Gitlab (GTLB) AI Stock Analysis

• Market Cap: $7.52B
• Dividend Yield: N/A
• Average Volume (3M): 5.24M
• Price to Earnings (P/E): 452.8
• Beta (1Y): 1.38
• Revenue Growth: 29.31%
• EPS Growth: N/A
• Country: US
• Employees: 2,375
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.17
• Shares Outstanding: 146,100,000
• 10 Day Avg. Volume: 4,918,949
• 30 Day Avg. Volume: 5,239,611
• PEG Ratio: 0.00
• Price to Book (P/B): -102.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -228.78
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 18.82
• Enterprise Value/Ebitda: -24.12
• 1Y Price Target: $62.83
• Price Target Upside: 39.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

• Rating: 61 Neutral
• Price Target: $46.00 ▲(1.91%Upside)

Gitlab's overall stock score reflects strong financial growth and a positive earnings call with notable advancements in AI and product innovation. However, high valuation concerns and mixed technical indicators pose challenges. The company's solid equity base mitigates some financial risks, but ongoing profitability and cash flow issues need addressing.

Positive Factors

Customer Engagement

Real-world customer impact was demonstrated with Barclays showing over 90% Duo engagement and Thales reporting a 20x increase in software delivery speed using GitLab’s platform.

Market Position

GitLab is positioning itself as a next-generation DevSecOps platform built for context-driven AI enablement and software development lifecycle efficiency.

Product Innovation

GitLab introduced AI capabilities like Duo Chat and Duo Code Suggestions for Premium and Ultimate tier users, expanding access to AI assistants across a broader segment of the developer base.

Negative Factors

Revenue Growth Challenges

The company's ability to continue to power revenue growth from seat expansions in the current software buying environment is clear evidence that the platform value proposition is still resonating with customers.

Revenue Visibility

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

Stock Performance

Muted revenue upside in Q1 combined with the reiterated top-line guide is leading to shares slipping in aftermarket trading.

Gitlab Business Overview & Revenue Model

Company Description

GitLab Inc. (NASDAQ: GTLB) is a leading DevOps platform that provides a single application for the entire software development and operations lifecycle. Founded in 2011, the company offers a comprehensive suite of tools that enable organizations to plan, build, secure, and deploy software more efficiently. GitLab's platform supports collaboration among development, operations, and security teams, helping to streamline workflows and enhance productivity. The company serves a diverse range of industries and organizations, from startups to large enterprises, seeking to accelerate their digital transformation initiatives.

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 shows strong revenue growth and gross margins but struggles with profitability and cash flow. A solid equity base with no debt reduces financial risk, yet negative cash flows and net losses require attention 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.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	804.57M	759.25M	579.91M	424.34M	252.65M	152.18M
Gross Profit	713.17M	674.11M	520.20M	372.66M	222.67M	133.71M
EBITDA	-114.72M	-131.73M	-180.91M	-205.82M	-127.75M	-213.66M
Net Income	12.44M	-6.33M	-425.68M	-180.70M	-157.56M	-192.19M
Balance Sheet
Total Assets	1.44B	1.40B	1.32B	1.17B	1.09B	362.57M
Cash, Cash Equivalents and Short-Term Investments	1.10B	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	589.39M	577.96M	715.01M	344.48M	292.17M	593.79M
Stockholders Equity	808.28M	775.91M	559.77M	771.02M	774.87M	-231.22M
Cash Flow
Free Cash Flow	216.00K	-67.74M	33.44M	-83.48M	-53.35M	-73.58M
Operating Cash Flow	4.19M	-63.97M	35.04M	-77.41M	-49.81M	-73.58M
Investing Cash Flow	-201.77M	-30.49M	-86.24M	-605.69M	-53.90M	-842.00K
Financing Cash Flow	30.86M	32.62M	45.23M	97.48M	701.18M	12.95M

Gitlab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.14
• 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 Positive. The current price of 45.14 is above the 20-day moving average (MA) of 44.42, below the 50-day MA of 46.39, and below the 200-day MA of 54.77, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 77.62 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	75 Outperform	$8.61B	131.41	6.40%	―	21.75%	116.24%
FRSH	73 Outperform	$4.48B	―	-6.85%	―	20.46%	39.37%
FROG	68 Neutral	$4.88B	―	-10.47%	―	21.66%	-50.24%
Sector *	63 Neutral	$33.24B	5.92	-11.55%	1.90%	5.54%	-20.14%
GTLB	61 Neutral	$7.52B	452.76	2.53%	―	29.31%	―
ALIT	60 Neutral	$3.12B	―	-0.82%	2.76%	-26.04%	85.84%
ASAN	58 Neutral	$3.22B	―	-83.36%	―	9.84%	13.74%

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.