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Gitlab (GTLB)
NASDAQ:GTLB
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Gitlab
(NASDAQ:GTLB)
Select Model
Select Model
Rating:62Neutral
Price Target:
$41.00
▲(7.70% Upside)
GitLab's overall score reflects strong revenue growth and strategic initiatives, particularly in AI, which are positive indicators. However, the stock faces challenges with profitability, cash flow, and technical indicators, which weigh down the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
AI Platform Development
The development of the AI-driven Duo Agent platform positions GitLab to capitalize on AI trends, enhancing competitive advantage.
Financial Stability
A robust cash position provides GitLab with the flexibility to invest in growth initiatives and weather economic uncertainties.
Negative Factors
Profitability Challenges
Persistent profitability issues could hinder GitLab's ability to reinvest in the business and sustain long-term growth.
Negative Cash Flow
Negative cash flow from operations indicates potential liquidity issues, affecting GitLab's capacity to fund operations and growth.
SMB Market Weakness
Weakness in the SMB market could limit GitLab's growth potential in this segment, affecting overall revenue diversification.
Gitlab (GTLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.38B
Dividend YieldN/A
Average Volume (3M)4.54M
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth27.35%
EPS Growth18.18%
CountryUS
Employees2,375
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.25
Shares Outstanding149,800,000
10 Day Avg. Volume6,424,743
30 Day Avg. Volume4,541,556
Financial Highlights & Ratios
PEG Ratio18.74
Price to Book (P/B)15.06
Price to Sales (P/S)15.39
P/FCF Ratio-172.49
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue7.73
Enterprise Value/Gross Profit8.78
Enterprise Value/Ebitda-121.00
Forecast
1Y Price Target
$54.57Price Target Upside43.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering25
EPS Forecast (FY)0.9
Revenue Forecast (FY)$946.92M
Gitlab Business Overview & Revenue Model
Company DescriptionGitLab Inc. is a leading DevOps platform that provides a suite of tools for software development and collaboration. Founded in 2011, GitLab operates in the technology sector, focusing on source code management, continuous integration, and deployment. Its core offerings include a comprehensive DevOps lifecycle management platform that integrates various stages of software development, from planning and coding to testing, security, and monitoring. GitLab serves developers, teams, and organizations of all sizes, providing them with the necessary tools to enhance productivity and streamline workflows.
How the Company Makes MoneyGitLab generates revenue primarily through subscription services, offering a tiered pricing model that includes free, premium, and enterprise plans. The company provides both self-managed and cloud-based versions of its platform, allowing customers to choose the deployment option that best fits their needs. Key revenue streams include sales from its premium and enterprise subscriptions, which offer additional features such as advanced security, compliance, and project management capabilities. GitLab also benefits from strategic partnerships with cloud service providers and technology firms that enhance its product offerings and expand its market reach. Furthermore, the company may generate additional revenue through professional services, including consulting, training, and support tailored to help organizations adopt and optimize the use of its platform.
Gitlab Key Performance Indicators (KPIs)
Any
Total Customers
Indicates the overall size of the customer base, reflecting market reach and potential for revenue growth as more users adopt the platform.
Indicates the overall size of the customer base, reflecting market reach and potential for revenue growth as more users adopt the platform.
Data provided by:
The Fly
The FlyGitlab Earnings Call Summary
Earnings Call Date:Dec 02, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 16, 2026
Earnings Call Sentiment Positive
GitLab reported strong revenue growth and operating margin, driven by expansions in GitLab Ultimate and the promising development of the Duo Agent platform. However, challenges in the US public sector and SMB market, along with ongoing efforts to strengthen the first order business, presented some headwinds. Overall, the positives in revenue and strategic growth initiatives outweighed the negatives.Q3-2026 Updates
Positive Updates
Strong Revenue Growth
Revenue increased 25% year over year to $244 million, exceeding the Q3 guidance by two points.
Increased Operating Margin
Non-GAAP operating margin reached 18%, a full five points above the Q3 guidance.
Growth in GitLab Ultimate
GitLab Ultimate now represents 54% of total ARR and contributed to significant expansions at major clients.
AI Platform Growth
GitLab Duo Agent platform is on track for general availability, with promising early results and expansions before official launch.
Recognition and Leadership
GitLab was named a leader in the 2025 Gartner Magic Quadrant for DevOps platforms for the third consecutive year and for AI coding assistance for the second consecutive year.
Financial Stability
Ended the quarter with $1.2 billion in cash and investments, demonstrating strong financial position.
Negative Updates
Softness in US Public Sector
Slower decision-making related to the government shutdown created headwinds, impacting performance.
SMB Market Weakness
Persistent softness in the SMB segment, accounting for roughly 8% of ARR, continued to impact growth.
Challenges with First Order Business
The mix of first order versus expansion improved slightly but is still not where it should be, requiring further investment and time.
