Summary
UiPath's fiscal 2025 third quarter revenue was $354.65 million, up 8.8% year over year. Year-to-date revenue reached $1.01 billion, up 11.4%. Gross profit was $290.89 million for the quarter, up 5.4%, and $823.61 million year to date, up 8.3%. GAAP gross margin was 82.0%, down 2.7 percentage points from the prior-year quarter, and year-to-date gross margin was 81.9%, down 2.3 percentage points. Management pointed to a smaller share of higher-margin licenses revenue and rising subscription services costs, especially third-party hosting and personnel. Subscription services revenue grew while licenses revenue fell, and the company tied part of that shift to the transition to its Flex Offerings.
The bottom line remained negative, though the quarterly loss was smaller than a year earlier. GAAP operating loss was $43.36 million for the quarter, a narrower loss than the prior-year quarter, and quarterly operating margin was negative 12.2%, up 4.9 percentage points. Year to date, the operating loss was $196.18 million, a wider loss than the prior-year period, with operating margin of negative 19.5%. GAAP net loss was $10.66 million for the quarter, a narrower loss than the prior-year quarter, and $125.49 million year to date, a wider loss than the prior-year period. Diluted EPS was negative $0.02 for the quarter, up $0.04, and negative $0.22 year to date, flat against the prior-year period. Non-GAAP operating income was $50 million for the quarter.
Cash trends were uneven. Operating cash flow was $28.07 million for the quarter, down 32.9% year over year, while year-to-date operating cash flow was $174.48 million, up 13.7%. Non-GAAP adjusted free cash flow was $33 million. Capital expenditures were $4.88 million for the quarter, up 614.8%, and $7.53 million year to date, up 111.7%. Deferred revenue was $494.37 million, up 21.8% from the prior-year quarter, and remaining performance obligations were $1.13 billion, up 13.4%. Cash, cash equivalents, and marketable securities totaled $1.6 billion as of October 31, 2024.
On the operating side, ARR was $1.607 billion, up 17% year over year, with net new ARR of $56 million. The dollar-based net retention rate slipped to 113% from 121% at the prior-year period, a sign that expansion within the existing base has cooled. Customer counts above certain spending thresholds still grew: 302 customers carried ARR of at least $1 million, up from 264, and 2,235 customers carried ARR of at least $100,000, up from 1,974. At its FORWARD conference, UiPath previewed Agent Builder, announced an integrated offering with SAP, added Anthropic's Claude 3.5 Sonnet to three products, formed a partnership with Inflection AI, and teamed with Indosat Ooredoo Hutchison to train 100,000 knowledge workers in Indonesia by 2027. The board also approved restructuring actions in July 2024 aimed at streamlining operations and concentrating research and development on artificial intelligence.
Guidance for the fourth quarter of fiscal 2025 covers ARR of $1.669 billion to $1.674 billion as of January 31, 2025 and non-GAAP operating income of approximately $100 million. Management said the focus on execution and product investment should stabilize net new ARR dollars in fiscal 2026 while accelerating growth in non-GAAP adjusted free cash flow. The main risks flagged in the filing are macroeconomic and geopolitical uncertainty, foreign currency swings, interest rate moves, competition from existing and new entrants, reliance on third-party cloud infrastructure, the difficulty of managing growth toward sustained profitability, and the need to attract and retain key personnel. Margin pressure from hosting costs and the mix shift toward subscription services is likely to stay in focus.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $354.7M | $316.3M | +12.1% | $325.9M | +8.8% |
| Gross profit | $290.9M | $252.9M | +15.0% | $276.0M | +5.4% |
| Gross margin | 82.0% | 80.0% | +2.0 pp | 84.7% | -2.7 pp |
| Research & development | $97.0M | $98.4M | -1.5% | $84.5M | +14.7% |
| Sales & marketing | $187.2M | $194.3M | -3.7% | $191.3M | -2.1% |
| General & administrative | $50.1M | $63.5M | -21.1% | $56.0M | -10.6% |
| Total operating expenses | $334.3M | $356.3M | -6.2% | $331.8M | +0.7% |
| Operating income (loss) | -$43.4M | -$103.3M | +58.0% | -$55.8M | +22.3% |
| Operating margin | -12.2% | -32.7% | +20.4 pp | -17.1% | +4.9 pp |
| Net income (loss) | -$10.7M | -$86.1M | +87.6% | -$31.5M | +66.2% |
| Net margin | -3.0% | -27.2% | +24.2 pp | -9.7% | +6.7 pp |
| Diluted EPS | -$0.02 | -$0.15 | +$0.13 | -$0.06 | +$0.04 |
| Customers | 268,075 | 264,618 | +1.3% | 291,671 | -8.1% |
Risks
The market for AI-capable products is rapidly evolving, difficult to predict, and may affect demand, sales cycles, and forecasting. UiPath's significant AI investments may be insufficient, and it faces competition from established competitors and uncertainty over third-party software integration.
UiPath is in a multi-year implementation of a new ERP system with broad scope and significant financial and human capital investment. Delays, unexpected costs, or post-implementation disruptions could impair its ability to record sales, process transactions, collect receivables, and produce timely and accurate financial information, and could harm internal control over financial reporting.
AI algorithms and models may be flawed, and generative AI or training datasets expose UiPath to risks including harmful or illegal content, accuracy, bias, intellectual property infringement, defamation, data privacy, cybersecurity, sanctions, and export controls. Third-party AI could produce false or hallucinatory inferences about customer data, leading to competitive harm or legal liability.
Dollar-based net retention rate decreased to 113% at October 31, 2024 from 121% at October 31, 2023, and incremental ARR decreased to $228.4 million from $268.1 million for the trailing twelve months. Licenses revenue, which is recognized at a point in time, declined 7% in the quarter and 3% year to date, and lengthening sales cycles or increased deal scrutiny could further affect it.
UiPath has invested in an early-stage global foundation model and agentic AI company and may make further equity or debt investments, joint ventures, or strategic partnerships. These investments may require more financial resources than anticipated, fail to produce expected results, or decline in value or become impaired.
Evolving AI rules and industry standards, including the EU AI Act and proposed or enacted U.S. state and federal regulations, may require significant resources to modify, maintain, or align products and business practices. The regulatory environment may also affect UiPath's ability to produce and export products.
UiPath initiated a restructuring plan in July 2024, following an earlier fiscal year 2023 plan completed in the second quarter of fiscal year 2024. The actions may incur substantial costs, reputational and litigation risks, loss of institutional knowledge, attrition beyond intended reductions, lower morale or productivity, and management distraction, and may not achieve expected cost savings.
Gross margin decreased to 82% for the three months ended October 31, 2024 from 85% in the prior-year quarter, and to 82% year to date from 84%, due to a lower proportion of higher-margin licenses revenue and increased subscription services costs from third-party hosting and personnel. As SaaS deployment grows, hosting fees and cloud infrastructure costs may further pressure gross margin.
Macroeconomic conditions, geopolitical relationships, inflation, interest rates, monetary policy, and foreign currency fluctuations could disrupt customers, prospective customers, and partners. Interest income decreased 31% in the quarter and 11% year to date due to lower cash, cash equivalents, and marketable securities balances 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
Summary, forecast, risks and KPIs are extracted from UiPath, 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 2, 2026.