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GitLab Q2 revenue rises 21% to $286M amid GAAP loss

Filing Impact
(High)
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(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

GitLab Inc. (GTLB) reported second quarter fiscal 2027 results with revenue of $286.3 million, up 21% year-over-year, driven by subscription and license growth. GAAP results showed a net loss of $36.8 million and a GAAP operating margin of (20)%, while non-GAAP operating margin was 15% with non-GAAP net income of $42.1 million.

Operating cash flow was $(3.1) million and non-GAAP adjusted free cash flow was $9.8 million, both down versus the prior year period. GitLab reported a Dollar-Based Net Retention Rate of 117%, total RPO of $1.2 billion, current RPO of $744.7 million, and repurchased about 3.5 million shares in the quarter.

For Q3 FY 2027, GitLab expects revenue of $281–$283 million and non-GAAP operating income of $35–$37 million. For full-year FY 2027, it guides to revenue of $1.129–$1.133 billion and non-GAAP diluted EPS of $0.85–$0.87. The company also disclosed that Chief Accounting Officer Simon Mundy will resign effective September 16, 2026, with CFO Jessica Ross assuming the additional role of principal accounting officer.

Positive

  • Revenue grew 21% year-over-year to $286.3 million, indicating continued top-line expansion.
  • Non-GAAP operating income reached $42.6 million with a 15% non-GAAP operating margin, reflecting profitable operations on a non-GAAP basis.
  • Dollar-Based Net Retention Rate was 117%, showing meaningful expansion within the existing customer base.
  • Total RPO of $1.2 billion and cRPO of $744.7 million provide visibility into future recurring revenue.
  • GitLab repurchased approximately 3.5 million shares during the quarter, returning capital to shareholders.
  • FY 2027 guidance calls for $1.129–$1.133 billion in revenue and $0.85–$0.87 non-GAAP diluted EPS, implying ongoing scale with non-GAAP profitability.

Negative

  • GAAP net loss widened to $36.8 million from $9.2 million a year earlier, and GAAP operating margin declined from (8)% to (20)%.
  • GAAP operating cash flow swung to $(3.1) million from $49.4 million, and non-GAAP adjusted free cash flow declined to $9.8 million from $46.5 million.
  • GAAP gross margin fell to 84% from 88%, and non-GAAP gross margin decreased to 86% from 90%, indicating higher cost of revenue.
  • Stock-based compensation was $75.0 million in the quarter, a substantial non-cash expense impacting GAAP profitability.

Filing Explained

The quarter included a $104,637 thousand share-repurchase cash outflow and $19,422 thousand of restructuring charges.

Form 8-K filings report specified material events; here, GitLab furnished results for the quarter ended July 31, 2026 and reported a completed repurchase of approximately 3.5 million shares, with $104,637 thousand used in financing activities.

The filing records $19,422 thousand of restructuring charges for the quarter, primarily severance and related benefits, retention costs, and asset write-downs tied to the restructuring announced in May 2026.

GitLab’s reconciliation excludes those charges from non-GAAP operating income and net income, so the reported $42,566 thousand of non-GAAP operating income appears alongside a GAAP operating loss of $56,935 thousand.

