GitLab Reports Third Quarter Fiscal Year 2026 Financial Results

SAN FRANCISCO--( BUSINESS WIRE)--All-Remote - GitLab Inc. (NASDAQ: GTLB), the most comprehensive, intelligent DevSecOps platform, today reported financial results for its third quarter fiscal year of 2026, ended October 31, 2025.

“More code means more of a need for GitLab,” said Bill Staples, GitLab chief executive officer. “Engagement is growing across our platform as we are a critical part of how our customers deliver high quality, secure software. We’ve architected GitLab and Duo Agent Platform to provide intelligent orchestration across the software lifecycle, facilitate trust and accuracy in an AI world, and help accelerate the end to end software delivery process required to win.”

“I am pleased with GitLab’s strong third quarter results for fiscal year 2026, which resulted in 25% year-over-year revenue growth,” said James Shen, GitLab interim chief financial officer. “By investing strategically while delivering free cash flow, we are building GitLab for sustainable growth at scale. We're positioning GitLab for long-term success to take advantage of a rapidly transforming market from a place of strength.”

Third Quarter Fiscal Year 2026 Financial Highlights (in millions, except per share data and percentages):

Q3 FY 2026

Q3 FY 2025

Y/Y Change

Revenue

244.4

196.0

GAAP Gross margin

Non-GAAP Gross margin

GAAP Operating margin

(15

Non-GAAP Operating margin

GAAP Operating loss

(12.4

)

(28.7

)

16.3

Non-GAAP Operating income

43.7

25.9

17.8

GAAP Net income (loss) attributable to GitLab

(8.3

)

29.1

(37.4

)

Non-GAAP Net income attributable to GitLab

43.5

39.1

4.4

GAAP Net income (loss) per share attributable to GitLab, basic

(0.05

)

0.18

(0.23

)

GAAP Net income (loss) per share attributable to GitLab, diluted

(0.05

)

0.17

(0.22

)

Non-GAAP Net income per share attributable to GitLab, basic

0.26

0.24

0.02

Non-GAAP Net income per share attributable to GitLab, diluted

0.25

0.23

0.02

GAAP net cash provided by (used in) operating activities

31.4

(177.0

)

208.4

Non-GAAP adjusted free cash flow

27.2

9.7

17.5

A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled “Non-GAAP Financial Measures.”

Additional Third Quarter Fiscal Year 2026 Financial Highlights:

GitLab Names Chief Financial Officer

GitLab announced that Jessica Ross will join the company as Chief Financial Officer (CFO), effective January 15, 2026. Ross joins from Frontdoor, where she served as CFO. She has more than 25 years of experience in finance, accounting, and operational leadership at companies like Salesforce and Stitch Fix, and spent 12 years in public accounting at Arthur Andersen and Deloitte.

Business Highlights:

Fourth Quarter and Fiscal Year 2026 Financial Outlook

For the fourth quarter and fiscal year 2026, GitLab Inc. expects (in millions, except share and per share data):

Q4 FY 2026 Guidance

FY 2026 Guidance

Revenue

$251.0 - $252.0

$946 - $947

Non-GAAP operating income

$38.0 - $39.0

$147 - $148

Non-GAAP diluted net income per share assuming approximately 172 million and 171 million weighted average shares outstanding during Q4 FY 2026 and FY 2026, respectively.

$0.22 - $0.23

$0.95 - $0.96

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below in Non-GAAP Financial Measures. We have not provided the most directly comparable GAAP financial guidance measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP guidance for operating income (loss) and net income (loss) per share to the corresponding GAAP measures is not available.

Conference Call Information

GitLab will host a conference call today, December 2, 2025, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its third quarter fiscal year 2026 financial results and its guidance for the fourth quarter and full fiscal year 2026. Interested parties may register for the call in advance by visiting https://bit.ly/4p4MoT0. A live webcast of this conference call will be available on GitLab’s investor relations website ( ir.gitlab.com), and a replay will also be archived on the website for one year.

