Gitlab (GTLB) AI Stock Analysis

• Market Cap: $7.50B
• Dividend Yield: N/A
• Average Volume (3M): 5.42M
• Price to Earnings (P/E): 450.6
• Beta (1Y): 1.37
• Revenue Growth: 29.31%
• EPS Growth: N/A
• Country: US
• Employees: 2,375
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 0.17
• Shares Outstanding: 146,100,000
• 10 Day Avg. Volume: 3,971,583
• 30 Day Avg. Volume: 5,423,386
• PEG Ratio: 2.34
• Price to Book (P/B): 8.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.02K
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 9.58
• Enterprise Value/Ebitda: -12.28
• 1Y Price Target: $61.48
• Price Target Upside: 33.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 26

• Rating: 66 Neutral
• Price Target: $49.00 ▲(6.45%Upside)

GitLab's strong revenue growth and AI integration are significant positives, supported by a healthy balance sheet with no debt. However, high valuation metrics and challenges in achieving profitability and positive cash flow weigh on the score. The technical indicators suggest bearish momentum, though sentiment from the earnings call is mostly positive.

Positive Factors

Earnings Potential

The introduction of MCP Server could lead to further entrenchment into enterprise DevSecOps workflows, benefiting long-term customer monetization for GitLab.

Market Position

GitLab's platform covers all workflows in the software development lifecycle, giving it a distinct advantage over competing tools.

Product Innovation

Agent Platform is now in public beta, marking an important step towards becoming a key investment narrative for GitLab.

Negative Factors

AI Adoption Challenges

Current visibility into AI-driven revenue contribution is limited, and adoption and usage of GitLab’s AI SKUs are still in the early stages.

Competitive Pressure

Headlines on code generation competitors are fueling bear theses like shrinking seats, and GitLab falling technologically behind.

Gitlab Business Overview & Revenue Model

Company Description

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. The company offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. It helps organizations to plan, build, secure, and deploy software to drive business outcomes. The company also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. The company was founded in 2011 and is headquartered in San Francisco, California.

How the Company Makes Money

GitLab generates revenue primarily through a subscription-based model, offering various tiers of its platform with differing levels of features and support. Customers typically subscribe to one of GitLab's premium plans, such as GitLab Premium or GitLab Ultimate, which provide enhanced capabilities and advanced security features compared to the free, open-source version. These subscriptions are available on a per-user, per-month basis, contributing to a steady and recurring revenue stream. Additionally, GitLab engages in enterprise agreements with larger organizations that require customized solutions and dedicated support. The company also benefits from partnerships and integrations with other technology providers, although these arrangements primarily support product functionality rather than direct revenue generation.

Gitlab Financial Statement Overview

Summary

GitLab is experiencing strong revenue growth and maintains a healthy equity position with no debt. However, the company faces challenges with negative EBIT, net income margins, and cash flows, impacting profitability.

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.

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.

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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	-180.91M	-205.82M	-127.75M	-213.66M
Net Income	-6.33M	-425.68M	-180.70M	-157.56M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 46.03
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 46.03 is above the 20-day moving average (MA) of 44.62, above the 50-day MA of 46.02, and below the 200-day MA of 54.29, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 67.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTLB.

Gitlab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRAD	73 Outperform	$9.41B	140.77	6.40%	―	21.75%	116.24%
FRSH	71 Outperform	$4.31B	―	-6.85%	―	20.46%	39.37%
FROG	68 Neutral	$4.85B	―	-10.47%	―	21.66%	-50.24%
GTLB	66 Neutral	$7.50B	450.55	2.53%	―	29.31%	―
ASAN	64 Neutral	$3.54B	―	-83.36%	―	9.84%	13.74%
ALIT	58 Neutral	$2.95B	―	-0.82%	2.15%	-26.04%	85.84%
Sector *	50 Neutral	C$3.06B	2.41	-63.57%	2.26%	4.49%	-6.15%

Gitlab Corporate Events

GitLab Adopts Key Proposals at Annual Meeting

On June 20, 2025, GitLab Inc. held its 2025 Annual Meeting of Stockholders, where several key proposals were adopted. These included the election of three Class I directors, the ratification of KPMG LLP as the independent public accounting firm for the fiscal year ending January 31, 2026, and the approval of executive compensation on a non-binding advisory basis. These decisions are poised to impact the company’s governance and financial oversight, reflecting GitLab’s ongoing commitment to maintaining robust operational and financial standards.

The most recent analyst rating on (GTLB) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Gitlab stock, see the GTLB Stock Forecast page.

GitLab Reports Strong Q1 2026 Financial Results

On June 10, 2025, GitLab announced its financial results for the first quarter of fiscal year 2026, ending April 30, 2025, highlighting a 27% year-over-year revenue increase to $214.5 million. The company reported significant improvements in its operating margins and cash flows, driven by the adoption of its AI-native DevSecOps platform, which integrates AI capabilities to enhance software development efficiency and security. GitLab also launched GitLab 18, featuring innovations in DevOps workflows and AI capabilities, and received recognition as a leader in the DevOps industry.

The most recent analyst rating on (GTLB) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Gitlab stock, see the GTLB Stock Forecast page.