DocuSign's Q4 2025: Unpacking Contradictions in IAM Growth, Core Business Stability, and Macroeconomic Impacts

These are the key contradictions discussed in DocuSign's latest 2025Q4 earnings call, specifically including: IAM sales momentum and core business stability, IAM's value proposition and penetration, IAM sales strategy and customer adoption, and macroeconomic impact on core business:



Revenue and Billings Growth with IAM Introduction:
- Docusign reported Q4 revenue of $776 million, up 9% year-over-year, and fiscal 2025 revenue was $3 billion, up 8% year-over-year.
- The growth was driven by the introduction of Intelligent Agreement Management (IAM) and improved fundamentals across the core business, with dollar net retention increasing to 101% in Q4.

International and Digital Revenue Expansion:
- International revenue represented 28% of total revenue in Q4, growing 12% year-over-year.
- The focus on improving self-service capabilities and partner channel contributions aided growth, although the domestic U.S. business started to reaccelerate while international growth faced headwinds.

Operating Efficiency and Profitability:
- Non-GAAP operating income for Q4 was $224 million, up 25% year-over-year, resulting in a 28.8% operating margin.
- The improvement in profitability was due to efficiency initiatives, including cloud infrastructure migration costs, which are expected to impact gross margin.

IAM Uptake and Customer Engagement:
- IAM represented a high single-digit percentage of in-quarter deal volume for the direct channel and over 20% of direct new customer deals in Q4.
- Increased customer engagement was evident with approximately 4000 contracts uploaded into Navigator for typical IAM customers, highlighting the scale of the challenge faced by companies with agreements.