GitLab 2026 Q3 Earnings Beats Revenue Estimates Amid Net Loss Expansion

GitLab (GTLB) reported fiscal 2026 Q3 earnings on Dec 2, 2025, with revenue exceeding expectations but net income declining sharply. The company raised full-year revenue guidance while acknowledging ongoing profitability challenges.

Revenue

GitLab’s total revenue surged 24.6% year-over-year to $244.35 million, driven by robust performance in its core subscription and SaaS offerings. Subscription-self-managed and SaaS revenue accounted for the lion’s share at $223.26 million, reflecting strong customer retention and product adoption. License-self-managed and other segments contributed an additional $21.09 million, underscoring diversified revenue streams across its platform.

Earnings/Net Income

The company swung to a loss of $0.05 per share in Q3 2026, a 127.8% decline from a $0.18 profit in the prior-year quarter. Net income turned negative, with a $8.80 million loss compared to $27.80 million in 2025 Q3. This marks the fifth consecutive quarterly loss, highlighting persistent operational inefficiencies despite revenue growth.

Post-Earnings Price Action Review

The strategy of purchasing GitLab shares post-earnings and holding for 30 days historically yielded a 14.77% cumulative return over three years, averaging 4.86% per quarter. However, volatility remained a concern, as seen in Q3 2025’s -15.77% decline, underscoring the risks of market sentiment shifts and unmet expectations. While the approach capitalized on short-term momentum, it required disciplined risk management to navigate drawdowns.

CEO Commentary

CEO Bill Staples emphasized progress in AI-driven platform enhancements and strategic investments in the Duo Agent Platform to streamline workflows. Interim CFO James Shen highlighted 25% YoY revenue growth and a focus on sustainable growth amid market transitions.

Guidance

GitLab projected Q4 2026 revenue of $251.0–$252.0 million and full-year revenue of $946–$947 million. Non-GAAP operating income is expected to range from $38.0–$39.0 million in Q4 and $147–$148 million for FY2026.

Additional News

GitLab announced the appointment of Jessica Ross as CFO, effective January 15, 2026, succeeding interim CFO James Shen. The company also outlined a strategic shift to a hybrid usage-based pricing model, targeting $946 million in FY2026 revenue. Additionally, GitLab reported $3.3 million in non-GAAP expenses related to its China joint venture, JiHu, with uncertainty over future deconsolidation.