# GitLab Inc. (GTLB) Q2 2026 Financial Results Summary
On September 3, 2025, GitLab Inc. (NASDAQ: GTLB) announced its financial results for the second quarter of fiscal year 2026, which ended on July 31, 2025. Below is a summary of the key highlights and financial metrics from the report.
## Financial Highlights
– **Total Revenue**
– $236.0 million, up **29%** year-over-year from $182.6 million in Q2 FY 2025.
– **Gross Margin**
– GAAP Gross Margin: **88%** (no change from Q2 FY 2025).
– Non-GAAP Gross Margin: **90%**, down from **91%** in Q2 FY 2025.
– **Operating Margin**
– GAAP Operating Margin: **-8%**, improved from **-22%** year-over-year.
– Non-GAAP Operating Margin: **17%**, up from **10%** in Q2 FY 2025.
– **Operating Loss**
– GAAP Operating Loss: $18.4 million, significantly improved from a loss of $41.0 million in Q2 FY 2025.
– **Net Income (Loss)**
– GAAP Net Loss Attributable to GitLab: $9.2 million, down from a profit of $12.9 million in Q2 FY 2025.
– Non-GAAP Net Income Attributable to GitLab: $40.9 million, compared to $24.5 million in Q2 FY 2025.
– **Net Income (Loss) per Share**
– GAAP Net Loss per Share: **$-0.06**, compared to **$0.08** a year ago.
– Non-GAAP Net Income per Share: **$0.25**, up from **$0.15** in Q2 FY 2025.
– **Cash Flow**
– GAAP Operating Cash Flow: $49.4 million, up from $11.7 million in Q2 FY 2025.
– Non-GAAP Adjusted Free Cash Flow: $46.5 million, significantly increased from $10.8 million a year ago.
– **Annual Recurring Revenue (ARR)**
– Customers with more than $5,000 of ARR: **10,338**, an increase of **11%** year-over-year.
– Customers with more than $100,000 of ARR: **1,344**, an increase of **25%** year-over-year.
– **Retention Rate**
– Dollar-Based Net Retention Rate: **121%**.
– **Remaining Performance Obligations (RPO)**
– Total RPO: **$988.2 million**, up **32%** year-over-year.
– Current RPO: **$621.6 million**, an increase of **31%** compared to the previous year.
## Business Highlights
– **Leadership Changes**
– CFO Brian Robins will step down effective September 19, 2025. James Shen is anticipated to take over as interim CFO, with Simon Mundy promoted to Chief Accounting Officer.
– **Product Development**
– GitLab announced the public beta launch of the GitLab Duo Agent Platform for human-AI collaboration in software development.
– **Strategic Collaborations**
– GitLab signed a three-year strategic agreement with Amazon Web Services (AWS) to enhance GitLab Dedicated offerings for regulated industries.
## Outlook for Q3 FY 2026
– **Revenue Guidance:** Expected between **$238.0 million** and **$239.0 million** for Q3 FY 2026.
– **Non-GAAP Operating Income Guidance:** Expected between **$31.0 million** and **$32.0 million**.
– **Non-GAAP Diluted Net Income per Share Guidance:** Expected between **$0.19** and **$0.20**.
## Dividend and Share Repurchase
– The company did not declare a quarterly dividend nor mention any share repurchase activities in the report.
This summary encapsulates the significant progress GitLab achieved in Q2 FY 2026, highlighting solid revenue growth, improvement in operating margins, and strategic development initiatives as they continue to strengthen their market position.
