Executive Summary
GitLab delivered a solid Q4 FY2025, capping a year of notable ARR expansion and enhanced profitability in a rapidly evolving DevSecOps and AI-enabled software development market. Q4 revenue rose 29% year over year to $211.4 million, with non-GAAP operating margin of 17.7% and gross margins near 91% as the company scales its SaaS and on-prem offerings. For the full year, revenue grew 31% to $759.2 million, while non-GAAP operating margin reached 10.2% and adjusted free cash flow rose 259% to $120 million, underscoring significant operating leverage as GitLab shifts toward higher-margin, multi-product outcomes. The company highlighted strong enterprise demand for Ultimate, with 50% of ARR from Ultimate and 1,229 customers with $100k+ ARR, including 123 customers with $1 million+ ARR, and a DBNR of 123%. These metrics point to durable expansion and high-value land-and-expand dynamics, particularly as AI-infused products (Duo, Duo Enterprise, Duo Workflow) become more integrated across the software lifecycle. Management articulated a multi-year plan focused on (1) growing new paying customers, especially in mid-market/enterprise, (2) accelerating value realization through expansion motions, and (3) delivering faster innovation in core DevOps, security, and AI areas. The 2026 guidance signals continued growth and margin expansion potential, with revenue guidance of $936–$942 million (~24% YoY), non-GAAP operating income of $109–$114 million, and non-GAAP diluted EPS of $0.68–$0.72. Investors should monitor AI adoption cadence, competitive dynamics in the co-generation space, SSP impacts, and the China/Jihoo-related cost profile as key inputs to the trajectory.Overall, GitLab appears well-positioned to monetize its platform advantage through heightened adoption of Ultimate and Duo offerings, an expanding customer base, and an increasingly AI-enabled product suite.
Key Performance Indicators
QoQ: -80.37% | YoY:115.92%
QoQ: -80.22% | YoY:115.48%
Key Insights
Revenue: Q4 2025 revenue of $211.431 million, up 29% YoY; FY2025 revenue $759.2 million, up 31% YoY.
Gross margin: Q4 gross margin 89.18%; GAAP gross margin aligns with a best-in-class SaaS margin profile; Non-GAAP gross margin 91% (Q4).
Operating profitability: Q4 non-GAAP operating income of $37.4 million (17.7% non-GAAP operating margin); FY2025 non-GAAP operating margin of 10.2% (YoY improvement ~1050 bp).
Net income and EPS: Q4 net income $5.804 million; Q4 diluted EPS $0.0341; FY2025 net i...
Financial Highlights
Revenue: Q4 2025 revenue of $211.431 million, up 29% YoY; FY2025 revenue $759.2 million, up 31% YoY.
Gross margin: Q4 gross margin 89.18%; GAAP gross margin aligns with a best-in-class SaaS margin profile; Non-GAAP gross margin 91% (Q4).
Operating profitability: Q4 non-GAAP operating income of $37.4 million (17.7% non-GAAP operating margin); FY2025 non-GAAP operating margin of 10.2% (YoY improvement ~1050 bp).
Net income and EPS: Q4 net income $5.804 million; Q4 diluted EPS $0.0341; FY2025 net income $58.04? Actually net income for Q4 was $5.804 million; FY2025 net income $0.058? The data shows net income for the quarter; annual net income line is not explicitly provided. Use available quarterly data: net income Q4 $5.804 million; and full-year 2025 net income not stated in the summary—use cash flow strength and margin expansion as health indicators. EPS for Q4 $0.0356; diluted EPS $0.0341.
Cash flow and liquidity: Q4 operating cash flow $63.2 million; capex $1.157 million; free cash flow $62.066 million; cash at end of period $227.649 million; net debt {net cash} of approximately $227.3 million.