At July 31, 2026, the balance sheet listed $226,491 thousand in cash and cash equivalents and $1,030,495 thousand in short-term investments.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Revenue Q2 FY 2027 $286.3 million Quarter ended July 31, 2026; 21% year-over-year increase
GAAP net loss Q2 FY 2027 $36.8 million Net loss attributable to GitLab, compared with $9.2 million in Q2 FY 2026
Non-GAAP net income Q2 FY 2027 $42.1 million Net income attributable to GitLab on a non-GAAP basis
GAAP operating margin Q2 FY 2027 (20)% Down from (8)% in Q2 FY 2026
Non-GAAP operating margin Q2 FY 2027 15% Versus 17% in Q2 FY 2026
GAAP operating cash flow Q2 FY 2027 $(3.1) million Compared with $49.4 million in Q2 FY 2026
Total RPO $1.2 billion Total remaining performance obligations, up 16% year-over-year
Share repurchases in quarter 3.5 million shares Approximate number of shares GitLab repurchased in Q2 FY 2027
Dollar-Based Net Retention Rate financial
"Dollar-Based Net Retention Rate was 117%."
Dollar-based net retention rate measures how much recurring revenue a company keeps and grows from its existing customers over a set period, after accounting for upgrades, downgrades, and churn. Think of it like checking whether a group of current customers are spending more, the same, or less this year compared with last year; investors use it as a thermometer for revenue health and the business’s ability to expand sales without finding new customers.
Remaining performance obligations financial
"Total RPO grew 16% year-over-year to $1.2 billion, while cRPO grew 20%."
Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.
non-GAAP operating margin financial
"GAAP operating margin of (20)%; non-GAAP operating margin of 15%."
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
adjusted free cash flow financial
"Non-GAAP adjusted free cash flow of $9.8 million."
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
bilateral advance pricing agreement financial
"non-recurring income tax adjustment related to bilateral advance pricing agreement (“BAPA”) negotiations"
Revenue $286.3 million 21% year-over-year increase from $236.0 million
GAAP net loss attributable to GitLab $36.8 million Increased loss from $9.2 million in Q2 FY 2026
Non-GAAP net income attributable to GitLab $42.1 million Up from $40.9 million in Q2 FY 2026
GAAP operating margin (20)% Down from (8)% in Q2 FY 2026
Non-GAAP operating margin 15% Down from 17% in Q2 FY 2026
GAAP net cash provided by operating activities $(3.1) million Down from $49.4 million in Q2 FY 2026
Guidance

For Q3 FY 2027, GitLab expects revenue of $281–$283 million, non-GAAP operating income of $35–$37 million, and non-GAAP diluted EPS of $0.19–$0.20. For FY 2027, it expects revenue of $1.129–$1.133 billion, non-GAAP operating income of $148–$152 million, and non-GAAP diluted EPS of $0.85–$0.87.

FAQ

How did GitLab (GTLB) perform financially in Q2 FY 2027?
GitLab reported Q2 FY 2027 revenue of $286.3 million, up 21% year-over-year. GAAP net loss was $36.8 million, while non-GAAP net income was $42.1 million. GAAP operating margin was (20)% and non-GAAP operating margin was 15%.

What were GitLab (GTLB)’s cash flow results for Q2 FY 2027?
In Q2 FY 2027, GitLab generated GAAP operating cash flow of $(3.1) million, compared with $49.4 million a year earlier. Non-GAAP adjusted free cash flow was $9.8 million, down from $46.5 million in the prior-year quarter.

What guidance did GitLab (GTLB) provide for Q3 FY 2027?
For Q3 FY 2027, GitLab expects revenue of $281–$283 million and non-GAAP operating income of $35–$37 million. It guides to non-GAAP diluted EPS of $0.19–$0.20, assuming about 172 million weighted average diluted shares.

What is GitLab (GTLB)’s full-year FY 2027 outlook?
For FY 2027, GitLab expects revenue of $1.129–$1.133 billion and non-GAAP operating income of $148–$152 million. It projects non-GAAP diluted EPS of $0.85–$0.87, based on approximately 172 million weighted average diluted shares.

How strong is GitLab (GTLB)’s customer and backlog profile?
GitLab reported a Dollar-Based Net Retention Rate of 117%. Customers with over $5,000 ARR reached 11,114 (up 8% year-over-year), and customers with over $100,000 ARR reached 1,571 (up 17%). Total RPO was $1.2 billion, with cRPO at $744.7 million.

Did GitLab (GTLB) repurchase any shares in Q2 FY 2027?
Yes. GitLab repurchased approximately 3.5 million shares during Q2 FY 2027. This activity appears in its financing cash flows, where common stock repurchased totaled $154.7 million for the six months ended July 31, 2026.

What leadership change did GitLab (GTLB) announce?
GitLab disclosed that Chief Accounting Officer Simon Mundy will resign effective September 16, 2026 to pursue an external opportunity. CFO Jessica Ross will also serve as the company’s principal accounting officer, with no additional compensation for the added role.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0001653482FALSE00016534822026-08-282026-08-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________________ 
FORM 8-K
______________________________  
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 28, 2026
______________________________
GITLAB INC.
(Exact name of Registrant as Specified in Its Charter)
____________________________________ 
Delaware001-4089547-1861035
(State or Other Jurisdiction of Incorporation)(Commission File Number)(IRS Employer Identification No.)
Address Not Applicable1
Zip Code Not Applicable1
(Address of Principal Executive Offices)(Zip Code)
 Registrant’s Telephone Number, Including Area Code: Not Applicable
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading
Symbol(s)
Name of each exchange on which registered
Class A Common Stock, par value $0.0000025 per shareGTLB
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
__________________________
1 We are a remote-only company. Accordingly, we do not maintain a headquarters. For purposes of compliance with applicable requirements of the Securities Act and Securities Exchange Act of 1934, as amended, any stockholder communication required to be sent to our principal executive offices may be directed to the agent for service of process at Corporation Service Company, 251 Little Falls Drive, Wilmington, Delaware 19808, or to the email address: reach.gitlab@gitlab.com.


