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Gitlab (GTLB)
NASDAQ:GTLB
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Gitlab
(NASDAQ:GTLB)
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Rating:63Neutral
Price Target:
$48.00
▲(5.38% Upside)
GitLab's strong revenue growth and strategic focus on AI and product development are significant positives. However, ongoing profitability challenges, negative cash flows, and valuation concerns weigh on the overall score. The positive earnings call sentiment and strategic initiatives provide a favorable outlook, but financial and technical weaknesses limit the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
AI and Product Development
Investment in AI and product development enhances competitive edge and positions GitLab for future technological leadership.
Strong Financial Position
A robust cash position provides flexibility for strategic investments and cushions against potential market fluctuations.
Negative Factors
Profitability Challenges
Ongoing profitability challenges could hinder long-term financial sustainability and limit reinvestment capabilities.
Negative Cash Flows
Negative cash flows may restrict operational flexibility and necessitate external funding, impacting growth prospects.
Executive Turnover
Frequent executive changes can disrupt strategic continuity and affect stakeholder confidence in leadership stability.
Gitlab (GTLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.60B
Dividend YieldN/A
Average Volume (3M)4.24M
Price to Earnings (P/E)―
Beta (1Y)1.58
Revenue Growth28.97%
EPS Growth98.96%
CountryUS
Employees2,375
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.24
Shares Outstanding147,900,000
10 Day Avg. Volume2,769,406
30 Day Avg. Volume4,241,518
Financial Highlights & Ratios
PEG Ratio18.74
Price to Book (P/B)15.06
Price to Sales (P/S)15.39
P/FCF Ratio-172.49
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue7.17
Enterprise Value/Gross Profit8.10
Enterprise Value/Ebitda-85.90
Forecast
1Y Price Target
$57.42Price Target Upside26.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Gitlab Business Overview & Revenue Model
Company DescriptionGitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. The company offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. It helps organizations to plan, build, secure, and deploy software to drive business outcomes. The company also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. The company was founded in 2011 and is headquartered in San Francisco, California.
How the Company Makes MoneyGitLab generates revenue primarily through a subscription-based model, offering tiered pricing plans for its software as a service (SaaS) platform. The company provides free access to its basic features while monetizing advanced functionalities through paid tiers, including Premium and Ultimate plans, which offer additional features such as enhanced security, compliance capabilities, and priority support. Additionally, GitLab earns revenue from self-managed solutions, where customers host the software on their own infrastructure, along with professional services such as consulting and training. Significant partnerships with cloud service providers and integrations with other popular development tools also contribute to its revenue by expanding its customer base and enhancing product offerings.
Gitlab Key Performance Indicators (KPIs)
Any
Total Customers
Indicates the overall size of the customer base, reflecting market reach and potential for revenue growth as more users adopt the platform.
Indicates the overall size of the customer base, reflecting market reach and potential for revenue growth as more users adopt the platform.
Data provided by:
Main Street Data
Main Street DataGitlab Earnings Call Summary
Earnings Call Date:Sep 03, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 08, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant revenue growth, high operating margins, and successful customer expansions. The company is making strategic investments in AI and its product offerings, positioning itself for future growth. However, challenges remain, including softness in the SMB segment, executive turnover, and potential disruptions from AI tools. Overall, GitLab Inc. is navigating these challenges with a positive outlook.Q2-2026 Updates
Positive Updates
Strong Revenue Growth
GitLab Inc. reported a 29% year-over-year increase in revenue, reaching $236 million for the second quarter.
High Non-GAAP Operating Margin
The company achieved a non-GAAP operating margin of 17% and raised its non-GAAP operating profit outlook.
Successful Customer Expansions
Examples include Virgin Media O2 increasing their investment by more than five times and a major European fintech company reducing mean time to recovery with GitLab Inc. Ultimate.
Significant Increase in SaaS Adoption
SaaS revenue grew 39% year over year, now representing approximately 30% of total revenue.
Positive AI and Product Developments
GitLab Inc. introduced 72 new features across its paid tiers and reported strong initial feedback on its Duo Agent platform with AI capabilities.
Robust Financial Position
The company ended the quarter with $1.2 billion in cash and investments, contributing to flexibility in market navigation and strategic investments.
Strong Customer Retention
The dollar-based net retention rate was 121%, and over 70% of revenue growth in FY 2026 was attributed to paid seat growth.
Negative Updates
Softness in SMB Segment
The SMB segment, which accounts for about 8% of total business, showed incremental softness, expected to persist through the rest of the year.
Executive Turnover
Brian Robbins, the CFO, announced his departure, adding to previous executive changes.
Challenges in Go-to-Market Adjustments
GitLab Inc. is undergoing significant changes in its go-to-market strategy, which may take time to show positive results.
Potential Disruption from AI Tools
Concerns were raised about AI tools potentially impacting growth and the risk of new AI coding vendors encroaching on GitLab Inc.'s core offerings.
