GitLab 2026 Q3 Earnings Earnings Turn to Loss Amid 127.8% EPS Decline

GitLab (GTLB) reported fiscal 2026 Q3 earnings on Dec 2nd, 2025, with revenue rising 24.6% year-over-year to $244.35 million. The company raised full-year revenue guidance to $946–$947 million but swung to a net loss of $8.8 million, reflecting a 131.6% deterioration from 2025 Q3.

Revenue

GitLab’s total revenue grew 24.6% to $244.35 million, driven by strong performance across its product lines. Subscription-based models, including self-managed and SaaS offerings, generated $223.26 million, while license-based and other segments contributed an additional $21.09 million. The results exceeded Wall Street’s $239.32 million revenue estimate, underscoring robust demand for its DevSecOps platform.

Earnings/Net Income

The company reported a net loss of $8.8 million in Q3 2026, a 131.6% decline from the $27.8 million profit in the prior-year period. Earnings per share turned negative at $0.05, a 127.8% drop from $0.18 in 2025 Q3. The EPS turned to a loss of $0.05 per share, a 127.8% decline from the prior year, highlighting significant financial challenges.

Post-Earnings Price Action Review

A backtest of purchasing GitLab shares on earnings release days and holding for 30 days showed a cumulative return of 14.77% over three years, with an average quarterly gain of 4.86%. However, the strategy faced volatility, including a -15.77% quarterly loss in a recent period, underscoring the need for risk management. The backtest demonstrates that this approach can yield positive returns but requires caution due to market fluctuations. Investors should closely monitor GitLab’s performance and broader market trends to optimize decisions. Note: The backtest is based on historical data and does not guarantee future performance. It is essential to conduct thorough analysis and consider current market conditions before making investment decisions.

CEO Commentary

CEO Bill Staples highlighted growing engagement with GitLab’s platform and emphasized AI-driven innovation, including the integration of the Duo Agent Platform. Interim CFO James Shen noted 25% year-over-year revenue growth and strategic investments in sustainable growth. Both leaders reiterated confidence in GitLab’s competitive positioning and operational discipline.

Guidance

GitLab provided FY2026 guidance: Q4 revenue of $251.0–$252.0 million and full-year revenue of $946–$947 million. Non-GAAP operating income is projected at $38.0–$39.0 million for Q4 and $147–$148 million annually. Diluted net income per share is expected to range from $0.22–$0.23 in Q4 and $0.95–$0.96 for the year.

Additional News

GitLab announced a strategic shift to a hybrid seat-plus-usage-based pricing model and appointed Jessica Ross as CFO, effective January 15, 2026. The company also disclosed $3.3 million in non-GAAP expenses related to its China joint venture, JiHu, and ongoing uncertainty over its deconsolidation. These developments, coupled with AI platform expansion, signal a focus on sustainable growth and operational efficiency.