DOCUSIGN, INC.

Previous wording

Docusign solutions bring agreements to life, accelerating and simplifying the process of doing business. Docusign’s core offerings — our IAM platform, the world’s leading eSignature solution, and CLM solution — allow organizations to boost productivity, accelerate contract review cycles, and transform agreement data into insights and actions, while providing a better customer experience. For example, Docusign’s innovative IAM platform automates agreement workflows, uncovers actionable insights, and leverages AI capabilities, which enables organizations to create, commit to, and manage agreements, from virtually anywhere in the world, securely. As of July 31, 2025, over 1.7 million customers andmore than a billion users worldwide utilize Docusign to accelerate and simplify the process of doing business.

Current wording

Docusign solutions bring agreements to life, accelerating and simplifying the process of doing business. Docusign’s core offerings — our IAM platform, the world’s leading eSignature solution, and CLM solution — allow organizations to boost productivity, accelerate contract review cycles, and transform agreement data into insights and actions, while providing a better customer experience. For example, Docusign’s innovative IAM platform automates agreement workflows, uncovers actionable insights, and leverages AI capabilities, which enables organizations to create, commit to, and manage agreements, from virtually anywhere in the world, securely. As of October 31, 2025, nearly 1.8 million customers andmore than a billion users worldwide utilize Docusign to accelerate and simplify the process of doing business.

Previous wording

We generate substantially all our revenue from sales of subscriptions, which accounted for 98% of our revenue in each of the three and six months ended July 31, 2025, and 97% of our revenue in each of the three and six months ended July 31, 2024. Our subscription fees include the use of our products and access to customer support. Subscriptions generally range from one to three years, and substantially all our multi-year customers pay in annual installments, one year in advance.

Current wording

We generate substantially all our revenue from sales of subscriptions, which accounted for 98% of our revenue in each of the three and nine months ended October 31, 2025, and 97% of our revenue in each of the three and nine months ended October 31, 2024. Our subscription fees include the use of our products and access to customer support. Subscriptions generally range from one to three years, and substantially all our multi-year customers pay in annual installments, one year in advance.

Previous wording

We also generate revenue from professional and other non-subscription services, which consists primarily of fees associated with providing new customers with deployment and integration services. Other revenue includes amounts derived from sales of on-premises solutions. Professional services and other revenue accounted for the remainder of total revenue in each of the three and six months ended July 31, 2025 and 2024. We anticipate a greater focus on investing in customer success through our professional services offered by partners. We believe it plays an important role in accelerating our customers’ adoption of our products, which helps drive customer retention and expansion.

Current wording

We also generate revenue from professional and other non-subscription services, which consists primarily of fees associated with providing new customers with deployment and integration services. Other revenue includes amounts derived from sales of on-premises solutions. Professional services and other revenue accounted for the remainder of total revenue in each of the three and nine months ended October 31, 2025 and 2024. We anticipate a greater focus on investing in customer success through our professional services offered by partners. We believe it plays an important role in accelerating our customers’ adoption of our products, which helps drive customer retention and expansion.

Previous wording

We focused initially on selling our products to commercial businesses and VSBs and later expanded our focus to target enterprise customers. The number of our customers with greater than $300,000 in annualized contract value was 1,137 customers as of July 31, 2025 compared to 1,066 customers as of July 31, 2024. Each of our customer types has a different purchasing pattern. VSBs typically become customers by quickly utilizing our digital and self-serve channels and generate smaller average contract values, while commercial and enterprise customers typically involve longer sales cycles, larger contract values and greater expansion opportunities for us.

Current wording

We focused initially on selling our products to commercial businesses and VSBs and later expanded our focus to target enterprise customers. The number of our customers with greater than $300,000 in annualized contract value was 1,165 customers as of October 31, 2025 compared to 1,075 customers as of October 31, 2024. Each of our customer types has a different purchasing pattern. VSBs typically become customers by quickly utilizing our digital and self-serve channels and generate smaller average contract values, while commercial and enterprise customers typically involve longer sales cycles, larger contract values and greater expansion opportunities for us.

