, 2025, including over 271,000 SMBs, mid-market, and large enterprise customers served by direct sales[95] - International revenue increased by 12% for the six months ended July 31, 2025, and now accounts for 29% of total revenue, up from 28% in the prior year[98] - The company is expanding internationally by leveraging technology, direct sales, strategic partnerships, and offering Standards-Based Signature (SBS) technology for EU eIDAS regulations[99][100] Components of Results of Operations This section details revenue, cost of revenue, gross profit, operating expenses, interest, and income tax provision, including OBBBA and prior tax benefit impacts - Subscription revenue is recognized ratably over the contract term, while professional services revenue is recognized as services are performed or upon completion[102] - Cost of subscription revenue primarily consists of hosting, employee-related costs, software/maintenance, third-party fees, and amortization of capitalized internal-use software[104] - Operating expenses (sales & marketing, R&D, G&A) are expected to increase in absolute dollars due to investments in workforce, product innovation (software platform enhancement), and overall operational growth[107] - The income tax provision for fiscal 2026 includes impacts from the One Big Beautiful Bill Act (OBBBA), which restores immediate expensing for domestic R&D costs[111] - A significant income tax benefit of $837.7 million was recognized in the three and six months ended July 31, 2024, due to the release of valuation allowance on U.S. federal and state deferred tax assets[112] Discussion of Results of Operations Total revenue increased by 9% for three months and 8% for six months, gross margins stable, operating expenses rose, and net income decreased due to prior-year tax benefit absence | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenue | $800,636 | $736,027 | $1,564,290 | $1,445,667 | | Subscription revenue | $784,388 | $717,366 | $1,530,590 | $1,408,849 | | Professional services and other revenue | $16,248 | $18,661 | $33,700 | $36,818 | | Total cost of revenue | $165,463 | $155,465 | $322,732 | $304,911 | | Gross profit | $635,173 | $580,562 | $1,241,558 | $1,140,756 | | Gross margin | 79% | 79% | 79% | 79% | | Sales and marketing expense | $305,450 | $287,464 | $601,863 | $569,108 | | Research and development expense | $169,630 | $147,571 | $329,077 | $281,891 | | General and administrative expense | $94,866 | $87,129 | $185,136 | $179,607 | | Income from operations | $65,227 | $57,801 | $125,482 | $80,429 | | Net income | $62,970 | $888,211 | $135,057 | $921,971 | | Provision for (benefit from) income taxes | $13,490 | $(816,324) | $15,193 | $(813,491) | - Subscription revenue growth was primarily driven by expansion from commercial and enterprise accounts and the digital channel[115] - Cost of subscription revenue increased by 9% for both periods, mainly due to higher costs to support the growing customer base, including increased information technology (hosting) costs and partner/reseller fees[116][117] - R&D expenses increased significantly due to investments in workforce and product innovation, including the acquisition of Lexion[120][125] - The substantial increase in income tax provision (from a benefit) is primarily due to the $837.7 million discrete tax benefit recognized in the prior year (2024) from the release of valuation allowance[126] Liquidity and Capital Resources Docusign maintains strong liquidity with $844.5 million in cash and investments, a $750.0 million credit facility, and an active stock repurchase program - As of July 31, 2025, Docusign had $844.5 million in cash, cash equivalents, and short-term investments, and $208.9 million in long-term investments[128] - A new $750.0 million secured revolving credit facility, with an additional $250.0 million increase option, was established in May 2025, with no outstanding borrowings as of July 31, 2025[129] - The company believes its liquidity sources are adequate to meet working capital, capital expenditure needs, and contractual obligations for the foreseeable future[130] - During the six months ended July 31, 2025, Docusign repurchased 4.9 million shares of common stock for $384.9 million, with $1.2 billion remaining under the stock repurchase program[135] Cash Flows Operating cash flow increased, investing cash flow decreased due to no major acquisitions, and financing cash flow increased from stock repurchases | Metric | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $497,512 | $475,034 | | Net cash used in investing activities | $(55,377) | $(236,887) | | Net cash used in financing activities | $(496,855) | $(408,942) | - The decrease in cash used in investing activities was primarily due to the absence of a significant acquisition in 2025, compared to the $143.6 million acquisition of Lexion in 2024[140][141] - The increase in cash used in financing activities was mainly driven by higher common stock repurchases ($384.9 million in 2025 vs. $349.1 million in 2024) and increased tax withholding obligations on RSU settlements[142][143] Critical Accounting Policies and Estimates Financial statement preparation involves significant estimates for revenue, deferred costs, stock compensation, income taxes, and contingencies, with no material changes reported - Critical accounting estimates include revenue recognition, deferred contract acquisition costs, stock-based compensation, income taxes, loss contingencies, business combinations, and valuation of acquired intangible assets[146] - No material changes to critical accounting policies and estimates were reported compared to the fiscal 2025 Annual Report on Form 10-K[147] Non-GAAP Financial Measures and Other Key Metrics Docusign uses non-GAAP measures like gross profit, operating income, net income, free cash flow, and billings to provide insights into core operating performance - Non-GAAP measures (gross profit, operating income, net income) exclude stock-based compensation, employer payroll tax on employee stock transactions, amortization of acquisition-related intangibles, acquisition-related expenses, and restructuring