Summary
GitLab closed fiscal 2025 with fourth quarter revenue of $211.4 million, up 29.1% from $163.8 million in the prior-year quarter. Full year revenue reached $759.2 million, up 30.9% from $579.9 million. Growth came from new customers, expansion inside the existing base, and larger enterprise deals. Gross margin slipped to 89.2% in the quarter from 90.2% a year earlier, and full year gross margin was 88.8% versus 89.7%. Management points to a rising mix of SaaS and higher cloud hosting costs as the pressure behind those margins.
The profitability picture improved sharply. The quarter's GAAP operating loss narrowed to $19.3 million from $34.9 million, and operating margin moved to negative 9.1% from negative 21.3%. Net income was $5.8 million, a swing to profit from a $37.97 million loss in the prior-year quarter. For the full year, the net loss narrowed to $6.3 million from $425.7 million, and diluted EPS improved to a loss of $0.04 from a loss of $2.76. Stock-based compensation remains the largest non-cash item, at $185.9 million for the year.
Cash generation was strong in the quarter and weak for the year. Operating cash flow was $63.2 million in the quarter, up 154.4% from $24.85 million. For the full year, operating cash flow was negative $64.0 million, down from positive $35.0 million, largely because of a $187.7 million BAPA tax payment. Capital expenditures were $1.16 million in the quarter. Non-GAAP adjusted free cash flow, a different measure from operating cash flow, was $62.1 million in the quarter and $120.0 million for the year.
Backlog and customer metrics point to durable demand. Deferred revenue, current portion, was $442.6 million, up 30.8%. Total RPO was $945.0 million, up 40.2%, and cRPO grew 35% to $579.2 million. Customers spending more than $5,000 of ARR reached 9,893, up 15%. Customers above $100,000 of ARR reached 1,229, up 29%, and customers above $1 million of ARR rose to 123, up 28%. Dollar-based net retention rate was 123%, down from 130% a year earlier, a sign that expansion within the base is cooling even as new logo additions hold up.
Guidance for the first quarter of fiscal 2026 calls for revenue of $212.0 million to $213.0 million, non-GAAP operating income of $21.0 million to $22.0 million, and non-GAAP diluted net income per share of $0.14 to $0.15. For the full fiscal year 2026, the company guides to revenue of $936 million to $942 million, non-GAAP operating income of $109 million to $114 million, and non-GAAP diluted net income per share of $0.68 to $0.72. The outlook assumes a new 22% long-term non-GAAP projected tax rate tied to the relocation of intellectual property to the United States after the bilateral advance pricing agreement. Management says the rate does not imply higher cash taxes.
There are moving parts beyond the numbers. Ian Steward joins as Chief Revenue Officer effective May 3, 2025, with Ashley Kramer staying through the end of the first quarter to smooth the handoff. David Henshall joined the board and its audit committee. The company also revised prior period financial statements tied to liabilities from the JiHu joint venture in China, covering fiscal 2023 through fiscal 2025. Those revisions did not affect revenue, loss from operations, non-GAAP operating income, or non-GAAP net income. Named risks include competition, security and privacy breaches, customer renewal and expansion trends, the incorporation of AI features, and general economic conditions.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $211.4M | $196.0M | +7.8% | $163.8M | +29.1% |
| Gross profit | $188.6M | $173.9M | +8.4% | $147.8M | +27.6% |
| Gross margin | 89.2% | 88.7% | +0.5 pp | 90.2% | -1.1 pp |
| Research & development | $62.9M | $61.4M | +2.5% | $52.4M | +20.0% |
| Sales & marketing | $98.8M | $95.3M | +3.6% | $90.8M | +8.8% |
| General & administrative | $46.3M | $46.0M | +0.7% | $39.5M | +17.1% |
| Total operating expenses | $207.9M | $202.7M | +2.6% | $182.7M | +13.8% |
| Operating income (loss) | -$19.3M | -$28.7M | +32.7% | -$34.9M | +44.6% |
| Operating margin | -9.2% | -14.7% | +5.5 pp | -21.3% | +12.2 pp |
| Net income (loss) | $5.2M | $28.3M | -81.5% | -$36.5M | +114.3% |
| Net margin | 2.5% | 14.4% | -11.9 pp | -22.3% | +24.7 pp |
| Diluted EPS | $0.03 | $0.18 | -$0.15 | -$0.24 | +$0.27 |
| Net retention rate | 123.0% | 124.0% | -1.0 pp | 130.0% | -7.0 pp |
Risks
Dollar-Based Net Retention Rate declined to 123% as of January 31, 2025 from 130% as of January 31, 2024. Customers may renew for fewer seats, downtier, or fail to purchase additional subscriptions, which could slow revenue growth.
GitLab faces intense competition from well-established providers such as Microsoft and Atlassian, as well as competitors incorporating AI into their offerings. Competitors may offer lower-priced or free products and respond more quickly to new technologies.
GitLab Duo and other AI features face evolving regulations such as the EU Artificial Intelligence Act, which came into effect on August 1, 2024, plus IP infringement claims, privacy concerns, and reliance on third-party AI model vendors. High computing costs for AI systems may also pressure gross margin.
Security and privacy breaches, including AI-related sensitive data exposure, open source supply chain attacks, and third-party processor failures, could lead to litigation, regulatory fines, remediation costs, and reputational harm.
GitLab has a history of losses, with an accumulated deficit of approximately $1.2 billion as of January 31, 2025. Although net loss narrowed to $6.3 million in FY2025 from $425.7 million in FY2024, operating expenses are expected to increase and profitability may not be sustained.
Operating cash flow was negative $64.0 million in FY2025, down from positive $35.0 million in FY2024, partly due to a $187.7 million BAPA tax payment. Failure to maintain positive operating cash flow could harm financial condition.
Changes in tax laws, OECD Pillar 2 global minimum tax, digital services taxes, and BAPA-related tax liabilities could increase GitLab's effective tax rate and cash taxes. The FY2025 effective tax rate was 89.4%.
The Form 10-K reflects identification and correction of certain errors in prior year financial statements. Although the compensation recovery analysis found no recovery required, future control failures or restatements could harm investor confidence.
GitLab's public Handbook and open transparency practices may expose confidential information to competitors or bad actors. Inaccurate or outdated Handbook content could lead to disclosure control failures and securities law violations.
Inflation, volatile interest rates, federal budget and debt ceiling uncertainty, potential government shutdowns, and global banking instability may pressure customer spending, lengthen sales cycles, and make forecasting difficult.
Base Customers grew to 9,893 as of January 31, 2025 from 8,602 as of January 31, 2024, straining management and operational resources. Failure to manage growth could cause deployment delays, cost increases, and inaccurate forecasting.
Gross margin decreased to 88.8% in FY2025 from 89.7% in FY2024. An increasing SaaS mix and AI-related computing costs may further pressure gross margins.
GitLab is and could continue to be subject to securities class action litigation and shareholder derivative suits, which could result in substantial costs, adverse publicity, and diversion of management attention.
SaaS KPIs
All quarters →Dollar-Based Net Retention Rate
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 Q4 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.