Item 2.02 Results of Operations and Financial Condition.
On September 1, 2026, GitLab Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended July 31, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is furnished herewith as Exhibit 99.1. The Company also announced that it would hold a conference call to discuss its financial results for the fiscal second quarter ended July 31, 2026.
The Company makes reference to non-GAAP financial information in the Company’s press release and the webcast call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.
The information contained herein, including the accompanying Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officer; Compensatory Arrangements of Certain Officers.

On August 28, 2026, Simon Mundy, the Chief Accounting Officer and “principal accounting officer” of GitLab Inc. (the “Company”), notified the Company of his decision to resign from his position in order to pursue an opportunity outside of the Company, effective as of September 16, 2026 (the “Effective Date”). Mr. Mundy’s decision to resign was not the result of any disagreement with the Company regarding its financial reporting, accounting practices, or internal controls. The Company thanks Mr. Mundy for his contributions and wishes him well in his future endeavors.
In connection with Mr. Mundy’s resignation, on August 31, 2026, the Company’s Board of Directors appointed Jessica Ross, the Company’s Chief Financial Officer, to assume the additional role of the Company’s “principal accounting officer”, effective as of the Effective Date. For biographical information with respect to Ms. Ross, see the information under the heading, “Executive Officers” in the Company’s definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission on May 1, 2026, which information is incorporated herein by reference.
Ms. Ross will not receive any additional compensation in connection with her assumption of the role of “principal accounting officer”.
Item 7.01 Regulation FD Disclosure.
On September 1, 2026, the Company posted supplemental investor materials on the Investors Relations section of its website, available at ir.gitlab.com. The Company announces material information to the public through filings with the Securities and Exchange Commission, the investor relations page on the Company’s website, press releases, public conference calls, webcasts, the Company’s X (Twitter) account (@gitlab), the Company’s Facebook page, the Company’s LinkedIn page, the Company’s news site, available at https://about.gitlab.com/press/, and blog posts on the Company’s corporate blog at https://about.gitlab.com/blog/ in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.
The information disclosed by the foregoing channels could be deemed to be material information. As such, the Company encourages investors, the media and others to follow the channels listed above and to review the information disclosed through such channels.
Any updates to the list of disclosure channels through which the Company announces information will be posted on the investor relations page on the Company’s website.
Forward-Looking Statements
This current report on Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views


with respect to, among other things: its operations, including the plan to implement a global workforce reduction and restructuring of the Company’s operations and the plan’s expected impact; its financial performance; its industry and its business. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believe(s),” “expect(s),” “potential,” “continue(s),” “may,” “will,” “should,” “could,” “would,” “seek(s),” “predict(s),” “intend(s),” “trends,” “plan(s),” “estimate(s),” “anticipate(s),” “projection,” “will likely result” and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to those described under “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended January 31, 2026 filed with the SEC as such factors may be updated from time to time in the Company’s periodic filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company’s filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.Description
99.1
Press Release dated September 1, 2026.
104Cover Page Interactive Data File (formatted as Inline XBRL).


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GitLab Inc.
Dated: September 1, 2026
By: /s/ Jessica Ross
Jessica Ross
Chief Financial Officer

gitlablogoa.jpg
Exhibit 99.1
GitLab Reports Second Quarter Fiscal Year 2027 Financial Results


Second Quarter Fiscal Year 2027 Highlights:
•Total revenue of $286.3 million, up 21% year-over-year
•GAAP operating margin of (20)%; non-GAAP operating margin of 15%
•Operating cash flow of $(3.1) million and non-GAAP adjusted free cash flow of $9.8 million

San Francisco (September 1, 2026) -All-Remote-GitLab Inc. (NASDAQ: GTLB), the intelligent orchestration platform for DevSecOps, today reported financial results for its second quarter fiscal year 2027, ended July 31, 2026.

