GitLab (NASDAQ: GTLB) posts Q1 growth and plans 14% workforce cuts
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
GitLab Inc. reported first quarter fiscal 2027 revenue of $264.2 million, up 23% year-over-year, with GAAP operating margin improving to (6)% and non-GAAP operating margin at 14%. Non-GAAP net income was $39.0 million, or $0.23 per diluted share, and operating cash flow reached $149.2 million with adjusted free cash flow of $146.7 million. Large customers continued to grow, with 1,519 customers above $100,000 of ARR and a Dollar-Based Net Retention Rate of 117%. GitLab’s board approved a restructuring plan that will reduce its global workforce by about 14% (around 350 employees) and exit 22 countries, driving expected pre-tax restructuring charges of $30–$35 million, mostly through fiscal 2027. The company also repurchased approximately 2.4 million shares and issued guidance for Q2 and full fiscal 2027 calling for continued revenue growth and positive non-GAAP operating income.
Positive
- Strong top-line and profitability trends: Q1 FY 2027 revenue reached $264.2 million, up 23% year-over-year, with non-GAAP operating margin improving to 14% and non-GAAP net income of $39.0 million.
- Robust cash generation and guidance: Operating cash flow was $149.2 million and adjusted free cash flow $146.7 million, while GitLab guided to full-year FY 2027 revenue of $1.112–$1.118 billion and non-GAAP diluted EPS of $0.79–$0.82.
Negative
- Material restructuring and workforce reduction: GitLab plans to reduce its full-time workforce by about 14% (around 350 employees) and exit 22 countries, expecting $30–$35 million in pre-tax restructuring charges through fiscal 2027.
Insights
GitLab pairs strong growth and cash generation with a sizable restructuring and workforce reduction.
GitLab delivered Q1 FY 2027 revenue of $264.2 million, up 23% year-over-year, while expanding non-GAAP operating margin to 14%. Non-GAAP net income of $39.0 million and adjusted free cash flow of $146.7 million highlight a profitable, cash-generative model on a non-GAAP basis.
The company’s customer base continued to deepen, with 1,519 customers above $100,000 of ARR and a Dollar-Based Net Retention Rate of 117%, alongside total remaining performance obligations of $1.1 billion. GitLab also repurchased about 2.4 million shares, signaling active capital return.
At the same time, the approved restructuring will reduce headcount by about 14% and exit 22 countries, with estimated pre-tax charges of $30–$35 million through fiscal 2027. Q2 and full-year 2027 guidance, including revenue of $272–$274 million for Q2 and $1.112–$1.118 billion for the year plus positive non-GAAP operating income, frames expectations for how these actions flow through upcoming quarters.
GitLab’s global restructuring trades short-term charges for a leaner, more focused footprint.
GitLab’s board approved a plan affecting roughly 14% of its global workforce as of January 31, 2026 and exiting 22 countries, reducing its geographic footprint by about 37%. Estimated pre-tax restructuring charges are $30–$35 million, primarily severance, termination benefits, and retention costs.
About $19 million of these charges are expected in Q2 FY 2027, with most of the remainder over the following three quarters, and the plan targeted for substantial completion by the end of fiscal 2027. Actual impact will depend on execution across multiple jurisdictions and any additional costs the company later identifies and discloses.
8-K Event Classification
4 items: 2.02, 2.05, 7.01, 9.01
4 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 2.05
Costs Associated with Exit or Disposal Activities
Financial
The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.
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, and exhibit attachments filed with this report.
