Summary
GitLab's third quarter fiscal 2025 revenue reached $196.0 million, up 31% year over year. Gross profit rose 29.2% to $173.9 million. Gross margin was 88.7%, down from the prior-year quarter. The company still posted an operating loss, but it narrowed to $28.7 million. Net income attributable to GitLab was $29.6 million, or $0.18 per diluted share, compared with a net loss in the prior-year quarter. For the nine months, revenue was $547.8 million, up 31.6%, and the net loss attributable to GitLab was $12.1 million, narrowed from the prior-year period. Diluted EPS for the nine months was negative $0.08.
Cash generation was uneven. Operating cash flow was negative $177.0 million in the quarter, down from the prior-year quarter. The decline included a $187.7 million BAPA-related tax payment. Capital expenditures were $1.1 million, up from the prior-year quarter. Adjusted free cash flow, a non-GAAP measure, was $9.7 million, compared with negative $6.7 million. For the nine months, operating cash flow was negative $127.2 million, down from the prior-year period, while capital expenditures were $2.6 million, up from the prior-year period. Deferred revenue was $383.2 million, up 33.2%. Remaining performance obligations were $811.8 million, up 48%.
Customer metrics showed expansion. Customers with more than $5,000 of ARR reached 9,519, up 16%. Customers with more than $100,000 of ARR reached 1,144, up 31%. Dollar-Based Net Retention Rate was 124%, down from 128%. GitLab was recognized as a Leader in the Gartner Magic Quadrant for DevOps Platforms for the second consecutive year. It announced an integrated offering with AWS that combines GitLab Duo and Amazon Q. Advanced SAST became generally available for GitLab Ultimate customers. The company also named Bill Staples as CEO and board member, with co-founder Sid Sijbrandij moving to executive chair.
Guidance points to continued growth. For the fourth quarter of fiscal 2025, GitLab expects revenue of $205.0 million to $206.0 million. For the full fiscal year 2025, revenue guidance is $753 million to $754 million. Non-GAAP operating income is guided to $28.0 million to $29.0 million for the fourth quarter and $69 million to $70 million for the full fiscal year. Non-GAAP diluted net income per share is expected to be $0.22 to $0.23 for the fourth quarter and $0.63 to $0.64 for the full fiscal year, assuming approximately 170 million and 168 million weighted average shares outstanding, respectively. The company did not provide a reconciliation of non-GAAP guidance to GAAP because certain items are out of its control or cannot be reasonably predicted.
Risks remain. GitLab cited intense competition, the need to manage growth, security and privacy breaches, customer renewals and expansions, rapid technological changes, and the incorporation of artificial intelligence features into its products. It also flagged general economic conditions, including inflation, interest rates, and market volatility. On taxes, the company said it maintains a full valuation allowance against deferred tax assets in certain jurisdictions. It executed BAPA agreements with U.S. and Dutch tax authorities in October 2024 and paid the related Dutch tax assessment. Management believes existing cash, cash equivalents, and short-term investments will support working capital and capital expenditure requirements for at least the next 12 months.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $196.0M | $182.6M | +7.4% | $149.7M | +31.0% |
| Gross profit | $173.9M | $161.2M | +7.9% | $134.6M | +29.2% |
| Gross margin | 88.7% | 88.3% | +0.4 pp | 89.9% | -1.2 pp |
| Research & development | $61.4M | $61.3M | +0.1% | $49.1M | +25.1% |
| Sales & marketing | $95.3M | $97.8M | -2.5% | $87.0M | +9.6% |
| General & administrative | $46.0M | $43.2M | +6.5% | $38.8M | +18.4% |
| Total operating expenses | $202.7M | $202.2M | +0.2% | $174.9M | +15.9% |
| Operating income (loss) | -$28.7M | -$41.0M | +29.9% | -$40.3M | +28.6% |
| Operating margin | -14.7% | -22.5% | +7.8 pp | -26.9% | +12.2 pp |
| Net income (loss) | $28.3M | $12.3M | +130.3% | -$285.2M | +109.9% |
| Net margin | 14.4% | 6.7% | +7.7 pp | -190.5% | +204.9 pp |
| Diluted EPS | $0.18 | $0.08 | +$0.10 | -$1.84 | +$2.02 |
| Customers | 1,144 | 129 | +786.8% | 874 | +30.9% |
| Net retention rate | 124.0% | 126.0% | -2.0 pp | 128.0% | -4.0 pp |
Risks
GitLab has implemented AI capabilities including the GitLab Duo suite, but these technologies are in early commercial use and face a nascent regulatory environment. The E.U. Artificial Intelligence Act effective August 1, 2024 may impose onerous obligations, and reliance on third-party AI model vendors could disrupt feature availability.
GitLab faces intense competition from well-established providers such as Microsoft and Atlassian, as well as point solutions and AI offerings. Competitors may undercut pricing or bundle competing products for free, which could reduce sales and margins.
Dollar-Based Net Retention Rate was 124% as of October 31, 2024, compared with 128% as of October 31, 2023. Customers may renew for fewer seats, downtier, or churn, and GitLab has limited historical data on uptiering and downtiering trends.
The DevSecOps Platform is built using open-source technology and incorporates substantial open source code, creating supply-chain cyber attack exposure. GitLab has previously been and may in the future become a target of cyber attacks.
Operating cash flow was negative $127.2 million for the nine months ended October 31, 2024, down from positive $10.2 million for the nine months ended October 31, 2023, primarily due to the $187.7 million BAPA payment. Failure to maintain positive operating cash flow could harm financial condition.
Gross margin decreased by 1% to 89% for the three months ended October 31, 2024 from 90% for the three months ended October 31, 2023. As SaaS makes up an increasing percentage of revenue, cloud hosting and AI computing costs may further pressure gross margins.
GitLab maintains a publicly available Handbook and emphasizes transparency, which may let competitors access innovations or bad actors misuse information. Inaccurate or outdated Handbook content could lead to disclosure control failures and securities law violations.
GitLab has implemented user limits on its free SaaS product and plans storage and transfer limitations, which may cause free users to decline or fail to convert to paid offerings. Converting free users may require increasingly costly sales efforts.
Macroeconomic conditions including inflation, volatile interest rates, federal budget uncertainty, and potential government shutdowns may lengthen sales cycles and delay purchasing decisions. GitLab also cites the length and complexity of sales cycles as a competitive factor.
GitLab executed BAPA agreements with U.S. and Dutch tax authorities and paid a $187.7 million tax assessment in the nine months ended October 31, 2024. Changes in tax laws, including OECD Pillar 2, could increase its effective tax rate and cash tax obligations.
GitLab is and could continue to be subject to securities class action litigation, which could result in substantial costs, adverse publicity, and diversion of management attention. The company references pending legal proceedings in Part II, Item 1.
Global business and macroeconomic conditions, including inflation, volatile interest rates, banking sector instability, and armed conflicts, may reduce customer spending and demand for The DevSecOps Platform. These conditions may also make it difficult to forecast sales and operating results.
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 Operating Margin
Total RPO
Non-GAAP Adjusted Free Cash Flow
cRPO
Summary, forecast, risks and KPIs are extracted from Gitlab Inc.'s SEC filings for Q3 FY2025 (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.