Docusign, Inc 10-Q for FY2027 Q2

Docusign, Inc. (DOCU)

10-Q 2026-09-04 For: 2026-07-31

Added on September 04, 2026

About this 10-Q

Docusign, Inc filed this 10-Q on September 4, 2026, covering the quarter ended July 31, 2026 (FY2027 Q2).

Headline figures

Quarter ended July 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $875.75M; up 9.4% from $800.64M a year earlier
Net income: $77.72M; up 23.4% from net income of $62.97M a year earlier
Diluted EPS: $0.40; up 33.3% from $0.30 a year earlier

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Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	DOCU	The Nasdaq Global Select Market


☒	Large accelerated filer	☐	Accelerated filer

☐	Non-accelerated filer	☐	Smaller reporting company

		☐	Emerging growth company


	Note Regarding Forward-Looking Statements
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of July 31, 2026 and January 31, 2026	4
	Condensed Consolidated Statements of Operations and Comprehensive Income for the Three and Six Months Ended July 31, 2026 and 2025	5
	Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended July 31, 2026 and 2025	6
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended July 31, 2026 and 2025	8
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	35

PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	62
Item 5.	Other Information	63
Item 6.	Exhibits	63
	Exhibit Index	64
Signatures		65


(in thousands, except per share data)	July 31, 2026		January 31, 2026
Assets
Current assets
Cash and cash equivalents	$	528,161	$	602,442
Investments—current	249,516		264,084
Accounts receivable, net of allowance for doubtful accounts of $8,501 and $9,916 as of July 31, 2026 and January 31, 2026	370,531		516,429
Contract assets—current	7,552		10,782
Prepaid expenses and other current assets	113,132		97,101
Total current assets	1,268,892		1,490,838
Investments—noncurrent	195,398		208,393
Property and equipment, net	420,032		361,808
Operating lease right-of-use assets	155,101		165,578
Goodwill	458,365		458,446
Intangible assets, net	51,924		61,394
Deferred contract acquisition costs—noncurrent	468,812		474,628
Deferred tax assets—noncurrent	764,330		835,245
Other assets—noncurrent	177,936		173,220
Total assets	$	3,960,790	$	4,229,550
Liabilities and Equity
Current liabilities
Accounts payable	$	21,866	$	17,419
Accrued expenses and other current liabilities	121,046		113,358
Accrued compensation	239,042		260,840

Contract liabilities—current	1,575,565		1,631,168
Operating lease liabilities—current	15,516		16,623
Total current liabilities	1,973,035		2,039,408

Contract liabilities—noncurrent	28,824		29,956
Operating lease liabilities—noncurrent	167,582		168,496
Deferred tax liability—noncurrent	20,960		21,507
Other liabilities—noncurrent	51,869		52,363
Total liabilities	2,242,270		2,311,730
Commitments and contingencies (Note 7)

Stockholders’ equity
Preferred stock, $0.0001 par value; 10,000 shares authorized, 0 shares issued and outstanding as of July 31, 2026 and January 31, 2026	—		—
Common stock, $0.0001 par value; 500,000 shares authorized, 188,176 shares issued and outstanding as of July 31, 2026; 500,000 shares authorized, 197,765 shares issued and outstanding as of January 31, 2026	19		20

Additional paid-in capital	4,052,431		3,777,995
Accumulated other comprehensive loss	(7,843)		(3,712)
Accumulated deficit	(2,326,087)		(1,856,483)
Total stockholders’ equity	1,718,520		1,917,820
Total liabilities and equity	$	3,960,790	$	4,229,550


	Three Months Ended July 31,				Six Months Ended July 31,
(in thousands, except per share data)	2026		2025		2026		2025



Revenue	$	875,746	$	800,636	$	1,705,981	$	1,564,290



Cost of revenue	177,872		165,463		349,142		322,732
Gross profit	697,874		635,173		1,356,839		1,241,558
Operating expenses:
Sales and marketing	313,958		305,450		610,133		601,863
Research and development	163,582		169,630		323,168		329,077
General and administrative	102,713		94,866		194,608		185,136

