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Gitlab
(NASDAQ:GTLB)
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Rating:76Outperform
Price Target:
$56.00
▲(34.42% Upside)
Action:Reiterated
Date:09/15/26
GTLB scores well due to strong financial quality (high gross margins, minimal leverage, and positive free cash flow) and a very upbeat earnings call featuring raised guidance, accelerating ARR, and improving retention. Technicals also support the score with a clear uptrend and positive momentum. The main constraint is valuation—negative earnings (negative P/E) and no dividend yield reduce valuation support despite operational progress.
Positive Factors
Unified DevOps Platform
GitLab’s single-application approach covers the full software lifecycle, combining capabilities that customers might otherwise source from multiple tools. This broad workflow coverage can support platform adoption, deepen usage across teams, and create durable expansion opportunities as software complexity grows.
Negative Factors
Persistent GAAP Losses
GitLab remains unprofitable on a GAAP basis despite reaching more than $1 billion in trailing revenue. Persistent operating losses indicate that scale has not yet fully translated into durable earnings, potentially limiting internally funded investment and increasing execution pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Unified DevOps Platform
GitLab’s single-application approach covers the full software lifecycle, combining capabilities that customers might otherwise source from multiple tools. This broad workflow coverage can support platform adoption, deepen usage across teams, and create durable expansion opportunities as software complexity grows.
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
$8.29B
Dividend YieldN/A
Average Volume (3M)5.11M
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. Volume4,274,203
30 Day Avg. Volume5,112,437
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 Cap0.56
Enterprise Value/Revenue4.37
Enterprise Value/Gross Profit5.10
Enterprise Value/Ebitda-114.79
Forecast
1Y Price Target
$54.06Price Target Upside29.75% 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 | -40.17M | -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
43.45
Positive
36.37
Positive
32.32
Positive
Market Momentum
1.33
Positive
61.20
Neutral
71.64
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 48.36, below the 50-day MA of 43.45, and above the 200-day MA of 32.32, indicating a bullish trend. The MACD of 1.33 indicates Positive momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 71.64 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 | $9.86B | 25.99 | 35.31% | ― | 16.18% | ― | |
78 Outperform | $1.21B | 7.52 | 70.79% | ― | 2.30% | ― | |
76 Outperform | $8.29B | -157.83 | -5.51% | ― | 22.99% | -1190.91% | |
76 Outperform | $17.14B | 116.64 | 5.72% | 4.32% | 17.94% | -69.28% | |
73 Outperform | $3.33B | 32.98 | 12.46% | ― | 24.21% | 206.42% | |
68 Neutral | $11.78B | -258.95 | -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
49.78
2.65
5.62%
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93.94
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PD
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15.34
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DT
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59.32
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FROG
JFrog
95.50
47.04
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MNDY
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78.80
-109.86
-58.23%
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%....
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
GitLab Highlights AI-Driven Platform and Consumption Growth
Positive
Jul 8, 2026
On July 8, 2026, GitLab published an investor update highlighting progress in its consumption-based business and new AI-focused product architecture, following first quarter fiscal 2027 results for the three months ended April 30, 2026. Year-to-da...
Executive/Board ChangesShareholder Meetings
GitLab Announces Chief Legal Officer Transition and Leadership Change
Neutral
Jun 24, 2026
GitLab Inc. announced that Chief Legal Officer, Head of Corporate Affairs, and Corporate Secretary Robin Schulman will resign effective June 30, 2026, with the company emphasizing that her departure does not stem from any disagreement over operati...
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.