Summary
GitLab's first quarter of fiscal 2026 delivered $214.5 million in revenue, up 26.8% from the prior-year quarter. Gross profit rose 26.0% to $189.5 million. Gross margin slipped to 88.3% from 88.9%, a decline of 0.6 percentage points. The operating loss narrowed to $34.6 million from $53.6 million, and operating margin improved to -16.1% from -31.7%, an increase of 15.6 percentage points. Net loss attributable to GitLab narrowed to $35.9 million from $55.2 million. Diluted EPS loss narrowed to $0.22 from $0.35. On a non-GAAP basis, operating income was $26.1 million versus a non-GAAP operating loss of $3.8 million a year earlier. Non-GAAP net income was $29.4 million, and non-GAAP diluted EPS was $0.17. Non-GAAP gross margin was 90%, down from 91%. Non-GAAP operating margin was 12%.
Cash generation stood out. Operating cash flow was $106.3 million, up 178.7% from $38.1 million. Capital expenditures were $0.9 million, up 30.3% from $0.7 million. Non-GAAP adjusted free cash flow was $104.1 million. Deferred revenue reached $450.7 million, up 31.8%. Remaining performance obligations were $955.1 million, up 40.2%. Current RPO was $584.8 million, up 34%. Customer metrics showed expansion. Base Customers with more than $5,000 of ARR increased to 10,104 as of April 30, 2025 from 8,976 as of April 30, 2024, an increase of 13%. Customers with more than $100,000 of ARR increased to 1,288 as of April 30, 2025 from 1,025 as of April 30, 2024, an increase of 26%. Dollar-Based Net Retention Rate was 122%, down from 129%. That decline is a key watch item because it signals slower expansion within the existing customer base. The company also reported more than 50 million registered users and more than 50% of the Fortune 100 as customers.
Operational momentum centered on product and platform. GitLab announced GitLab 18, which adds innovations across core DevOps workflows, security and compliance, and AI capabilities. The company also announced general availability of GitLab Duo with Amazon Q for GitLab Ultimate self-managed customers on AWS. GitLab achieved FedRAMP Moderate Authority to Operate for GitLab Dedicated for Government under GSA sponsorship. It was named a Leader in the Forrester Wave DevOps Platforms, Q2 2025 report. It also received the 2025 Google Cloud Technology Partner of the Year Award in the Application Development and DevOps category for the fifth consecutive year. Management noted that the platform had 163 consecutive months of monthly releases as of April 30, 2025. The company's open-core model had nearly 900 people contribute more than 3,000 merge requests back to the core product in calendar year 2024. These items support the company's push to be an AI-native DevSecOps platform.
Guidance points to continued growth but with a focus on non-GAAP profitability. For the second quarter of fiscal 2026, management guided non-GAAP operating income to $23.0 million to $24.0 million and non-GAAP diluted EPS to $0.16 to $0.17. For the full fiscal year 2026, it guided non-GAAP operating income to $117 million to $121 million and non-GAAP diluted EPS to $0.74 to $0.75. The company did not provide a reconciliation of non-GAAP guidance to GAAP. Risks include intense competition, security and privacy breaches, the ability to manage growth, the future revenue growth rate, achieving and sustaining profitability, the integration of AI features, customer renewals and expansions, and general economic conditions such as inflation, tariffs, interest rates, federal budget uncertainty, capital market volatility, global banking instability, and armed conflict. The lower net retention rate and foreign exchange losses also warrant attention. Management expects research and development expenses to increase on an absolute basis in future periods. It also expects sales and marketing expenses to increase in absolute dollars but decrease as a percentage of total revenue over time. General and administrative expenses are expected to increase in absolute dollars but decrease as a percentage of total revenue over time. The balance sheet remains liquid, which gives GitLab room to invest through the cycle.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $214.5M | $211.4M | +1.5% | $169.2M | +26.8% |
| Gross profit | $189.5M | $188.6M | +0.5% | $150.4M | +26.0% |
| Gross margin | 88.3% | 89.2% | -0.9 pp | 88.9% | -0.6 pp |
| Research & development | $65.4M | $62.9M | +4.0% | $54.1M | +20.8% |
| Sales & marketing | $107.6M | $98.8M | +8.9% | $92.4M | +16.4% |
| General & administrative | $51.1M | $46.3M | +10.4% | $57.5M | -11.1% |
| Total operating expenses | $224.1M | $207.9M | +7.8% | $204.1M | +9.8% |
| Operating income (loss) | -$34.6M | -$19.3M | -79.0% | -$53.6M | +35.5% |
| Operating margin | -16.1% | -9.2% | -7.0 pp | -31.7% | +15.6 pp |
| Net income (loss) | -$36.3M | $5.2M | -793.7% | -$54.6M | +33.6% |
| Net margin | -16.9% | 2.5% | -19.4 pp | -32.3% | +15.4 pp |
| Diluted EPS | -$0.22 | $0.03 | -$0.25 | -$0.35 | +$0.13 |
| Customers | 129 | — | — | 1,025 | -87.4% |
| Net retention rate | 122.0% | 123.0% | -1.0 pp | 129.0% | -7.0 pp |
Risks
GitLab faces intense competition from well-established providers such as Microsoft and Atlassian and from point solutions across code hosting, code collaboration, file storage, distribution, and AI. The filing states competitors may offer products at lower prices or for free, which could pressure pricing and market share.
