Summary
UiPath reported fiscal 2026 first quarter revenue of $356.6 million, up 6% from the prior-year quarter. Gross profit was $292.8 million, up 4.6%. Gross margin slipped 1.4 percentage points to 82.1%. Annualized renewal run-rate, or ARR, reached $1.693 billion as of April 30, 2025, up 12% year over year. Net new ARR was $27 million. The dollar-based net retention rate was 108%, down from 118% a year earlier. The revenue mix kept shifting away from licenses and toward subscription services, and professional services costs rose. UiPath tied part of the licenses decline to the transition to its Flex Offerings.
Profitability improved on a GAAP basis. The operating loss narrowed to $16.4 million, and operating margin improved 10.2 percentage points to -4.6%. The net loss narrowed to $22.6 million, and diluted loss per share narrowed to $0.04. On a non-GAAP basis, operating income was $70 million and non-GAAP operating margin was 20%. Those non-GAAP figures exclude stock-based compensation, amortization of acquired intangibles, employer payroll taxes on equity transactions, restructuring costs, and a charitable donation of Class A common stock. Sales and marketing expense fell as average headcount and stock-based compensation declined. Research and development expense rose as the company put more money into AI and agentic automation. General and administrative expense also came down.
Cash generation held up. Operating cash flow was $119.0 million, up 19% from the prior-year quarter. Non-GAAP adjusted free cash flow was $117 million. Capital expenditures were $12.8 million, up 936.5%, mostly for leasehold improvements. Deferred revenue, current portion, was $530.9 million, up 14.1%. Remaining performance obligations were $1.23 billion, up 11.9%. The balance sheet carried $2,010.4 million of accumulated deficit at April 30, 2025, and the company kept buying back Class A common stock during the quarter.
Product news centered on the launch of the next-generation UiPath Platform for agentic automation. The release includes UiPath Maestro, controlled agency, Agent Builder, integrations with third-party agent frameworks, and UI Agent for computer use. UiPath also launched Test Cloud for software testing, and it announced bi-directional integrations with Microsoft Copilot Studio. The company was named a Leader in the IDC MarketScape Worldwide Business Automation Platforms 2025 Vendor Assessment and a Leader in the Everest Group Intelligent Document Processing Products PEAK Matrix Assessment 2025 for the third consecutive year. That report also positioned UiPath as a Leader in 10 Banking and Financial Services IDP products. Separately, the company announced an AI partnership with Google Cloud for a medical record summarization agent.
Guidance for the second quarter of fiscal 2026 sets ARR of $1.715 billion to $1.720 billion as of July 31, 2025 and non-GAAP operating income of approximately $40 million. For the full fiscal year 2026, the company guided to ARR of $1.820 billion to $1.825 billion as of January 31, 2026 and non-GAAP operating income of approximately $305 million. The company said a reconciliation of non-GAAP operating income guidance to the most directly comparable GAAP measure is not available without unreasonable efforts because of the high variability and low visibility of stock-based compensation and related charges.
Risks remain. The company cited macroeconomic impacts, geopolitical relationships, inflation, interest rates, monetary and trade policy, government efficiency initiatives, and foreign currency fluctuations. A lower value of the U.S. dollar during the quarter drove losses from foreign currency transactions. The Flex Offering transition and heavier SaaS adoption could pressure gross margin through higher hosting and cloud infrastructure costs, and professional services costs rose with third-party subcontractors. The dollar-based net retention rate fell to 108% from 118%. Legal expense related to shareholder litigation increased. The Fiscal Year 2025 Workforce Restructuring is substantially complete, with remaining actions expected by July 31, 2025. The company also faces execution risk around winning new customers, keeping existing ones, growing the platform, shipping new functionality on time, and competing with new market entrants and potentially disruptive technologies.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $356.6M | $423.6M | -15.8% | $335.1M | +6.4% |
| Gross profit | $292.8M | $359.1M | -18.5% | $279.8M | +4.6% |
| Gross margin | 82.1% | 84.8% | -2.7 pp | 83.5% | -1.4 pp |
| Research & development | $94.8M | $99.7M | -4.8% | $85.6M | +10.8% |
| Sales & marketing | $159.7M | $176.8M | -9.7% | $180.1M | -11.4% |
| General & administrative | $54.7M | $49.0M | +11.6% | $63.5M | -13.9% |
| Total operating expenses | $309.2M | $325.5M | -5.0% | $329.3M | -6.1% |
| Operating income (loss) | -$16.4M | $33.6M | -148.8% | -$49.5M | +66.8% |
| Operating margin | -4.6% | 7.9% | -12.5 pp | -14.8% | +10.2 pp |
| Net income (loss) | -$22.6M | $51.8M | -143.5% | -$28.7M | +21.5% |
| Net margin | -6.3% | 12.2% | -18.6 pp | -8.6% | +2.3 pp |
| Diluted EPS | -$0.04 | $0.09 | -$0.13 | -$0.05 | +$0.01 |
| Customers | 258,847 | 10,830 | +2290.1% | 271,816 | -4.8% |
Risks
MD&A's Macroeconomic Environment section cites geopolitical relationships, inflation, interest rates, monetary and trade policy changes, government efficiency initiatives, and foreign currency fluctuations as factors that have disrupted customers, prospective customers, and partners. These conditions may reduce demand for the platform and make results harder to predict.
MD&A reports that other expense, net increased for the three months ended April 30, 2025 compared to the prior-year period, primarily due to an increase in losses from foreign currency transactions as a result of the lower value of the U.S. dollar. It also notes that international pricing in non-functional currencies exposes the company to foreign currency fluctuations.
Dollar-based net retention rate was 108% as of April 30, 2025 compared to 118% as of April 30, 2024, and ARR at April 30, 2025 of $1,692.7 million increased 12% year-over-year with 76% of that growth from existing customers. Slower expansion from existing customers could reduce future revenue growth.
Gross margin was 82.1% for FY2026 Q1, down 1.4 percentage points from FY2025 Q1, due to a lower proportion of higher-margin licenses revenue and an increase in cost of professional services and other revenue, including higher third-party subcontractor costs.
MD&A reports an increase in legal expense related to shareholder litigation for the three months ended April 30, 2025, contributing to the increase in other expense, net compared to the prior-year period.
MD&A states that cash, cash equivalents, and marketable securities are a significant portion of total assets and are sensitive to interest rate changes. Interest income decreased for the three months ended April 30, 2025 compared to the prior-year period due to a lower aggregate balance and decreased interest rates.
SaaS KPIs
All quarters →Dollar-Based Net Retention Rate
ARR
Net New ARR
Non-GAAP Adjusted Free Cash Flow
Non-GAAP Gross Margin
Non-GAAP Operating Margin
Non-GAAP Operating Income
Net Cash Flow from Operations
GAAP Gross Margin
Cash, Cash Equivalents, and Marketable Securities
Summary, forecast, risks and KPIs are extracted from UiPath, 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 2, 2026.