About GitLab

GitLab is the most comprehensive, intelligent DevSecOps platform for software innovation. GitLab enables organizations to increase developer productivity, improve operational efficiency, reduce security and compliance risk, and accelerate digital transformation. More than 50 million registered users and more than 50% of the Fortune 100 trust GitLab to ship better, more secure software faster.

Non-GAAP Financial Measures

GitLab believes non-GAAP measures are useful in evaluating its operating performance. GitLab uses this supplemental information to evaluate its ongoing operations and for internal planning and forecasting purposes. GitLab believes that non-GAAP financial information, when taken collectively with its GAAP financial information, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We define non-GAAP financial measures as GAAP measures, excluding certain items such as stock-based compensation expense, amortization of acquired intangible assets, foreign exchange (gain) loss, equity method investment loss and impairment, acquisition related expenses, charitable donation of common stock, restructuring charges, a non-recurring income tax adjustment related to bilateral advance pricing agreement (“BAPA”) negotiations, non-recurring charges associated with the formation of our GitLab Information Technology (Hubei) Co., LTD Joint Venture in China (“JiHu”), and other expenses that the Company believes are not indicative of its ongoing operations. In addition to these exclusions, effective Q1 FY26 we utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision which reflects the new location of GitLab’s intellectual property in the U.S. following the conclusion of our bilateral advance pricing agreements. For FY26, we have determined the projected non-GAAP tax rate to be 22%. Shares used for net income per share on a non-GAAP basis include incremental dilutive shares related to restricted stock units, options, and shares issuable under GitLab Inc.’s 2021 Employee Stock Purchase Plan that are anti-dilutive on a GAAP basis. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Adjusted Free Cash Flow

Adjusted free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used for purchases of property and equipment, plus any non-recurring income tax payments related to the BAPA or minus any non-recurring income tax refunds related to the BAPA, plus any non-recurring payments related to the formation of JiHu. We believe that adjusted free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after the investments in property and equipment, any non-recurring income tax payments or refunds related to the BAPA, and any non-recurring payments related to the formation of JiHu, can be used for strategic initiatives, including investing in our business, and strengthening our financial position. One limitation of adjusted free cash flow is that it does not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period.

Forward-Looking Statements

This press release and the accompanying earnings call contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although we believe that the expectations reflected in the forward-looking statements contained in this release and the accompanying earnings call are reasonable, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to the following:

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in the filings and reports we make with the Securities and Exchange Commission. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.

Operating Metrics

Annual Recurring Revenue (“ARR”): We define annual recurring revenue as the annual run-rate revenue of subscription agreements, including our self-managed and SaaS offerings but excluding professional services, from all customers as measured on the last day of a given month. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts of subscriptions, including our self-managed license, self-managed subscription, and SaaS subscription offerings but excluding professional services.

Dollar-Based Net Retention Rate: We calculate Dollar-Based Net Retention Rate as of a period end by starting with our customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, price adjustments, user growth within a customer, contraction, and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Dollar-Based Net Retention Rate.

GitLab Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

(unaudited)

October 31, 2025 (1)

January 31, 2025 (1)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

224,231

227,649

Short-term investments

980,077

764,728

Accounts receivable, net of allowance for doubtful accounts of $1,080 and $991 as of October 31, 2025 and January 31, 2025, respectively

221,140

264,565

Deferred contract acquisition costs, current

36,522

38,964

Prepaid expenses and other current assets

44,979

40,411

Total current assets

1,506,949

1,336,317

Property and equipment, net

10,193

4,013

Goodwill

16,919

16,139

Intangible assets, net

11,789

17,834

Deferred contract acquisition costs, non-current

20,288

20,142

Other non-current assets

4,701

4,818

TOTAL ASSETS

1,570,839

1,399,263

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

9,187

7,519

Accrued expenses and other current liabilities

58,406

54,680

Accrued compensation and benefits

33,402

40,233

Deferred revenue, current

464,813

442,599

Total current liabilities

565,808

545,031

Deferred revenue, non-current

28,977

26,369

Other non-current liabilities

8,057

6,557

TOTAL LIABILITIES

602,842

577,957

STOCKHOLDERS’ EQUITY:

Preferred stock, $0.0000025 par value; 50,000 shares authorized; no shares issued and outstanding as of October 31, 2025 and January 31, 2025

—

Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized; 149,723 and 144,444 shares issued and outstanding as of October 31, 2025 and January 31, 2025, respectively

—

Class B Common stock, $0.0000025 par value; 250,000 shares authorized; 18,581 and 19,469 shares issued and outstanding as of October 31, 2025 and January 31, 2025, respectively

—

Additional paid-in capital

2,141,732

1,952,031

Accumulated deficit

(1,220,973

)

(1,167,614

)

Accumulated other comprehensive income (loss)

1,956

(8,508

)

Total GitLab stockholders’ equity

922,715

775,909

Noncontrolling interests

45,282

45,397

TOTAL STOCKHOLDERS’ EQUITY

967,997

821,306

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

1,570,839

1,399,263

(1)

As of October 31, 2025 and January 31, 2025, the condensed consolidated balance sheet includes assets of the consolidated variable interest entity, GitLab Information Technology (Hubei) Co., LTD (“JiHu”), of $41.6 million and $46.5 million, respectively, and liabilities of $7.2 million and $10.3 million, respectively. The assets of JiHu can be used only to settle obligations of JiHu and creditors of JiHu do not have recourse against the general credit of GitLab Inc.

GitLab Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2025

2024

2025

2024

Revenue:

Subscription—self-managed and SaaS

223,262

175,257

630,427

489,617

License—self-managed and other

21,091

20,790

64,395

58,201

Total revenue

244,353

196,047

694,822

547,818

Cost of revenue:

Subscription—self-managed and SaaS

25,184

17,170

66,205

47,639

License—self-managed and other

7,037

4,955

19,556

14,632

Total cost of revenue

32,221

22,125

85,761

62,271

Gross profit

212,132

173,922

609,061

485,547

Operating expenses:

Sales and marketing

104,974

95,340

322,144

285,542

Research and development

68,715

61,354

205,613

176,767

General and administrative

50,799

45,960

146,621

146,615

Total operating expenses

224,488

202,654

674,378

608,924

Loss from operations

(12,356

)

(28,732

)

(65,317

)

(123,377

)

Interest income

11,704

12,586

34,077

37,443

Other income (expense), net

(6,334

)

4,799

(17,216

)

5,170

Loss before income taxes

(6,986

)

(11,347

)

(48,456

)

(80,764

)

Provision for (benefit from) income taxes

1,811

(39,152

)

6,595

(65,330

)

Net income (loss)

(8,797

)

27,805

(55,051

)

(15,434

)

Net loss attributable to noncontrolling interest

(521

)

(1,298

)

(1,692

)

(2,216

)

Net income (loss) attributable to GitLab

(8,276

)

29,103

(53,359

)

(13,218

)

Net Income (loss) per share attributable to GitLab Class A and Class B common stockholders:

Basic

(0.05

)

0.18

(0.32

)

(0.08

)

Diluted

(0.05

)

0.17

(0.32

)

(0.08

)

Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders:

Basic

167,407

161,317

165,965

159,756

Diluted

167,407

167,436

165,965

159,756

GitLab Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2025

2024

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss), including amounts attributable to noncontrolling interest

(8,797

)

27,805

(55,051

)

(15,434

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Stock-based compensation expense, net of amounts capitalized

51,682

48,042

161,793

139,263

Change in fair value of acquisition related contingent consideration

—

3,750

Charitable donation of common stock

1,970

2,957

5,496

8,871

Amortization of intangible assets

2,015

2,511

6,050

5,931

Depreciation expense

869

680

2,184

2,361

Amortization of deferred contract acquisition costs

13,478

12,704

40,747

35,650

Net amortization of premiums or discounts on short-term investments

(1,741

)