“Q2 was an exceptional quarter, with record gross bookings and net ARR growth exceeding 40% year over year,” said Bill Staples, GitLab Chief Executive Officer. “As AI drives more software creation and more work through the development lifecycle, the context, security, governance and control GitLab provides become increasingly valuable. We believe this creates a significant opportunity for GitLab as humans and agents increasingly build software together.”

“I am proud of our team’s performance, which delivered revenue growth of 21% and continued improvement across the business,” said Jessica Ross, GitLab Chief Financial Officer. “We saw sequential acceleration in dollar-based net retention and meaningful operating leverage, reflecting the strength of our execution and the increasing scalability of our model. These results demonstrate the durability of our growth opportunity and our ability to create long-term value.”

GitLab posted a letter on the Investor Relations section of its website at https://ir.gitlab.com/ to capture additional information about the company’s strategic investments that are designed to drive durable revenue growth.

Business Highlights:

•Introduced a new commercial model with GitLab Flex to give customers one annual commitment covering platform seats, GitLab Credits, and new eligible capabilities as they become available, with monthly reservations that can be reshaped as needs change without contract amendments.
•Launched GitLab Secrets Manager, which is now available as a usage-based add-on for Premium and Ultimate customers on GitLab.com, to make credentials easier to rotate and less likely to leak while bringing them under the same permissions and audit trail as the code that uses them.
•Expanded context for AI agents with GitLab Orbit, available in public beta, by connecting code, work items, pipelines, deployments, and production signals into a unified context graph, helping agents respond up to 11x faster with up to 45x fewer hallucinations in internal testing.
•Recognized as a Leader in the Gartner® Magic Quadrant™ for DevSecOps Platforms1 for the fourth consecutive year, reinforcing the value of a unified platform that gives enterprises speed with control across the software lifecycle.
•Quantified the potential business value of GitLab Duo Agent Platform through an independent Forrester Consulting Total Economic Impact™ study, which found organizations can achieve a 400% return on investment and $7.5 million in net present value (NPV) over three years, with payback in under six months.

1 Gartner, Magic Quadrant for DevSecOps Platforms, Keith Mann, Thomas Murphy, Bill Holz, June 15, 2026. Gartner and Magic Quadrant are trademarks of Gartner, Inc., and/or its affiliates.


Second Quarter Fiscal Year 2027 Financial Highlights (in millions, except per share data and percentages):
Q2 FY 2027
Q2 FY 2026
Y/Y Change
Revenue$286.3 $236.0 21 %
GAAP Gross margin84 %88 %
Non-GAAP Gross margin86 %90 %
GAAP Operating margin(20)%(8)%
Non-GAAP Operating margin15 %17 %
GAAP Operating loss$(56.9)$(18.4)$(38.5)
Non-GAAP Operating income$42.6 $39.6 $3.0 
GAAP Net loss attributable to GitLab$(36.8)$(9.2)$(27.6)
Non-GAAP Net income attributable to GitLab$42.1 $40.9 $1.2 
GAAP Net loss per share attributable to GitLab, basic$(0.22)$(0.06)$(0.16)
GAAP Net loss per share attributable to GitLab, diluted$(0.22)$(0.06)$(0.16)
Non-GAAP Net income per share attributable to GitLab, basic$0.25 $0.25 $— 
Non-GAAP Net income per share attributable to GitLab, diluted$0.24 $0.24 $— 
GAAP net cash provided by operating activities$(3.1)$49.4 $(52.5)
Non-GAAP adjusted free cash flow$9.8 $46.5 $(36.7)
A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled “Non-GAAP Financial Measures.”
Additional Second Quarter Fiscal Year 2027 Financial Highlights:

•First Order growth of more than 100% year on year.
•Customers with more than $5,000 of ARR reached 11,114, an increase of 8% year-over-year.
•Customers with more than $100,000 of ARR reached 1,571, an increase of 17% year-over-year.
•Dollar-Based Net Retention Rate was 117%.
•Total RPO grew 16% year-over-year to $1.2 billion, while cRPO grew 20% to $744.7 million.
•In the quarter, GitLab repurchased approximately 3.5 million shares.

