UiPath (PATH) quarter year UiPath Financial Results Summary
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UiPath (PATH) Q3 2026 Financial Results Summary
On December 3, 2025, UiPath, Inc. (NYSE: PATH), a global leader in agentic automation, reported its financial results for the third quarter of fiscal 2026, which ended on October 31, 2025.
Financial Highlights
- Revenue: $411 million, a 16% increase year-over-year.
- Annualized Renewal Run-rate (ARR): $1.782 billion, reflecting an 11% increase year-over-year.
- Net New ARR: $59 million added during the quarter.
- Dollar-Based Net Retention Rate: 107%, indicating strong retention and expansion within the existing customer base.
- GAAP Gross Margin: 83%, an improvement from 82% compared to the same quarter last year.
- Non-GAAP Gross Margin: 85%, consistent with prior year’s quarter.
- GAAP Operating Income: $13 million, a notable recovery compared to a loss reported in the same quarter last year.
- Non-GAAP Operating Income: $88 million.
- Net Cash Flow from Operations: $28 million.
- Non-GAAP Adjusted Free Cash Flow: $28 million.
- Cash, Cash Equivalents, and Marketable Securities: Totaling $1.52 billion as of October 31, 2025.
Management Commentary
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Daniel Dines, UiPath Founder and CEO, expressed satisfaction with the results, highlighting the company’s performance as a testament to effective execution and growing customer momentum in AI and automation strategies.
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Ashim Gupta, COO and CFO, stated that the company’s results exceeded guidance and marked the first GAAP profitable third quarter, attributing this to improved operational strength and results management.
Financial Outlook for Q4 2026
UiPath provided guidance for the upcoming fourth quarter, expecting:
– Revenue: Between $462 million and $467 million.
– ARR: Expected to reach between $1.844 billion and $1.849 billion as of January 31, 2026.
– Non-GAAP Operating Income: Approximately $140 million.
Reconciliation for non-GAAP measures was not provided as it involves predicting variable factors including stock-based compensation expense.
Recent Business Developments
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New Platform Capabilities: Launched enhancements for Agentic Automation & Orchestration and new tools for building agents and automations; improved governance and security features.
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Integrations with Major Tech Firms: Established partnerships and integrations with:
- Microsoft Azure AI Foundry for end-to-end automation solutions.
- OpenAI to create a ChatGPT connector for enterprise workflows.
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NVIDIA to bolster automated workflows with AI capabilities, particularly in sensitive fields like healthcare.
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Notable Recognitions:
- Recognized as a Leader and Star Performer in the Everest Group Intelligent Process Automation Platform Assessment.
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Gained Leader positioning in Gartner’s inaugural Magic Quadrant for Intelligent Document Processing and AI-Augmented Software Testing Tools.
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International Ventures: Launched Automation Cloud in UAE to support compliance with local regulations.
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Certification Achievements: Achieved ISO 42001 Certification for AI Management Systems, enhancing governance for AI deployment.
Shareholder Actions
- UiPath did not declare a quarterly dividend for this period.
- The company repurchased $329.1 million worth of its Class A common stock during the quarter.
Conclusion
UiPath’s Q3 2026 performance demonstrates strong revenue growth and operational efficiency, positioning the company well as it looks forward to closing the fiscal year with substantial ARR growth and strategic partnerships. The return to GAAP profitability is a significant milestone for the company.
