Gitlab (GTLB) AI Stock Analysis

• Market Cap: $7.18B
• Dividend Yield: N/A
• Average Volume (3M): 4.60M
• Price to Earnings (P/E): 470.5
• Beta (1Y): 1.41
• Revenue Growth: 28.97%
• EPS Growth: 98.96%
• Country: US
• Employees: 2,375
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.24
• Shares Outstanding: 146,100,000
• 10 Day Avg. Volume: 5,521,990
• 30 Day Avg. Volume: 4,603,903
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 7.71
• Enterprise Value/Gross Profit: 8.71
• Enterprise Value/Ebitda: -105.90
• 1Y Price Target: $57.57
• Price Target Upside: 32.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 29

• Rating: 62 Neutral
• Price Target: $46.00 ▲(5.84% Upside)

GitLab's strong revenue growth and strategic focus on AI are significant positives, but ongoing profitability challenges and negative cash flows weigh heavily. The technical indicators suggest a bearish trend, and the valuation remains unattractive due to negative earnings. The positive earnings call sentiment and strategic initiatives provide some optimism for future growth.

Positive Factors

Financial Performance

GTLB posted strong FQ2 results that significantly exceeded expectations, with revenue and operating income being much better than anticipated.

Product Innovation

Developing AI tailwinds, DevSecOps consolidation, and new product innovation are expected to drive sustained 20%-plus growth and steady margin expansion.

Revenue Growth

GitLab grew revenue by 29% in the fiscal second quarter, exceeding revenue consensus by $9.1 million, with the outperformance attributed to healthy seat growth, robust bookings growth, and higher-than-expected self-managed revenue mix.

Negative Factors

Executive Transitions

The unexpected departure of CFO Brian Robins is weighing on the stock.

Guidance and Market Strategy

Third-quarter and full-year revenue guidance fell short of consensus as management injected extra conservatism in the second-half outlook, attributed to go-to-market transformation and SMB softness.

Revenue Guidance

The updated revenue outlook for FY26 was disappointing, with guidance implying a deceleration in revenue growth from 29% in FQ2 to 18% in FQ4.

Gitlab Business Overview & Revenue Model

Company Description

GitLab Inc. is a leading DevOps platform that provides a single application for the entire software development lifecycle, enabling teams to collaborate efficiently from planning to deployment and monitoring. Founded in 2011, GitLab operates in the technology sector, focusing on software development, version control, and continuous integration/continuous deployment (CI/CD). Its core products include Git repository management, project planning tools, CI/CD pipelines, security scanning, and monitoring solutions, catering to developers, DevOps teams, and organizations looking to enhance their software development processes.

How the Company Makes Money

GitLab generates revenue primarily through a subscription-based model, offering tiered pricing plans for its software as a service (SaaS) platform. The company provides free access to its basic features while monetizing advanced functionalities through paid tiers, including Premium and Ultimate plans, which offer additional features such as enhanced security, compliance capabilities, and priority support. Additionally, GitLab earns revenue from self-managed solutions, where customers host the software on their own infrastructure, along with professional services such as consulting and training. Significant partnerships with cloud service providers and integrations with other popular development tools also contribute to its revenue by expanding its customer base and enhancing product offerings.

Gitlab Financial Statement Overview

Summary

GitLab shows strong revenue growth and gross margins, but struggles with profitability and cash flow. The solid equity position with no debt reduces financial risk, yet negative cash flows and net losses are concerning.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	857.95M	759.25M	579.91M	424.34M	252.65M	152.18M
Gross Profit	759.41M	674.11M	520.20M	372.66M	222.67M	133.71M
EBITDA	-62.48M	-74.81M	-157.86M	-172.21M	-157.86M	-189.14M
Net Income	-9.71M	-6.33M	-425.68M	-173.41M	-155.14M	-192.19M
Balance Sheet
Total Assets	1.50B	1.40B	1.32B	1.17B	1.09B	362.57M
Cash, Cash Equivalents and Short-Term Investments	1.17B	992.38M	1.04B	936.65M	934.70M	282.85M
Total Debt	0.00	392.00K	410.00K	1.13M	0.00	0.00
Total Liabilities	586.61M	577.96M	715.01M	344.48M	292.17M	593.79M
Stockholders Equity	866.55M	775.91M	559.77M	771.02M	774.87M	-231.22M
Cash Flow
Free Cash Flow	35.84M	-67.74M	33.44M	-83.48M	-53.35M	-73.58M
Operating Cash Flow	41.87M	-63.97M	35.04M	-77.41M	-49.81M	-73.58M
Investing Cash Flow	-253.18M	-30.49M	-86.24M	-605.69M	-53.90M	-842.00K
Financing Cash Flow	30.29M	32.62M	45.23M	97.48M	701.18M	12.95M

Gitlab Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.46
• 50DMA: Negative
• 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 Negative. The current price of 43.46 is below the 20-day moving average (MA) of 44.04, below the 50-day MA of 44.63, and below the 200-day MA of 52.66, indicating a bearish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 45.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTLB.

Gitlab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	71 Outperform	$9.21B	46.60	41.55%	0.14%	12.47%	65.19%
ESTC	68 Neutral	$9.00B	192.75	-9.65%	―	17.42%	-228.98%
MNDY	68 Neutral	$9.26B	246.11	3.80%	―	30.24%	-6.69%
GTLB	62 Neutral	$7.18B	470.51	-0.63%	―	28.97%	98.96%
SPT	62 Neutral	$874.59M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
KC	53 Neutral	$4.02B	―	-31.02%	―	20.42%	-9.39%

Gitlab Corporate Events

GitLab CFO Resignation Amid Strong Q2 Results

On August 28, 2025, GitLab announced the resignation of its Chief Financial Officer, Brian Robins, effective September 19, 2025, and initiated a search for a successor. The company reported strong financial results for the second quarter of fiscal year 2026, with a 29% increase in revenue year-over-year, and significant improvements in operating margins. GitLab also launched the public beta of its GitLab Duo Agent Platform, an AI orchestration platform, and signed a strategic collaboration agreement with Amazon Web Services to expand its GitLab Dedicated offering, enhancing its position in regulated industries.

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.

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.