Total operating expenses	580,253		569,946		1,127,909		1,116,076
Income from operations	117,621		65,227		228,930		125,482
Interest expense	(569)		(828)		(1,120)		(1,306)
Interest income and other income, net	7,924		12,061		14,922		26,074
Income before provision for income taxes	124,976		76,460		242,732		150,250
Provision for income taxes	47,261		13,490		86,820		15,193
Net income	$	77,715	$	62,970	$	155,912	$	135,057
Net income per share attributable to common stockholders:
Basic	$	0.41	$	0.31	$	0.81	$	0.67
Diluted	$	0.40	$	0.30	$	0.80	$	0.64
Weighted-average shares used in computing net income per share:
Basic	191,252		202,644		193,336		202,957
Diluted	193,117		210,956		194,763		211,878

Comprehensive income:
Foreign currency translation gain (loss), net of tax	$	(3,227)	$	2,738	$	(2,138)	$	12,687
Unrealized losses on investments, net of tax	(656)		(645)		(1,993)		(389)
Other comprehensive income (loss)	(3,883)		2,093		(4,131)		12,298
Comprehensive income	$	73,832	$	65,063	$	151,781	$	147,355

Stock-based compensation expense included in costs and expenses:


Cost of revenue	$	15,241	$	18,592	$	30,550	$	35,496
Sales and marketing	46,828		49,081		89,854		95,166
Research and development	55,502		61,865		109,978		116,296
General and administrative	31,033		31,000		59,599		59,176


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Common Stock			Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity
(in thousands)	Shares	Amount
Balances at April 30, 2026	193,057	$	19	$	3,920,519	$	—	$	(3,960)	$	(2,096,830)	$	1,819,748


Settlement of restricted stock units	2,445	—		—		—		—		—		—

Tax withholding on net share settlement of restricted stock units	(860)	—		(38,708)		—		—		—		(38,708)

Repurchases of common stock	(6,466)	—		—		—		—		(306,972)		(306,972)

Employee stock-based compensation	—	—		170,620		—		—		—		170,620
Net income	—	—		—		—		—		77,715		77,715
Other comprehensive loss, net	—	—		—		—		(3,883)		—		(3,883)
Balances at July 31, 2026	188,176	$	19	$	4,052,431	$	—	$	(7,843)	$	(2,326,087)	$	1,718,520

Balances at April 30, 2025	202,034	$	20	$	3,435,219	$	(3,192)	$	(18,171)	$	(1,399,074)	$	2,014,802


Exercise of stock options	28	—		471		—		—		—		471
Settlement of restricted stock units	2,589	—		—		—		—		—		—

Tax withholding on net share settlement of restricted stock units	(930)	—		(68,880)		—		—		—		(68,880)

Repurchases of common stock	(2,623)	—		—		—		—		(200,798)		(200,798)

Employee stock-based compensation	—	—		177,317		—		—		—		177,317
Net income	—	—		—		—		—		62,970		62,970
Other comprehensive income, net	—	—		—		—		2,093		—		2,093
Balances at July 31, 2025	201,098	$	20	$	3,544,127	$	(3,192)	$	(16,078)	$	(1,536,902)	$	1,987,975


Note 1	Summary of Significant Accounting Policies	11
Note 2	Revenue	13
Note 3	Fair Value Measurements	14
Note 4	Property and Equipment, Net	15



Note 5	Deferred Contract Acquisition and Fulfillment Costs	15
Note 6	Debt	16
Note 7	Commitments and Contingencies	16
Note 8	Stockholders' Equity	18

Note 9	Net Income Per Share Attributable to Common Stockholders	19
Note 10	Income Taxes	19
Note 11	Segment and Geographic Information	20
Note 12	Subsequent Events	21


	July 31, 2026
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Level 1:
Cash equivalents(1)
Money market funds	$	283,269	$	—	$	—	$	283,269
Level 2:
Cash equivalents(1)
Commercial paper	5,993		—		—		5,993