| UiPath, Inc. | Condensed Consolidated Statements of Operations | in thousands, except per share data | Three Months Ended | Nine Months Ended | ||
|---|---|---|---|---|---|---|
| October 31, | October 31, | |||||
| 2025 | 2024 | 2025 | 2024 | |||
| Revenue: | ||||||
| Licenses | $150,043 | $137,174 | $390,490 | $389,553 | ||
| Subscription services | $247,573 | $206,922 | $703,239 | $586,726 | ||
| Professional services | $13,497 | $10,557 | $35,736 | $29,739 | ||
| and other | ||||||
| Total revenue | $411,113 | $354,653 | $1,129,465 | $1,006,018 | ||
| Cost of revenue: | ||||||
| Licenses | $1,311 | $2,340 | $3,779 | $7,334 | ||
| Subscription services | $40,121 | $43,487 | $116,818 | $123,770 | ||
| Professional services | $27,380 | $17,936 | $76,452 | $51,304 | ||
| and other | ||||||
| Total cost of revenue | $68,812 | $63,763 | $197,049 | $182,408 | ||
| Gross profit | $342,301 | $290,890 | $932,416 | $823,610 | ||
| Operating expenses: | ||||||
| Sales and marketing | $179,186 | $187,188 | $505,150 | $561,657 | ||
| Research and | $96,869 | $96,976 | $290,049 | $281,012 | ||
| development | ||||||
| General and | $53,175 | $50,090 | $160,743 | $177,119 | ||
| administrative | ||||||
| Total operating | $329,230 | $334,254 | $955,942 | $1,019,788 | ||
| expenses | ||||||
| Operating income (loss) | $13,071 | $-43,364 | $-23,526 | $-196,178 | ||
| Interest income | $11,701 | $10,055 | $36,353 | $37,255 | ||
| Other (expense) income, | $-180 | $7,810 | $-4,636 | $26,199 | ||
| net | ||||||
| Income (loss) before | $24,592 | $-25,499 | $8,191 | $-132,724 | ||
| income taxes | ||||||
| Benefit from income | $-174,247 | $-14,844 | $-169,677 | $-7,236 | ||
| taxes | ||||||
| Net income (loss) | $198,839 | $-10,655 | $177,868 | $-125,488 | ||
| Net income (loss) per | $0.37 | $-0.02 | $0.33 | $-0.22 | ||
| share, basic | ||||||
| Net income (loss) per | $0.37 | $-0.02 | $0.33 | $-0.22 | ||
| share, diluted | ||||||
| Weighted-average shares | ||||||
| used in computing net income | 532,255 | 551,036 | 538,854 | 562,950 | ||
| (loss) per share, | ||||||
| basic | ||||||
| Weighted-average shares | ||||||
| used in computing net income | 539,018 | 551,036 | 544,718 | 562,950 | ||
| (loss) per share, | ||||||
| diluted |
| UiPath, Inc. | Condensed Consolidated Balance Sheets | in thousands | Assets | As of |
|---|---|---|---|---|
| October 31, | 2025 | January 31, | 2025 | |
| Current assets | ||||
| Cash and cash equivalents | $743,660 | $879,196 | ||
| Restricted cash | $438 | $438 | ||
| Marketable securities | $654,526 | $750,322 | ||
| Accounts receivable, net of allowance for | ||||
| credit losses of $4,291 and $1,642, respective | $366,757 | $451,131 | ||
| Contract assets | $129,335 | $88,735 | ||
| Deferred contract acquisition costs | $86,499 | $82,461 | ||
| Prepaid expenses and other current assets | $112,128 | $86,276 | ||
| Total current assets | $2,093,343 | $2,338,559 | ||
| Marketable securities, non-current | $121,609 | $94,113 | ||
| Contract assets, non-current | $4,701 | $3,447 | ||
| Deferred contract acquisition costs, non-current | $137,775 | $139,341 | ||
| Property and equipment, net | $44,604 | $32,740 | ||
| Operating lease right-of-use assets | $65,166 | $66,500 | ||
| Intangible assets, net | $21,583 | $7,905 | ||
| Goodwill | $120,625 | $87,304 | ||
| Deferred tax assets | $212,999 | $27,963 | ||
| Other assets, non-current | $73,571 | $67,398 | ||
| Total assets | $2,895,976 | $2,865,270 | ||
| Liabilities and stockholders’ equity | ||||
| Current liabilities | ||||
| Accounts payable | $14,280 | $33,178 | ||
| Accrued expenses and other current liabilities | $151,871 | $83,923 | ||
| Accrued compensation and employee benefits | $88,551 | $112,355 | ||
| Deferred revenue | $533,998 | $569,464 | ||
| Total current liabilities | $788,700 | $798,920 | ||
| Deferred revenue, non-current | $99,155 | $135,843 | ||
| Operating lease liabilities, non-current |