Key Figures
Q1 FY27 Revenue: $264.2 million
Q1 FY27 Non-GAAP Operating Margin: 14%
Q1 FY27 Non-GAAP Net Income: $39.0 million
+5 more
8 metrics
Q1 FY27 Revenue
$264.2 million
Up 23% year-over-year
Q1 FY27 Non-GAAP Operating Margin
14%
Versus 12% in Q1 FY 2026
Q1 FY27 Non-GAAP Net Income
$39.0 million
Attributable to GitLab
Operating Cash Flow
$149.2 million
Q1 FY 2027 GAAP net cash from operations
Adjusted Free Cash Flow
$146.7 million
Q1 FY 2027 non-GAAP adjusted free cash flow
Dollar-Based Net Retention Rate
117%
Q1 FY 2027 operating metric
Restructuring Charges
$30–$35 million
Expected pre-tax charges for workforce and footprint reduction
Q2 FY27 Revenue Guidance
$272–$274 million
Company outlook for second quarter FY 2027
Key Terms
Non-GAAP operating margin, Adjusted free cash flow, Dollar-Based Net Retention Rate, Remaining performance obligations, +2 more
6 terms
Non-GAAP operating margin financial
"GAAP operating margin of (6)%; non-GAAP operating margin of 14%"
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 $146.7 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.
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 18% year-over-year to $1.1 billion"
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.
Restructuring charges financial
"expects to incur approximately $30 million to $35 million in pre-tax restructuring charges"
Restructuring charges are costs that a company pays when it changes how it operates, like closing factories or laying off employees. These expenses are often one-time and happen to help the company become more efficient in the long run. They matter because they can affect the company's profits and how investors see its future prospects.
Annual Recurring Revenue (ARR) financial
"Customers with more than $5,000 of ARR reached 10,831"
Annual Recurring Revenue (ARR) is the predictable amount of money a company expects to earn in a year from its ongoing services or subscriptions. It helps businesses understand their steady income stream, much like knowing how much rent they can count on each year, which is important for planning and growth.
Earnings Snapshot
Revenue: $264.2 million · Guidance included
Q1 FY 2027
Revenue
$264.2 million
+23% YoY
GAAP Operating Margin
(6)%
Improved from (16)% YoY
Non-GAAP Operating Margin
14%
Up from 12% YoY
GAAP Net Loss attributable to GitLab
$5.0 million
Improved from $35.9 million loss YoY
Non-GAAP Net Income attributable to GitLab
$39.0 million
Up from $29.4 million YoY
Non-GAAP Diluted EPS
$0.23
Up from $0.17 YoY
Guidance
For Q2 FY 2027, GitLab expects revenue of $272–$274 million and non-GAAP diluted EPS of $0.17–$0.18; for FY 2027, revenue of $1.112–$1.118 billion and non-GAAP diluted EPS of $0.79–$0.82.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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): June 1, 2026
______________________________
(Exact name of Registrant as Specified in Its Charter)
____________________________________
| (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:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
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 June 2, 2026, GitLab Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended April 30, 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 first quarter ended April 30, 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 2.05 Costs Associated with Exit or Disposal Activities.
On June 1, 2026, the board of directors of the Company approved a restructuring plan (the “Plan”). The Company anticipates approximately 14% of its global workforce as of January 31, 2026 may be impacted by the Plan. The Plan is intended to help position the Company for long-term success by realigning its operating structure to optimize execution against its strategic priorities.
The Company also expects to exit 22 countries to reduce its team member geographic footprint by approximately 37%. As a result of the Plan, the Company expects to incur approximately $30 million to $35 million in pre-tax restructuring charges, consisting primarily of one-time severance, employee termination benefit costs, and retention costs associated with the execution of the Plan, of which approximately $19 million is expected to be incurred in the second quarter of fiscal year 2027, with the majority of the remainder expected to be recognized over the following three quarters. The Company expects the Plan to be substantially complete by the end of fiscal 2027 (ending January 31, 2027). Additional costs associated with the Plan may be identified and will be disclosed when reasonably estimable.
The charges that the Company expects to incur are subject to a number of assumptions, including legal requirements in various jurisdictions.
Item 7.01 Regulation FD Disclosure.
On June 2, 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 June 2, 2026. | ||||
| 104 | Cover 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: June 2, 2026 | By: | /s/ Jessica Ross | ||||||||||||
Jessica Ross | ||||||||||||||
| Chief Financial Officer | ||||||||||||||
 | Exhibit 99.1 | |||||||
GitLab Reports First Quarter Fiscal Year 2027 Financial Results
First Quarter Fiscal Year 2027 Highlights:
•Total revenue of $264.2 million, up 23% year-over-year
•GAAP operating margin of (6)%; non-GAAP operating margin of 14%
•Operating cash flow of $149.2 million and non-GAAP adjusted free cash flow of $146.7 million
San Francisco (June 2, 2026) -All-Remote-GitLab Inc. (NASDAQ: GTLB), the intelligent orchestration platform for DevSecOps, today reported financial results for its first quarter fiscal year of 2027, ended April 30, 2026.
