How did UiPath's revenue and expenses shift in Q4 2025?

UiPath's revenue and expenses in Q4 2025 showed notable shifts, reflecting strategic initiatives and operational efficiency:

1. Revenue Growth: UiPath reported a revenue of $424 million for Q4 2025, marking a 5% year-over-year increase. The company's annual recurring revenue (ARR) reached $1.666 billion, up by 14% year-over-year. Notably, net new ARR was $60 million, and the dollar-based net retention rate stood at 110%, indicating strong customer loyalty and revenue growth potential.
2. Operating Income: UiPath reported a GAAP operating income of $34 million and a non-GAAP operating income of $134 million for Q4 2025. The non-GAAP operating margin was 32%, reflecting improved operational efficiency.
3. Gross Margin: The company maintained a robust gross margin, with a GAAP gross margin of 85% and a non-GAAP gross margin of 87%. This indicates effective cost management and a strong market position.
4. Cash Flow and Financial Stability: UiPath's net cash flow from operations was $146 million, and non-GAAP adjusted free cash flow was $145 million for Q4 2025. The company ended the quarter with $1.7 billion in cash, cash equivalents, and marketable securities, with no debt, demonstrating financial stability.
5. Product Innovation and Market Focus: UiPath's focus on innovation, particularly in AI capabilities, has been a key driver of growth. The introduction of new products like Autopilot, Agent Builder, Agentic Orchestration, and Agentic Testing has redefined the future of automation. The company's emphasis on customer-centricity and strategic partnerships has also contributed to its market traction.

In conclusion, UiPath's Q4 2025 financial results demonstrate a strong revenue growth trajectory, improved operational efficiency, and a solid financial position, underpinned by strategic product innovations and market focus.