Previous wording

Financial Results for the Three and Six Months Ended July 31, 2025 and 2024

Current wording

Financial Results for the Three and Nine Months Ended October 31, 2025 and 2024

Previous wording

As of July 31, 2025, we had a total of over 1.7 million customers, including over 271,000 small and medium-sized businesses (“SMBs”), mid-market companies, and large enterprise customers served by our direct sales force. We had approximately 1.6 million customers, including approximately 253,000 customers served by our direct sales force as of July 31, 2024.

Current wording

As of October 31, 2025, we had a total of nearly 1.8 million customers, including approximately 276,000 small and medium-sized businesses (“SMBs”), mid-market companies, and large enterprise customers served by our direct sales force. We had over 1.6 million customers, including approximately 256,000 customers served by our direct sales force as of October 31, 2024.

Previous wording

International revenue increased by 12% in the six months ended July 31, 2025, compared to the six months ended July 31, 2024. Additionally, our international revenue represented 29% of our total revenue in each of the three and six month periods ended July 31, 2025 compared to 28% in each of thethree and six month periods ended July 31, 2024.

Current wording

International revenue increased by 13% in the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. Additionally, our international revenue represented 30% of our total revenue in the three months ended October 31, 2025, and 29% of our total revenue in the nine months ended October 31, 2025, compared to 28% in each of the three and nine month periods ended October 31, 2024.

Previous wording

We regularly assess the need for a valuation allowance on our deferred tax assets. In making this assessment we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all the deferred tax assets will not be realized. As of July 31, 2024, based on all available positive and negative evidence, having demonstrated sustained U.S. profitability which is objective and verifiable, and taking into account anticipated future earnings, we concluded it is more likely than not that our U.S. federal and states deferred tax assets will be realizable, with the exception of certain federal deferred tax assets subject to limitation on use and our California deferred tax assets. We released $837.7 million of our valuation allowance as a discrete tax benefit during the three and six months ended July 31, 2024. As of July 31, 2025, we continue to maintain valuation allowances related to certain federal deferred tax assets subject to limitation on use and our California and Ireland deferred tax assets. We will continue to monitor the need for a valuation allowance against our deferred tax assets on a quarterly basis.

Current wording

We regularly assess the need for a valuation allowance on our deferred tax assets. In making this assessment we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all the deferred tax assets will not be realized. As of July 31, 2024, based on all available positive and negative evidence, having demonstrated sustained U.S. profitability which is objective and verifiable, and taking into account anticipated future earnings, we concluded it is more likely than not that our U.S. federal and states deferred tax assets will be realizable, with the exception of certain federal deferred tax assets subject to limitation on use and our California deferred tax assets. Included in the tax benefit for the nine months ended October 31, 2024 was a release of a net valuation allowance of $837.7 million, recorded as a discrete tax benefit during the three months ended July 31, 2024. As of October 31, 2025, we continue to maintain valuation allowances related to certain federal deferred tax assets subject to limitation on use and our California and Ireland deferred tax assets. We will continue to monitor the need for a valuation allowance against our deferred tax assets on a quarterly basis.

Previous wording

The following discussion and analysis is for the three and six months ended July 31, 2025, compared to the same period in 2024, unless otherwise stated.

Current wording

The following discussion and analysis is for the three and nine months ended October 31, 2025, compared to the same period in 2024, unless otherwise stated.

Previous wording

Subscription revenue increased by $67.0 million, or 9%, in the three months ended July 31, 2025 and by $121.7 million, or 9%, in the six months ended July 31, 2025. The increase was primarily due to the expansion of revenue from our commercial and enterprise accounts, as well as our digital channel. We continue to invest in a variety of customer programs and initiatives, which, along with expanded customer use cases, have helped increase our subscription revenue over time.

Current wording

Subscription revenue increased by $66.3 million, or 9%, in the three months ended October 31, 2025 and by $188.0 million, or 9%, in the nine months ended October 31, 2025. The increase was primarily due to the expansion of revenue from our commercial and enterprise accounts, as well as our digital channel. We continue to invest in a variety of customer programs and initiatives, which, along with expanded customer use cases, have helped increase our subscription revenue over time.