“The agentic era is creating structural tailwinds for GitLab, and Q1 showed it clearly with accelerating platform activity and promising traction from GitLab Duo Agent Platform,” said Bill Staples, GitLab chief executive officer. “GitLab is the only platform that spans the full software lifecycle with one control plane, one data model, and cloud and AI model neutrality. As our largest customers come to us with new needs around security, governance, and orchestration at machine scale, we are evolving GitLab to be the trusted enterprise platform for software creation in the AI era.”
“Our team delivered a strong first quarter with 23% revenue growth and 2 points of operating margin expansion,” said Jessica Ross, GitLab chief financial officer. “Our solid financial foundation gives us the flexibility to invest deliberately behind our highest-return initiatives, while returning capital to shareholders through our ongoing share repurchase program.”
First Quarter Fiscal Year 2027 Financial Highlights (in millions, except per share data and percentages):
Q1 FY 2027 | Q1 FY 2026 | Y/Y Change | |||||||||||||||
| Revenue | $ | 264.2 | $ | 214.5 | 23 | % | |||||||||||
| GAAP Gross margin | 86 | % | 88 | % | |||||||||||||
| Non-GAAP Gross margin | 88 | % | 90 | % | |||||||||||||
| GAAP Operating margin | (6) | % | (16) | % | |||||||||||||
| Non-GAAP Operating margin | 14 | % | 12 | % | |||||||||||||
| GAAP Operating loss | $ | (15.7) | $ | (34.6) | $ | 18.9 | |||||||||||
| Non-GAAP Operating income | $ | 37.5 | $ | 26.1 | $ | 11.4 | |||||||||||
| GAAP Net loss attributable to GitLab | $ | (5.0) | $ | (35.9) | $ | 30.9 | |||||||||||
| Non-GAAP Net income attributable to GitLab | $ | 39.0 | $ | 29.4 | $ | 9.6 | |||||||||||
| GAAP Net loss per share attributable to GitLab, basic | $ | (0.03) | $ | (0.22) | $ | 0.19 | |||||||||||
| GAAP Net loss per share attributable to GitLab, diluted | $ | (0.03) | $ | (0.22) | $ | 0.19 | |||||||||||
| Non-GAAP Net income per share attributable to GitLab, basic | $ | 0.23 | $ | 0.18 | $ | 0.05 | |||||||||||
| Non-GAAP Net income per share attributable to GitLab, diluted | $ | 0.23 | $ | 0.17 | $ | 0.06 | |||||||||||
| GAAP net cash provided by operating activities | $ | 149.2 | $ | 106.3 | $ | 42.9 | |||||||||||
| Non-GAAP adjusted free cash flow | $ | 146.7 | $ | 104.1 | $ | 42.6 | |||||||||||
A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled “Non-GAAP Financial Measures.”
Additional First Quarter Fiscal Year 2027 Financial Highlights:
•Customers with more than $5,000 of ARR reached 10,831, an increase of 7% year-over-year.
•Customers with more than $100,000 of ARR reached 1,519, an increase of 18% year-over-year.
•Dollar-Based Net Retention Rate was 117%.
•Total RPO grew 18% year-over-year to $1.1 billion, while cRPO grew 24% to $724.1 million.
Business Highlights:
•Extended agentic AI across the software lifecycle with new automated security remediation, pipeline configuration, and delivery analytics, and broadened access to GitLab Duo Agent Platform for free tier users, including flat-rate agentic code reviews and spending caps for predictable cost controls.
•Deepened integration with Anthropic’s Claude models, giving GitLab customers access to the latest Claude capabilities within the same governance, compliance, and audit framework that governs every other action in GitLab.
