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UiPath (PATH)
NYSE:PATH
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UiPath
(NYSE:PATH)
66Neutral
Positive Factors
Cloud ARR Growth
Encouragement was found in cloud ARR of $975M, representing over half of ARR and showing growth.
Strategic Vision
UiPath reiterated their new strategic vision for agentic orchestration combining agents, robots, data, and people into end-to-end workflows.
Valuation and Asset Durability
With shares near 52-week lows and current valuation implying 3x CY26E sales and 12x CY26E FCF, investors are getting a good price for what is still seen as a durable software asset creating value for global enterprises.
Negative Factors
Macro and Competitive Challenges
Concerns exist about PATH's durable growth rate given the growth of various agentic solutions, the competitive landscape, and a challenging macro environment including the risk in the public sector.
Public Sector Exposure
PATH is particularly subject to federal government spend cuts and uncertainty over the next several quarters due to its significant exposure to the public sector.
Quarterly Performance
PATH had a lackluster quarter, missing reported ARR and revenue estimates, and provided disappointing FY26 guidance that is back-end weighted.
UiPath (PATH) vs. S&P 500 (SPY)
Market Cap
$6.05B
Dividend YieldN/A
Average Volume (3M)12.20M
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth9.30%
EPS Growth20.59%
CountryUS
Employees3,868
SectorTechnology
Sector Strength46
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.13
Shares Outstanding474,040,160
10 Day Avg. Volume16,454,283
30 Day Avg. Volume12,201,944
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.21
Price to Cash Flow (P/CF)52.90
P/FCF Ratio64.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.03Price Target Upside10.67% Upside
Rating ConsensusHold
Number of Analyst Covering21
UiPath Business Overview & Revenue Model
Company DescriptionUiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform combines artificial intelligence with desktop recording, back-end mining of both human activity and system logs, and intuitive visualization tools, which enables users to discover, analyze, and identify processes to automate in a centralized portal; offers low-code development environments that allows users in an organization to create attended and unattended automations without any prior knowledge of coding; deploys robots in highly immersive attended experiences or in standalone, unattended modes behind the scenes, and can leverage native connectors built for commonly used line-of-business applications; offers centralized tools designed to manage, test, and deploy automations and ML models across the enterprise; allows customers to manage long running processes that orchestrate work between robots and humans; and enable users to track, measure, and forecast the performance of automation in their enterprise and help businesses ensure compliance with business standards. In addition, the company provides maintenance and support for its software, as well as professional services, such as training and implementation services to facilitate the adoption of its platform. It serves banking, healthcare, financial services, and government entities. UiPath Inc. was founded in 2005 and is headquartered in New York, New York.
How the Company Makes MoneyUiPath generates revenue primarily through the sale of software licenses for its RPA platform. The company's core revenue streams include subscription fees for its cloud-based automation services and on-premises software licenses. Additionally, UiPath offers professional services such as consulting, implementation, and training, which contribute to its overall earnings. The company has established significant partnerships with major technology providers, consulting firms, and system integrators, which help drive sales and expand its market reach. UiPath's focus on continuous innovation and expanding its product offerings also plays a critical role in maintaining its competitive edge and financial performance.
UiPath Financial Statement Overview
Summary
UiPath demonstrates strong revenue growth and cash flow management, supported by a stable balance sheet. Despite these strengths, sustained profitability challenges and negative returns on equity present areas for improvement. The company is well-positioned financially, but must focus on converting growth into consistent profitability.Income Statement
UiPath has shown a strong revenue growth trajectory, with TTM revenue increasing by approximately 8% compared to the previous annual period. The gross profit margin remains high at around 83%, indicative of efficient cost management. However, persistent negative net profit and EBIT margins highlight ongoing profitability challenges.75
Positive
Balance Sheet
The company's balance sheet is robust, with a healthy equity ratio of 65% and a low debt-to-equity ratio of 0.04, reflecting strong financial stability. However, negative net income results in a negative return on equity, indicating inefficiencies in generating shareholder returns.70
Positive
Cash Flow
UiPath's cash flow is improving, with substantial free cash flow growth and a strong operating cash flow to net income ratio, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also favorable, reflecting effective capital expenditure management.80
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.41B | 1.31B | 1.06B | 892.25M | 607.64M | 336.16M | Gross Profit |
| 1.17B | 1.11B | 878.53M | 723.38M | 541.79M | 276.75M | EBIT |
| -181.09M | -164.72M | -348.28M | -500.95M | -110.32M | -517.28M | EBITDA |
| -163.23M | -141.70M | -329.56M | -486.24M | -90.72M | -501.45M | Net Income Common Stockholders |
| -91.57M | -89.88M | -328.35M | -525.59M | -92.39M | -519.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 460.52M | 1.88B | 1.76B | 1.87B | 460.52M | 232.39M | Total Assets |
| 866.46M | 2.95B | 2.74B | 2.57B | 866.46M | 508.17M | Total Debt |
| 20.08M | 67.07M | 63.44M | 51.40M | 20.08M | 26.25M | Net Debt |
| -337.61M | -994.61M | -1.34B | -1.72B | -337.61M | -206.13M | Total Liabilities |
| 1.67B | 938.64M | 815.05M | 650.53M | 1.67B | 1.31B | Stockholders Equity |
| -803.70M | 2.02B | 1.92B | 1.92B | -803.70M | -799.51M |
| Cash Flow | Free Cash Flow | ||||
| 308.77M | 291.74M | -33.80M | -68.02M | 25.98M | -380.42M | Operating Cash Flow |
| 320.08M | 299.08M | -9.98M | -54.96M | 29.18M | -359.44M | Investing Cash Flow |
| -37.45M | -439.57M | -289.14M | -35.44M | -125.99M | -39.51M | Financing Cash Flow |
| -515.45M | -196.90M | -60.67M | 1.47B | 250.42M | 457.76M |
UiPath Technical Analysis
Negative
10.87
Price Trends
12.91
Negative
13.21
Negative
12.74
Negative
Market Momentum
-0.57
Negative
38.65
Neutral
73.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATH, the sentiment is Negative. The current price of 10.87 is below the 20-day moving average (MA) of 11.36, below the 50-day MA of 12.91, and below the 200-day MA of 12.74, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 38.65 is Neutral, neither overbought nor oversold. The STOCH value of 73.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PATH.