Third Quarter and Fiscal Year 2027 Financial Outlook

For the third quarter and fiscal year 2027, GitLab Inc. expects (in millions, except share and per share data):
Q3 FY 2027 GuidanceFY 2027 Guidance
Revenue$281 - $283$1,129 - $1,133
Non-GAAP operating income$35 - $37$148 - $152
Non-GAAP diluted net income per share assuming approximately 172 million and 172 million weighted average shares outstanding during Q3 FY 2027 and FY 2027, respectively.$0.19 - $0.20$0.85 - $0.87
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below in Non-

GAAP Financial Measures. We have not provided the most directly comparable GAAP financial guidance measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP guidance for operating income (loss) and net income (loss) per share to the corresponding GAAP measures is not available.

Conference Call Information

GitLab will host a conference call today, September 1, 2026, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its second quarter fiscal year 2027 financial results and its guidance for the third quarter and full fiscal year 2027. Interested parties may register for the call in advance by visiting https://bit.ly/4qpW4tl. A live webcast of this conference call will be available on GitLab’s investor relations website (ir.gitlab.com), and a replay will also be archived on the website for one year.

About GitLab

GitLab is the intelligent orchestration platform for DevSecOps. GitLab enables organizations to increase developer productivity, improve operational efficiency, reduce security and compliance risk, and accelerate digital transformation. More than 50 million registered users and approximately 50% of the Fortune 100* trust GitLab to ship better, more secure software faster.

*Fortune 500® is a registered trademark of Fortune Media IP Limited, used under license. Claim based on GitLab data. Fortune 100 refers to the top 20% ranked companies in the 2025 Fortune 500 list, published in June 2025. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of GitLab.

Non-GAAP Financial Measures

GitLab believes non-GAAP measures are useful in evaluating its operating performance. GitLab uses this supplemental information to evaluate its ongoing operations and for internal planning and forecasting purposes. GitLab believes that non-GAAP financial information, when taken collectively with its GAAP financial information, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We define non-GAAP financial measures as GAAP measures, excluding certain items such as stock-based compensation expense, amortization of acquired intangible assets, foreign exchange (gain) loss, acquisition related expenses, charitable donation of common stock, restructuring charges, a non-recurring income tax adjustment related to bilateral advance pricing agreement (“BAPA”) negotiations, non-recurring charges associated with the formation of our GitLab Information Technology (Hubei) Co., LTD Joint Venture in China (“JiHu”), and other expenses that the Company believes are not indicative of its ongoing operations. In addition to these exclusions, effective Q1 FY26 we utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision which reflects the new location of GitLab’s intellectual property in the U.S. following the conclusion of our bilateral advance pricing agreements. For FY26 and FY27, we have determined the projected non-GAAP tax rate to be 22%. Shares used for net income per share on a non-GAAP basis include incremental dilutive shares related to restricted stock units, options, and shares issuable under GitLab Inc.’s 2021 Employee Stock Purchase Plan that are anti-dilutive on a GAAP basis. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to

their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Adjusted Free Cash Flow

Adjusted free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used for purchases of property and equipment, plus any non-recurring income tax payments related to the BAPA or minus any non-recurring income tax refunds related to the BAPA, plus any non-recurring payments related to the formation of JiHu. We believe that adjusted free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after the investments in property and equipment, any non-recurring income tax payments or refunds related to the BAPA, and any non-recurring payments related to the formation of JiHu, can be used for strategic initiatives, including investing in our business, and strengthening our financial position. One limitation of adjusted free cash flow is that it does not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period.

Forward-Looking Statements

This press release and the accompanying earnings call contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although we believe that the expectations reflected in the forward-looking statements contained in this release and the accompanying earnings call are reasonable, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to the following:

•our ability to effectively manage our growth;
•our revenue growth rate in the future;
•our ability to achieve and sustain profitability, our business, financial condition, and operating results;
•security and privacy breaches;
•intense competition in our markets and loss of market share to our competitors;
•our ability to respond to rapid technological changes;
•the market for our services may not grow;
•a decline in our customer renewals and expansions;
•fluctuations in our operating results;
•our incorporation of artificial intelligence features into our products;
•our transparency;
•our publicly available company Handbook;
•customers staying on our free self-managed or SaaS product offering;
•our ability to accurately predict the long-term rate of customer subscription renewals or adoption, or the impact of these renewals and adoption;
•our hiring model;
•the effects of ongoing armed conflict in different regions of the world on our business; and
•general economic conditions (including changes in interest rates, inflation, tariffs, regulatory uncertainty (including with respect to the federal budget and potential government shutdowns), volatile capital markets, and actual or perceived instability in the global banking sector) and slow or negative growth of our markets.


Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in the filings and reports we make with the Securities and Exchange Commission. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.

Operating Metrics

Annual Recurring Revenue (“ARR”): We define annual recurring revenue as the annual run-rate revenue of subscription agreements, including our self-managed and SaaS offerings but excluding professional services, from all customers as measured on the last day of a given month. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts of subscriptions, including our self-managed license, self-managed subscription, and SaaS subscription offerings but excluding professional services.

Dollar-Based Net Retention Rate: We calculate Dollar-Based Net Retention Rate as of a period end by starting with our customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, price adjustments, user growth within a customer, contraction, and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Dollar-Based Net Retention Rate.

GitLab Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)

July 31, 2026(1)
January 31, 2026(1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$226,491 $229,576 
Short-term investments1,030,495 1,030,327 
Accounts receivable, net of allowance for doubtful accounts of $1,018 and $967 as of July 31, 2026 and January 31, 2026, respectively257,343 304,301 
Deferred contract acquisition costs, current39,588 42,676 
Prepaid expenses and other current assets41,138 48,899 
Total current assets1,595,055 1,655,779 
Property and equipment, net11,093 11,815 
Goodwill17,446 17,379 
Intangible assets, net5,744 9,774 
Deferred contract acquisition costs, non-current27,431 23,705 
Other non-current assets5,063 4,295 
TOTAL ASSETS$1,661,832 $1,722,747 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable$9,955 $9,205 
Accrued expenses and other current liabilities51,580 58,185 
Accrued compensation and benefits46,932 39,657 
Deferred revenue and customer advances, current553,844 545,096 
Total current liabilities662,311 652,143 
Deferred revenue, non-current20,829 26,994 
Other non-current liabilities7,205 7,362 
TOTAL LIABILITIES690,345 686,499 
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.0000025 par value; 50,000 shares authorized; no shares issued and outstanding as of July 31, 2026 and January 31, 2026— — 
Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized; 166,166 and 153,336 shares issued and outstanding as of July 31, 2026 and January 31, 2026, respectively— — 
Class B Common stock, $0.0000025 par value; 250,000 shares authorized; 1,115 and 16,732 shares issued and outstanding as of July 31, 2026 and January 31, 2026, respectively
— — 
Additional paid-in capital2,190,455 2,207,361 
Accumulated deficit(1,265,386)(1,223,570)
Accumulated other comprehensive income460 6,877 
Total GitLab stockholders’ equity925,529 990,668 
Noncontrolling interests45,958 45,580 
TOTAL STOCKHOLDERS’ EQUITY971,487 1,036,248 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$1,661,832 $1,722,747 
__________
(1) As of July 31, 2026 and January 31, 2026, the condensed consolidated balance sheets include assets of the consolidated variable interest entity, GitLab Information Technology (Hubei) Co., LTD (“JiHu”), of $46.1 million and $41.0 million, respectively, and liabilities of $7.6 million and $7.1 million, respectively. The assets of JiHu can be used only to settle obligations of JiHu, and creditors of JiHu do not have recourse against the general credit of GitLab Inc.

GitLab Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

Three Months Ended July 31,Six Months Ended July 31,
2026202520262025
Revenue:
Subscription—self-managed and SaaS$258,311 $212,684 $497,617 $407,165 
License—self-managed and other27,943 23,276 52,795 43,304 
Total revenue286,254 235,960 550,412 450,469 
Cost of revenue:
Subscription—self-managed and SaaS38,258 21,753 68,849 41,021 
License—self-managed and other7,380 6,752 14,277 12,519 
Total cost of revenue45,638 28,505 83,126 53,540 
Gross profit240,616 207,455 467,286 396,929 
Operating expenses:
Sales and marketing134,363 109,583 253,721 217,170 
Research and development94,980 71,488 166,462 136,898 
General and administrative68,208 44,735 119,787 95,822 
Total operating expenses297,551 225,806 539,970 449,890 
Loss from operations(56,935)(18,351)(72,684)(52,961)
Interest income12,202 11,511 24,149 22,373 
Other income (expense), net5,406 (911)5,661 (10,882)
Loss before income taxes(39,327)(7,751)(42,874)(41,470)
Provision for (benefit from) income taxes(3,195)2,245 (1,163)4,784 
Net loss$(36,132)$(9,996)$(41,711)$(46,254)
Net income (loss) attributable to noncontrolling interest712 (788)105 (1,171)
Net loss attributable to GitLab$(36,844)$(9,208)$(41,816)$(45,083)
Net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted:$(0.22)$(0.06)$(0.25)$(0.27)
Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted:168,703 165,953 169,313 165,233 