•Announced collaborations with AWS and Google Cloud to bring agentic DevSecOps to enterprise teams, enabling joint customers to power GitLab Duo Agent Platform with Amazon Bedrock or Vertex AI using the models, governance, and cloud commitments they already have in place.
•Received the 2026 Google Cloud Technology Partner of the Year Award in the Application Development - DevSecOps category for the sixth consecutive year.
•In the quarter, GitLab repurchased approximately 2.4 million shares.
Subsequent Event:
•GitLab also announced it is reducing its full-time workforce by approximately 14%, or 350 team members to realign its operating structure to optimize execution against its strategic priorities. GitLab also expects to exit 22 countries to reduce its team member geographic footprint by approximately 37%. It estimates that it will incur approximately $30 million to $35 million in pre-tax restructuring charges, consisting primarily of one-time severance, employee termination benefit costs, and retention costs associated with the execution of the Plan, of which approximately $19 million is expected to be incurred in the second quarter of fiscal year 2027, with the majority of the remainder expected to be recognized over the following three quarters. The Company expects the plan to be substantially complete by the end of fiscal 2027. Additional costs associated with the plan may be identified and will be disclosed when reasonably estimable.
Second Quarter and Fiscal Year 2027 Financial Outlook
For the second quarter and fiscal year 2027, GitLab Inc. expects (in millions, except share and per share data):
| Q2 FY 2027 Guidance | FY 2027 Guidance | ||||||||||
| Revenue | $272 - $274 | $1,112 - $1,118 | |||||||||
| Non-GAAP operating income | $30 - $32 | $135 - $141 | |||||||||
| Non-GAAP diluted net income per share assuming approximately 168 million and 166 million weighted average shares outstanding during Q2 FY 2027 and FY 2027, respectively. | $0.17 - $0.18 | $0.79 - $0.82 | |||||||||
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, June 2, 2026, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its first quarter fiscal year 2027 financial results and its guidance for the second quarter and full fiscal year 2027. Interested parties may register for the call in advance by visiting http://bit.ly/4dDhEoc. 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, equity method investment loss and impairment, 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)
April 30, 2026(1) | January 31, 2026(1) | ||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 335,395 | $ | 229,576 | |||||||
| Short-term investments | 1,022,117 | 1,030,327 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts of $1,019 and $967 as of April 30, 2026 and January 31, 2026, respectively | 200,302 | 304,301 | |||||||||
| Deferred contract acquisition costs, current | 39,108 | 42,676 | |||||||||
| Prepaid expenses and other current assets | 42,483 | 48,899 | |||||||||
| Total current assets | 1,639,405 | 1,655,779 | |||||||||
| Property and equipment, net | 12,777 | 11,815 | |||||||||
| Goodwill | 17,798 | 17,379 | |||||||||
| Intangible assets, net | 7,759 | 9,774 | |||||||||
| Deferred contract acquisition costs, non-current | 23,810 | 23,705 | |||||||||
| Other non-current assets | 3,984 | 4,295 | |||||||||
| TOTAL ASSETS | $ | 1,705,533 | $ | 1,722,747 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Accounts payable | $ | 8,847 | $ | 9,205 | |||||||
| Accrued expenses and other current liabilities | 72,680 | 58,185 | |||||||||
| Accrued compensation and benefits | 28,538 | 39,657 | |||||||||
| Deferred revenue, current | 532,983 | 545,096 | |||||||||
| Total current liabilities | 643,048 | 652,143 | |||||||||
| Deferred revenue, non-current | 23,991 | 26,994 | |||||||||
| Other non-current liabilities | 7,108 | 7,362 | |||||||||
| TOTAL LIABILITIES | 674,147 | 686,499 | |||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||||
| Preferred stock, $0.0000025 par value; 50,000 shares authorized; no shares issued and outstanding as of April 30, 2026 and January 31, 2026 | — | — | |||||||||
| Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized; 152,614 and 153,336 shares issued and outstanding as of April 30, 2026 and January 31, 2026, respectively | — | — | |||||||||
Class B Common stock, $0.0000025 par value; 250,000 shares authorized; 16,250 and 16,732 shares issued and outstanding as of April 30, 2026 and January 31, 2026, respectively(2) | — | — | |||||||||
| Additional paid-in capital | 2,209,247 | 2,207,361 | |||||||||
| Accumulated deficit | (1,228,542) | (1,223,570) | |||||||||
| Accumulated other comprehensive income | 4,499 | 6,877 | |||||||||
| Total GitLab stockholders’ equity | 985,204 | 990,668 | |||||||||
| Noncontrolling interests | 46,182 | 45,580 | |||||||||
| TOTAL STOCKHOLDERS’ EQUITY | 1,031,386 | 1,036,248 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,705,533 | $ | 1,722,747 | |||||||
__________
(1) As of April 30, 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 $40.6 million and $41.0 million, respectively, and liabilities of $6.6 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.