### Condensed Consolidated Statements of Operations (in thousands, except per share data)
| Three Months Ended July 31, | Six Months Ended July 31, | |||
|---|---|---|---|---|
| Revenue: | 2025 | 2024 | 2025 | 2024 |
| Subscription—self-managed and SaaS | $212,684 | $163,181 | $407,165 | $314,360 |
| License—self-managed and other | $23,276 | $19,403 | $43,304 | $37,411 |
| Total revenue | $235,960 | $182,584 | $450,469 | $351,771 |
| Cost of revenue: | ||||
| Subscription—self-managed and SaaS | $21,753 | $16,630 | $41,021 | $30,469 |
| License—self-managed and other | $6,752 | $4,740 | $12,519 | $9,677 |
| Total cost of revenue | $28,505 | $21,370 | $53,540 | $40,146 |
| Gross profit | $207,455 | $161,214 | $396,929 | $311,625 |
| Operating expenses: | ||||
| Sales and marketing | $109,583 | $97,778 | $217,170 | $190,202 |
| Research and development | $71,488 | $61,273 | $136,898 | $115,413 |
| General and administrative | $44,735 | $43,168 | $95,822 | $100,655 |
| Total operating expenses | $225,806 | $202,219 | $449,890 | $406,270 |
| Loss from operations | -$18,351 | -$41,005 | -$52,961 | -$94,645 |
| Interest income | $11,511 | $12,827 | $22,373 | $24,857 |
| Other income (expense), net | -$911 | $1,260 | -$10,882 | $371 |
| Loss before income taxes | -$7,751 | -$26,918 | -$41,470 | -$69,417 |
| Provision for (benefit from) income taxes | $2,245 | -$39,155 | $4,784 | -$26,178 |
| Net income (loss) | -$9,996 | $12,237 | -$46,254 | -$43,239 |
| Net loss attributable to noncontrolling interest | -$788 | -$675 | -$1,171 | -$918 |
| Net income (loss) attributable to GitLab | -$9,208 | $12,912 | -$45,083 | -$42,321 |
| Net loss per share attributable to GitLab Class A and Class B common stockholders: | ||||
| Basic | -$0.06 | $0.08 | -$0.27 | -$0.27 |
| Diluted | -$0.06 | $0.08 | -$0.27 | -$0.27 |
| Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders: | ||||
| Basic | 165,953 | 159,677 | 165,233 | 158,973 |
| Diluted | 165,953 | 166,346 | 165,233 | 158,973 |
### Condensed Consolidated Balance Sheets (in thousands, except per share data)
| July 31, 2025(1) | January 31, 2025(1) | |
|---|---|---|
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $261,371 | $227,649 |
| Short-term investments | $903,806 | $764,728 |
| Accounts receivable, net of allowance for doubtful accounts of $1,176 and $991 as of July 31, 2025 and January 31, 2025, respectively | $197,775 | $264,565 |
| Deferred contract acquisition costs, current | $35,306 | $38,964 |
| Prepaid expenses and other current assets | $37,912 | $40,411 |
| Total current assets | $1,436,170 | $1,336,317 |
| Property and equipment, net | $7,642 | $4,013 |
| Operating lease right-of-use assets | $393 | $381 |
| Goodwill | $16,634 | $16,139 |
| Intangible assets, net | $13,804 | $17,834 |
| Deferred contract acquisition costs, non-current | $18,961 | $20,142 |
| Other non-current assets | $4,583 | $4,437 |
| TOTAL ASSETS | $1,498,187 | $1,399,263 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $11,395 | $7,519 |
| Accrued expenses and other current liabilities | $52,339 | $54,680 |
| Accrued compensation and benefits | $30,164 | $40,233 |
| Deferred revenue, current | $459,459 | $442,599 |
| Total current liabilities | $553,357 | $545,031 |
| Deferred revenue, non-current | $25,749 | $26,369 |
| Other non-current liabilities | $7,499 | $6,557 |
| TOTAL LIABILITIES | $586,605 | $577,957 |
| STOCKHOLDERS’ EQUITY: | ||
| Preferred stock, $0.0000025 par value; 50,000 shares authorized as of July 31, 2025 and January 31, 2025; no shares issued and outstanding as of July 31, 2025 and January 31, 2025 | $— | $— |
| Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized as of July 31, 2025 and January 31, 2025; 147,834 and 144,444 shares issued and outstanding as of July 31, 2025 and January 31, 2025, respectively | $— | $— |
| Class B Common stock, $0.0000025 par value; 250,000 shares authorized as of July 31, 2025 and January 31, 2025; 18,876 and 19,469 shares issued and outstanding as of July 31, 2025 and January 31, 2025, respectively | $— | $— |
| Additional paid-in capital | $2,080,759 | $1,952,031 |
| Accumulated deficit | -$1,212,697 | -$1,167,614 |
| Accumulated other comprehensive loss | -$1,511 | -$8,508 |
| Total GitLab stockholders’ equity | $866,551 | $775,909 |
| Noncontrolling interests | $45,031 | $45,397 |
| TOTAL STOCKHOLDERS’ EQUITY | $911,582 | $821,306 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $1,498,187 | $1,399,263 |
