GitLab's Q4 2025: Unraveling Contradictions in AI Strategy, Duo Performance, and Growth Investments

These are the key contradictions discussed in GitLab's latest 2025Q4 earnings call, specifically including: AI integration strategy, Duo's contribution to total ARR, net retention rate expectations, pricing strategy and expectations, and growth investments versus margin expansion:



Revenue Growth and Strategic Acquisitions:
- GitLab reported revenue of $211 million in Q4 FY '25, representing a 29% year-over-year increase.
- This growth was driven by the strategic acquisition and integration of its Ultimate, Dedicated, and Duo products, which contributed to land-and-expand motion and increased market share.

Strong Customer Expansion and Retention:
- GitLab ended the quarter with 9,893 customers with ARR of at least $5,000, contributing over 95% of total ARR.
- The dollar-based net retention rate (DBNRR) was 123%, driven by seat expansion, increased customer yield, and tier upgrades.

Increased Adoption of AI-Driven Tools:
- Duo Pro and Duo Enterprise contributed significantly to GitLab's revenue, with Duo ARR accounting for one-third of total ARR in deals including Duo.
- This is attributed to the growing adoption of AI tools in software development, with customers recognizing GitLab's platform as a comprehensive DevSecOps solution.

Customer Success and Platform Expansion:
- GitLab Ultimate reached 50% of total ARR, with a significant increase in large first orders exceeding $100,000.
- This growth is supported by GitLab's platform approach, which offers consolidated solutions for planning, issue tracking, integration, packaging, deployment, and security, meeting the needs of various customer segments.