Summary
GitLab closed fiscal 2026 with $260.4 million in fourth-quarter revenue, up 23.2% year over year. Full-year revenue reached $955.2 million, up 25.8%. The top line grew faster than gross profit. Fourth-quarter gross profit was $225.4 million, up 19.5%, and full-year gross profit was $834.5 million, up 23.8%. Gross margin slipped to 86.6% in the quarter, down 2.6 percentage points. For the full year, gross margin was 87.4%, down 1.4 percentage points. Management expects cloud-related costs to pressure gross margins as SaaS and Duo Agent Platform offerings become a larger part of revenue.
Operating loss narrowed. Fourth-quarter GAAP operating loss was $5.2 million, and the loss narrowed from the prior-year quarter. Full-year operating loss was $70.5 million, and that loss also narrowed. Operating margin improved to negative 2.0% in the quarter, up 7.2 percentage points, and to negative 7.4% for the full year, up 11.4 percentage points. Net income turned negative. Fourth-quarter net loss attributable to GitLab was $2.6 million, a swing to a loss from the prior-year quarter. Full-year net loss attributable to GitLab was $56.0 million, and the loss widened. Diluted EPS for the full year was -$0.34, and the loss widened.
Cash generation was mixed. Fourth-quarter operating cash flow was $45.8 million, down 27.6% from the prior-year quarter. Full-year operating cash flow was $232.9 million, up from negative operating cash flow in the prior year. Capital expenditures were $3.97 million in the quarter, up 243.4%, and $10.83 million for the full year, up 187.6%. Fourth-quarter deferred revenue, current portion, was $545.1 million, up 23.2% from the prior-year quarter. Fourth-quarter remaining performance obligations were $1.14 billion, up 20.2%. Non-GAAP adjusted free cash flow was $41.8 million in the quarter and $219.6 million for the full year.
Customer metrics showed expansion. Customers with more than $5,000 of ARR reached 10,682, up 8% year over year. Customers with more than $100,000 of ARR reached 1,456, up 18%. Customers with more than $1 million of ARR reached 155, up 26%. Dollar-Based Net Retention Rate was 118%. cRPO grew 24% to $719.4 million. The company launched the GitLab Duo Agent Platform and introduced GitLab Credits, a usage-based pricing model. GitLab also appointed Jessica Ross as CFO and Siva Padisetty as CTO. The board authorized a $400 million share repurchase program. Non-GAAP operating margin was 21% in the quarter and 17% for the full year. Non-GAAP net income attributable to GitLab was $51.7 million in the quarter and $165.5 million for the full year.
For the first quarter of fiscal 2027, GitLab guides to non-GAAP operating income of $32.0 million to $34.0 million. For the full fiscal year 2027, the company guides to non-GAAP operating income of $129 million to $137 million. Non-GAAP diluted net income per share guidance is $0.20 to $0.21 for the first quarter and $0.76 to $0.80 for the full year. Risks include intense competition, security and privacy breaches, the ability to manage growth, the ability to achieve and sustain profitability, rapid technological changes, customers staying on free offerings, and general economic conditions such as inflation, tariffs, regulatory uncertainty, and volatile capital markets.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $260.4M | $244.4M | +6.6% | $211.4M | +23.2% |
| Gross profit | $225.4M | $212.1M | +6.3% | $188.6M | +19.5% |
| Gross margin | 86.6% | 86.8% | -0.2 pp | 89.2% | -2.6 pp |
| Research & development | $69.0M | $68.7M | +0.4% | $62.9M | +9.7% |
| Sales & marketing | $112.6M | $105.0M | +7.2% | $98.8M | +14.0% |
| General & administrative | $49.0M | $50.8M | -3.5% | $46.3M | +6.0% |
| Total operating expenses | $230.6M | $224.5M | +2.7% | $207.9M | +10.9% |
| Operating income (loss) | -$5.2M | -$12.4M | +58.2% | -$19.3M | +73.3% |
| Operating margin | -2.0% | -5.1% | +3.1 pp | -9.2% | +7.2 pp |
| Net income (loss) | -$3.5M | -$8.8M | +60.1% | $5.2M | -167.2% |
| Net margin | -1.4% | -3.6% | +2.3 pp | 2.5% | -3.8 pp |
| Diluted EPS | -$0.02 | -$0.05 | +$0.03 | $0.03 | -$0.05 |
| Net retention rate | 118.0% | 119.0% | -1.0 pp | 123.0% | -5.0 pp |
Risks
Advances in AI may enable rapid, low-cost development of software applications, intensifying competition from well-established providers such as Microsoft and Atlassian and other point-solution vendors. The filing also cites increased AI adoption as a factor that could slow revenue growth or reduce demand for The DevSecOps platform.
Dollar-Based Net Retention Rate was 118% as of January 31, 2026, compared with 123% as of January 31, 2025 and 130% as of January 31, 2024. MD&A attributes revenue growth partly to expansion within existing paid customers, so a lower retention rate could pressure future growth.
Gross margin decreased to 87% for fiscal year 2026 from 89% for fiscal year 2025, and cost of revenue increased 42% to $120.7 million. MD&A expects increased cloud-related costs as SaaS and Duo Agent Platform offerings make up a larger share of revenue, which may adversely impact gross margins.
Many AI features rely on third-party vendors for the underlying AI models. If those vendors face service disruption, change terms adversely, are subject to regulatory or national security actions, or cease providing access, GitLab's ability to provide AI-powered features may be adversely affected.
The company is implementing a usage or consumption billing model, which it says makes it increasingly difficult to predict revenue and timing of collections. Changes in the mix of annual, multi-year, and other transactions could impair revenue projections and operating results.
The filing expands cybersecurity risk to include AI-specific attack vectors, AI-enabled social engineering, automated vulnerability exploitation, and agentic AI that industrializes attacks. Because code is executed on GitLab infrastructure, the company faces heightened security risks beyond standard SaaS providers.
Net loss attributable to GitLab widened to $56.0 million for fiscal year 2026 from $6.3 million for fiscal year 2025, and the company had an accumulated deficit of approximately $1.2 billion as of January 31, 2026. Operating loss narrowed to $70.5 million for fiscal year 2026 from $142.7 million for fiscal year 2025.
AI and machine learning regulations are increasing, and unresolved intellectual property rights in AI-generated content have led to more litigation. GitLab Duo AI features process personal data subject to GDPR, CCPA, and similar laws, creating regulatory investigation and fine exposure.
The OBBBA enacted in July 2025 and OECD Pillar 2 global minimum tax changes could increase GitLab's worldwide effective tax rate and non-income taxes. MD&A reports the effective tax rate decreased by approximately 111.2% for fiscal year 2026 compared to fiscal year 2025, partly due to the prior-year BAPA benefit.
GitLab's public Handbook and transparency practices may expose confidential information to competitors or bad actors, and inaccurate or outdated Handbook content could lead to disclosure control failures or Regulation FD issues. This is a company-specific risk tied to its all-remote open-source operating model.
SaaS KPIs
All quarters →Dollar-Based Net Retention Rate
Total RPO
Current RPO (cRPO)
Summary, forecast, risks and KPIs are extracted from Gitlab Inc.'s SEC filings for Q4 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 2, 2026.