GitLab 2026 Q2 Earnings Misses Targets as Net Income Deteriorates 181.7%

GitLab (GTLB) reported its fiscal 2026 Q2 earnings on September 3, 2025, delivering strong revenue growth but swinging to a loss. The stock closed the latest trading day down 2.27%, reversing recent gains. The company maintained its full-year revenue outlook while raising profit expectations, citing operating leverage and strategic shifts.

GitLab reported total revenue of $235.96 million for the quarter, up 29.2% year-over-year from $182.58 million. Subscription and SaaS revenue remained the primary driver, accounting for $212.68 million, while License-self-managed and other revenue added $23.28 million. The company demonstrated robust performance in recurring revenue streams, highlighting continued strength in its core business.

The company swung to a loss of $0.06 per share in 2026 Q2 compared to a profit of $0.08 per share in 2025 Q2, marking a 175.0% negative change. Net loss expanded to $10 million, a 181.7% deterioration from the $12.24 million net income in the prior year. The loss underscores ongoing financial challenges, as GitLab has reported losses for five consecutive years in this period.

GitLab’s stock price has experienced mixed performance in recent periods, declining 2.27% on the latest trading day but rising 7.17% during the most recent full trading week and climbing 12.17% month-to-date. The market appears to be weighing in on the company’s strategic direction and long-term profitability.

CEO William Staples emphasized a strong Q2 performance with 29% year-over-year revenue growth to $236 million and a non-GAAP operating margin of 17%. He highlighted strategic investments in sales-led and product-led growth, including the appointment of Manav Khurana as Chief Product and Marketing Officer. Staples also addressed leadership changes, ensuring a smooth transition with James Chen as Interim CFO. He expressed confidence in GitLab’s AI-native DevSecOps platform, which he believes provides a competitive edge in embedding security and interoperability with AI tools.

GitLab provided updated guidance for Q3 2026, forecasting revenue of $238 million to $239 million (23% year-over-year growth), non-GAAP operating income of $31 million to $32 million, and non-GAAP net income per share of $0.19 to $0.20. For the full year 2026, the company expects revenue of $936 million to $942 million (24% year-over-year growth), non-GAAP operating income of $133 million to $136 million, and non-GAAP net income per share of $0.82 to $0.83. The guidance reflects a focus on maintaining revenue growth while raising profit expectations through operating leverage and go-to-market changes.

The earnings results indicate a mixed performance, with strong revenue growth overshadowed by a significant decline in profitability. The EPS results are considered negative due to the large deterioration in net income and the continued losses.

Additional News
In the three weeks surrounding September 3, 2025, Nigeria saw several significant non-earnings-related developments. The Nigerian government announced a 40% increase in non-oil revenue to N20.6 trillion, a key achievement attributed to recent economic reforms led by President Bola Tinubu. In a related move, Tinubu mandated mandatory health insurance coverage across all federal government ministries, departments, and agencies, signaling a broader push to improve public services. Meanwhile, political tensions flared as the APC and opposition parties clashed over federal revenue growth claims, adding to an already charged political atmosphere ahead of the 2027 elections.