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5ad2be47d4d580b363beb2f19237b9a3393dab5a0fe986984723711bea2aa3f3

**Cash and cash equivalents were so low in Q3 2025 primarily due to the combined impact of significant investing and financing activities.** Specifically, DocuSign used substantial cash for acquisitions and capital asset purchases (a total of **$280.6 million** in investing activities) and heavily deployed cash in financing activities, including a **$521.8 million** share repurchase program along with additional cash outlays for tax-related share settlements, amounting to **$607.3 million** overall. These uses of cash outweighed the positive cash generated from operations, resulting in a net decrease that contributed to the lower ending balance for Q3 2025.  **[0001261333-24-000151_docu-20241031.htm:41]** 

Why was Cash and cash equivalents so low in Q3 2025?

The spike in **Total assets in Q2 2025** was driven by several factors. **Goodwill increased** (from **$353,138 thousand** to **$455,519 thousand**) and **Intangible Assets, Net** increased (from **$50,905 thousand** to **$90,227 thousand**), suggesting that acquisitions and additional internal developments played a role. Furthermore, a significant change in **Deferred Tax Assets—Noncurrent** (from **$2,031 thousand** to **$822,026 thousand**) indicates that the large release of a valuation allowance on certain deferred tax assets contributed greatly to the overall increase. These combined factors led to the observed spike in Total assets in Q2 2025.  **[0001261333-24-000118_q225ex-991er.htm:8]** **[0001261333-24-000121_docu-20240731.htm:5]** **[DOCU_3400845_4]** 

Why did Total assets spike in Q2 2025?

DocuSign's total liabilities in Q4 2024 were notably lower primarily because the company repaid **$689.9 million** of its 2024 convertible senior notes, which were previously classified as a current liability. This repayment led to a significant reduction from **$2,395,433 thousand** in Q4 2023 to **$1,841,551 thousand** in Q4 2024.  **[0001261333-24-000045_docu-20240131.htm:94]** **[0001261333-24-000027_q424ex-991er.htm:8]** **[0001261333-24-000027_q424ex-991er.htm:0]** 

Why were Total liabilities notably lower in Q4 2024?

The increase in **Goodwill** in Q2 2025 was driven primarily by the addition of **$103,352 thousand** from the acquisition of **Lexion**. There was also a minor **cumulative translation adjustment of $(971) thousand** that slightly reduced the magnitude of the increase.  **[0001261333-24-000121_docu-20240731.htm:17]** 

What drove the increase in Goodwill in Q2 2025?

The significant improvement in the accumulated deficit was primarily driven by a robust net income during the period, largely attributable to a substantial income tax benefit of **$813,491 thousand**. This benefit was the key factor that helped reduce the accumulated deficit from **$(1,670,219)** to **$(1,099,046)** thousand—a reduction of **$571,173 thousand**. Additionally, operational improvements and revenue growth further contributed to this positive change.  **[0001261333-24-000121_docu-20240731.htm:8]** **[0001261333-24-000121_docu-20240731.htm:6]** **[0001261333-24-000118_q225ex-991er.htm:8]** **[0001261333-24-000118_q225ex-991er.htm:7]** 

What factors led to the significant improvement in Accumulated deficit in Q2 2025?

79895c6c20fb700a2878f1b7f0f008a66599f5b6f2e5b207c3fa7b204bf90702

The nearly doubled operating cash flow in FY 2024 was driven by several factors. **Higher billings and increased cash collections** led to greater inflows, while **favorable interest income** boosted the cash provided by operating activities. Additionally, there was a significant improvement in **accounts receivable collections** (a change from a negative figure in FY 2023 to a positive one in FY 2024) and **higher overall revenues** also contributed to the increase.  **[0001261333-24-000045_docu-20240131.htm:82]** **[0001261333-24-000045_docu-20240131.htm:97]** **[0001261333-24-000045_docu-20240131.htm:75]** 

What drove the nearly doubled operating cash flow in FY 2024?

Based on the available information, the significant improvement in net cash provided by investing activities in Q4 2024 appears to have contributed to the high free cash flow. Specifically, Q4 2024 saw **maturities of marketable securities** of **$222,352 thousand**—substantially higher than **$112,148 thousand** in Q4 2023—and **lower purchases of property and equipment** at **$22,114 thousand** compared to **$24,064 thousand** previously. These factors helped turn investing activities positive, which would bolster free cash flow. However, the documents do not provide a direct breakdown of free cash flow, including operating cash flow details.  **[0001261333-24-000027_q424ex-991er.htm:9]** 

Why was free cash flow so high in Q4 2024?

The available documents do not provide a definitive explanation for the drop in free cash flow in Q2 2025. We only have information for the net cash used in investing activities for Q1 2025 **(–60,777)** and Q2 2025 **(–176,110)**.  **[0001261333-24-000087_docu-20240430.htm:8]** **[0001261333-24-000121_docu-20240731.htm:9]**  While one document explains that a significant increase in investing outflows in a six‐month period (ended July 31, 2024) was driven by the **acquisition of Lexion** along with increased purchases of marketable securities and property and equipment  **[0001261333-24-000121_docu-20240731.htm:39]** , this explanation does not directly address free cash flow in Q2 2025. Free cash flow results from both operating cash flows and investing activities, and without more details on operating performance in Q2 2025, we cannot conclusively determine the reasons for its drop.

What caused free cash flow to drop so low in Q2 2025?

c1f8ef88a76040daf54d10177619fd70eada78d427f835ae9c538f641bfac7a9

88bf2bbde6419a5b51c1584928c9a01caa1d5d643b9da00ee2f0b78244d85d53

Net cash provided by operating activities (USD, thousands)

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14192598ca007f2a043a0bb22b650e829aa060b7e56322ef49c73eabb77d675a

Non-GAAP Billings (USD thousands)

Number of customers with annualized contract value greater than 300,000 (customers)

Total number of customers (millions)

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Remaining performance obligations for contracts greater than one year (USD billions)

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Current Assets (USD, thousands)

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Non-Current Liabilities (USD, thousands)

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Shareholders' Equity (USD, thousands)

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Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

91ca88a96b9df0587c12ec164bf998560ac358ee9761bca905d41952eb35c9e6

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EPS - Diluted (USD)

57debbf034800a3b517deeed9ef04f64de24f993227d2c54014e3b57d2b82165

United States

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Total Revenue

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Subscription

Professional Services and Other

55a33f6ba0445d4e214a894916814996864d39926dbf25e37d921daf8459099e

DOCUSIGN (DOCU)

Financials