DocuSign exhibits strong cash conversion efficiency, with free cash flow margins reaching 34.9% in 2027Q1 and an OCF/NI ratio frequently exceeding 3.5x.
| Cash from Operations | 1.24B | 1.17B | 1.02B | 979.53M | 506.76M | 506.47M | 296.95M | 115.7M | 76.09M | 54.98M | -4.79M | -68M |
| Operating CF Margin % | - | 36.19% | 34.17% | 35.47% | 20.14% | 24.03% | 20.44% | 11.88% | 10.85% | 10.6% | -1.26% | -27.15% |
| Operating CF Growth % | 86.07% | 14.52% | 3.85% | 93.29% | 0.06% | 70.55% | 156.67% | 52.06% | 38.39% | 1247.79% | 92.96% | - |
| Net Income | 315.19M | 309.08M | 1.07B | 73.98M | -97.45M | -69.98M | -243.27M | -208.36M | -426.46M | -52.28M | -115.41M | -122.56M |
| Depreciation & Amortization | 117.92M | 116.08M | 107.8M | 95.06M | 86.25M | 81.91M | 71.09M | 50.18M | 38.03M | 31.75M | 28.47M | 17.62M |
| Stock-Based Compensation | 462.56M | 622.32M | 610.34M | 616.85M | 538.73M | 408.54M | 286.88M | 206.4M | 410.98M | 29.75M | 35.44M | 32.66M |
| Deferred Taxes | 41.21M | 4.71M | -839.99M | 6.29M | 1.7M | 1.37M | -2.41M | 1.29M | -5M | -996K | 12K | -1.17M |
| Other Non-Cash Items | 397.6M | 275.41M | 262.95M | 224.32M | 233.24M | 186.23M | 112.49M | 113.83M | 52.42M | 28.5M | 20.6M | 19.14M |
| Working Capital Changes | -99.23M | -162.6M | -191.71M | -36.97M | -255.7M | -101.61M | 72.17M | -47.65M | 6.12M | 18.25M | 26.09M | -13.69M |
| Change in Receivables | 1.7M | -91.74M | 2.08M | 71.68M | -75.96M | -117.38M | -73.91M | -64.8M | -38.37M | -35.01M | -24.57M | -36.2M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -5.16M | -15.15M | 7.64M | -4.83M | -26.44M | 12.15M | 12.13M | 3.85M | -7.38M | 2.86M | 4.89M | 7.96M |
| Cash from Investing | -141.1M | -126.78M | -312.88M | 44.61M | -191.2M | -162.91M | 81.23M | -321.49M | -664.32M | -18.76M | -40.88M | -80.17M |
| Capital Expenditures | -115.07M | -106.44M | -96.99M | -92.39M | -77.65M | -61.4M | -82.39M | -72.05M | -30.41M | -18.93M | -43.33M | -28.3M |
| CapEx % of Revenue | 3.5% | 3.31% | 3.26% | 3.35% | 3.09% | 2.91% | 5.67% | 7.4% | 4.34% | 3.65% | 11.36% | 11.3% |
| Acquisitions | 0 | 0 | -143.61M | 0 | 0 | -6.39M | -180.37M | 0 | -218.78M | 168K | 665K | -51.86M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -1.21B | -1.1B | -838.79M | -946.04M | -98.26M | -394.62M | -58.98M | -70.45M | 853.12M | 25.73M | 8.04M | 274.86M |
| Debt Issued (Net) | -18.55M | -21.43M | 0 | -726.98M | -16K | -77.91M | 293.17M | 0 | 560.76M | 0 | 0 | -628K |
| Equity Issued (Net) | -961.02M | -827.06M | -625.51M | -98.53M | -13.84M | 69.81M | 54.16M | 96.05M | 579.52M | 26.43M | 8.04M | 275.48M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1B | -869.09M | -683.53M | -145.51M | -63.04M | 0 | 0 | 0 | 0 | 0 | -85K | -32.34M |
| Other Financing | -231.26M | -251.42M | -213.28M | -120.53M | -84.4M | -386.52M | -406.31M | -166.5M | -287.16M | -705K | 0 | 0 |
| Net Change in Cash | -105.52M | -46.65M | -141.94M | 78.3M | 213.52M | -56.66M | 324.85M | -276.69M | 260.74M | 66.19M | -37.97M | 125.21M |
| Free Cash Flow | 1.12B | 1.06B | 920.28M | 887.13M | 429.11M | 445.07M | 214.56M | 43.65M | 45.67M | 36.05M | -48.12M | -96.3M |
| FCF Margin % | 34.09% | 32.88% | 30.92% | 32.12% | 17.06% | 21.12% | 14.77% | 4.48% | 6.52% | 6.95% | -12.61% | -38.45% |
| FCF Growth % | 22.29% | 15.03% | 3.74% | 106.74% | -3.59% | 107.44% | 391.54% | -4.43% | 26.69% | 174.92% | 50.03% | - |
| FCF per Share | 5.70 | 5.17 | 4.38 | 4.25 | 2.14 | 2.26 | 1.16 | 0.25 | 0.34 | 1.12 | -1.72 | -3.44 |
