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Gitlab
(NASDAQ:GTLB)
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Rating:68Neutral
Price Target:
$36.00
▲(68.07% Upside)
Action:Reiterated
Date:07/08/26
The score is driven primarily by strong financial quality for a growth software name (high margins, debt-free balance sheet, and notably improved positive free cash flow) and a constructive earnings update with raised guidance and solid customer/RPO indicators. These positives are tempered by still-negative GAAP profitability, stretched near-term technical conditions (overbought signal and still below the 200-day average), and limited valuation support given the negative P/E and no dividend.
Positive Factors
Balance sheet strength
A debt-free balance sheet with sizeable equity and $1.36B cash provides durable financial flexibility. It lowers insolvency risk, funds R&D and AI investments, supports buybacks and restructuring costs, and gives management optionality to execute strategic shifts over the next several quarters.
Negative Factors
GAAP profitability still negative
Despite improving non‑GAAP results and positive FCF, GAAP profitability remains negative and ROE is still below zero. That limits retained-earnings buildup and means durability of earnings power is not yet proven, keeping pressure on long-term return metrics and investor tolerance.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A debt-free balance sheet with sizeable equity and $1.36B cash provides durable financial flexibility. It lowers insolvency risk, funds R&D and AI investments, supports buybacks and restructuring costs, and gives management optionality to execute strategic shifts over the next several quarters.
Read all positive factors
Gitlab Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales across regions to show where GitLab is strongest, where growth is accelerating or slowing, and where macro or regulatory factors could impact future performance.
Breaks down sales across regions to show where GitLab is strongest, where growth is accelerating or slowing, and where macro or regulatory factors could impact future performance.
Data provided by:
The Fly
The FlyGitlab (GTLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.72B
Dividend YieldN/A
Average Volume (3M)6.45M
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth24.90%
EPS Growth-233.01%
CountryUS
Employees2,375
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.15
Shares Outstanding167,800,000
10 Day Avg. Volume4,103,914
30 Day Avg. Volume6,446,406
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)5.85
Price to Sales (P/S)6.07
P/FCF Ratio26.12
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue4.12
Enterprise Value/Gross Profit4.74
Enterprise Value/Ebitda-710.91
Forecast
1Y Price Target
$34.30Price Target Upside60.13% Upside
Rating ConsensusHold
Number of Analyst Covering23
EPS Forecast (FY)0.81
Revenue Forecast (FY)$1.12B
Gitlab Business Overview & Revenue Model
Company Description
GitLab Inc., through its various operating entities, specializes in developing software solutions that facilitate the entire software development lifecycle. The company's operations span the United States, Europe, and the Asia Pacific regions. Its...
How the Company Makes Money
GitLab primarily makes money by selling subscriptions to its GitLab DevSecOps platform. Revenue is mainly generated from recurring subscription fees for paid tiers that provide enhanced functionality (e.g., advanced CI/CD features, security scanni...
Gitlab Earnings Call Summary
Earnings Call Date:Jun 02, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 08, 2026
Earnings Call Sentiment Positive
The earnings call presented a constructive operating and product momentum picture: revenue grew 23% with a guide beat, profitability improved, large customer counts and platform usage accelerated, Duo Agent Platform showed strong early demand, SaaS and Dedicated offerings scaled, and the company raised full-year guidance. Offsetting these positives are meaningful near-term risks: a significant workforce restructuring (Act 2) with $30–$35M of charges and potential short-term disruption, continued pressure in a price-sensitive ~20% ARR cohort driven by customer layoffs and M&A, conservative assumptions about DAP revenue in FY27 despite early signals, and some contract-duration caution from customers. On balance, the highlights notably outweigh the lowlights due to strong top-line performance, cash generation, customer metrics, and strategic positioning for AI/agentic tailwinds, while management is proactively addressing cost structure and investing in long-term architectural bets.Positive Updates
Revenue Beat and Strong Growth
Q1 revenue of $264 million, up 23% year-over-year and 4 percentage points ahead of guidance.
Negative Updates
Macro and Mid-Market Pressure
A price-sensitive cohort (~20% of ARR) remained under pressure; increased seat contraction tied to customer layoffs and M&A-related churn contributed to weaker-than-possible seat growth and weighed on net retention in mid-market/SMB.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Beat and Strong Growth
Q1 revenue of $264 million, up 23% year-over-year and 4 percentage points ahead of guidance.
