DOCU

DocuSign has matured from a hypergrowth disruptor into a profitable, cash-generative software franchise. FY2026 revenue grew 8.2% to $3.22B with an excellent 79.4% gross margin, and the model now throws off serious cash: operating cash flow rose 14.5% to $1.17B against just $106M of capex. Operating income jumped 49.3% to $299M as the company tightened spend, and ROE is a healthy 16.1%. The reported net income of $309M is down 71.1%, but that comparison is distorted — FY2025's $1.07B was inflated by a one-time deferred-tax benefit; the FY2026 figure is closer to the true underlying run-rate, and the 9.6% net margin understates the cash economics.

Management is returning that cash aggressively, repurchasing $869M of stock (up 27.1%) and shrinking the share count 4.0%. With $602M cash and modest leverage (1.21x liabilities/equity, much of it deferred revenue), the balance sheet comfortably supports continued buybacks. R&D rose 13.0% to $665M, funding the pivot toward an 'Intelligent Agreement Management' platform and AI features intended to reignite growth beyond core e-signature.