DocuSign, Inc. (NASDAQ: DOCU) provides electronic signature technology and digital transaction management services, primarily through its DocuSign Agreement Cloud. The company has reported its financials for Q1 of fiscal 2026, indicating a stable growth trajectory. For the quarter ended April 30, 2025, DocuSign recorded total revenue of $764 million, an 8% increase year-over-year, while subscription revenue reached $746 million, also reflecting an 8% year-over-year rise.

Billings grew to $740 million, marking a 4% increase over the previous year. Operating margins improved to 29.5%, up from 28.5% in the prior year. Free cash flow stood at $228 million, representing a 30% margin. The company anticipates total revenue for Q2 of fiscal 2026 to range between $777 million and $781 million, which would represent a 6% year-over-year increase at the midpoint. For the entire fiscal year, DocuSign estimates total revenue between $3.151 billion and $3.163 billion.

In terms of profitability metrics, non-GAAP diluted earnings per share reached $0.90, compared to $0.82 in the same quarter of the prior year. The company reported a GAAP net income of $72 million, or $0.34 per diluted share, compared to $34 million, or $0.16 per diluted share in the previous year. The company emphasized that the strength in revenue performance was powered by growth in digital and Intelligent Agreement Management (IAM) contributions.

Despite these positive results, the company adjusted its full-year billings guidance downward by $15 million, now projecting between $3.285 billion and $3.339 billion. This adjustment primarily stems from a lower-than-expected early renewal volume, a shift that occurred sooner than anticipated due to changes in the sales team’s go-to-market strategy.

DocuSign’s guidance suggests continued focus on maintaining profitability and operational efficiency while adjusting for the recent dynamics affecting early renewals. Additionally, the company noted an improved dollar net retention rate of 101%, an improvement from the prior year.

The company has been actively returning capital to shareholders, repurchasing $183 million of stock during the quarter, adding to a cumulative buyback exceeding $700 million in the past 12 months. As of the end of Q1, DocuSign reported cash and cash equivalents exceeding $1.1 billion with no debt on its balance sheet.