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Gitlab
(NASDAQ:GTLB)
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Rating:72Outperform
Price Target:
$55.00
▲(32.02% Upside)
Action:Upgraded
Date:09/06/26
GTLB scores well primarily on improving financial quality (high gross margins, strong free cash flow, and a debt-light balance sheet) and a constructive earnings-call setup with raised FY27 guidance and strong RPO/cash positioning. Technicals are supportive but somewhat stretched (RSI > 70), while the score is held back by weak valuation metrics (negative P/E and no dividend yield provided) and near-term execution risk from restructuring and a pressured price-sensitive ARR cohort.
Positive Factors
Revenue growth and software economics
Strong revenue growth combined with very high gross margins reflects attractive software economics and continued customer demand. This gives GitLab room to fund product development, expand its platform, and improve operating leverage as scale increases over the coming quarters.
Negative Factors
Persistent GAAP losses
GitLab has not yet converted its strong gross margins and revenue scale into GAAP profitability. Continued losses can constrain financial flexibility, increase dependence on operating improvements, and make execution on investments more important as the company scales.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and software economics
Strong revenue growth combined with very high gross margins reflects attractive software economics and continued customer demand. This gives GitLab room to fund product development, expand its platform, and improve operating leverage as scale increases over the coming 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
$8.30B
Dividend YieldN/A
Average Volume (3M)5.33M
Price to Earnings (P/E)―
Beta (1Y)1.35
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. Volume7,455,231
30 Day Avg. Volume5,332,126
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$53.61Price Target Upside28.69% Upside
Rating ConsensusHold
Number of Analyst Covering22
EPS Forecast (FY)0.86
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 GitLab DevSecOps platform. Revenue is mainly generated from recurring subscription fees for paid tiers that provide enhanced functionality (e.g., advanced CI/CD features, security scanni...
Gitlab Earnings Call Summary
Earnings Call Date:Jun 02, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 07, 2026
Earnings Call Sentiment Positive
The earnings call presented a constructive operating and product momentum picture: revenue grew 23% with a guide beat, profitability improved, large customer counts and platform usage accelerated, Duo Agent Platform showed strong early demand, SaaS and Dedicated offerings scaled, and the company raised full-year guidance. Offsetting these positives are meaningful near-term risks: a significant workforce restructuring (Act 2) with $30–$35M of charges and potential short-term disruption, continued pressure in a price-sensitive ~20% ARR cohort driven by customer layoffs and M&A, conservative assumptions about DAP revenue in FY27 despite early signals, and some contract-duration caution from customers. On balance, the highlights notably outweigh the lowlights due to strong top-line performance, cash generation, customer metrics, and strategic positioning for AI/agentic tailwinds, while management is proactively addressing cost structure and investing in long-term architectural bets.Positive Updates
Revenue Beat and Strong Growth
Q1 revenue of $264 million, up 23% year-over-year and 4 percentage points ahead of guidance.
Negative Updates
Macro and Mid-Market Pressure
A price-sensitive cohort (~20% of ARR) remained under pressure; increased seat contraction tied to customer layoffs and M&A-related churn contributed to weaker-than-possible seat growth and weighed on net retention in mid-market/SMB.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Beat and Strong Growth
Q1 revenue of $264 million, up 23% year-over-year and 4 percentage points ahead of guidance.
Read all positive updates
Company Guidance
GitLab guided Q2 FY‑27 revenue of $272–$274M (≈15–16% YoY), non‑GAAP operating income of $30–$32M and non‑GAAP EPS of $0.17–$0.18 (assumes 168M diluted shares), and raised full‑year FY‑27 guidance to $1.112–$1.118B revenue (≈16–17% YoY), non‑GAAP operating income of $135–$141M and non‑GAAP EPS of $0.79–$0.82 (assumes 166M shares). Key modeling items: full‑year gross margin expected 85–87%; profitability is forecast to trough in Q3 due to timing of post‑restructuring investments; JiHu expense ~ $15M (vs. $13M LY); and the company expects to incur $30–$35M of pretax restructuring charges (≈$19M in Q2) tied to ~14% (≈350) headcount reductions, exiting 22 countries and ~37% geographic footprint reduction, with most savings to be reinvested. Management also assumed no material FY‑27 revenue from Duo Agent Platform despite DAP paid consumption run‑rate of nearly $20M in Q1, flagged continued pressure in a ~20% price‑sensitive ARR cohort, and reiterated leading indicators of business health (total RPO $1.1B, +18% YoY; current RPO $724M, +24%) while closing Q1 with $1.36B cash and $350M remaining on the buyback authorization.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
37.28
Positive
31.56
Positive
31.58
Positive
Market Momentum
3.33
Negative
73.76
Negative
61.24
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 43.65, above the 50-day MA of 37.28, and above the 200-day MA of 31.58, indicating a bullish trend. The MACD of 3.33 indicates Negative momentum. The RSI at 73.76 is Negative, neither overbought nor oversold. The STOCH value of 61.24 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 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.64B | 25.40 | 35.31% | ― | 16.18% | ― | |
73 Outperform | $3.85B | 38.12 | 12.46% | ― | 24.21% | 206.42% | |
72 Outperform | $8.30B | -157.99 | -5.51% | ― | 22.99% | -1190.91% | |
70 Outperform | $688.78M | -22.72 | -14.05% | ― | 11.85% | 47.54% | |
68 Neutral | $6.14B | 19.66 | 48.90% | 0.54% | 3.60% | 48.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $3.30B | -7.78 | -7.08% | ― | 34.93% | 74.60% |
* Technology Sector Average
GTLB
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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.