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Gitlab
(NASDAQ:GTLB)
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Rating:75Outperform
Price Target:
$58.00
▲(39.22% Upside)
Action:Reiterated
Date:10/14/26
The score is driven primarily by strong financial quality for a software company (high gross margins, positive free cash flow, and a very low-leverage balance sheet) and a very constructive earnings call with raised guidance and strong ARR/bookings signals. Technicals also support the view with a clear uptrend, partially offset by a stretched valuation profile (negative P/E tied to ongoing GAAP losses) and some noted variability/timing effects in cash flow and revenue recognition.
Positive Factors
Accelerating growth and retention
Accelerating net ARR and 117% dollar-based retention indicate strong customer expansion and durable platform adoption. These metrics suggest GitLab is deepening usage within its installed base while adding demand, supporting sustained revenue growth over the next several quarters.
Negative Factors
GAAP losses persist
GitLab has not yet converted its strong gross margins and growing revenue into GAAP profitability. Continued net and operating losses constrain the durability of earnings, leave execution dependent on further scaling, and create risk that operating expenses remain elevated as the platform expands.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating growth and retention
Accelerating net ARR and 117% dollar-based retention indicate strong customer expansion and durable platform adoption. These metrics suggest GitLab is deepening usage within its installed base while adding demand, supporting sustained revenue growth over the next several quarters.
Read all positive factors
Gitlab Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales across regions to show where GitLab is strongest, where growth is accelerating or slowing, and where macro or regulatory factors could impact future performance.
Breaks down sales across regions to show where GitLab is strongest, where growth is accelerating or slowing, and where macro or regulatory factors could impact future performance.
Data provided by:
The Fly
The FlyGitlab (GTLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.38B
Dividend YieldN/A
Average Volume (3M)3.99M
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth22.99%
EPS Growth-1190.91%
CountryUS
Employees2,580
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.32
Shares Outstanding165,500,000
10 Day Avg. Volume4,300,474
30 Day Avg. Volume3,986,593
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)5.85
Price to Sales (P/S)6.07
P/FCF Ratio26.12
Enterprise Value/Market Cap0.49
Enterprise Value/Revenue4.37
Enterprise Value/Gross Profit5.10
Enterprise Value/Ebitda-125.27
Forecast
1Y Price Target
$54.61Price Target Upside31.09% Upside
Rating ConsensusHold
Number of Analyst Covering22
EPS Forecast (FY)0.87
Revenue Forecast (FY)$1.13B
Gitlab Business Overview & Revenue Model
Company Description
GitLab Inc., through its various operating entities, specializes in developing software solutions that facilitate the entire software development lifecycle. The company's operations span the United States, Europe, and the Asia Pacific regions. Its...
How the Company Makes Money
GitLab primarily makes money by selling subscriptions to its DevOps platform under a tiered, seat-based model (typically priced per user) for paid editions that include advanced features beyond the free offering. Revenue is generated from (1) ente...
Gitlab Earnings Call Summary
Earnings Call Date:Sep 01, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 07, 2026
Earnings Call Sentiment Positive
The call was strongly positive, characterized by record gross bookings, accelerating net ARR and first-order growth, broad-based customer strength, improving retention, early Flex adoption, growing AI usage, profitability above expectations, and raised full-year guidance. The company also highlighted restructuring charges, collection-timing effects on free cash flow, Flex-related revenue and RPO timing effects, higher JiHu expenses, and limited near-term Duo revenue contribution, but these issues were presented as manageable or timing-related within an otherwise strong quarter.Positive Updates
Strong Q2 Revenue and Profitability
Q2 revenue was $286.3 million, up 21% year over year and roughly 5 points ahead of guidance. Non-GAAP operating income was $42.6 million, up from $39.6 million a year ago, representing an approximately 15% operating margin and exceeding expectations.
Negative Updates
Flex Revenue Recognition Timing Impact
Under Flex, license fees that would otherwise be recognized upfront are recognized over the contract term. GitLab estimates that for every $50 million of self-managed business converting to Flex in FY27, approximately $5 million of revenue would shift from FY27 into future periods, with a maximum potential FY27 revenue impact of approximately $13 million. Management emphasized that this is a timing change, not a change in customer commitments or cash economics.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Q2 Revenue and Profitability
Q2 revenue was $286.3 million, up 21% year over year and roughly 5 points ahead of guidance. Non-GAAP operating income was $42.6 million, up from $39.6 million a year ago, representing an approximately 15% operating margin and exceeding expectations.
