📊 DOCU Key Takeaways
Is Docusign, Inc.. (DOCU) a Good Investment?
DocuSign demonstrates solid operational fundamentals with strong profitability metrics (79.4% gross margin, 9.6% net margin) and healthy free cash flow generation ($1.1B, 32.9% FCF margin), supporting sustainable business operations. Revenue growth of 8.2% YoY with stable net income reflects a mature, established platform, though the significant EPS decline (-70.9%) and below-1.0x current ratio warrant attention to capital allocation and working capital management.
DocuSign shows solid fundamental quality with high gross margins, strong free cash flow generation, and a debt-free balance sheet, indicating a resilient software business model. Revenue growth remains positive, but the modest top-line pace, flat net income, and sharp diluted EPS decline suggest profitability expansion is not yet fully translating into per-share growth. Overall, the company appears fundamentally strong, but sustained operating margin improvement and healthier earnings quality are important to confirm further upside in business performance.
Why Buy Docusign, Inc.. Stock? DOCU Key Strengths
- Exceptional gross margin of 79.4% indicating strong pricing power and operating leverage in SaaS business model
- Robust free cash flow generation of $1.1B with 32.9% FCF margin demonstrates ability to fund operations and investments organically
- Excellent return on equity (16.1%) and ROA (7.3%) showing efficient capital utilization
- Strong interest coverage ratio (2073.5x) and zero long-term debt indicating low financial risk
- Sustained operating income of $298.6M providing cushion for business operations
- High gross margin and strong free cash flow margin indicate an efficient, scalable software model
- Debt-free capital structure and substantial cash balance support financial flexibility
- Positive revenue growth with solid operating profitability and very high interest coverage
DOCU Stock Risks: Docusign, Inc.. Investment Risks
- Current ratio of 0.73x signals potential short-term liquidity constraint and working capital management concerns
- EPS declined 70.9% YoY despite flat net income, suggesting significant dilution from share issuance or financial restructuring
- Modest revenue growth rate of 8.2% for a software company may indicate market saturation or competitive pressures
- Heavy insider activity (21 Form 4 filings in 90 days) could indicate uncertain management confidence or routine equity compensation exercises
- Operating margin of 9.3% is relatively low for software industry, suggesting cost control challenges
- Revenue growth is relatively modest for a software company, raising questions about long-term expansion potential
- Net income was flat year over year and diluted EPS fell sharply, signaling weaker per-share earnings quality
- Current ratio below 1.0 may reflect balance sheet working-capital pressure even if common in subscription models
Key Metrics to Watch
- Free cash flow sustainability and trend - monitor if $1.1B level can be maintained
- Current ratio improvement - critical to resolve working capital position below 1.0x
- Revenue growth acceleration - assess if 8.2% can accelerate beyond current trajectory
- Operating margin expansion - track if company can improve 9.3% level through operational efficiency
- Share dilution and EPS trajectory - clarify drivers of 70.9% EPS decline to understand capital allocation strategy
- Revenue growth acceleration and billings/deferred revenue trends
- Operating margin and diluted EPS trend
Docusign, Inc.. (DOCU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 32.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
DOCU Profit Margin, ROE & Profitability Analysis
DOCU vs Technology Sector: How Docusign, Inc.. Compares
How Docusign, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Docusign, Inc.. Stock Overvalued? DOCU Valuation Analysis 2026
Based on fundamental analysis, Docusign, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Docusign, Inc.. Balance Sheet: DOCU Debt, Cash & Liquidity
DOCU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Docusign, Inc..'s revenue has grown significantly by 53% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.36 reflects profitable operations.
DOCU Revenue Growth, EPS Growth & YoY Performance
DOCU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $754.8M | $62.4M | $0.30 |
| Q2 2026 | $736.0M | $63.0M | $0.30 |
| Q1 2026 | $709.6M | $33.8M | $0.16 |
| Q3 2025 | $700.4M | $38.8M | $0.19 |
| Q2 2025 | $687.7M | $7.4M | $0.04 |
| Q1 2025 | $661.4M | $539.0K | $0.00 |
| Q3 2024 | $645.5M | -$29.9M | $-0.15 |
| Q2 2024 | $622.2M | $7.4M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Docusign, Inc.. Dividends, Buybacks & Capital Allocation
DOCU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Docusign, Inc.. (CIK: 0001261333)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775250655.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775167732.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775167726.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775167719.xml | View → |
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774389469.xml | View → |
❓ Frequently Asked Questions about DOCU
What is the AI rating for DOCU?
Docusign, Inc.. (DOCU) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DOCU's key strengths?
Claude: Exceptional gross margin of 79.4% indicating strong pricing power and operating leverage in SaaS business model. Robust free cash flow generation of $1.1B with 32.9% FCF margin demonstrates ability to fund operations and investments organically. ChatGPT: High gross margin and strong free cash flow margin indicate an efficient, scalable software model. Debt-free capital structure and substantial cash balance support financial flexibility.
What are the risks of investing in DOCU?
Claude: Current ratio of 0.73x signals potential short-term liquidity constraint and working capital management concerns. EPS declined 70.9% YoY despite flat net income, suggesting significant dilution from share issuance or financial restructuring. ChatGPT: Revenue growth is relatively modest for a software company, raising questions about long-term expansion potential. Net income was flat year over year and diluted EPS fell sharply, signaling weaker per-share earnings quality.
What is DOCU's revenue and growth?
Docusign, Inc.. reported revenue of $3.2B.
Does DOCU pay dividends?
Docusign, Inc.. does not currently pay dividends.
Where can I find DOCU SEC filings?
Official SEC filings for Docusign, Inc.. (CIK: 0001261333) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DOCU's EPS?
Docusign, Inc.. has a diluted EPS of $1.48.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DOCU a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Docusign, Inc.. has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DOCU stock overvalued or undervalued?
Valuation metrics for DOCU: ROE of 16.1% (sector avg: 22%), net margin of 9.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy DOCU stock in 2026?
Our dual AI analysis gives Docusign, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DOCU's free cash flow?
Docusign, Inc..'s operating cash flow is $1.2B, with capital expenditures of $106.4M. FCF margin is 32.9%.
How does DOCU compare to other Technology stocks?
Vs Technology sector averages: Net margin 9.6% (avg: 18%), ROE 16.1% (avg: 22%), current ratio 0.73 (avg: 2.5).