charges[152] - Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment, serving as a liquidity measure[153] - Billings are defined as total revenues plus the change in contract liabilities and refund liability less contract assets and unbilled accounts receivable, used to measure periodic performance and working capital generation[154] | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Non-GAAP gross profit | $656,902 | $605,036 | $1,285,629 | $1,187,206 | | Non-GAAP gross margin | 82.0% | 82.2% | 82.2% | 82.0% | | Non-GAAP income from operations | $238,729 | $237,156 | $463,758 | $439,245 | | Non-GAAP operating margin | 29.8% | 32.2% | 29.6% | 30.4% | | Non-GAAP net income | $195,085 | $200,994 | $385,936 | $373,837 | | Non-GAAP free cash flow | $217,648 | $197,928 | $445,463 | $430,001 | | Non-GAAP billings | $818,031 | $724,508 | $1,557,643 | $1,434,046 | Item 3. Quantitative and Qualitative Disclosures About Market Risk Docusign is exposed to foreign currency and interest rate risks, with a 100 basis point interest rate increase potentially decreasing investment fair value by $3.4 million - Docusign's market risk exposure primarily stems from fluctuations in foreign currency exchange and interest rates[161] - A hypothetical 100 basis point increase in interest rates would result in an approximate $3.4 million decrease in the fair value of the investment portfolio as of July 31, 2025[162] - The company does not currently engage in hedging foreign currency transactions and does not believe a 10% change in the U.S. dollar's value would materially affect operating results[164] Item 4. Controls and Procedures Disclosure controls and procedures were effective as of July 31, 2025, with no material changes in internal control over financial reporting identified - As of July 31, 2025, Docusign's disclosure controls and procedures were deemed effective by management, including the CEO and CFO, to ensure timely and accurate reporting[166] - No material changes in internal control over financial reporting were identified during the second quarter of fiscal 2026[167] - Management acknowledges the inherent limitations of control systems, which can only provide reasonable, not absolute, assurance against errors and fraud[168] PART II - OTHER INFORMATION This part covers other information including legal proceedings, risk factors, equity security sales, other disclosures, and exhibits Item 1. Legal Proceedings Docusign is subject to various legal proceedings, including intellectual property claims and securities litigation, with details in Note 7 - Docusign is subject to legal proceedings and claims, including those asserting intellectual property infringement[171] - The results of litigation are uncertain, and defense/settlement costs, along with diversion of management resources, can adversely impact the company[171] - Further details on legal proceedings are provided in Note 7 of the financial statements[172] Item 1A. Risk Factors The company faces significant business, financial, legal, regulatory, and common stock risks, including dependence on eSignature, cybersecurity, and AI implementation - Docusign faces risks related to its dependence on eSignature product adoption, the success of its IAM platform, and its ability to attract and retain customers in a competitive market[176][179][182][188][190] - Significant cybersecurity risks, including data breaches and malicious activity, could harm reputation, lead to customer loss, and incur substantial liabilities[176][194][198] - The use of AI in products and operations presents new challenges, including reputational harm, competitive risks, legal liability, and the need for specialized expertise[176][209][210][211][212][213] - The company is exposed to financial risks such as fluctuations in financial results, long and unpredictable sales cycles, and the need for additional capital, as well as tax-related risks[175][239][241][254][257][259] - Legal and regulatory risks include compliance with e-signature, privacy, data protection, and information security laws globally, which can lead to increased costs, liabilities, and potential litigation[177][264][268][272][285] - Risks related to common stock include price volatility and anti-takeover provisions in charter documents[177][304][306] Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities. Docusign repurchased 2.6 million shares for $200.8 million during Q2 fiscal 2025, with $1.2 billion remaining under its stock repurchase program | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands) | | :--------------- | :------------------------------- | :--------------------------- | :---------------------------------------------------------------------------------------------------- | | May 1 - May 31 | — | — | $1,424,485 | | June 1 - June 30 | 1,844,577 | $75.64 | $1,284,965 | | July 1 - July 31 | 778,246 | $77.78 | $1,224,432 | | Total | 2,622,823 | N/A | $1,224,432 | - The stock repurchase program, authorized for an aggregate total of $2.5 billion, has no expiration date and $1.2 billion remaining authorization as of July 31, 2025[318] Item 5. Other Information This section discloses Rule 10b5-1 trading plans adopted by officers and directors, affirming no material nonpublic information at adoption - Several officers and directors adopted Rule 10b5-1 trading plans during the three months ended July 31, 2025, for the sale of common stock[321] - These plans included representations that the individuals were not in possession of any material nonpublic information regarding the Company or the securities subject to the plan at the time of adoption[321] Item 6. Exhibits The exhibit index lists corporate governance documents, the Credit Agreement, and certifications from the CEO and CFO - The exhibit index includes corporate governance documents (Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws), the Credit Agreement dated May 21, 2025, and certifications from the CEO and CFO[325] Signatures The report was signed by the Chief Executive Officer and Chief Financial Officer on September 5, 2025 - The report was signed by Allan Thygesen (Chief Executive Officer) and Blake Grayson (Chief Financial Officer) on September 5, 2025[329][330]