Financial Analysis

Commitments and Contingencies We have entered into certain noncancelable contractual arrangements that require future purchases of goods and services. These arrangements primarily relate to cloud infrastructure support and sales and marketing activities. As of July 31, 2026, our future noncancelable minimum payments due under these contractual obligations with a remaining term of more than one year were as follows: Fiscal Period: Amount (in thousands) 2027, remainder $ 38,366 2028 83,328 2029 47,004 2030 26,593 2031 26,724 Thereafter 1,992 Total $ 224,007 We entered into an agreement, which includes a minimum commitment, with a public cloud computing service provider. As of July 31, 2026, our remaining minimum commitment under the agreement is $204.9 million through fiscal 2030, which is excluded from the table above. Operating Leases We lease offices under noncancelable operating lease agreements that expire at various dates through the end of July 2040. Some of our operating leases contain escalation provisions for adjustments in the consumer price index and options to renew. We include a renewal option in the lease terms for calculating our lease liability when we are reasonably certain that we will exercise the renewal option. In May 2026, we entered into a lease agreement which will replace one of our existing expiring office space leases. The lease will commence in fiscal 2027. The noncancelable lease term for the space will expire in fiscal 2039. The aggregate minimum …

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Debt Revolving Credit Facility In May 2025, we entered into a new credit agreement with a syndicate of banks. The credit agreement provides for a secured revolving credit facility (the Credit Facility) in an aggregate principal amount of $750.0 million, which amount may be increased by an additional $250.0 million subject to the terms of the credit agreement. This credit agreement superseded and replaced the revolving credit facility that we previously entered into in January 2021. We may use the proceeds of future borrowings under the Credit Facility to finance working capital, for capital expenditures and for other general corporate purposes, including permitted acquisitions. The Credit Facility matures in May 2030 and requires us to comply with customary affirmative and negative covenants. We were in compliance with all covenants as of July 31, 2026. As of July 31, 2026, there were no outstanding borrowings under the Credit Facility. The Credit Facility is subject to customary fees for loan facilities of this type, including ongoing commitment fees at a rate between 0.10% and 0.30% per annum on the daily undrawn balance depending on certain conditions as provided in the credit agreement. …

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Revenue by revenue type is as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, (in thousands) 2026 2025 2026 2025 Subscription revenue (1) $ 853,955 $ 784,388 $ 1,665,175 $ 1,530,590 Professional services and other revenue (1) 21,791 16,248 40,806 33,700 Total revenue $ 875,746 $ 800,636 $ 1,705,981 $ 1,564,290 (1) Effective in the first quarter of fiscal 2027, we changed the presentation of revenue in our Consolidated Statements of Operations to combine the financial statement line items labeled Subscription revenue and Professional services and other revenue. See Note 1, Summary of Significant Accounting Policies for further detail. …

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Fair Value Measurements The following table summarizes our financial assets that are measured at fair value on a recurring basis: July 31, 2026 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Level 1: Cash equivalents (1) Money market funds $ 283,269 $ $ $ 283,269 Level 2: Cash equivalents (1) Commercial paper 5,993 5,993 Available-for-sale securities Commercial paper 25,586 (48) 25,538 Corporate notes and bonds 408,102 43 (1,210) 406,935 U.S. governmental securities 12,499 (58) 12,441 Level 2 total 452,180 43 (1,316) 450,907 Total $ 735,449 $ 43 $ (1,316) $ 734,176 January 31, 2026 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Level 1: Cash equivalents (1) Money market funds $ 248,251 $ $ $ 248,251 Level 2: Available-for-sale securities Commercial paper 32,611 7 (6) 32,612 Corporate notes and bonds 425,648 806 (77) 426,377 U.S. governmental securities 13,498 1 (11) 13,488 Level 2 total 471,757 814 (94) 472,477 Total $ 720,008 $ 814 $ (94) $ 720,728 (1) Included in cash and cash equivalents in our consolidated balance sheets as of July 31, 2026 and January 31, 2026, in addition to cash of $238.9 million and $354.1 million. We use quoted prices in active markets for identical assets to determine the fair value of our Level 1 investments. The fair value of our Level 2 investments is determined using pricing based on quoted market prices or alternative market observable inputs . …

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Income Taxes Our provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate as prescribed under ASC 740, Income Taxes , adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment, which results in a provision for or benefit from income taxes in the current quarter. We recorded an income tax provision of $47.3 million and $86.8 million for the three and six months ended July 31, 2026. We recorded an income tax provision of $13.5 million and $15.2 million for the three and six months ended July 31, 2025. In the three and six months ended July 31, 2026, the tax provision was primarily driven by the tax effects of U.S. and foreign earnings and incremental tax expense related to shortfalls from stock-based compensation. In the three and six months ended July 31, 2025, the tax provision was primarily driven by the tax effects of U.S. and foreign earnings, partially offset by excess tax benefits from stock-based compensation. 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 def …

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"Recently Adopted Accounting Pronouncements In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2025-05, Financial InstrumentsCredit Losses (ASU 2025-05), which provides a practical expedient to measure credit losses on current accounts receivable and current contract assets. The practical expedient allows companies to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when measuring credit losses. ASU 2025-05 is effective for annual filings for our fiscal year beginning February 1, 2026 and interim reporting periods in the same annual reporting period. We adopted this standard as of February 1, 2026 and elected to apply the related practical expedient. Adoption of this ASU did not have a material impact on our financial statements. Recent Accounting Pronouncements In November 2024, the FASB issued Accounting Standards Update 2024-03, ""Income StatementReporting Comprehensive Income-Expense Disaggregation Disclosure"" (ASU 2024-03), which requires more detailed information about the types of expenses included in certain expense captions presented on the consolidated statements of operations. Additionally, this amendment requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the disclosure of the total amount of selling expenses. ASU 2024-03 is effective for annual fi …

