Summary
GitLab Inc (GTLB, Financial), a leading DevSecOps platform, announced its financial results for the first quarter of fiscal year 2026, ending April 30, 2025. The company reported a 27% increase in revenue, reaching $214.5 million, and significant improvements in operating margins and free cash flow. The results highlight the impact of GitLab's AI-native platform in enhancing software development efficiency and security. The press release was issued on June 10, 2025.
Positive Highlights
- Revenue increased by 27% year-over-year to $214.5 million.
- Non-GAAP operating margin improved to 12% from a negative margin in the previous year.
- Record adjusted free cash flow of $104.1 million, up from $37.4 million.
- Significant growth in high-value customers, with a 26% increase in customers with over $100,000 ARR.
- Launch of GitLab 18, featuring enhanced AI capabilities and security features.
Negative Highlights
- GAAP operating loss of $34.6 million, though improved from the previous year's $53.6 million loss.
- GAAP net loss of $35.9 million, compared to $55.2 million in the prior year.
- GAAP gross margin slightly decreased to 88% from 89%.
Financial Analyst Perspective
GitLab's Q1 FY2026 results demonstrate robust revenue growth and improved financial health, driven by its AI-native DevSecOps platform. The company's ability to expand its customer base, particularly among high-value clients, is a positive indicator of its market position. However, the continued GAAP net loss suggests that while operational efficiencies are improving, there is still work to be done to achieve profitability. The strong free cash flow is a significant positive, providing GitLab with the liquidity to invest in further growth and innovation.
Market Research Analyst Perspective
GitLab's performance in Q1 FY2026 underscores the growing demand for integrated DevSecOps solutions that leverage AI to enhance software development processes. The company's strategic focus on AI and security positions it well in a competitive market, as evidenced by its recognition as a leader in the Forrester Waveâ„¢ report. The launch of GitLab 18 and partnerships with major cloud providers like AWS further strengthen its market offering. The increase in ARR and customer retention rates reflects strong customer satisfaction and loyalty.
FAQs
Q: What was GitLab's revenue for Q1 FY2026?
A: GitLab reported a revenue of $214.5 million for Q1 FY2026.
Q: How did GitLab's operating margin change year-over-year?
A: GitLab's non-GAAP operating margin improved to 12% from a negative margin in the previous year.
Q: What are some key features of GitLab 18?
A: GitLab 18 includes major innovations in DevOps workflows, security, compliance processes, and AI capabilities.
Q: What is GitLab's financial outlook for Q2 FY2026?
A: GitLab expects Q2 FY2026 revenue between $226.0 million and $227.0 million, with non-GAAP operating income between $23.0 million and $24.0 million.
Read the original press release here.
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