(3,792

)

(7,346

)

(12,933

)

Unrealized foreign exchange loss (gain), net

2,416

(5,175

)

13,386

(5,443

)

Other non-cash expense, net

231

467

631

768

Changes in assets and liabilities:

Accounts receivable

(23,472

)

(32,883

)

46,315

(31,658

)

Prepaid expenses and other current assets

(7,036

)

(10,847

)

(4,290

)

2,497

Deferred contract acquisition costs

(15,898

)

(14,751

)

(36,328

)

(35,706

)

Other non-current assets

233

1,348

414

851

Accounts payable

(2,302

)

(1,317

)

812

Accrued expenses and other current liabilities

6,140

(219,544

)

1,862

(240,614

)

Accrued compensation and benefits

3,168

(1,913

)

(7,895

)

(8,815

)

Deferred revenue

8,011

19,665

17,500

34,503

Other non-current liabilities

461

(2,985

)

819

(11,068

)

Net cash provided by (used in) operating activities

31,428

(177,028

)

187,099

(127,193

)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of short-term investments

(314,385

)

(240,136

)

(798,283

)

(503,394

)

Proceeds from maturities of short-term investments

241,641

148,763

589,527

524,862

Proceeds from sales of short-term investments

—

1,367

—

Additions to property and equipment

(3,038

)

(1,057

)

(6,854

)

(2,608

)

Payments for business combination, net of cash acquired

—

(20,210

)

Payments for asset acquisition

—

(346

)

—

(7,660

)

Other investing activities

—

457

Net cash used in investing activities

(75,782

)

(92,776

)

(214,243

)

(8,553

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases

8,182

7,822

15,457

17,895

Issuance of common stock under employee stock purchase plan

—

8,404

7,932

Payments for taxes related to net share settlement of equity awards

(529

)

—

(529

)

—

Settlement of acquisition related contingent cash consideration

—

(4,900

)

—

(4,900

)

Net cash provided by financing activities

7,653

2,922

23,332

20,927

Impact of foreign exchange on cash and cash equivalents

(439

)

4,898

394

3,455

Net decrease in cash and cash equivalents

(37,140

)

(261,984

)

(3,418

)

(111,364

)

Cash and cash equivalents at beginning of period

261,371

438,616

227,649

287,996

Cash and cash equivalents at end of period

224,231

176,632

224,231

176,632

GitLab Inc.

Reconciliation of GAAP to Non-GAAP

(in thousands, except per share data)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2025

2024

2025

2024

Gross profit on GAAP basis

212,132

173,922

609,061

485,547

Gross margin on GAAP basis

Stock-based compensation expense

2,300

1,993

6,490

5,924

Amortization of acquired intangibles

2,015

2,511

6,050

5,931

Gross profit on non-GAAP basis

216,447

178,426

621,601

497,402

Gross margin on non-GAAP basis

Sales and marketing on GAAP basis

104,974

95,340

322,144

285,542

Stock-based compensation expense

(17,354

)

(17,012

)

(59,395

)

(54,290

)

Restructuring charges

—

(130

)

—

(1,126

)

Sales and marketing on non-GAAP basis

87,620

78,198

262,749

230,126

Research and development on GAAP basis

68,715

61,354

205,613

176,767

Stock-based compensation expense

(15,560

)

(14,384

)

(49,029

)

(42,834

)

Restructuring charges

—

(393

)

Research and development on non-GAAP basis

53,155

46,970

156,584

133,540

General and administrative on GAAP basis

50,799

45,960

146,621

146,615

Stock-based compensation expense

(16,468

)

(14,653

)

(46,879

)

(36,215

)

Restructuring charges

—

(377

)

Charitable donation of common stock

(1,970

)

(2,957

)

(5,496

)

(8,871

)