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Revenue Disaggregation of Revenue Revenue by revenue type is as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, (in thousands) 2026 2025 2026 2025 Subscription revenue (1) $ 853,955 $ 784,388 $ 1,665,175 $ 1,530,590 Professional services and other revenue (1) 21,791 16,248 40,806 33,700 Total revenue $ 875,746 $ 800,636 $ 1,705,981 $ 1,564,290 (1) Effective in the first quarter of fiscal 2027, we changed the presentation of revenue in our Consolidated Statements of Operations to combine the financial statement line items labeled Subscription revenue and Professional services and other revenue. See Note 1, Summary of Significant Accounting Policies for further detail. Performance Obligations As of July 31, 2026, the amount of the transaction price allocated to remaining performance obligations for contracts greater than one year was $2.3 billion. We expect to recognize 58% of the transaction price allocated to remaining performance obligations within the 12 months following July 31, 2026 in our condensed consolidated statement of operations and comprehensive income. Contract Balances Contract assets represent amounts for which we have recognized revenue, pursuant to our revenue recognition policy, for contracts that have not yet been invoiced to our customers where there is a remaining performance obligation, typically for multi-year arrangements. Total contract assets were $7.6 million and $10.8 million as of July 31, 2026 and January 31, 2026. T …

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Segment and Geographic Information We operate in one operating segment and one reportable segment as we report financial information, including net income determined in accordance with U.S. GAAP among other measures, on a consolidated basis to our Chief Operating Decision Maker (CODM), the Chief Executive Officer. The CODM uses consolidated financial information to make operating decisions, allocate resources, and evaluate financial performance, primarily by monitoring actual results compared to forecasted results as well as by reviewing year-over-year results and trending historical performance. The CODM also reviews significant segment expenses for our single reportable segment. Significant segment expenses include cost of revenue, sales and marketing expenses, research and development expenses, and general and administrative expenses, all of which are presented in our consolidated statements of operations and comprehensive income. Other segment items include interest expense, interest and other income, and provision for income taxes, which are also presented in our consolidated statements of operations and comprehensive income. We generate revenue primarily from sales of subscriptions to access our software platform and related subscriptions of our customers. Segment assets are reported on the consolidated balance sheets as total assets. Our reported measure of segment profit is as follows: Three Months Ended July 31, Six Months Ended July 31, (in thousands) 2026 2025 2026 …

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"Summary of Significant Accounting Policies Organization and Description of Business Docusign, Inc. (Docusign, we, our or us) was incorporated in the State of Washington in April 2003. We merged with and into Docusign, Inc., a Delaware corporation, in March 2015. Docusign solutions bring agreements to life, accelerating and simplifying the process of doing business. Docusigns core offerings our AI-native IAM platform, the worlds leading e-signature solution, and CLM solution allow organizations to boost productivity, accelerate contract review cycles, and transform agreement data into insights and actions, while providing a customer-centric experience. The Docusign IAM platform is a system of record that enables customers of all sizes to ingest a vast, complex body of agreements into a single repository, build agreement workflows that operate at scale, and take action on high-accuracy insights, from agreement data. Basis of Presentation and Principles of Consolidation Our condensed consolidated financial statements include those of Docusign, Inc. and our subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have …

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Stockholders' Equity Equity Incentive Plans We maintain two stock-based compensation plans: the 2018 Equity Incentive Plan (the 2018 Plan) and the Amended and Restated 2011 Equity Incentive Plan. RSUs granted under the 2018 Plan generally vest over a three - to four -year period, either quarterly or with a cliff vesting period of one year and the remainder quarterly thereafter. As of July 31, 2026, 49.2 million shares of our common stock were available for issuance under the 2018 Plan. Restricted Stock Units RSU activity for the six months ended July 31, 2026 was as follows: (in thousands, except per share data) Number of Units Weighted-Average Grant Date Fair Value Unvested at January 31, 2026 23,792 $ 64.34 Granted 11,029 45.52 Vested (4,816) 64.98 Canceled (1,987) 65.79 Unvested at July 31, 2026 28,018 $ 56.72 As of July 31, 2026, our total unrecognized compensation cost related to RSUs was $1.2 billion. We expect to recognize this expense over the remaining weighted-average period of approximately 2.4 years. As of July 31, 2026, the grant date fair value of unvested RSUs subject to market-based and performance-based vesting conditions (PSU) was $183.4 million. The number of RSUs granted or canceled included in the table above reflects shares that could be eligible to vest at 100% of target for PSUs and includes adjustments for over or under achievement for PSUs granted in prior periods. Employee Stock Purchase Plan The Employee Stock Purchase Plan (ESPP) allows eligible e …

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Subsequent Events In August 2026, we entered into a lease agreement which will replace one of our existing expiring office space leases. The lease will commence in fiscal 2027. The noncancelable lease term for the space will expire in fiscal 2037. The aggregate minimum base rent payments, net of expected tenant incentives, under the lease are approximately $20.0 million. We will recognize the related right-of-use asset and lease liability, which have not yet been determined, at the lease commencement date.

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