GitLab 2026 Q3 Earnings Net Loss Widens by 131.6% Amid Revenue Growth

GitLab (GTLB) reported Q3 2026 earnings on Dec 3, 2025, with revenue rising 24.6% to $244.35 million, surpassing expectations. However, the company swung to a net loss of $8.80 million, a 131.6% decline year-over-year. Guidance for Q4 and full-year 2026 was raised but marked by caution, reflecting macroeconomic and sector-specific challenges.

Revenue

GitLab’s total revenue for Q3 2026 grew 24.6% year-over-year to $244.35 million, driven by strong performance in subscription and license offerings. Subscription revenue, including self-managed and SaaS models, reached $223.26 million, reflecting robust demand for its platform. License revenue, encompassing self-managed and other solutions, contributed $21.09 million. The company’s focus on enterprise and mid-market segments, along with AI-driven product innovations, underpinned the growth.

Earnings/Net Income

The company reported a net loss of $8.80 million in Q3 2026, compared to a net income of $27.80 million in the prior-year period, marking a 131.6% deterioration. Earnings per share swung to a loss of $0.05 from a profit of $0.18, a 127.8% negative change. The ongoing losses highlight persistent financial challenges despite revenue growth.

Post-Earnings Price Action Review

The strategy of buying GTLB when earnings beat and holding for 30 days resulted in significant underperformance, with a total return of -43.79% compared to a benchmark return of 51.76%. The strategy had a maximum drawdown of 0.00%, indicating no losses during the backtest period, but it also had a low Sharpe ratio of -0.18 and high volatility of 73.53%, underscoring its risk profile.

CEO Commentary

William Staples, CEO, highlighted 25% year-over-year revenue growth to $244 million and a 18% non-GAAP operating margin, exceeding guidance. He emphasized AI’s role in expanding GitLab’s total addressable market and announced strategic initiatives, including the GitLab Duo Agent platform. Staples acknowledged U.S. public-sector challenges due to government shutdown delays but expressed optimism about long-term opportunities.

Guidance

GitLab expects Q4 2026 revenue of $251–252 million (19% YoY growth), non-GAAP operating income of $38–39 million, and EPS of $0.22–0.23. For FY 2026, revenue is guided to $946–947 million (25% growth), with non-GAAP operating income of $147–148 million and EPS of $0.95–0.96. Challenges include SMB softness and public-sector deal delays.

Additional News

GitLab announced the appointment of Jessica Ross as CFO, effective January 15, 2026, bringing seasoned leadership to its finance function. The company also outlined a strategic shift to a hybrid seat plus usage-based pricing model, aiming to monetize AI-driven workflows through the GitLab Duo Agent platform. Analysts, including Wolfe Research and Goldman Sachs, reduced price targets following the Q3 results, reflecting concerns over slowing growth and macroeconomic headwinds.