Sep 3, 2026 earnings call — IAM platform expansion and ARR guidance
Q2 revenue was $876 million, up 9% year-over-year.
Revenue $0.9B (est $0.9B) · EPS $1.16 (est $1.09) · Next-quarter revenue outlook $0.9B–$0.9B
Key quotes
"Building on the foundational strength of our market-leading e-signature offering, IAM is uniquely able to aggregate, analyze and unlock the value of an organization's agreement data to improve business decisioning."
"In August, we launched AI assistant and Agentic capabilities that help organizations unlock greater value and accelerate workflow automation."
"We generated strong financial results in the second quarter with $876 million in revenue, up 9% year-over-year and a 32% operating margin and approximately $300 million in free cash flow that helped support over $300 million of share repurchases in Q2."
Analyst Q&A 11
Which products are outperforming
Q (William McNamara · Evercore): Which products or offerings are outperforming, and how much do they drive the improvement in dollar net retention from 102% to 103%?
A: Management said eSign and IAM outperformed, with IAM the main driver of growth acceleration. They also said expansion now contributes more to dollar net retention improvement, making retention gains more balanced with expansion. Overall, retention gains came first and expansion is playing a larger role now.
"So we saw outperformance across the board across eSign and IAM and IAM obviously being the main driver of the growth acceleration that we saw and that we are projecting for the remainder of the year." — Allan Thygesen (CEO)
How IAM connectors are sold and used
Q (Wolfe): Do customers need to upgrade to IAM to use the new connectors into ChatGPT/Slack/Perplexity/Gemini? Are these contributing to IAM attach today, and are they a separate distribution channel?
A: Management said customers are still deciding how they want to deploy agreements across different tools. They view being available inside third-party tools as a logical extension of their strategy. They also noted enterprise clients can integrate via their APIs or via MCP, and MCP GA news is coming at month end.
"In terms of the value to the business, I think customers are still examining exactly how they want to deploy agreements across different tools." — Allan Thygesen (CEO)
Why growth improved: execution or product
Q (Tyler Radke · Citi): How much of the recent raise and momentum is from better execution versus new IAM capabilities unlocking new use cases?
A: Management said IAM is designed to expand use cases across many functions like sales, customer experience, procurement, and HR. They also said deal sizes are picking up, citing the largest deals in U.S. public sector and LatAm and a 14% increase in $300,000-plus deals year-over-year. They view both stronger execution and new use cases as drivers and said this underpins their raised ARR outlook.
"One noteworthy thing, I think, this quarter is we're really starting to see deal sizes pick up." — Allan Thygesen (CEO)
Why ARR and revenue growth differ
Q (Michael Turrin · Wells Fargo): What's driving the gap between ARR growth and constant-currency revenue growth, and why is ARR a better metric for results and the ARR guide raise?
A: Management said momentum is strong in both ARR and revenue. They explained revenue includes items not in ARR, such as early renewals, digital add-ons, and variable professional services, which can make revenue timing noisy. After adjusting for FX and those add-ons, revenue growth is accelerating and they expect ARR adoption to flow into revenue over time.
"But also remember, there are some components to revenue that are not included in ARR." — Blake Grayson (CFO)
Why upmarket deals are stronger
Q (Jefferies): What's driving the strength in the upmarket, especially the >$300,000 ACV cohort and larger deals?
A: Management said the upmarket strength is driven largely by IAM, while eSign (signed) still contributes some large deals. They see this across functions and industries with no single pattern, and they emphasized their large installed base gives a big opportunity to expand IAM adoption.
"Yes, that's coming very much from the IAM part, but we're also doing well on the signed piece." — Allan Thygesen (CEO)
Go-to-market lessons from IAM rollouts
Q (Christopher Quintero · Morgan Stanley): What key go-to-market lessons have you learned as IAM has rolled out and early adoption occurred?
A: Management said customers can roll out immediately available IAM features quickly, such as the intelligent repository, while workflow tools take longer because customers adjust workflows. They called the early signs encouraging and said that smooth rollout is key to long-term customer value.
"So I think as we've shared before, we've been very pleased with how quickly customers are able to roll out some of the immediately available functionality, things like the intelligent repository and so on." — Allan Thygesen (CEO)
Why 300 million documents matter
Q (Patrick Walravens · Citizens): Why is ingesting 300 million agreements important? What benefit or competitive advantage does that give DocuSign?
A: Management said the large corpus gives richness and heterogeneity from private consented agreements, which powers accuracy. They also said DocuSign built architecture to handle very large libraries with preprocessing to improve performance and lower costs, enabling scalable, fast, and accurate experiences like extracting prevailing terms across many agreements automatically.
"First, the overall size of the corpus that we've uploaded just allows us to have incredible richness and heterogeneity in our data set." — Allan Thygesen (CEO)
Is IAM growth migration or new wallet expansion
Q (Patrick McIlwee · William Blair): As IAM becomes a larger part of ARR, how much is migration from core eSign/CLM versus truly incremental wallet expansion and typical uplift when customers move from signed to IAM?
A: Management said the bulk of IAM ARR growth comes from their existing installed base, though they also have healthy NewCo growth. They noted they have around 290,000 direct customers and 1.9 million total customers to sell into, and they do not disclose exact expansion metrics but said expansion is meaningful when customers adopt IAM.
"But just with the -- you can imagine with the size and the scale of the customers that we have, we have around 290,000 direct customers right now, 1.9 million total customers." — Blake Grayson (CFO)
Who uses connectors and discovery potential
Q (Rishi Jaluria · RBC): What type of customers fully use the connectors, can connectors be a distribution or discovery channel for IAM, and can they bring new customers to top of funnel?
A: Management said interest in the MCP connector has surged, with a quadrupling of requests, and that interest spans company sizes including smaller and midsized firms. They said it's still early for connectors to reliably trigger buying or serve as a discovery funnel, though they expect that to evolve; customers need an IAM license and existing credit models apply.
"I think it's still very early for people to discover what connectors are available and to -- for that to trigger a buying or connection process." — Allan Thygesen (CEO)
Guidance conservatism and hiring focus
Q (William Power · Robert Baird): How should investors think about your guidance philosophy and the typical size of beats? Also, where was the headcount increase focused this quarter?
A: Management said forecasting is improving and the recent beat was not something they planned for; they have no concerns about where they landed. They said hiring is targeted toward IAM, managed tightly with use of lower-cost locations, and they continue hiring across global offices while making focused investments.
"We are very focused on making target, like we said in the prepared remarks, target investment towards IAM." — Blake Grayson (CFO)
eSign pricing and packaging tests
Q (Jacob Gideon · BofA): What are you learning from pricing and packaging tests in the digital channel (for example in Canada) and what's motivating those changes?
A: Management said they have long tested pricing and packaging and are testing in Canada now with good early results, but they are not expanding geography yet. They also said eSign remains the premium product with stronger recognition, higher response rates, richer tooling and compliance, and they will continue to experiment to package and price sign for maximum value.
"I think the results look good, but we're not announcing any broader geography changes at this time." — Allan Thygesen (CEO)