GitLab 2026 Q3 Earnings Net Loss Widens 131.6% Despite Revenue Beat

GitLab reported fiscal 2026 Q3 earnings on Dec 3, 2025, with revenue growth exceeding expectations but net losses widening. The stock fell sharply post-earnings as cautious guidance and deteriorating profitability offset strong top-line performance.

Revenue

GitLab’s total revenue rose 24.6% year-over-year to $244.35 million, driven by robust Subscription revenue of $223.26 million. License revenue, including self-managed and other solutions, added $21.09 million, supporting the overall growth. The performance reflects strong demand for its DevSecOps platform, though margin pressures and operational costs impacted profitability.

Earnings/Net Income

The company swung to a $0.05 per-share loss, a 127.8% decline from a $0.18 profit in the prior year. Net losses expanded to $8.8 million, a 131.6% deterioration from $27.8 million net income in 2025 Q3. The sustained losses over five years underscore ongoing financial challenges despite revenue momentum.

Post-Earnings Price Action Review

A strategy of buying GTLB after earnings beats and holding for 30 days underperformed severely, with a -43.79% return versus a 51.76% benchmark. While the backtest showed no losses (0.00% maximum drawdown), it exhibited a low Sharpe ratio of -0.18 and high volatility of 73.53%, highlighting its risk profile and poor risk-adjusted returns.

CEO Commentary

CEO William Staples highlighted 25% revenue growth to $244 million and 18% non-GAAP operating margin, exceeding guidance. Strategic priorities include AI-driven AI Agent platform monetization and expanding mid-market reach, despite U.S. public sector delays and SMB price sensitivity.

Guidance

GitLab guided Q4 2026 revenue to $251–252 million (19% YoY growth) and full-year revenue of $946–947 million (25% growth). Non-GAAP operating income is projected at $38–39 million for Q4 and $147–148 million for FY26, with EPS of $0.22–0.23 and $0.95–0.96, respectively.

Additional News

GitLab announced Jessica Ross as its new CFO, effective Jan 15, 2026, signaling a strategic shift toward disciplined financial leadership. Analysts at Wolfe Research and others cut price targets, with Wolfe lowering its target to $50 while maintaining an Outperform rating. The stock’s 22.4% month-to-date decline and 33.5% annual drop reflect investor skepticism over slowing growth and macroeconomic headwinds.