Company Guidance
During the GitLab Inc. second quarter fiscal year 2026 conference call, the company reported a 29% year-over-year increase in revenue, reaching $236 million. The non-GAAP operating margin improved to 17%, and the company maintained its revenue outlook for the year while raising its non-GAAP operating profit guidance. GitLab Inc. emphasized its dual sales-led and product-led growth strategies, aiming to expand its customer base, especially in the mid-market and enterprise segments. The company also highlighted its focus on AI capabilities, reporting that 72% of new startups joining their program were AI companies. Additionally, GitLab Inc. noted that its GitLab Inc. Ultimate now represents 53% of total ARR, with significant contributions from its dedicated product, which grew 92% year over year, contributing approximately $50 million in ARR. Despite incremental softness in the SMB segment, the company projected total revenue of $930 million to $942 million for the full fiscal year 2026, representing a 24% year-over-year growth rate.Gitlab Financial Statement Overview
Summary
GitLab shows strong revenue growth and high gross margins, but struggles with profitability and cash flow. The absence of debt reduces financial risk, yet negative cash flows and net losses are concerning.Income Statement
Gitlab's revenue has shown consistent growth over the years, with a TTM revenue of $759 million, up from $579 million in the previous year. The gross profit margin remains strong at 88.8% for TTM, indicating efficient cost management. However, the company continues to post negative EBIT and net income margins, reflecting ongoing challenges in achieving profitability despite the revenue growth.75
Positive
Balance Sheet
The balance sheet reflects a solid equity position with stockholders' equity at $780 million and no total debt, minimizing financial risk. The equity ratio is strong at 55.7%, which indicates a healthy balance of equity to total assets. However, the company has struggled with negative net income, impacting return on equity.65
Positive
Cash Flow
Gitlab's cash flow from operations turned negative in the TTM period at -$63.97 million, a decline from positive cash flow in the previous year. Free cash flow also decreased to -$67.74 million. The company needs to improve its cash generation capabilities to support growth and operational needs.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 857.95M | 759.25M | 579.91M | 424.34M | 252.65M | 152.18M |
| Gross Profit | 759.41M | 674.11M | 520.20M | 372.66M | 222.67M | 133.71M |
| EBITDA | -71.60M | -131.73M | -157.86M | -205.82M | -127.75M | -213.66M |
| Net Income | -4.73M | -6.33M | -425.68M | -173.41M | -155.14M | -192.19M |
Balance Sheet | ||||||
| Total Assets | 1.50B | 1.40B | 1.32B | 1.17B | 1.09B | 362.57M |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 992.38M | 1.04B | 936.65M | 934.70M | 282.85M |
| Total Debt | 0.00 | 392.00K | 410.00K | 1.13M | 0.00 | 0.00 |
| Total Liabilities | 586.61M | 577.96M | 715.01M | 344.48M | 292.17M | 593.79M |
| Stockholders Equity | 866.55M | 775.91M | 559.77M | 771.02M | 774.87M | -231.22M |
Cash Flow | ||||||
| Free Cash Flow | 35.84M | -67.74M | 33.44M | -83.48M | -53.35M | -73.58M |
| Operating Cash Flow | 41.87M | -63.97M | 35.04M | -77.41M | -49.81M | -73.58M |
| Investing Cash Flow | -253.18M | -30.49M | -86.24M | -605.69M | -53.90M | -842.00K |
| Financing Cash Flow | 30.29M | 32.62M | 45.23M | 97.48M | 701.18M | 12.95M |
Gitlab Technical Analysis
Negative
45.55
Price Trends
47.44
Negative
45.84
Negative
49.42
Negative
Market Momentum
-0.08
Positive
44.68
Neutral
14.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLB, the sentiment is Negative. The current price of 45.55 is below the 20-day moving average (MA) of 47.15, below the 50-day MA of 47.44, and below the 200-day MA of 49.42, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 44.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTLB.
Gitlab Risk Analysis
Gitlab disclosed 66 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $10.01B | 39.95 | 51.96% | 0.15% | 17.00% | 120.21% | |
73 Outperform | $9.19B | 255.79 | 3.80% | ― | 30.24% | -6.69% | |
65 Neutral | $9.20B | ― | -9.65% | ― | 17.42% | -228.98% | |
63 Neutral | $7.60B | ― | -0.63% | ― | 28.97% | 98.96% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $581.17M | ― | -26.69% | ― | 13.09% | 32.34% | |
48 Neutral | $3.54B | ― | -31.02% | ― | 20.42% | -9.39% |
* Technology Sector Average
GTLB
Gitlab
45.55
-14.60
-24.27%
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Gitlab Corporate Events
GitLab Inc. Earnings Call Highlights Growth and Challenges
Sep 5, 2025
GitLab Inc. Reports Strong Financial Performance Amid Strategic Investments
GitLab Inc. Reports Strong Q2 2026 Results
Sep 4, 2025
GitLab Inc. is a leading company in the DevSecOps sector, providing a comprehensive platform that enhances software development through AI-driven solutions. The company is known for its cloud-agnostic, model-neutral platform that integrates AI capabilities across the software development lifecycle.
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
GitLab CFO Resignation Amid Strong Q2 Results
Positive
Sep 3, 2025
On August 28, 2025, GitLab announced the resignation of its Chief Financial Officer, Brian Robins, effective September 19, 2025, and initiated a search for a successor. The company reported strong financial results for the second quarter of fiscal year 2026, with a 29% increase in revenue year-over-year, and significant improvements in operating margins. GitLab also launched the public beta of its GitLab Duo Agent Platform, an AI orchestration platform, and signed a strategic collaboration agreement with Amazon Web Services to expand its GitLab Dedicated offering, enhancing its position in regulated industries.
The most recent analyst rating on (GTLB) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Gitlab stock, see the GTLB Stock Forecast page.
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.