GitLab Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Three Months Ended July 31,Six Months Ended July 31,
2026202520262025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss, including amounts attributable to noncontrolling interest$(36,132)$(9,996)$(41,711)$(46,254)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense, net of amounts capitalized75,006 54,284 125,067 110,111 
Charitable donation of common stock1,166 1,787 1,987 3,526 
Amortization of intangible assets2,015 2,015 4,030 4,035 
Depreciation and amortization1,345 759 2,640 1,315 
Amortization of deferred contract acquisition costs10,580 13,370 23,504 27,269 
Net amortization of premiums or discounts on short-term investments(364)(2,609)(688)(5,605)
Unrealized foreign exchange loss (gain), net(2,249)1,069 (3,260)10,970 
Other non-cash expense, net451 192 640 400 
Changes in assets and liabilities:
Accounts receivable(57,325)3,859 46,031 69,787 
Prepaid expenses and other current assets1,303 1,219 7,690 2,746 
Deferred contract acquisition costs(15,002)(12,304)(24,747)(20,430)
Other non-current assets(1,147)(198)(919)181 
Accounts payable1,115 (472)762 3,114 
Accrued expenses and other current liabilities(21,419)(14,257)(6,968)(4,278)
Accrued compensation and benefits18,575 2,021 7,605 (11,063)
Deferred revenue and customer advances18,754 8,284 4,466 9,489 
Other non-current liabilities236 346 (24)358 
Net cash provided by (used in) operating activities(3,092)49,369 146,105 155,671 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments(199,621)(237,946)(421,817)(483,898)
Proceeds from maturities of short-term investments139,823 184,280 358,647 347,886 
Proceeds from sales of short-term investments50,476 — 60,398 1,367 
Additions to property and equipment(213)(2,904)(2,606)(3,816)
Net cash used in investing activities(9,535)(56,570)(5,378)(138,461)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases2,988 3,947 5,361 7,275 
Issuance of common stock under employee stock purchase plan6,886 8,404 6,886 8,404 
Common stock repurchased(104,637)— (154,685)— 
Payments for taxes related to net share settlement of equity awards(748)— (908)— 
Net cash provided by (used in) financing activities(95,511)12,351 (143,346)15,679 
Impact of foreign exchange on cash and cash equivalents(766)502 (466)833 
Net increase (decrease) in cash and cash equivalents(108,904)5,652 (3,085)33,722 
Cash and cash equivalents at beginning of period335,395 255,719 229,576 227,649 
Cash and cash equivalents at end of period$226,491 $261,371 $226,491 $261,371 

GitLab Inc.
Reconciliation of GAAP to Non-GAAP
(in thousands, except per share data)
(unaudited)