Read all positive updates
Company Guidance
For Q3 FY 27, GitLab expects total revenue of $281 million to $283 million, representing approximately 15% to 16% year-over-year growth, non GAAP operating income of $35 million to $37 million, and non GAAP net income per share of $0.19 to $0.20, assuming approximately $172 million weighted average diluted shares outstanding; for the full year, it expects total revenue of $1.129 billion to $1.133 billion, representing approximately 18% to 19% year-over-year growth, non GAAP operating income of $148 million to $152 million, and non GAAP net income per share of $0.85 to $0.87, assuming approximately 172 million weighted average diluted shares outstanding, with full year gross margins between 85% to 87% and approximately $50 million of JiHu-related expenses compared with $13 million last year; it also expects the maximum potential impact of Flex on revenue to be approximately $13 million in FY27 and aims to exceed $100 million of paid CRR by the end of this fiscal year.Gitlab Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
83
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 955.22M | 759.25M | 579.91M | 424.34M | 252.65M |
| Gross Profit | 904.84M | 834.48M | 674.11M | 520.20M | 372.66M | 222.67M |
| EBITDA | -36.81M | -36.72M | -74.81M | -157.86M | -172.17M | -157.86M |
| Net Income | -52.69M | -55.96M | -6.33M | -425.68M | -173.41M | -155.14M |
Balance Sheet | ||||||
| Total Assets | 1.66B | 1.72B | 1.40B | 1.32B | 1.17B | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.26B | 1.26B | 992.38M | 1.04B | 936.65M | 934.70M |
| Total Debt | 0.00 | 187.00K | 392.00K | 410.00K | 1.13M | 0.00 |
| Total Liabilities | 690.35M | 686.50M | 577.96M | 715.01M | 344.48M | 292.17M |
| Stockholders Equity | 925.53M | 990.67M | 775.91M | 559.77M | 771.02M | 774.87M |
Cash Flow | ||||||
| Free Cash Flow | 213.67M | 222.03M | -67.74M | 33.44M | -83.48M | -53.35M |
| Operating Cash Flow | 223.29M | 232.86M | -63.97M | 35.04M | -77.41M | -49.81M |
| Investing Cash Flow | -134.20M | -267.29M | -30.49M | -86.24M | -543.96M | -27.45M |
| Financing Cash Flow | -124.25M | 34.81M | 32.62M | 45.23M | 35.76M | 674.74M |
Gitlab Technical Analysis
Positive
41.66
Price Trends
48.63
Positive
40.46
Positive
33.54
Positive
Market Momentum
2.10
Negative
62.74
Neutral
67.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLB, the sentiment is Positive. The current price of 41.66 is below the 20-day moving average (MA) of 52.40, below the 50-day MA of 48.63, and above the 200-day MA of 33.54, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 67.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTLB.
Gitlab Risk Analysis
Gitlab disclosed 69 risk factors in its most recent earnings report. Gitlab reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gitlab Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.86B | 28.34 | 35.31% | ― | 16.18% | ― | |
78 Outperform | $1.38B | 8.57 | 70.79% | ― | 2.30% | ― | |
76 Outperform | $18.51B | 126.00 | 5.72% | 4.32% | 17.94% | -69.28% | |
75 Outperform | $9.38B | -178.44 | -5.51% | ― | 22.99% | -1190.91% | |
73 Outperform | $4.50B | 44.59 | 12.46% | ― | 24.21% | 206.42% | |
68 Neutral | $12.41B | -272.83 | -4.85% | ― | 26.37% | 51.51% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
GTLB
Gitlab
56.28
7.77
16.02%
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DT
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FROG
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100.62
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101.60%
MNDY
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106.53
-92.25
-46.41%
Gitlab Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
GitLab posts strong Q2 revenue growth amid AI demand
Positive
Sep 1, 2026
On September 1, 2026, GitLab reported second-quarter fiscal 2027 results for the period ended July 31, 2026, posting revenue of $286.3 million, up 21% year-on-year, with non-GAAP operating margin of 15% but a GAAP operating margin of negative 20%....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.