DocuSign reported strong Q2 fiscal 2025 results with revenue increasing 7% year-over-year to $736 million, driven by subscription revenue growth of 7% to $717.4 million. The company achieved a significant operating margin of 7.9% and generated free cash flow of $197.9 million. Net income surged to $888.2 million, primarily due to an $837.7 million tax benefit from releasing valuation allowance on U.S. deferred tax assets.The company continued to expand its enterprise customer base, reaching 1,066 customers with annual contract value over $300,000. Operating expenses decreased 2% to $522.8 million as DocuSign maintained cost discipline while investing in product innovation, including the launch of its new Intelligent Agreement Management platform and the strategic acquisition of Lexion, an AI-powered contract management platform.Looking ahead, DocuSign remains focused on driving growth through its omnichannel go-to-market strategy and product innovation. The company ended the quarter with $938.4 million in cash and short-term investments, while completing $201.7 million in share repurchases. Management emphasized continued investment in AI capabilities and international expansion as key growth drivers.

DocuSign reported strong Q2 fiscal 2025 results with revenue increasing 7% year-over-year to $736 million, driven by subscription revenue growth of 7% to $717.4 million. The company achieved a significant operating margin of 7.9% and generated free cash flow of $197.9 million. Net income surged to $888.2 million, primarily due to an $837.7 million tax benefit from releasing valuation allowance on U.S. deferred tax assets.The company continued to expand its enterprise customer base, reaching 1,066 customers with annual contract value over $300,000. Operating expenses decreased 2% to $522.8 million as DocuSign maintained cost discipline while investing in product innovation, including the launch of its new Intelligent Agreement Management platform and the strategic acquisition of Lexion, an AI-powered contract management platform.Looking ahead, DocuSign remains focused on driving growth through its omnichannel go-to-market strategy and product innovation. The company ended the quarter with $938.4 million in cash and short-term investments, while completing $201.7 million in share repurchases. Management emphasized continued investment in AI capabilities and international expansion as key growth drivers.