Available-for-sale securities
Commercial paper	25,586		—		(48)		25,538
Corporate notes and bonds	408,102		43		(1,210)		406,935

U.S. governmental securities	12,499		—		(58)		12,441
Level 2 total	452,180		43		(1,316)		450,907
Total	$	735,449	$	43	$	(1,316)	$	734,176

	January 31, 2026
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Level 1:
Cash equivalents(1)
Money market funds	$	248,251	$	—	$	—	$	248,251
Level 2:



Available-for-sale securities
Commercial paper	32,611		7		(6)		32,612
Corporate notes and bonds	425,648		806		(77)		426,377

U.S. governmental securities	13,498		1		(11)		13,488
Level 2 total	471,757		814		(94)		472,477
Total	$	720,008	$	814	$	(94)	$	720,728


Due in one year or less	$	249,516
Due in one to two years	195,398
	$	444,914


Fiscal Period:	Amount (in thousands)
2027, remainder	$	38,366
2028	83,328
2029	47,004
2030	26,593
2031	26,724
Thereafter	1,992
Total	$	224,007


(in thousands, except per share data)	Number of Units	Weighted-Average Grant Date Fair Value
Unvested at January 31, 2026	23,792	$	64.34
Granted	11,029	45.52
Vested	(4,816)	64.98
Canceled	(1,987)	65.79
Unvested at July 31, 2026	28,018	$	56.72


Revenue			Revenue consists primarily of subscription revenue, which includes fees for the use of our software platform and our technical infrastructure and access to customer support, which includes phone or email support. We typically invoice customers annually in advance. We recognize subscription revenue ratably over the term of the contract subscription period beginning on the date access to our software platform is provided. Revenue also includes professional services revenue, which consists of fees associated with new customers requesting deployment and integration services. We price professional services on a time and materials basis and on a fixed fee basis. We generally have standalone value for our professional services and recognize revenue based on standalone selling price as services are performed or upon completion of services for fixed fee contracts. Other revenue includes amounts derived from sales of on-premises solutions.


Cost of Revenue			Cost of Revenue consists primarily of costs related to subscription revenue. These costs primarily consist of expenses related to hosting our software platform and providing support. These expenses consist of employee-related costs, including salaries, bonuses, benefits, stock-based compensation, and other related costs associated with our technical infrastructure, customer success and customer support. These expenses also consist of software and maintenance costs, third-party hosting fees, third-party AI infrastructure costs, outside services associated with the delivery of our subscription services, amortization expense associated with capitalized internal-use software and acquired intangible assets, credit card processing fees and allocated overhead costs. Cost of Revenue also includes costs related to professional services revenue. These costs primarily consist of personnel costs for our professional services delivery team, travel-related costs and allocated overhead costs.


(in thousands)	July 31, 2026		January 31, 2026
Computer and network equipment	$	58,267	$	123,226
Software, including capitalized software development costs	505,842		383,527
Furniture and office equipment	22,556		23,278
Leasehold improvements	81,596		66,832
	668,261		596,863
Less: Accumulated depreciation	(348,482)		(365,142)
	319,779		231,721
Work in progress	100,253		130,087
Total	$	420,032	$	361,808


	Six Months Ended July 31,
(in thousands)	2026		2025
Deferred Contract Acquisition Costs:
Beginning balance	$	474,628	$	467,201
Additions to deferred contract acquisition costs	108,603		103,383
Amortization of deferred contract acquisition costs	(112,796)		(113,045)
Cumulative translation adjustment	(1,623)		5,389
Ending balance	$	468,812	$	462,928

Deferred Contract Fulfillment Costs:
Beginning balance	$	27,933	$	23,657
Additions to deferred contract fulfillment costs	24,073		24,605
Amortization of deferred contract fulfillment costs	(24,242)		(22,091)
Cumulative translation adjustment	(633)		1,410
Ending balance	$	27,131	$	27,581