(2) On May 14, 2026, the Company’s Executive Chair Sytse Sijbrandij converted 15,134,451 shares of Class B common stock into 15,134,451 shares of Class A common stock.
GitLab Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
| Three Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue: | |||||||||||
| Subscription—self-managed and SaaS | $ | 239,306 | $ | 194,481 | |||||||
| License—self-managed and other | 24,852 | 20,028 | |||||||||
| Total revenue | 264,158 | 214,509 | |||||||||
| Cost of revenue: | |||||||||||
| Subscription—self-managed and SaaS | 30,591 | 19,268 | |||||||||
| License—self-managed and other | 6,897 | 5,767 | |||||||||
| Total cost of revenue | 37,488 | 25,035 | |||||||||
| Gross profit | 226,670 | 189,474 | |||||||||
| Operating expenses: | |||||||||||
| Sales and marketing | 119,358 | 107,587 | |||||||||
| Research and development | 71,482 | 65,410 | |||||||||
| General and administrative | 51,579 | 51,087 | |||||||||
| Total operating expenses | 242,419 | 224,084 | |||||||||
| Loss from operations | (15,749) | (34,610) | |||||||||
| Interest income | 11,947 | 10,862 | |||||||||
| Other income (expense), net | 255 | (9,971) | |||||||||
| Loss before income taxes | (3,547) | (33,719) | |||||||||
| Provision for income taxes | 2,032 | 2,539 | |||||||||
| Net loss | $ | (5,579) | $ | (36,258) | |||||||
| Net loss attributable to noncontrolling interest | (607) | (383) | |||||||||
| Net loss attributable to GitLab | $ | (4,972) | $ | (35,875) | |||||||
| Net loss per share attributable to GitLab Class A and Class B common stockholders: | |||||||||||
| Basic | $ | (0.03) | $ | (0.22) | |||||||
| Diluted | $ | (0.03) | $ | (0.22) | |||||||
| Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders: | |||||||||||
| Basic | 169,948 | 164,491 | |||||||||
| Diluted | 169,948 | 164,491 | |||||||||
GitLab Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Three Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net loss, including amounts attributable to noncontrolling interest | $ | (5,579) | $ | (36,258) | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Stock-based compensation expense, net of amounts capitalized | 50,061 | 55,827 | |||||||||
| Charitable donation of common stock | 821 | 1,739 | |||||||||
| Amortization of intangible assets | 2,015 | 2,020 | |||||||||
| Depreciation and amortization | 1,295 | 556 | |||||||||
| Amortization of deferred contract acquisition costs | 12,924 | 13,899 | |||||||||
| Net amortization of premiums or discounts on short-term investments | (324) | (2,996) | |||||||||
| Unrealized foreign exchange loss (gain), net | (1,011) | 9,901 | |||||||||
| Other non-cash expense, net | 189 | 208 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable | 103,356 | 65,928 | |||||||||
| Prepaid expenses and other current assets | 6,387 | 1,527 | |||||||||
| Deferred contract acquisition costs | (9,745) | (8,126) | |||||||||
| Other non-current assets | 228 | 379 | |||||||||
| Accounts payable | (353) | 3,586 | |||||||||
| Accrued expenses and other current liabilities | 14,451 | 9,979 | |||||||||
| Accrued compensation and benefits | (10,970) | (13,084) | |||||||||
| Deferred revenue | (14,288) | 1,205 | |||||||||
| Other non-current liabilities | (260) | 12 | |||||||||
| Net cash provided by operating activities | 149,197 | 106,302 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Purchases of short-term investments | (222,196) | (245,952) | |||||||||
| Proceeds from maturities of short-term investments | 218,824 | 163,606 | |||||||||
