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GitLab 2026 Q2 Earnings Losses Widen Despite Revenue Beat
Generated by AI AgentAinvest Earnings Report Digest
Friday, Sep 5, 2025 5:04 am ET2min read
Aime SummaryGitLab (GTLB) reported its fiscal 2026 Q2 earnings on Sep 04, 2025. The company beat revenue and earnings estimates but swung to a loss, with an expanded net income deficit year-over-year. raised its full-year revenue and profit guidance.
GitLab’s Q2 revenue of $235.96 million exceeded the consensus estimate of $227.25 million and grew 29.2% year-over-year. The company raised its 2026 adjusted EPS guidance and provided an updated Q3 outlook, reflecting confidence in its long-term growth trajectory despite short-term financial headwinds.
Revenue
GitLab’s total revenue for Q2 2026 reached $235.96 million, marking a 29.2% year-over-year increase from $182.58 million. Subscription revenue, encompassing both self-managed and SaaS offerings, led the performance, accounting for $212.68 million of the total. License revenue, also covering self-managed and other segments, contributed $23.28 million. These figures underscore the company’s continued focus on its core subscription model while maintaining steady performance in its license-based offerings.
Earnings/Net Income
GitLab reported a loss of $0.06 per share in Q2 2026, a significant decline from a profit of $0.08 per share in the prior-year period, representing a 175% negative change. The company recorded a net loss of $10 million, worsening from a net income of $12.24 million in Q2 2025, a deterioration of 181.7%. Despite beating revenue expectations, the earnings performance reflects ongoing operational costs and strategic investments.
Price Action
GitLab’s stock price edged down 0.20% during the latest trading day, tumbled 8.04% during the most recent full trading week, and declined 1.56% month-to-date.
Post-Earnings Price Action Review
Despite strong top-line results and a raised earnings outlook, the stock fell sharply in after-hours trading, shedding 8.68% to $42.74. The market appeared to focus on the company’s widened loss and lingering profitability concerns, overshadowing its revenue beat and forward-looking guidance. The price action highlights investor skepticism around GitLab’s ability to maintain profitability as it scales its operations and invests in AI-driven growth initiatives.
CEO Commentary
William Staples, CEO & Director, highlighted strong second-quarter results with 29% year-over-year revenue growth to $236 million and a non-GAAP operating margin of 17%. He emphasized three strategic priorities: scaling new customer acquisition through product-led and sales-driven approaches, accelerating value realization for current customers, and innovating in DevOps, security, and AI. He noted that 70% of the revenue growth stemmed from seat expansion and expressed confidence in the company’s AI-native DevSecOps platform and leadership changes.
Guidance
GitLab expects Q3 2026 revenue of $238–239 million (23% YoY growth), with non-GAAP operating income of $31–32 million and net income per share of $0.19–0.20. For FY 2026, it anticipates revenue of $936–942 million (24% YoY growth), non-GAAP operating income of $133–136 million, and net income per share of $0.82–0.83.
Additional News
GitLab’s Q2 report included several strategic updates. The company announced the launch of its GitLab Duo Agent Platform, designed to enhance human-AI collaboration across the software development lifecycle. This platform underscores GitLab’s commitment to AI-native solutions, allowing customers to integrate their preferred AI generation tools directly within its ecosystem. Additionally, GitLab’s customer base continued to expand, with 10,338 customers generating over $5,000 of ARR, a 11% year-over-year increase, and 1,344 customers generating over $100,000 of ARR, up 25% year-over-year. The company also reported a 121% dollar-based net retention rate, reflecting strong customer satisfaction and product stickiness. Total RPO grew 32% to $988.2 million, while cRPO increased 31% to $621.6 million. These metrics support GitLab’s long-term growth narrative. No significant M&A or C-level executive changes were disclosed within the three weeks surrounding the earnings release.
GitLab’s Q2 revenue of $235.96 million exceeded the consensus estimate of $227.25 million and grew 29.2% year-over-year. The company raised its 2026 adjusted EPS guidance and provided an updated Q3 outlook, reflecting confidence in its long-term growth trajectory despite short-term financial headwinds.
Revenue
GitLab’s total revenue for Q2 2026 reached $235.96 million, marking a 29.2% year-over-year increase from $182.58 million. Subscription revenue, encompassing both self-managed and SaaS offerings, led the performance, accounting for $212.68 million of the total. License revenue, also covering self-managed and other segments, contributed $23.28 million. These figures underscore the company’s continued focus on its core subscription model while maintaining steady performance in its license-based offerings.
Earnings/Net Income
GitLab reported a loss of $0.06 per share in Q2 2026, a significant decline from a profit of $0.08 per share in the prior-year period, representing a 175% negative change. The company recorded a net loss of $10 million, worsening from a net income of $12.24 million in Q2 2025, a deterioration of 181.7%. Despite beating revenue expectations, the earnings performance reflects ongoing operational costs and strategic investments.
Price Action
GitLab’s stock price edged down 0.20% during the latest trading day, tumbled 8.04% during the most recent full trading week, and declined 1.56% month-to-date.
Post-Earnings Price Action Review
Despite strong top-line results and a raised earnings outlook, the stock fell sharply in after-hours trading, shedding 8.68% to $42.74. The market appeared to focus on the company’s widened loss and lingering profitability concerns, overshadowing its revenue beat and forward-looking guidance. The price action highlights investor skepticism around GitLab’s ability to maintain profitability as it scales its operations and invests in AI-driven growth initiatives.
CEO Commentary
William Staples, CEO & Director, highlighted strong second-quarter results with 29% year-over-year revenue growth to $236 million and a non-GAAP operating margin of 17%. He emphasized three strategic priorities: scaling new customer acquisition through product-led and sales-driven approaches, accelerating value realization for current customers, and innovating in DevOps, security, and AI. He noted that 70% of the revenue growth stemmed from seat expansion and expressed confidence in the company’s AI-native DevSecOps platform and leadership changes.
Guidance
GitLab expects Q3 2026 revenue of $238–239 million (23% YoY growth), with non-GAAP operating income of $31–32 million and net income per share of $0.19–0.20. For FY 2026, it anticipates revenue of $936–942 million (24% YoY growth), non-GAAP operating income of $133–136 million, and net income per share of $0.82–0.83.
Additional News
GitLab’s Q2 report included several strategic updates. The company announced the launch of its GitLab Duo Agent Platform, designed to enhance human-AI collaboration across the software development lifecycle. This platform underscores GitLab’s commitment to AI-native solutions, allowing customers to integrate their preferred AI generation tools directly within its ecosystem. Additionally, GitLab’s customer base continued to expand, with 10,338 customers generating over $5,000 of ARR, a 11% year-over-year increase, and 1,344 customers generating over $100,000 of ARR, up 25% year-over-year. The company also reported a 121% dollar-based net retention rate, reflecting strong customer satisfaction and product stickiness. Total RPO grew 32% to $988.2 million, while cRPO increased 31% to $621.6 million. These metrics support GitLab’s long-term growth narrative. No significant M&A or C-level executive changes were disclosed within the three weeks surrounding the earnings release.
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