GitLab 2026 Q3 Earnings Reports Net Loss Amid Strong Revenue Growth

GitLab (GTLB) reported fiscal 2026 Q3 earnings on Dec 3, 2025, with revenue rising 24.6% to $244.35 million, exceeding expectations. The company raised full-year revenue guidance but swung to a net loss of $8.80 million, contrasting with a $27.80 million profit in the prior-year period.

Revenue

GitLab’s total revenue surged 24.6% year-over-year to $244.35 million, driven by robust performance across segments. Subscription—self-managed and SaaS revenue accounted for the majority at $223.26 million, while License—self-managed and other contributed $21.09 million. This breakdown underscores the company’s reliance on recurring and platform-based offerings, with SaaS and self-managed solutions forming the backbone of its revenue stream.

Earnings/Net Income

The company swung to a loss of $0.05 per share in 2026 Q3 from a profit of $0.18 per share in 2025 Q3, reflecting a 127.8% negative change. Meanwhile, the net loss of $-8.80 million marked a 131.6% deterioration from the prior-year net income of $27.80 million. Despite robust revenue growth, the earnings shortfall highlights ongoing financial challenges.

Post-Earnings Price Action Review

The strategy of purchasing GTLB following a positive earnings report and holding for 30 days underperformed significantly, yielding a -43.79% return compared to the benchmark’s 51.76%.

The approach showed no losses during the backtest period but exhibited a low Sharpe ratio of -0.18 and high volatility of 73.53%, underscoring its risk profile. This outcome contrasts with the company’s revenue growth, indicating market skepticism despite operational improvements.

CEO Commentary

William Staples, CEO, emphasized 25% year-over-year revenue growth to $244M and an 18% non-GAAP operating margin, exceeding guidance. He positioned GitLab’s AI-driven DevSecOps platform as critical for addressing the “AI Paradox,” with strategic priorities including expanding the first-order sales team and innovating in Core DevOps and AI.

Guidance

GitLab provided Q4 2026 revenue guidance of $251–252M (19% YoY growth) and full-year 2026 revenue of $946–947M (25% YoY growth). Management cited continued investment in AI capabilities and a $1.2B cash reserve to support strategic opportunities, though SMB weakness and public sector headwinds were factored into assumptions.

Additional News

GitLab announced the appointment of Jessica Ross as CFO, effective January 15, 2026, signaling a strategic shift in financial leadership. Analysts, including Wolfe Research and Goldman Sachs, trimmed price targets amid concerns over slowing growth and macroeconomic headwinds. The stock fell 14% post-earnings, reflecting mixed sentiment despite strong revenue performance.