GitLab Shares Plummet 7.8 as Trading Volume Surges 119 to 151st Rank Amid Mixed Earnings and Guidance Fallout

On September 3, 2025, GitLab (GTLB) traded at $43.25, down 7.80% after hours, with a trading volume of $0.62 billion, a 119.51% increase from the previous day. The stock ranked 151st in daily trading volume. The company reported Q2 CY2025 revenue of $236 million, surpassing Wall Street estimates by 4% and growing 29.2% year-over-year. Non-GAAP earnings per share of $0.24 exceeded analyst forecasts by 46.3%, while adjusted operating income of $39.57 million beat estimates by 64.9%. However, next quarter’s revenue guidance of $238.5 million fell 1.2% below expectations.

GitLab reaffirmed its full-year revenue guidance of $939 million and raised adjusted EPS guidance to $0.83 at the midpoint, reflecting a 10.7% increase. Despite a 19.7% free cash flow margin, the company’s operating margin contracted to -7.8% from -22.5% in the prior year. A net revenue retention rate of 121% declined slightly from 122% in the previous quarter. CEO Bill Staples highlighted the AI-native DevSecOps platform’s role in driving customer innovation.

Insider selling and soft guidance contributed to investor caution. CFO Brian Robins sold 10,000 shares, while directors and major shareholders offloaded millions in stock. Analysts noted mixed signals, with Goldman Sachs reaffirming a “Buy” rating but Zacks assigning a #5 (Strong Sell) rating due to unfavorable earnings estimate revisions. The stock has underperformed the S&P 500, falling 15.4% year-to-date.

Backtest results indicate the Zacks Rank for GitLab is #5 (Strong Sell), with shares expected to underperform the market in the near term. Current consensus estimates project $0.19 EPS and $240.95 million in revenue for the next quarter, and $0.75 EPS on $939.54 million in revenue for the fiscal year. The stock’s trajectory will depend on evolving guidance and market sentiment amid AI-driven industry dynamics.