Previous wording

Cost of subscription revenue increased by $11.7 million, or 9%, in the three months ended July 31, 2025 and by $22.5 million, or 9%, in the six months ended July 31, 2025, primarily driven by higher costs to support our growing customer base.

Current wording

Cost of subscription revenue increased by $15.8 million, or 12%, in the three months ended October 31, 2025, and by $38.3 million, or 10%, in the nine months ended October 31, 2025, primarily driven by higher costs to support our growing customer base.

Previous wording

In both the three months and six months ended July 31, 2025, information technology costs, particularly hosting costs, increased as we continued our transition from co-located data centers to public cloud storage infrastructure to support future growth of our platform, including IAM. In the three months ended July 31, 2025, information technology costs increased by $7.7 million. In the six months ended July 31, 2025, information technology costs increased by $14.5 million. Additionally, in the six months ended July 31, 2025, partner and reseller fees and merchant processing fees increased by $5.5 million.

Current wording

In the three months ended October 31, 2025, information technology costs, particularly hosting costs, increased by $9.7 million as we continued our transition from co-located data centers to public cloud storage infrastructure to support future growth of our platform, including IAM.

Previous wording

Sales and marketing expenses increased by $18.0 million, or 6%, in the three months ended July 31, 2025 and by $32.8 million, or 6%, in the six months ended July 31, 2025, primarily due to investments in our workforce.

Current wording

Sales and marketing expenses increased by $5.9 million, or 2%, in the three months ended October 31, 2025 and by $38.7 million, or 4%, in the nine months ended October 31, 2025, primarily due to investments in our workforce.

Previous wording

•$23.5 million increase in personnel costs, primarily due to annual salary increases and higher headcount in addition to an increase in commissions as we continue our focus on expansion and driving customer acquisition; and

Current wording

•$10.4 million increase in personnel costs, primarily due to annual salary increases in addition to an increase in commissions as we continue our focus on expansion and driving customer acquisition; and partially offset by

Previous wording

Main drivers in the six months ended July 31, 2025, primarily consisted of:

Current wording

Main drivers in the nine months ended October 31, 2025, primarily consisted of:

Previous wording

•$31.8 million increase in personnel costs primarily due to annual salary increases and higher headcount in addition to an increase in commissions as we continue our focus on expansion and driving customer acquisition; and

Current wording

•$42.2 million increase in personnel costs, primarily due to annual salary increases in addition to an increase in commissions as we continue our focus on expansion and driving customer acquisition; and partially offset by

Previous wording

•$9.7 million decrease in stock-based compensation expense mainly due to executive transitions that occurred in fiscal 2025.

Current wording

•$11.2 million decrease in stock-based compensation expense mainly due to executive transitions that occurred in fiscal 2025.

Previous wording

Research and development expenses increased by $22.1 million, or 15%, in the three months ended July 31, 2025 and by $47.2 million, or 17%, in the six months ended July 31, 2025, primarily due to investments in our workforce to support product innovation, including our acquisition of Lexion.

Current wording

Research and development expenses increased by $16.5 million, or 11%, in the three months ended October 31, 2025 and by $63.7 million, or 15%, in the nine months ended October 31, 2025, primarily due to investments in our workforce to support product innovation, including our acquisition of Lexion.

Previous wording

•$12.8 million in personnel expense due to higher headcount; and

Current wording

•$9.8 million in personnel expense due to higher headcount; and

Previous wording

•$8.4 million in stock-based compensation due to annual merit increases and higher headcount.

Current wording

•$7.6 million in stock-based compensation due to annual merit increases and higher headcount.

Previous wording

•$24.9 million in personnel expense due to higher headcount, including our acquisition of Lexion, and higher incentive compensation driven by higher performance on certain company metrics; and

Current wording

•$34.7 million in personnel expense due to higher headcount, including our acquisition of Lexion, and higher incentive compensation driven by higher performance on certain company metrics; and

Previous wording

•$18.7 million in stock-based compensation expense due to annual merit increases and higher headcount.