GitLab has implemented AI capabilities including the GitLab Duo suite, and the filing warns that AI regulations such as the E.U. Artificial Intelligence Act, which came into effect on August 1, 2024, may impose onerous obligations and increase regulatory enforcement and litigation risk. It also cites uncertainty over intellectual property rights in AI-generated content and reliance on third-party AI model vendors.
Gross margin decreased to 88.3% in FY2026 Q1 from 88.9% in FY2025 Q1, down 0.6 pp, and MD&A reports cost of revenue increased 33% to $25.0 million from $18.8 million, driven by $2.8 million higher hosting expenses for SaaS and cloud usage. The filing expects increased cloud-related costs as SaaS mix grows, which may adversely impact gross margins.
Dollar-Based Net Retention Rate decreased to 122% as of April 30, 2025 from 129% as of April 30, 2024, and the filing notes customers may renew for fewer elements, downtier, or decline additional purchases. It also cites limited historical data on free-to-paid conversion and prior discontinuation of lower priced offerings and price increases.
Foreign exchange losses, net increased to $9.954 million in the three months ended April 30, 2025 from $0.785 million in the three months ended April 30, 2024, and total other expense, net increased 1,022% to $9.971 million from $0.889 million. MD&A attributes the increase primarily to revaluation of non-functional currency denominated monetary assets and liabilities.
The filing cites global business and macroeconomic conditions including inflation, tariffs, volatile interest rates, uncertainty with respect to the federal budget and debt ceiling, potential government shutdowns, and volatility of global debt and equity markets. These factors may lengthen sales cycles, delay purchasing decisions, and pressure customer spending.
GitLab had 10,104 Base Customers as of April 30, 2025, up from 8,976 as of April 30, 2024, and the filing states rapid growth places significant strain on management and operational and financial resources. It warns failure to manage growth could cause deployment delays, quality declines, increased costs, and difficulty forecasting revenue.
The DevSecOps platform hosts, processes, stores, and transmits customer proprietary and sensitive data, and the filing expands on AI-related sensitive data exposure such as insufficient data anonymization during training, system misconfiguration, and AI-enabled attacks. A breach could lead to litigation, regulatory enforcement, fines, and reputational harm.
The filing discusses changes in tax laws, OECD Pillar 2 global minimum tax, and digital services taxes, and MD&A notes GitLab paid $187.7 million to satisfy a Dutch tax assessment in October 2024. The effective tax rate increased by approximately 22.9% for the three months ended April 30, 2025 compared to the three months ended April 30, 2024.
GitLab maintains a publicly available Handbook and emphasizes transparency, which the filing says may allow competitors to access information often kept confidential, lead to unintended disclosures, and create Regulation FD compliance and litigation risk.
SaaS KPIs
All quarters →Dollar-Based Net Retention Rate
Customers with more than $100,000 of ARR
Customers with more than $5,000 of ARR
Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total RPO
Non-GAAP Adjusted Free Cash Flow
Current RPO (cRPO)
Summary, forecast, risks and KPIs are extracted from Gitlab Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.