| FCF Conversion (FCF/Net Income) | 3.55x | 3.77x | 0.95x | 13.24x | -5.20x | -7.24x | -1.22x | -0.56x | -0.18x | -1.05x | 0.04x | 0.55x |
| Interest Paid | 0 | 0 | 0 | 185K | 185K | 349K | 78.04M | 2.85M | 204K | 599K | 602K | 744K |
| Taxes Paid | 3.34M | 0 | 24.32M | 10.46M | 10.42M | 6.94M | 3.5M | 1.97M | 3.21M | 617K | 229K | 263K |
Aggressive share dilution impact
As reported in recent financial statements, DocuSign's operating cash flow consistently dwarfs net income, with the OCF/NI ratio frequently exceeding 3.5x, suggesting that GAAP earnings significantly understate the actual cash-generating capacity of the underlying subscription business model due to heavy non-cash accounting charges.
The persistent divergence between net income and operating cash flow appears driven by substantial stock-based compensation and deferred revenue dynamics. Investors should monitor this gap, as it implies that the company's true economic profitability is higher than GAAP figures suggest, though this is partially offset by the dilution inherent in such compensation structures.
Based on the provided quarterly data, DocuSign maintains a robust free cash flow margin that has consistently remained between 27% and 42%, indicating that the firm successfully converts a significant portion of its subscription revenue into discretionary cash despite the ongoing maturity of its core market.
This trajectory suggests that the company has effectively transitioned into a cash-generative phase where capital requirements are relatively low compared to revenue. The stability of these margins implies that the business model remains highly efficient, provided that customer acquisition costs do not escalate to defend against competitive bundling.
According to recent SEC filings, DocuSign has prioritized share repurchases as its primary capital deployment vehicle, with quarterly buybacks reaching as high as $317.5 million in 2027Q1, a trend that appears designed to offset the dilutive impact of its significant employee equity compensation programs.
The reliance on buybacks suggests management is focused on managing the share count, yet this deployment strategy may limit the capital available for strategic acquisitions or R&D expansion. Analysts should evaluate whether this capital return is creating long-term shareholder value or merely serving as a defensive mechanism against dilution.
Analysis of the cash flow statement reveals that stock-based compensation remains a material non-cash expense, with quarterly figures often exceeding $140 million, which effectively obscures the true cost of labor and complicates the assessment of the company's underlying operational efficiency and long-term margin sustainability.
While the cash flow statement highlights strong operational performance, the persistent reliance on equity-based incentives warrants further investigation into the total cost of human capital. This accounting nuance suggests that the reported cash flow strength may be partially inflated by the exclusion of these significant, recurring equity-based expenses.
Quick answers to the most common questions about buying DOCU stock.
DocuSign, Inc. (DOCU) generated $1.17B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
DocuSign, Inc. (DOCU) generated $1.06B in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
DocuSign, Inc. (DOCU) spent $106.4M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, DocuSign, Inc. (DOCU) spent $869.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.