Current wording

•$26.3 million in stock-based compensation expense due to annual merit increases and higher headcount.

Previous wording

General and administrative expenses increased by $7.7 million, or 9%, in the three months ended July 31, 2025, and $5.5 million, or 3%, in the six months ended July 31, 2025.

Current wording

General and administrative expenses increased by $0.8 million, or 1%, in the three months ended October 31, 2025, and $6.3 million, or 2%, in the nine months ended October 31, 2025, primarily due to an increase in personnel expense related to higher headcount and annual merit increases.

Previous wording

Restructuring and other related charges were $29.7 million in the six months ended July 31, 2024, due to the implementation of the 2025 Restructuring Plan. Restructuring costs consisted primarily of employee termination benefits, and the majority of costs were recognized in the first quarter of fiscal 2025.

Current wording

Restructuring and other related charges were $29.7 million in the nine months ended October 31, 2024, due to the implementation of the 2025 Restructuring Plan. Restructuring costs consisted primarily of employee termination benefits, and the majority of costs were recognized in the first quarter of fiscal 2025.

Previous wording

Provision for income taxes increased by$829.8 million, or 102%, in the three months ended July 31, 2025, and $828.7 million, or 102% in the six months ended July 31, 2025. The increase is primarily attributable to the $837.7 million benefit recognized during the three and six months ended July 31, 2024 due to release of our U.S. federal and state valuation allowances, as well as higher profit before taxes in fiscal 2026 and higher effective tax rate in fiscal 2026 driven by the valuation allowance release and impacts of the OBBBA. These increases were partially offset by increased tax benefits related to stock-based compensation recognized in fiscal 2026.

Current wording

The increase in the tax provision for the three months ended October 31, 2025 is driven by higher profit before taxes and higher effective tax rate in fiscal 2026, partially offset by increased tax benefits related to stock-based compensation in fiscal 2026. The increase for the nine months ended October 31, 2025 is primarily attributable to the $837.7 million benefit recognized during the three months ended July 31, 2024 for the release of our U.S. federal and state valuation allowances.

Previous wording

Our principal sources of liquidity were cash, cash equivalents and investments, as well as cash generated from operations. As of July 31, 2025, we had $844.5 million in cash and cash equivalents and short-term investments. We also had $208.9 millionin long-term investments that provide additional capital resources. We finance our operations primarily through payments by our customers for use of our product offerings and related services, and we have additional borrowing capacity available from our credit facility.

Current wording

Our principal sources of liquidity were cash, cash equivalents and investments, as well as cash generated from operations. As of October 31, 2025, we had $839.9 million in cash and cash equivalents and short-term investments. We also had $208.5 millionin long-term investments that provide additional capital resources. We finance our operations primarily through payments by our customers for use of our product offerings and related services, and we have additional borrowing capacity available from our credit facility.

Previous wording

In addition to our contractual commitments, our board of directors has authorized a stock repurchase program, which commenced in March 2022. During the six months ended July 31, 2025, we repurchased 4.9 million shares of common stock for $384.9 million through our stock repurchase program. The program has no minimum purchase and no mandated end date. The repurchase program may be suspended or discontinued at any time at our discretion. We expect that our existing sources of liquidity, including our existing cash, cash equivalents and investments, expected future operating cash flows, and the borrowing capacity of our credit facility, will finance the repurchase of common stock at management’s discretion. The timing and amount of any repurchases of common stock will be determined by management based on its evaluation of market conditions and other factors.

Current wording

In addition to our contractual commitments, our board of directors has authorized a stock repurchase program, which commenced in March 2022. During the nine months ended October 31, 2025, we repurchased 7.7 million shares of common stock for $600.0 million through our stock repurchase program. The program has no minimum purchase and no mandated end date. The repurchase program may be suspended or discontinued at any time at our discretion. We expect that our existing sources of liquidity, including our existing cash, cash equivalents and investments, expected future operating cash flows, and the borrowing capacity of our credit facility, will finance the repurchase of common stock at management’s discretion. The timing and amount of any repurchases of common stock will be determined by management based on its evaluation of market conditions and other factors.

