DocuSign’s QQ4 2025 results underscore a transitional year where IAM (Intelligent Agreement Management) has emerged as the primary growth engine while the core eSignature business remains the bedrock of recurring revenue. Q4 revenue reached $776.3 million, up 9% year over year, driving FY2025 revenue to $3.0 billion, an 8% YoY increase. The company also achieved a 101% dollar net retention (DNR) in Q4, marking a six-quarter high and signaling stronger expansion within the installed base. IAM has quickly evolved into DocuSign’s fastest-growing new product in history, with early enterprise traction and international adoption accelerating as IAM deploys globally. Management emphasized a three-pillar strategy (accelerate product innovation with AI, strengthen omnichannel go-to-market, and expand operating efficiency) to sustain growth while preserving profitability.
Profitability advanced meaningfully in FY2025: non-GAAP operating margin reached 29.8% for the year, and Q4 non-GAAP operating margin stood at 28.8%. Free cash flow reached $920 million for FY2025, equating to a 31% FCF margin, supported by robust cash generation and disciplined capital allocation (roughly 75% of annual FCF returned to shareholders via buybacks). DocuSign ended the quarter with about $1.1 billion of cash and investments and no debt, reinforcing a strong balance sheet and financial flexibility to fund IAM-related investments and potential acquisitions or partnerships.
For FY2026, the company guiding to ~5% revenue growth (midpoint), with billings expected to accelerate to a mid-to-high single-digit growth rate, aided by IAM upsell and expanded self-service adoption. The roadmap envisions continued margin stability (non-GAAP gross margin guidance around 80.5–81.5%; non-GAAP operating margin guidance 27.0–28.0% for Q1 and 27.8–28.8% for FY2026), albeit with initial gross-margin and SG&A headwinds from cloud migration and a one-point revenue/one-point billings headwind from FX and early-renewal dynamics. Investors should monitor IAM adoption in international markets, the pace of enterprise upsell, the continuity of gross retention improvements, and the cadence of billings-to-revenue conversion as the IAM framework scales.