Docusign Announces Second Quarter Fiscal 2026 Financial Results

Core Insights - Docusign reported strong performance in Q2 2025, driven by AI innovations and go-to-market changes, marking one of its highest growth and profitability quarters in recent years [2][3]. Financial Highlights - Total revenue reached $800.6 million, a 9% year-over-year increase, with subscription revenue at $784.4 million, also a 9% increase. Professional services and other revenue decreased by 13% to $16.2 million [7]. - Billings were $818.0 million, reflecting a 13% year-over-year increase, with a 1% positive impact from foreign currency exchange rates [7]. - GAAP gross margin improved to 79.3% from 78.9% year-over-year, while non-GAAP gross margin slightly decreased to 82.0% from 82.2% [7]. - GAAP net income per basic share was $0.31, down from $4.34 in the same period last year, while non-GAAP net income per diluted share was $0.92, down from $0.97 [7]. - Free cash flow increased to $217.6 million from $197.9 million year-over-year [7]. Guidance - For the quarter ending October 31, 2025, total revenue is expected to be between $804 million and $808 million, representing a 7% year-over-year growth [11]. - Subscription revenue guidance is set between $786 million and $790 million, also indicating a 7% increase [11]. - Billings are projected to be between $785 million and $795 million, reflecting a 5% year-over-year growth [11]. Key Business Developments - Docusign launched new AI-powered capabilities within its Intelligent Agreement Management (IAM) platform, enhancing agreement management across the lifecycle [3][12]. - The integration with CLEAR's biometric identity network allows for faster ID verification [5]. - Custom Extractions feature in Docusign Navigator enables organizations to capture specific information from agreements efficiently [6]. - Docusign was recognized as a leader in IDC's MarketScape for AI-Enabled Buy-Side CLM Applications, emphasizing its strategic focus on IAM [12]. Governance Updates - Mike Rosenbaum, CEO of Guidewire, joined Docusign's board, bringing extensive SaaS experience [12]. - James Beer has been appointed as the next Board Chair, succeeding Maggie Wilderotter [12].