| Proceeds from sales of short-term investments | 9,922 | 1,367 | |||||||||
| Additions to property and equipment | (2,393) | (912) | |||||||||
| Net cash provided by (used in) investing activities | 4,157 | (81,891) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
| Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases | 2,373 | 3,328 | |||||||||
| Common stock repurchased | (50,048) | — | |||||||||
| Payments for taxes related to net share settlement of equity awards | (160) | — | |||||||||
| Net cash provided by (used in) financing activities | (47,835) | 3,328 | |||||||||
| Impact of foreign exchange on cash and cash equivalents | 300 | 331 | |||||||||
| Net increase in cash and cash equivalents | 105,819 | 28,070 | |||||||||
| Cash and cash equivalents at beginning of period | 229,576 | 227,649 | |||||||||
| Cash and cash equivalents at end of period | $ | 335,395 | $ | 255,719 | |||||||
GitLab Inc.
Reconciliation of GAAP to Non-GAAP
(in thousands, except per share data)
(unaudited)
| Three Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Gross profit on GAAP basis | $ | 226,670 | $ | 189,474 | |||||||
| Gross margin on GAAP basis | 86 | % | 88 | % | |||||||
| Stock-based compensation expense | 2,864 | 1,929 | |||||||||
| Amortization of acquired intangibles | 2,015 | 2,020 | |||||||||
| Gross profit on non-GAAP basis | $ | 231,549 | $ | 193,423 | |||||||
| Gross margin on non-GAAP basis | 88 | % | 90 | % | |||||||
| Sales and marketing on GAAP basis | $ | 119,358 | $ | 107,587 | |||||||
| Stock-based compensation expense | (17,445) | (22,091) | |||||||||
| Sales and marketing on non-GAAP basis | $ | 101,913 | $ | 85,496 | |||||||
| Research and development on GAAP basis | $ | 71,482 | $ | 65,410 | |||||||
| Stock-based compensation expense | (13,630) | (14,272) | |||||||||
| Research and development on non-GAAP basis | $ | 57,852 | $ | 51,138 | |||||||
| General and administrative on GAAP basis | $ | 51,579 | $ | 51,087 | |||||||
| Stock-based compensation expense | (16,122) | (17,535) | |||||||||
| Charitable donation of common stock | (821) | (1,739) | |||||||||
| Acquisition related expenses | (310) | (183) | |||||||||
| Other non-recurring charges | (76) | (963) | |||||||||
| General and administrative on non-GAAP basis | $ | 34,250 | $ | 30,667 | |||||||
| Loss from operations on GAAP basis | $ | (15,749) | $ | (34,610) | |||||||
| Stock-based compensation expense | 50,061 | 55,827 | |||||||||
| Amortization of acquired intangibles | 2,015 | 2,020 | |||||||||
| Charitable donation of common stock | 821 | 1,739 | |||||||||
| Acquisition related expenses | 310 | 183 | |||||||||
| Other non-recurring charges | 76 | 963 | |||||||||
| Income from operations on non-GAAP basis | $ | 37,534 | $ | 26,122 | |||||||
Other income (expense), net on GAAP basis | $ | 255 | $ | (9,971) | |||||||
Foreign exchange gains (losses), net | (536) | 9,954 | |||||||||
Other non-recurring charges (1) | 182 | 170 | |||||||||
| Other income (expense), net on non-GAAP basis | $ | (99) | $ | 153 | |||||||
| Net loss attributable to GitLab common stockholders on GAAP basis | $ | (4,972) | $ | (35,875) | |||||||
| Stock-based compensation expense | 50,061 | 55,827 | |||||||||
| Amortization of acquired intangibles | 2,015 | 2,020 | |||||||||
| Charitable donation of common stock | 821 | 1,739 | |||||||||
| Acquisition related expenses | 310 | 183 | |||||||||
Foreign exchange gains (losses), net | (536) | 9,954 | |||||||||