ARR and customer metrics: 9,893 customers with ARR ≥$5k (over 95% of ARR); 1,229 customers with $100k+ ARR; 123 customers with $1m+ ARR; DBNR 123%; SaaS represented 29% of total revenue and grew 36% YoY; Total RPO $945 million; CRPO $579.2 million; SaaS gross margin ~91%; top line stability from core DevSecOps platform.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
211.43M |
29.10% |
7.85% |
| Gross Profit |
188.56M |
27.59% |
8.42% |
| Operating Income |
-19.34M |
44.56% |
32.70% |
| Net Income |
5.80M |
115.92% |
-80.37% |
| EPS |
0.04 |
115.48% |
-80.22% |
Key Financial Ratios
operatingProfitMargin
-9.15%
operatingCashFlowPerShare
$0.39
freeCashFlowPerShare
$0.38
priceEarningsRatio
511.02
Management Commentary
- Strategic AI and platform investments: Management emphasizes AI as a multiplier for productivity and a core part of product strategy, with Duo, Duo Enterprise, and Duo Workflow central to the growth story and an autonomous AI agent (Duo Workflow) private beta planned for public beta this summer.
- Strong enterprise momentum: Q4 delivered significant enterprise wins (Barclays, Capgemini, CACI, Zscaler, Delta) and large ARR expansions, with Ultimate accounting for 50% of total ARR and 1k+ ARR >$100k customers; DBNR of 123% highlights robust net retention and expansion.
- Margin and profitability leverage: Q4 non-GAAP operating margin of 17.7% (up 960 bp YoY); FY2025 non-GAAP operating margin 10.2% as GitLab benefits from scale in SaaS (29% of revenue) and disciplined operating expense control.
- Guidance and SSP dynamics: 1Q2026 revenue guide of $212–$213 million (+25–26% YoY) and FY2026 revenue guide of $936–$942 million (+~24% YoY) with non-GAAP net income per share of $0.14–$0.15 for 1Q2026 and $0.68–$0.72 for FY2026; SSP adjustments are expected to have material but managed impact, with a long-term 22% tax rate in FY2026 following the US IP relocation post-BAPA.
- Competitive landscape and differentiation: Leadership highlights GitLab’s platform-wide context, code lifecycle governance, and integrated security/compliance as differentiators against stand-alone code-gen tools; Duo Workflow aims to drive autonomous AI-assisted coding workflows.
- New leadership and GTM evolution: Appointment of Ian Stewart as CRO with a focus on scaling new paying customers, expanding mid-market and enterprise, and accelerating go-to-market motions including inside sales, partnerships, and global expansion.
Q4 was a strong finish in FY2025, with revenue increasing 29% year over year to $211 million and non-GAAP operating margin reaching 18% (up 960 basis points).
— Bill Staples, CEO
We believe organizations won't just have more developers, they'll have more production-ready code generated by AI, and GitLab will be the platform that governs that lifecycle end-to-end, driving value through AI across DevOps, security, and compliance.
— Bill Staples, CEO
Forward Guidance
- revenue trajectory: FY2026 guided range of $936–$942 million implies ~24% YoY growth, signaling continued demand for GitLab’s land-and-expand model across Ultimate, Dedicated, and Duo offerings.
- profitability and margin: 1Q2026 non-GAAP operating income targeted at $21–$22 million; FY2026 non-GAAP operating income $109–$114 million; 1Q margins expected to be flat vs. Q4 due to non-recurring 2025 investments; margin trajectory will hinge on sales capacity investments and R&D for AI features, with ongoing emphasis on operating leverage as SaaS scales.
- tax and SSP considerations: FY2026 tax rate guided at 22% non-GAAP, reflecting IP location shift post-BAPA conclusion; SSP adjustments are incorporated into guidance and are expected to align with prior year's impact.
- key factors investors should monitor: (1) pace of Duo adoption in larger enterprises and the revenue mix shift toward Ultimate and Duo, (2) AI-enabled product adoption (Duo Workflow) and its impact on productivity and stickiness, (3) customer concentration and net expansion in large deals (ARR >$100k and >$1m), (4) potential competitive developments in AI-assisted code generation and DevSecOps tooling, and (5) regulatory and international tax implications including Jehu/Jihoo deconsolidation costs and SSP revisions.
- overall assessment: The guidance reflects a balanced stance—acknowledging macro caution while signaling robust demand for GitLab’s platform, with a path to higher operating leverage via scale, margin expansion, and AI-enabled product adoption. Investors should monitor progress against 2026 targets, ASP movements on new customers, and the velocity of Duo-related upsells to sustain momentum beyond FY2026.