Changes in the fair value of acquisition related contingent consideration

—

(3,750

)

Acquisition related expenses

(321

)

(140

)

(661

)

(2,849

)

Other non-recurring charges

(48

)

(872

)

(691

)

(1,084

)

General and administrative on non-GAAP basis

31,992

27,349

92,894

93,469

Loss from operations on GAAP basis

(12,356

)

(28,732

)

(65,317

)

(123,377

)

Stock-based compensation expense

51,682

48,042

161,793

139,263

Amortization of acquired intangibles

2,015

2,511

6,050

5,931

Restructuring charges

—

119

—

1,896

Charitable donation of common stock

1,970

2,957

5,496

8,871

Changes in the fair value of acquisition related contingent consideration

—

3,750

Acquisition related expenses

321

140

661

2,849

Other non-recurring charges

872

691

1,084

Income from operations on non-GAAP basis

43,680

25,909

109,374

40,267

Other income (expense), net on GAAP basis

(6,334

)

4,799

(17,216

)

5,170

Foreign exchange gains (losses), net

2,362

(5,074

)

13,433

(5,556

)

Other non-recurring charges (1)

3,714

171

4,056

517

Other income (expense), net on non-GAAP basis

(258

)

(104

)

273

131

Net income (loss) attributable to GitLab common stockholders on GAAP basis

(8,276

)

29,103

(53,359

)

(13,218

)

Stock-based compensation expense

51,682

48,042

161,793

139,263

Amortization of acquired intangibles

2,015

2,511

6,050

5,931

Restructuring charges

—

119

—

1,896

Charitable donation of common stock

1,970

2,957

5,496

8,871

Changes in the fair value of acquisition related contingent consideration

—

3,750

Acquisition related expenses

321

140

661

2,849

Foreign exchange gains (losses), net

2,362

(5,074

)

13,433

(5,556

)

Income tax adjustment (2)

(10,318

)

(39,696

)

(25,026

)

(77,246

)

Other non-recurring charges (1)

3,762

1,043

4,747

1,601

Net income attributable to GitLab common stockholders on non-GAAP basis

43,518

39,145

113,795

68,141

GAAP net income (loss) per share, basic

(0.05

)

0.18

(0.32

)

(0.08

)

GAAP net income (loss) per share, diluted

(0.05

)

0.17

(0.32

)

(0.08

)

Non-GAAP net income per share, basic

0.26

0.24

0.69

0.43

Non-GAAP net income per share, diluted

0.25

0.23

0.67

0.41

Shares used in per share calculation - basic on GAAP basis

167,407

161,317

165,965

159,756

Effect of dilutive securities

4,324

6,119

5,141

7,637

Shares used in per share calculation - diluted on non-GAAP basis

171,731

167,436

171,106

167,393

(1)

Other non-recurring charges for the three and nine months ended October 31, 2025 includes a $3.5 million indirect tax credit expense related to the JiHu formation, reflecting a change in accounting estimate.

(2)

Income tax adjustment for the three and nine months ended October 31, 2025 primarily reflects an assumed provision for income taxes based on our long-term projected tax rate of 22%, while for the three and nine months ended October 31, 2024 consists primarily of one-time charges associated with the formation of Jihu and BAPA negotiations.

GitLab Inc.

Reconciliation of GAAP Cash Flow from Operating Activities to Adjusted Free Cash Flow

(in thousands)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2025

2024

2025

2024

Computation of adjusted free cash flow (1)

GAAP net cash provided by (used in) operating activities

31,428

(177,028

)

187,099

(127,193

)

Less: Additions to property and equipment

(3,038

)

(1,057

)

(6,854

)

(2,608

)

Add: Income tax payments (refunds) related to BAPA

(1,146

)

187,735

(2,451

)

187,735

Non-GAAP adjusted free cash flow

27,244

9,650

177,794

57,934

(1)

No non-recurring payments related to the formation of JiHu were recorded during the periods presented.