Read all positive updates
Company Guidance
GitLab guided Q2 FY‑27 revenue of $272–$274M (≈15–16% YoY), non‑GAAP operating income of $30–$32M and non‑GAAP EPS of $0.17–$0.18 (assumes 168M diluted shares), and raised full‑year FY‑27 guidance to $1.112–$1.118B revenue (≈16–17% YoY), non‑GAAP operating income of $135–$141M and non‑GAAP EPS of $0.79–$0.82 (assumes 166M shares). Key modeling items: full‑year gross margin expected 85–87%; profitability is forecast to trough in Q3 due to timing of post‑restructuring investments; JiHu expense ~ $15M (vs. $13M LY); and the company expects to incur $30–$35M of pretax restructuring charges (≈$19M in Q2) tied to ~14% (≈350) headcount reductions, exiting 22 countries and ~37% geographic footprint reduction, with most savings to be reinvested. Management also assumed no material FY‑27 revenue from Duo Agent Platform despite DAP paid consumption run‑rate of nearly $20M in Q1, flagged continued pressure in a ~20% price‑sensitive ARR cohort, and reiterated leading indicators of business health (total RPO $1.1B, +18% YoY; current RPO $724M, +24%) while closing Q1 with $1.36B cash and $350M remaining on the buyback authorization.Gitlab Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00B | 955.22M | 759.25M | 579.91M | 424.34M | 252.65M |
| Gross Profit | 871.68M | 834.48M | 674.11M | 520.20M | 372.66M | 222.67M |
| EBITDA | -5.82M | -36.72M | -74.81M | -157.86M | -172.17M | -157.86M |
| Net Income | -25.05M | -55.96M | -6.33M | -425.68M | -173.41M | -155.14M |
Balance Sheet | ||||||
| Total Assets | 1.71B | 1.72B | 1.40B | 1.32B | 1.17B | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.36B | 1.26B | 992.38M | 1.04B | 936.65M | 934.70M |
| Total Debt | 0.00 | 187.00K | 392.00K | 410.00K | 1.13M | 0.00 |
| Total Liabilities | 674.15M | 686.50M | 577.96M | 715.01M | 344.48M | 292.17M |
| Stockholders Equity | 985.20M | 990.67M | 775.91M | 559.77M | 771.02M | 774.87M |
Cash Flow | ||||||
| Free Cash Flow | 263.44M | 222.03M | -67.74M | 33.44M | -83.48M | -53.35M |
| Operating Cash Flow | 275.75M | 232.86M | -63.97M | 35.04M | -77.41M | -49.81M |
| Investing Cash Flow | -181.24M | -267.29M | -30.49M | -86.24M | -543.96M | -27.45M |
| Financing Cash Flow | -16.39M | 34.81M | 32.62M | 45.23M | 35.76M | 674.74M |
Gitlab Technical Analysis
Positive
21.42
Price Trends
27.83
Positive
25.47
Positive
33.17
Negative
Market Momentum
1.44
Negative
60.50
Neutral
69.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLB, the sentiment is Positive. The current price of 21.42 is below the 20-day moving average (MA) of 29.52, below the 50-day MA of 27.83, and below the 200-day MA of 33.17, indicating a neutral trend. The MACD of 1.44 indicates Negative momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 69.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTLB.
Gitlab Risk Analysis
Gitlab disclosed 66 risk factors in its most recent earnings report. Gitlab reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gitlab Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.45B | 17.00 | 37.43% | ― | 17.26% | ― | |
73 Outperform | $5.36B | 15.70 | 50.21% | 0.16% | 3.50% | 75.14% | |
71 Outperform | $4.28B | 35.23 | 10.69% | ― | 25.42% | 125.90% | |
69 Neutral | $503.68M | -12.53 | -19.29% | ― | 12.27% | 37.41% | |
68 Neutral | $5.72B | -215.47 | -2.66% | ― | 24.90% | -233.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $3.15B | -20.92 | -12.16% | ― | 31.25% | 56.23% |
* Technology Sector Average
GTLB
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32.42
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Gitlab Corporate Events
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
GitLab Highlights AI-Driven Platform and Consumption Growth
Positive
Jul 8, 2026
On July 8, 2026, GitLab published an investor update highlighting progress in its consumption-based business and new AI-focused product architecture, following first quarter fiscal 2027 results for the three months ended April 30, 2026. Year-to-da...
Executive/Board ChangesShareholder Meetings
GitLab Announces Chief Legal Officer Transition and Leadership Change
Neutral
Jun 24, 2026
GitLab Inc. announced that Chief Legal Officer, Head of Corporate Affairs, and Corporate Secretary Robin Schulman will resign effective June 30, 2026, with the company emphasizing that her departure does not stem from any disagreement over operati...
Business Operations and StrategyStock BuybackFinancial Disclosures
GitLab Announces Major Global Restructuring Amid Ongoing Expansion
Negative
Jun 2, 2026
On June 1, 2026, GitLab’s board approved a restructuring plan that will cut about 14% of its global workforce and see the company exit 22 countries, shrinking its geographic footprint by roughly 37% and triggering an estimated $30 million to...
Business Operations and StrategyRegulatory Filings and Compliance
GitLab Executive Chair Converts Class B to Class A
Neutral
May 19, 2026
GitLab Inc. disclosed that Executive Chair Sytse Sijbrandij converted all of his Class B common stock, which carried 10 votes per share, into Class A common stock with one vote per share on May 14, 2026, a change reported in a Form 4 filed on May ...
Business Operations and StrategyFinancial Disclosures
GitLab Restructures Workforce to Embrace Agentic AI Era
Negative
May 11, 2026
On May 11, 2026, GitLab announced a restructuring and reduction in force designed to realign its operating structure and support its strategy for the emerging “agentic” AI era. The plan includes shrinking its geographic footprint by ex...
Executive/Board Changes
GitLab Announces Board Change and Committee Reassignment
Neutral
Apr 16, 2026
On April 13, 2026, GitLab Inc. announced that board member Merline Saintil notified the company of her decision to step down from the board and from its Compensation and Leadership Development Committee, effective April 15, 2026, with the company ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.