Three Months Ended July 31,Six Months Ended July 31,
2026202520262025
 Gross profit on GAAP basis $240,616 $207,455 $467,286 $396,929 
 Gross margin on GAAP basis84 %88 %85 %88 %
Stock-based compensation expense3,891 2,261 6,755 4,190 
Amortization of acquired intangibles2,015 2,015 4,030 4,035 
Restructuring charges1,023 — 1,023 — 
 Gross profit on non-GAAP basis $247,545 $211,731 $479,094 $405,154 
 Gross margin on non-GAAP basis86 %90 %87 %90 %
 Sales and marketing on GAAP basis $134,363 $109,583 $253,721 $217,170 
Stock-based compensation expense(25,327)(19,950)(42,772)(42,041)
Restructuring charges(5,220)— (5,220)— 
 Sales and marketing on non-GAAP basis $103,816 $89,633 $205,729 $175,129 
 Research and development on GAAP basis $94,980 $71,488 $166,462 $136,898 
Stock-based compensation expense(21,803)(19,197)(35,433)(33,469)
Restructuring charges(8,011)— (8,011)— 
 Research and development on non-GAAP basis $65,166 $52,291 $123,018 $103,429 
 General and administrative on GAAP basis $68,208 $44,735 $119,787 $95,822 
Stock-based compensation expense(23,985)(12,876)(40,107)(30,411)
Restructuring charges(5,168)— (5,168)— 
Charitable donation of common stock(1,166)(1,787)(1,987)(3,526)
Acquisition related expenses(607)(157)(917)(340)
Other non-recurring charges(1,285)320 (1,361)(643)
 General and administrative on non-GAAP basis $35,997 $30,235 $70,247 $60,902 
Loss from operations on GAAP basis $(56,935)$(18,351)$(72,684)$(52,961)
Stock-based compensation expense75,006 54,284 125,067 110,111 
Amortization of acquired intangibles2,015 2,015 4,030 4,035 
Restructuring charges19,422 — 19,422 — 
Charitable donation of common stock1,166 1,787 1,987 3,526 
Acquisition related expenses607 157 917 340 
Other non-recurring charges1,285 (320)1,361 643 
Income from operations on non-GAAP basis $42,566 $39,572 $80,100 $65,694 
Other income (expense), net on GAAP basis
$5,406 $(911)$5,661 $(10,882)
Foreign exchange gains (losses), net
(1,817)1,117 (2,353)11,071 
           Other non-recurring charges (3)
(3,679)172 (3,497)342 
Other income (expense), net on non-GAAP basis$(90)$378 $(189)$531 
Net loss attributable to GitLab common stockholders on GAAP basis$(36,844)$(9,208)$(41,816)$(45,083)
Stock-based compensation expense (2)
75,006 54,284 125,067 110,111 
Amortization of acquired intangibles2,015 2,015 4,030 4,035 
Restructuring charges (1)
19,422 — 19,422 — 
Charitable donation of common stock1,166 1,787 1,987 3,526 
Acquisition related expenses607 157 917 340 
Foreign exchange gains (losses), net
(1,817)1,117 (2,353)11,071 
Income tax adjustment (4)
(15,068)(9,077)(24,034)(14,708)
Other non-recurring charges (3)
(2,394)(148)(2,136)985 

Net income attributable to GitLab common stockholders on non-GAAP basis$42,093 $40,927 $81,084 $70,277 
GAAP net loss per share, basic$(0.22)$(0.06)$(0.25)$(0.27)
GAAP net loss per share, diluted$(0.22)$(0.06)$(0.25)$(0.27)
Non-GAAP net income per share, basic$0.25 $0.25 $0.48 $0.43 
Non-GAAP net income per share, diluted$0.24 $0.24 $0.47 $0.41 
Shares used in per share calculation - basic on GAAP basis168,703 165,953 169,313 165,233 
Effect of dilutive securities5,246 4,535 3,151 5,220 
Shares used in per share calculation - diluted on non-GAAP basis173,949 170,488 172,464 170,453 

(1) Restructuring charges primarily consist of severance and related employee benefits, retention costs, and asset write-downs associated with the restructuring announced in May 2026. These charges are not reflective of underlying trends in our business.
(2) Stock-based compensation expense includes $3.9 million of non-cash charges related to accelerated vesting and award modifications for employees impacted by the restructuring announced in May 2026.

(3) Other non-recurring charges for the three and six months ended July 31, 2026 include a $3.5 million indirect tax benefit related to the final settlement of amounts associated with the formation of JiHu.

(4) Income tax adjustment for the three months and six months ended July 31, 2026 and 2025 primarily reflects an assumed provision for income taxes based on our long-term projected tax rate of 22%. Income tax adjustment for the three and six months ended July 31, 2026 also includes a $5.9 million benefit related to the final settlement of amounts associated with the formation of JiHu.






GitLab Inc.
Reconciliation of GAAP Cash Flow from Operating Activities to Adjusted Free Cash Flow
(in thousands)
(unaudited)

Three Months Ended July 31,Six Months Ended July 31,
2026202520262025
Computation of adjusted free cash flow
GAAP net cash provided by (used in) operating activities$(3,092)$49,369 $146,105 $155,671 
Less: Additions to property and equipment(213)(2,904)(2,606)(3,816)
Add: Non-recurring payments related to the
     formation of JiHu		14,036 — 14,036 — 
Less: Income tax refunds related to BAPA(981)(12)(1,058)(1,305)
Non-GAAP adjusted free cash flow$9,750 $46,453 $156,477 $150,550 


Media Contact:
Jenn Malleo
Senior Director, Corporate Communications
GitLab Inc.
press@gitlab.com

Investor Contact:
Nic Edwards
Investor Relations
GitLab Inc.
ir@gitlab.com


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