UiPath Risk Analysis
UiPath disclosed 68 risk factors in its most recent earnings report. UiPath 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
UiPath Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $17.60B | 17.00 | 68.18% | ― | 7.78% | 1345.45% | |
73 Outperform | $9.97B | 23.52 | 12.77% | ― | 15.05% | 31.05% | |
72 Outperform | $171.51B | 121.01 | 16.53% | ― | 22.44% | -18.31% | |
70 Neutral | $7.91B | ― | -1.22% | ― | 18.55% | 93.84% | |
66 Neutral | $6.05B | ― | -3.82% | ― | 9.30% | 20.59% | |
59 Neutral | $58.33B | ― | -32.59% | ― | 23.19% | 11.01% | |
58 Neutral | $21.67B | 10.60 | -18.43% | 2.42% | 4.66% | -24.45% |
* Technology Sector Average
Performance Comparison
PATH
UiPath
10.87
-11.32
-51.01%
NICE
NICE
158.83
-95.78
-37.62%
NOW
ServiceNow
827.74
59.37
7.73%
TEAM
Atlassian
222.64
29.27
15.14%
SMAR
Smartsheet
56.47
18.07
47.06%
DOCU
DocuSign
85.66
27.43
47.11%
UiPath Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -8.11% | Next Earnings Date: May 28, 2025
Earnings Call Sentiment Neutral
UiPath demonstrated solid financial performance with strong revenue and ARR growth, profitability, and notable product innovations. However, challenges in the public sector, macroeconomic volatility, and currency headwinds present concerns. While the highlights show positive business momentum, the lowlights indicate areas of caution impacting future growth projections.Highlights
Revenue Growth
UiPath delivered revenue of $424 million for the fourth quarter, with a total revenue of $1.43 billion for fiscal year 2025, marking an increase of 9% year-over-year.
ARR Increase
Annual Recurring Revenue (ARR) reached $1.666 billion, an increase of 14% year-over-year.
Cloud ARR Growth
Cloud ARR grew over 50% year-over-year, reaching over $975 million.
GAAP Profitability
Achieved GAAP profitability for the second year in a row with a GAAP operating income of $34 million.
Non-GAAP Operating Margin Improvement
Non-GAAP operating margin improved by over 400 basis points year-over-year to 32%.
Innovation and Product Launches
Launched several innovative products and capabilities in fiscal 2025, including Autopilot, Agent Builder, Agentic Orchestration, and more.
Strategic Partnerships
Strengthened partnerships with Deloitte and Microsoft to integrate UiPath's automation with leading platforms.
Lowlights
Public Sector Challenges
Transition in the U.S. government created short-term uncertainty for deal closures, impacting ARR expectations.
Macroeconomic Volatility
Increased volatility in the macroeconomic environment, particularly in the last two weeks, caused uncertainty around customer budgets.
FX Headwinds
Foreign exchange rates contributed a $2 million headwind to revenue, impacting financial results.
Flat Customer Count
Total customer count remained flat year-over-year after normalizing for customer hierarchy changes.
Company Guidance
During the UiPath Fourth Quarter 2025 Earnings Conference Call, the company provided guidance for fiscal 2026, highlighting several key metrics and strategic priorities. UiPath reported a fourth-quarter revenue of $424 million, which would have been $426 million excluding a $2 million foreign exchange headwind, and ended the year with an annual recurring revenue (ARR) of $1.666 billion, marking a 14% increase year-over-year. For fiscal 2026, UiPath projects revenue between $1.525 billion and $1.530 billion, with ARR expected to reach $1.816 billion to $1.821 billion. The first quarter of fiscal 2026 is forecasted to generate revenue between $330 million and $335 million and ARR between $1.686 billion and $1.691 billion. The company anticipates a non-GAAP operating income of approximately $270 million for the full year and $45 million for the first quarter. Despite short-term headwinds from geopolitical factors and public sector transitions impacting deal closures, UiPath remains focused on three strategic priorities: accelerating innovation, increasing customer adoption, and driving operational efficiency. The company also announced a significant investment in their agentic platform and product offerings, including the launch of new solutions like Agentic Orchestration and Agentic Testing, contributing to their goal of long-term growth and operational success.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.