GitLab (GTLB) GTLB Q2 Financial Results Summary
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GitLab (GTLB) Q2 FY 2027: Revenue Growth Accelerates, Operating Loss Widens — Cautiously Optimistic
GitLab Inc. (NASDAQ: GTLB) reported its second quarter fiscal year 2027 results, revealing a revenue increase of $50.3 million or +21% year-over-year, with total revenue reaching $286.3 million compared to $236.0 million in the same quarter last year. This performance indicates a solid growth trajectory, although the company continues to face challenges with operating losses.
Key Financial Metrics
- Total Revenue: $286.3 million, up $50.3 million or +21% YoY
- GAAP Operating Margin: (20)%, down from (8)% YoY
- Non-GAAP Operating Margin: 15%, down from 17% YoY
- GAAP Operating Loss: $56.9 million, an increase of $38.5 million YoY
- Non-GAAP Operating Income: $42.6 million, up $3.0 million YoY
- GAAP Net Loss: $36.8 million, an increase of $27.6 million YoY
- Non-GAAP Net Income: $42.1 million, up $1.2 million YoY
- GAAP Net Loss per Share: $0.22, compared to $0.06 YoY
- Non-GAAP Net Income per Share: $0.25, unchanged YoY
- Operating Cash Flow: $(3.1) million, down from $49.4 million YoY
- Non-GAAP Adjusted Free Cash Flow: $9.8 million, down from $46.5 million YoY
Analyst Opinion
This quarter presents a mixed bag for shareholders. On one hand, the revenue growth of 21% is commendable and reflects the increasing demand for GitLab's services, particularly as the company capitalizes on the growing integration of AI in software development. The introduction of new products and commercial models, such as GitLab Flex and GitLab Secrets Manager, indicates a proactive approach to enhancing customer value and retention.
However, the widening GAAP operating loss and the decline in both GAAP and non-GAAP operating margins raise concerns about the company's cost management and profitability trajectory. The significant drop in operating cash flow from $49.4 million to $(3.1) million is particularly alarming, suggesting that GitLab may be facing challenges in converting its revenue growth into cash generation.
Shareholder Returns and Guidance
GitLab repurchased approximately 3.5 million shares during the quarter, which may provide some support to the stock price. Looking ahead, the company has provided guidance for the third quarter, expecting revenue between $281 million and $283 million and non-GAAP operating income between $35 million and $37 million. For the full fiscal year 2027, GitLab anticipates revenue in the range of $1,129 million to $1,133 million and non-GAAP operating income between $148 million and $152 million.
Forward-Looking Catalysts
Investors should keep an eye on GitLab's ability to maintain its revenue growth momentum while addressing its operating losses. The upcoming quarter will be crucial as the company implements its new commercial model and continues to innovate with AI-driven features. Additionally, the performance of dollar-based net retention, which stood at 117%, will be a key metric to watch, as it reflects customer satisfaction and the potential for upselling existing clients.
In summary, while GitLab's revenue growth is a positive sign, the company must navigate its profitability challenges to ensure long-term shareholder value. The next quarter will be pivotal in determining whether GitLab can sustain its growth trajectory while improving its financial health.
Here are the requested tables extracted from the press release:
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Note: All amounts in the following tables are in thousands.
| Q2 FY 2027 | Q2 FY 2026 | Y/Y Change | |
|---|---|---|---|
| Revenue | $ 286,300 | $ 236,000 | 21 % |
| GAAP Gross margin | 84 % | 88 % | |
| Non-GAAP Gross margin | 86 % | 90 % | |
| GAAP Operating margin | -20 % | -8 % | |
| Non-GAAP Operating margin | 15 % | 17 % | |
| GAAP Operating loss | $ -56,900 | $ -18,400 | $ -38,500 |
| Non-GAAP Operating income | $ 42,600 | $ 39,600 | $ 3,000 |
| GAAP Net loss attributable to GitLab | $ -36,800 | $ -9,200 | $ -27,600 |
| Non-GAAP Net income attributable to GitLab | $ 42,100 | $ 40,900 | $ 1,200 |
| 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 | $ -3,100 | $ 49,400 | $ -52,500 |
| Non-GAAP adjusted free cash flow | $ 9,800 | $ 46,500 | $ -36,700 |
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
| July 31, 2026 | January 31, 2026 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 226,491 | $ 229,576 |
| Short-term investments | $ 1,030,495 | $ 1,030,327 |
| Accounts receivable, net | $ 257,343 | $ 304,301 |
| Deferred contract acquisition costs, current | $ 39,588 | $ 42,676 |
| Prepaid expenses and other current assets | $ 41,138 | $ 48,899 |
| Total current assets | $ 1,595,055 | $ 1,655,779 |
| Property and equipment, net | $ 11,093 | $ 11,815 |
| Goodwill | $ 17,446 | $ 17,379 |
| Intangible assets, net | $ 5,744 | $ 9,774 |
| Deferred contract acquisition costs, non-current | $ 27,431 | $ 23,705 |
| Other non-current assets | $ 5,063 | $ 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 liabilities | $ 51,580 | $ 58,185 |
| Accrued compensation and benefits | $ 46,932 | $ 39,657 |
| Deferred revenue and customer advances, current | $ 553,844 | $ 545,096 |
| Total current liabilities | $ 662,311 | $ 652,143 |
| Deferred revenue, non-current | $ 20,829 | $ 26,994 |
| Other non-current liabilities | $ 7,205 | $ 7,362 |
| TOTAL LIABILITIES | $ 690,345 | $ 686,499 |
| STOCKHOLDERS’ EQUITY: | ||
| Preferred stock, $0.0000025 par value; 50,000 shares authorized; no shares issued and outstanding | - | - |
| Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized; 166,166 and 153,336 shares issued and outstanding | - | - |
| Class B Common stock, $0.0000025 par value; 250,000 shares authorized; 1,115 and 16,732 shares issued and outstanding | - | - |
| Additional paid-in capital | $ 2,190,455 | $ 2,207,361 |
| Accumulated deficit | $ -1,265,386 | $ -1,223,570 |
| Accumulated other comprehensive income | $ 460 | $ 6,877 |
| Total GitLab stockholders’ equity | $ 925,529 | $ 990,668 |
| Noncontrolling interests | $ 45,958 | $ 45,580 |
| TOTAL STOCKHOLDERS’ EQUITY | $ 971,487 | $ 1,036,248 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,661,832 | $ 1,722,747 |
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