Income tax adjustment (2) | (8,966) | (5,631) | |||||||||
Other non-recurring charges (1) | 258 | 1,133 | |||||||||
| Net income attributable to GitLab common stockholders on non-GAAP basis | $ | 38,991 | $ | 29,350 | |||||||
| GAAP net loss per share, basic | $ | (0.03) | $ | (0.22) | |||||||
| GAAP net loss per share, diluted | $ | (0.03) | $ | (0.22) | |||||||
| Non-GAAP net income per share, basic | $ | 0.23 | $ | 0.18 | |||||||
| Non-GAAP net income per share, diluted | $ | 0.23 | $ | 0.17 | |||||||
| Shares used in per share calculation - basic on GAAP basis | 169,948 | 164,491 | |||||||||
| Effect of dilutive securities | 1,567 | 5,669 | |||||||||
| Shares used in per share calculation - diluted on non-GAAP basis | 171,515 | 170,160 | |||||||||
(1) Other non-recurring charges for the three months ended April 30, 2026 and 2025 included $0.3 million and $0.7 million related to the JiHu formation, respectively.
(2) Income tax adjustment for the three months ended April 30, 2026 and 2025 primarily reflects an assumed provision for income taxes based on our long-term projected tax rate of 22%.
GitLab Inc.
Reconciliation of GAAP Cash Flow from Operating Activities to Adjusted Free Cash Flow
(in thousands)
(unaudited)
| Three Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
Computation of adjusted free cash flow (1) | |||||||||||
| GAAP net cash provided by operating activities | $ | 149,197 | $ | 106,302 | |||||||
| Less: Additions to property and equipment | (2,393) | (912) | |||||||||
| Less: Income tax refunds related to BAPA | (77) | (1,293) | |||||||||
| Non-GAAP adjusted free cash flow | $ | 146,727 | $ | 104,097 | |||||||
(1) No non-recurring payments related to the formation of JiHu were recorded during the periods presented.
Media Contact:
Jenn Malleo
Senior Director, Corporate Communications
GitLab Inc.
press@gitlab.com
Investor Contact:
Yaoxian Chew
VP, Investor Relations
GitLab Inc.
ir@gitlab.com
FAQ
How did GitLab (GTLB) perform in Q1 fiscal 2027?
GitLab reported Q1 FY 2027 revenue of $264.2 million, up 23% year-over-year, with GAAP operating margin of (6)% and non-GAAP operating margin of 14%. Non-GAAP net income reached $39.0 million, or $0.23 per diluted share, reflecting improved profitability.
What restructuring actions did GitLab (GTLB) announce?
GitLab’s board approved a restructuring plan reducing its global workforce by about 14%, or roughly 350 employees, and exiting 22 countries, shrinking its geographic footprint by about 37%. The company expects $30–$35 million in pre-tax restructuring charges through fiscal 2027.
What is GitLab’s cash flow and liquidity position after Q1 FY 2027?
In Q1 FY 2027, GitLab generated $149.2 million in operating cash flow and $146.7 million in adjusted free cash flow. Cash and cash equivalents were $335.4 million, with short-term investments of $1.02 billion, supporting ongoing operations and capital returns.
How is GitLab’s large-customer and retention profile evolving?
GitLab ended Q1 FY 2027 with 10,831 customers above $5,000 of ARR, up 7% year-over-year, and 1,519 customers above $100,000 of ARR, up 18%. Dollar-Based Net Retention Rate was 117%, indicating expansion within the existing customer base.
What guidance did GitLab (GTLB) provide for Q2 and FY 2027?
For Q2 FY 2027, GitLab expects revenue of $272–$274 million, non-GAAP operating income of $30–$32 million, and non-GAAP diluted EPS of $0.17–$0.18. For FY 2027, it guides to $1.112–$1.118 billion revenue and non-GAAP diluted EPS of $0.79–$0.82.