DocuSign, Inc.

What they do

Docusign sells subscriptions to its e-signature solution, its IAM platform, and its contract lifecycle management (CLM) solution, with subscription revenue at 98% of total revenue in fiscal 2026 and the six months ended July 31, 2026. Products are sold to enterprises, commercial businesses, and small businesses through direct sales, partner channels, and digital self-service. As of July 31, 2026, the company reported over 1.9 million customers and more than a billion users, plus more than 1,100 active partner integrations.

Revenue drivers

• eSignature subscriptions — Docusign's original and largest product, priced historically by functionality and quantity of Envelopes (digital containers for documents sent for signature or approval). Management states standalone eSignature is expected to remain the majority of revenue for the foreseeable future.
• IAM platform subscriptions — Offered on a user-based subscription basis since the second quarter of fiscal 2025, with multiple pricing tiers and packages by persona, vertical, and department; made available across all major geographies in fiscal 2026. IAM represented 15.1% of total ARR as of July 31, 2026, up from 12.6% as of April 30, 2026.
• CLM and other solutions — Contract lifecycle management and related agreement solutions; in the second quarter of fiscal 2027 Docusign integrated IAM capabilities including Agreement Manager into Docusign CLM. No separate revenue figure for CLM is given in the excerpts.
• Professional services and other — Non-subscription fees, primarily deployment and integration services for new customers; makes up the remainder of total revenue after subscriptions.

Recent performance

Second quarter fiscal 2027 (ended July 31, 2026) revenue was $875.7 million, up 9% year over year, including an approximately 1.3% benefit from foreign exchange rates. GAAP gross margin was 79.7%, GAAP net income was $77.7 million, and GAAP diluted EPS was $0.40 on 193 million shares, versus $0.30 on 211 million shares a year earlier. Net cash provided by operating activities was $334.5 million and free cash flow was $295.8 million (34% margin), versus $217.6 million (27% margin) in the prior-year period. The company repurchased $306.5 million of common stock in the quarter. Cash, cash equivalents, and investments were $973.1 million at quarter end, and the company reported $990.4 million of cash, cash equivalents, restricted cash, and investments at July 31, 2026 in the 10-Q.

Strategy

Management's two stated long-term priorities are transforming IAM into an end-to-end platform for managing agreements across functions such as sales, human resources, legal, and procurement, and expanding an AI data and innovation advantage with IAM as the orchestration layer for agreements. Docusign is also shifting go-to-market from a historically direct sales-driven approach to three routes: direct sales, partner channel, and digital self-service, with IAM intended to be offered across all three. In the quarter, the company launched agentic tools powered by Iris, its contract-specific AI, including an AI assistant, pre-built agents for agreement intake and vendor renewal, an Agent Studio, and a Docusign Model Context Protocol (MCP) server. It expanded integrations with Slack, Perplexity, and Google Cloud's Gemini Enterprise for Legal, alongside existing connectors with Anthropic, Gemini, OpenAI, and Microsoft Copilot.

Risks

• eSignature dependence — The company cites risk that a decrease in adoption or sales of eSignature may occur without corresponding adoption or sales of other IAM platform solutions, and management expects standalone eSignature to remain the majority of revenue for the foreseeable future.
• IAM market acceptance — Docusign lists as a risk that its IAM platform fails to achieve market acceptance or to meet customers' evolving needs.
• AI-driven disruption — The company identifies disruptions to its business, strategy, and demand for its solutions from advances in and uses of AI and other technologies.
• Security and data trust — Docusign cites damage to systems, data, reputation, brand, and customer trust from data breaches, cyberattacks, malicious activity, or failures of its or third-party cloud providers' technical infrastructure.

Outlook

For the third quarter ending October 31, 2026, management guided revenue of $886 million to $890 million (9% year-over-year at the midpoint), non-GAAP gross margin of 81.5% to 81.9%, non-GAAP operating margin of 31.3% to 31.7%, and non-GAAP diluted weighted-average shares of 191 million to 196 million. In the second quarter fiscal 2027 release, Docusign said it increased fiscal year 2027 guidance for revenue, ARR, and IAM's percentage of total ARR, but the specific full-year figures are not included in the provided excerpt.