Previous wording

Cash provided by operating activities was $497.5 million in thesix months ended July 31, 2025. Our primary sources of cash provided by operating activities were billings and the related cash collections in addition to interest income. Our primary uses of cash include the payment of employee salaries and benefits in addition to vendor payments.

Current wording

Cash provided by operating activities was $787.8 million in thenine months ended October 31, 2025. Our primary sources of cash provided by operating activities were billings and the related cash collections in addition to interest income. Our primary uses of cash include the payment of employee salaries and benefits in addition to vendor payments.

Previous wording

Cash provided by operating activities was $475.0 million for thesix months ended July 31, 2024. Our primary sources of cash provided by operating activities were billings and the related cash collections in addition to interest income. Our primary uses of cash include payment of employee salaries and benefits, including the payment of termination benefits under the 2025 Restructuring Plan implemented in the first quarter of fiscal 2025, in addition to vendor payments. Additionally, in connection with the acquisition of Lexion, we agreed to pay$19.1 million in deferred compensation for key employees, which we paid into an escrow account.

Current wording

Cash provided by operating activities was $709.4 million for thenine months ended October 31, 2024. Our primary sources of cash provided by operating activities were billings and the related cash collections in addition to interest income. Our primary uses of cash include payment of employee salaries and benefits, including the payment of termination benefits under the 2025 Restructuring Plan implemented in the first quarter of fiscal 2025, in addition to vendor payments. Additionally, in connection with the acquisition of Lexion, we agreed to pay$19.1 million in deferred compensation for key employees, which we paid into an escrow account.

Previous wording

For the six months ended July 31, 2025, netcash used in investing activities of $55.4 million was primarily driven by $52.0 million in purchases of property and equipment as we continued to invest in capitalized software development projects and to support operations at our data centers.

Current wording

For the nine months ended October 31, 2025, netcash used in investing activities of $93.1 million was primarily driven by $79.4 million in purchases of property and equipment as we continued to invest in capitalized software development projects and to support operations at our data centers in addition to $13.1 million net purchase of marketable securities.

Previous wording

For the six months ended July 31, 2024, net cash used in investing activities of $236.9 million was primarily driven by the acquisition of Lexion, which totaled$143.6 million, net of cash acquired, in addition to$47.6 million net purchases of marketable securities and $45.0 million in purchases of property and equipment as wecontinued to support operations at our data centers and invest in capitalized software development projects.

Current wording

For the nine months ended October 31, 2024, net cash used in investing activities of $280.6 million was primarily driven by the acquisition of Lexion, which totaled$143.6 million, net of cash acquired, in addition to$67.7 million net purchases of marketable securities and $68.6 million in purchases of property and equipment as wecontinued to support operations at our data centers and invest in capitalized software development projects.

Previous wording

For the six months ended July 31, 2025, net cash used in financing activities of $496.9 million was primarily driven by$384.9 million to repurchase 4.9 million shares of common stock through our stock repurchase program and$108.8 million payments for tax withholding on share settlements, net of proceeds associated with equity plans.

Current wording

For the nine months ended October 31, 2025, net cash used in financing activities of $767.3 million was primarily driven by$600.0 million to repurchase 7.7 million shares of common stock through our stock repurchase program and$164.2 million payments for tax withholding on share settlements, net of proceeds associated with equity plans.

Previous wording

For the six months ended July 31, 2024, net cash used infinancing activities of $408.9 million was primarily driven by$349.1 millionto repurchase 6.3 million shares of common stock through our stock repurchase program, and $59.8 million payments for tax withholding on share settlements, net of proceeds associated with equity plans.

Current wording

For the nine months ended October 31, 2024, net cash used infinancing activities of $607.3 million was primarily driven by$521.8 millionto repurchase 9.2 million shares of common stock through our stock repurchase program, and $85.5 million payments for tax withholding on share settlements, net of proceeds associated with equity plans.