Gitlab (GTLB) AI Stock Analysis

• Market Cap: $6.28B
• Dividend Yield: N/A
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 27.35%
• EPS Growth: 18.18%
• Country: US
• Employees: 2,375
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.25
• Shares Outstanding: 149,800,000
• 10 Day Avg. Volume: 5,323,345
• 30 Day Avg. Volume: 4,071,321
• PEG Ratio: 18.74
• Price to Book (P/B): 15.06
• Price to Sales (P/S): 15.39
• P/FCF Ratio: -172.49
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 6.35
• Enterprise Value/Gross Profit: 7.21
• Enterprise Value/Ebitda: -78.04
• 1Y Price Target: $51.55
• Price Target Upside: 38.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24
• EPS Forecast (FY): 0.89
• Revenue Forecast (FY): $947.10M

• Rating: 68 Neutral
• Price Target: $41.00 ▲(10.16% Upside)

The score is driven primarily by improving fundamentals (strong cash flow swing, high gross margins, and a low-leverage balance sheet) and a solid earnings call with better-than-guided margin and constructive revenue outlook. Offsetting this are weak technicals (below key moving averages with negative MACD) and an unattractive/limited valuation signal due to ongoing losses and a negative P/E.

Positive Factors

Conservative balance sheet

Near-zero debt and a sizable equity base give GitLab durable financial flexibility to fund R&D, platform investments, and potential M&A without reliance on external financing. This reduces solvency risk and supports long-term product and go-to-market execution even during downturns.

Strong cash generation

A material swing to positive operating and free cash flow provides a sustainable funding source for product development and scaling. Reliable FCF supports reinvestment in AI features and sales capacity, lowering dilution risk and enabling steady progress toward sustained profitability.

High gross margins & platform leadership

Very high gross margins and repeated Gartner leadership reflect a strong, differentiated DevOps platform with pricing power. Coupled with the Duo Agent AI/usage strategy, GitLab has durable product-led advantages to monetize increased developer activity and expand enterprise wallet share over time.

Negative Factors

Ongoing net losses

Despite cash-flow improvement, persistent net losses and negative ROE indicate profitability hasn't fully normalized. Continued losses can constrain long-term returns, limit dividend or buyback options, and mean sustained execution is required to translate cash generation into consistent GAAP profitability.

Slowing revenue growth

A marked slowdown in TTM top-line growth reduces the leverage from high gross margins and can compress future operating-margin expansion. Slower revenue traction raises execution risk for platform monetization initiatives and makes achieving prior growth-rate assumptions more challenging.

Segment & new-business headwinds

Persistent weakness in SMB and US public sector buying cycles, plus suboptimal first-order acquisition, limit new-logo growth. Reliance on expansions (high net retention) is positive, but structural customer-acquisition gaps increase sensitivity to slower demand and could slow long-term ARR growth.

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 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 Financial Statement Overview

Summary

Strong balance sheet with essentially no debt and sizable equity, plus a sharp improvement to strongly positive TTM operating cash flow and free cash flow. However, the company is still operating at a loss and recent TTM revenue growth slowed, which limits the score despite excellent ~88–90% gross margins.

Income Statement

Revenue has grown strongly over the past several years (from $152M in FY2021 to $759M in FY2025), though the most recent growth in TTM (Trailing-Twelve-Months) slowed to 5.6%. Profitability is improving meaningfully versus prior years (net loss narrowed sharply from FY2024’s very large loss), and gross margins remain excellent (~88–90%). However, the company is still operating at a loss in TTM (Trailing-Twelve-Months) with negative operating and net margins, which keeps the score capped despite the clear improvement trend.

Balance Sheet

The balance sheet is conservatively positioned with essentially no debt across periods and a sizable equity base in the most recent periods (FY2025 equity ~$776M; TTM equity ~$923M). Total assets have also expanded steadily, supporting operating scale. The main weakness is that returns on equity remain negative in the latest periods due to ongoing net losses, indicating profitability has not yet caught up with the capital base.

Cash Flow

Cash flow quality improved sharply: TTM (Trailing-Twelve-Months) operating cash flow is strongly positive (~$250M) and free cash flow is also solid (~$242M), a major reversal from FY2025’s negative operating and free cash flow. Free cash flow has accelerated significantly in TTM (Trailing-Twelve-Months), indicating improving operating efficiency and monetization. A key watch item is the historical volatility (several prior years of negative operating/free cash flow), suggesting results may be sensitive to working-capital or spending shifts.

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	-543.96M	-27.45M	-842.00K
Financing Cash Flow	32.62M	45.23M	35.76M	674.74M	12.95M

Gitlab Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 37.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLB, the sentiment is Neutral. The current price of 37.22 is above the 20-day moving average (MA) of 36.15, below the 50-day MA of 38.44, and below the 200-day MA of 44.14, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 81.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GTLB.

Gitlab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	74 Outperform	$8.45B	33.75	51.96%	0.16%	17.00%	120.21%
GTLB	68 Neutral	$6.28B	-143.39	-5.17%	―	27.35%	18.18%
MNDY	66 Neutral	$6.36B	102.89	5.81%	―	28.62%	186.67%
ESTC	65 Neutral	$7.82B	-71.03	-12.84%	―	16.98%	-265.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$560.12M	-11.51	-26.69%	―	13.09%	32.34%
KC	60 Neutral	$4.39B	-28.28	-15.88%	―	24.26%	55.58%

Gitlab Corporate Events

GitLab Reaffirms Fiscal 2026 Outlook Amid Leadership Change

On January 9, 2026, GitLab Inc. appointed Sivaprasad Padisetty as its new Chief Technology Officer, with the role effective on or about January 15, 2026. Padisetty, 57, brings extensive experience from senior technology leadership roles at New Relic, Amazon and Microsoft, and his appointment follows standard governance practices with no disclosed related-party arrangements. Separately, on January 12, 2026, GitLab reaffirmed its previously issued guidance for the fourth quarter and fiscal year 2026, signaling continuity in its financial outlook and operational plans despite the leadership transition.

The most recent analyst rating on (GTLB) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Gitlab stock, see the GTLB Stock Forecast page.

GitLab Appoints New CFO Amidst Strong Q3 Growth

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.

The most recent analyst rating on (GTLB) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Gitlab stock, see the GTLB Stock Forecast page.

GitLab Enters Right of First Refusal Agreement

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.

The most recent analyst rating on (GTLB) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Gitlab stock, see the GTLB Stock Forecast page.