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2026			2025			2026			2025
GAAP gross profit	$	697,874		$	635,173		$	1,356,839		$	1,241,558
Add: Stock-based compensation	15,241			18,592			30,550			35,496
Add: Employer payroll tax on employee stock transactions	904			1,575			2,030			3,448
Add: Amortization of acquisition-related intangibles	1,495			1,562			2,990			5,127

Non-GAAP gross profit	$	715,514		$	656,902		$	1,392,409		$	1,285,629
GAAP gross margin	79.7		%	79.3		%	79.5		%	79.4		%
Non-GAAP adjustments	2.0		%	2.7		%	2.1		%	2.8		%
Non-GAAP gross margin	81.7		%	82.0		%	81.6		%	82.2		%


Sales and Marketing Expense			Sales and marketing expense consists primarily of personnel costs, including sales commissions. These expenses also include expenditures related to advertising, marketing, promotional events, and brand awareness activities, as well as allocated overhead costs. We expect sales and marketing expense to continue to increase in absolute dollars as we enhance our product offerings and implement marketing strategies.
Research and Development Expense			Research and development expense consists primarily of personnel costs. These expenses also include non-personnel costs, such as subcontracting, consulting and professional fees for third-party development resources, as well as allocated overhead costs. Our research and development efforts focus on maintaining and enhancing existing functionality and adding new functionality. We expect research and development expense to increase in absolute dollars as we invest in the enhancement of our software platform.
General and Administrative Expense			General and administrative expense consists primarily of employee-related costs for those employees providing administrative services such as legal, human resources, information technology related to internal systems, accounting, and finance. These expenses also include certain third-party consulting services, certain facilities costs, allocated overhead costs, and lease-related charges. We expect general and administrative expense to increase in absolute dollars to support the overall growth of our operations.


	Three Months Ended July 31,								Six Months Ended July 31,
(in thousands, except percentages)	2026		As % of revenue		2025		As % of revenue		2026		As % of revenue		2025		As % of revenue



Revenue (1)	$	875,746	100	%	$	800,636	100	%	1,705,981		100		1,564,290		100



Cost of revenue (1)	177,872		20		165,463		21		349,142		20		322,732		21
Gross profit	697,874		80		635,173		79		1,356,839		80		1,241,558		79
Operating expenses:
Sales and marketing	313,958		36		305,450		38		610,133		36		601,863		38
Research and development	163,582		19		169,630		21		323,168		19		329,077		21
General and administrative	102,713		12		94,866		12		194,608		12		185,136		12

Total operating expenses	580,253		67		569,946		71		1,127,909		67		1,116,076		71
Income from operations	117,621		13		65,227		8		228,930		13		125,482		8
Interest expense	(569)		—		(828)		—		(1,120)		—		(1,306)		—
Interest income and other income, net	7,924		1		12,061		2		14,922		1		26,074		2
Income before provision for income taxes	124,976		14		76,460		10		242,732		14		150,250		10
Provision for income taxes	47,261		5		13,490		2		86,820		5		15,193		1
Net income	$	77,715	9	%	$	62,970	8	%	$	155,912	9	%	$	135,057	9	%


	Three Months Ended July 31,				2026 versus 2025		Six Months Ended July 31,				2026 versus 2025
(in thousands, except for percentages)	2026		2025				2026		2025



Revenue	$	875,746	$	800,636	9	%	$	1,705,981	$	1,564,290	9	%


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share (2)	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands)
May 1 - May 31	2,120,761	$47.84	2,120,761	$2,321,330
June 1 - June 30	2,794,324	$45.32	2,794,324	$2,194,704
July 1 - July 31	1,534,163	$49.02	1,534,163	$2,119,500

Total	6,449,248		6,449,248	$2,119,500


			DOCUSIGN, INC.

			By:			/s/ Allan Thygesen
						Allan Thygesen
						Chief Executive Officer
						(Principal Executive Officer)

			By:			/s/ Blake Grayson
						Blake Grayson
						Chief Financial Officer
						(Principal Accounting and Financial Officer)