Docusign, Inc. (NASDAQ: DOCU), a provider of electronic signature and digital transaction management solutions, reported its financial results for the fourth quarter and fiscal year 2025, which ended on January 31, 2025. The company announced that it is in a stable condition, showing a modest rise in key financial metrics.

For Q4, Docusign’s total revenue was $776.3 million, marking a 9% increase year-over-year, while subscription revenue reached $757.8 million, also a 9% year-over-year improvement. Full year 2025 revenue totaled approximately $2.98 billion, reflecting an 8% year-over-year increase. In terms of billings, Docusign reported $923.2 million for the fourth quarter, up 11% year-over-year, and total billings for fiscal 2025 reached $3.1 billion, an increase of 7% from the prior year.

The company’s dollar net retention rate improved to 101% in Q4, rising from 100% in Q3 and from 98% in Q4 of fiscal 2024. Docusign’s gross margin for Q4 was 79.4%, slightly up from 79.2% in the year-ago quarter. On a non-GAAP basis, gross margin for Q4 was 82.3%, compared to 82.5% in the prior year. Non-GAAP operating income grew by 25% year-over-year to $224 million, resulting in a 28.8% operating margin, up from 25.0% in the same quarter last year.

The company generated $279.6 million in free cash flow during Q4, reflecting a margin of 36%, an increase from $248.6 million in the same quarter last year, while full-year free cash flow for 2025 was $920 million, more than double the amount generated two years ago. Docusign repurchased approximately $162 million worth of common stock in Q4 and a total of $684 million for the fiscal year.

For fiscal 2026, Docusign provided guidance of total revenue between $3.129 billion and $3.141 billion, representing a 5% year-over-year increase at the midpoint, along with subscription revenue guidance between $3.062 billion and $3.074 billion, which also indicates a 6% year-over-year increase. Docusign expects Q1 2026 total revenue in the range of $745 million to $749 million, and subscription revenue between $729 million and $733 million, reflecting a 5% and 6% year-over-year increase, respectively.

The company anticipates billings to be between $3.300 billion and $3.354 billion for the full fiscal year 2026, representing a 7% year-over-year increase at the midpoint and between $741 million and $751 million for Q1 2026, indicating a growth rate of 5% year-over-year at the midpoint. Non-GAAP gross margins are expected to range from 80.5% to 81.5% for both Q1 2026 and for the full year.

Docusign plans to maintain its focus on operational efficiency and increased investment in its Intelligent Agreement Management (IAM) platform to sustain its profitability gains. The company’s current outlook is supported by a strong cash position of approximately $1.1 billion as of the end of Q4, alongside no debt.