Company Guidance
During the GitLab third quarter fiscal year 2026 conference call, the company provided several key metrics and guidance for the upcoming periods. GitLab reported a 25% year-over-year revenue growth, reaching $244 million, which was two points above their Q3 guidance. The non-GAAP operating margin was 18%, surpassing their guidance by five points. The company expects fourth-quarter revenue between $251 million and $252 million, reflecting a 19% year-over-year growth, and for the full fiscal year 2026, they anticipate total revenue of $946 million to $947 million, representing a 25% growth. GitLab's dollar-based net retention rate stood at 119%, with a diversified customer base of 10,475 customers. The company highlighted its strategic shift to a hybrid seat plus usage-based business model with the introduction of the Duo Agent platform, aiming to capture more value from increased software activity driven by AI. Despite the challenges in the US public sector and SMB segment, GitLab remains optimistic about its long-term growth prospects.Gitlab Financial Statement Overview
Summary
GitLab shows strong revenue growth and gross margins, but faces challenges with profitability and cash flow. The solid equity position with no debt reduces financial risk, yet negative cash flows and net losses need addressing for long-term health.Income Statement
Gitlab's revenue has shown consistent growth over the years, with a TTM revenue of $759 million, up from $579 million in the previous year. The gross profit margin remains strong at 88.8% for TTM, indicating efficient cost management. However, the company continues to post negative EBIT and net income margins, reflecting ongoing challenges in achieving profitability despite the revenue growth.75
Positive
Balance Sheet
The balance sheet reflects a solid equity position with stockholders' equity at $780 million and no total debt, minimizing financial risk. The equity ratio is strong at 55.7%, which indicates a healthy balance of equity to total assets. However, the company has struggled with negative net income, impacting return on equity.65
Positive
Cash Flow
Gitlab's cash flow from operations turned negative in the TTM period at -$63.97 million, a decline from positive cash flow in the previous year. Free cash flow also decreased to -$67.74 million. The company needs to improve its cash generation capabilities to support growth and operational needs.60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 759.25M | 579.91M | 424.34M | 252.65M | 152.18M |
| Gross Profit | 674.11M | 520.20M | 372.66M | 222.67M | 133.71M |
| EBITDA | -131.73M | -157.86M | -205.82M | -127.75M | -213.66M |
| Net Income | -6.33M | -425.68M | -173.41M | -155.14M | -192.19M |
Balance Sheet | |||||
| Total Assets | 1.40B | 1.32B | 1.17B | 1.09B | 362.57M |
| Cash, Cash Equivalents and Short-Term Investments | 992.38M | 1.04B | 936.65M | 934.70M | 282.85M |
| Total Debt | 392.00K | 410.00K | 1.13M | 0.00 | 0.00 |
| Total Liabilities | 577.96M | 715.01M | 344.48M | 292.17M | 593.79M |
| Stockholders Equity | 775.91M | 559.77M | 771.02M | 774.87M | -231.22M |
Cash Flow | |||||
| Free Cash Flow | -67.74M | 33.44M | -83.48M | -53.35M | -73.58M |
| Operating Cash Flow | -63.97M | 35.04M | -77.41M | -49.81M | -73.58M |
| Investing Cash Flow | -30.49M | -86.24M | -605.69M | -53.90M | -842.00K |
| Financing Cash Flow | 32.62M | 45.23M | 97.48M | 701.18M | 12.95M |
Gitlab Technical Analysis
Negative
38.07
Price Trends
43.78
Negative
44.86
Negative
45.80
Negative
Market Momentum
-1.61
Negative
38.03
Neutral
18.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLB, the sentiment is Negative. The current price of 38.07 is below the 20-day moving average (MA) of 39.85, below the 50-day MA of 43.78, and below the 200-day MA of 45.80, indicating a bearish trend. The MACD of -1.61 indicates Negative momentum. The RSI at 38.03 is Neutral, neither overbought nor oversold. The STOCH value of 18.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $9.75B | 38.93 | 51.96% | 0.16% | 17.00% | 120.21% | |
66 Neutral | $7.35B | 118.69 | 5.81% | ― | 28.62% | 186.67% | |
65 Neutral | $7.85B | -73.73 | -12.84% | ― | 16.98% | -265.85% | |
62 Neutral | $6.38B | -146.65 | -5.17% | ― | 27.35% | 18.18% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $653.08M | -13.88 | -26.69% | ― | 13.09% | 32.34% | |
51 Neutral | $3.44B | -20.84 | -15.89% | ― | 24.26% | 55.58% |
* Technology Sector Average
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38.07
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Gitlab Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
GitLab Appoints New CFO Amidst Strong Q3 Growth
Positive
Dec 2, 2025
On December 2, 2025, GitLab announced the appointment of Jessica P. Ross as Chief Financial Officer, effective January 15, 2026, succeeding James Shen who will continue as Vice President of Finance. GitLab reported a strong third quarter for fiscal year 2026 with a 25% year-over-year revenue increase to $244.4 million, reflecting strategic investments and positioning for long-term growth in a rapidly transforming market. The company also highlighted its recognition as a leader in the Gartner Magic Quadrant for DevOps Platforms and AI Code Assistants, and enhancements to its platform with AI-driven features and security capabilities.
M&A TransactionsBusiness Operations and Strategy
GitLab Enters Right of First Refusal Agreement
Neutral
Nov 26, 2025
On November 25, 2025, GitLab Inc. entered into a Right of First Refusal Agreement with Kilo Code, Inc., an affiliate of the executive chair of GitLab’s Board of Directors. This agreement, approved by GitLab’s Audit Committee, allows GitLab the opportunity to match any third-party acquisition offer received by Kilo before August 24, 2026, thereby potentially influencing GitLab’s strategic acquisitions and partnerships.
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.