UiPath (PATH) AI Stock Analysis

• Market Cap: $8.22B
• Dividend Yield: N/A
• Average Volume (3M): 27.62M
• Price to Earnings (P/E): 34.9
• Beta (1Y): 1.37
• Revenue Growth: 10.05%
• EPS Growth: N/A
• Country: US
• Employees: 3,868
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.16
• Shares Outstanding: 460,443,700
• 10 Day Avg. Volume: 29,421,290
• 30 Day Avg. Volume: 27,621,703
• PEG Ratio: 5.76
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 5.57
• P/FCF Ratio: 26.05
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 4.66
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 278.83
• 1Y Price Target: $16.54
• Price Target Upside: 11.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 18
• EPS Forecast (FY): 0.67
• Revenue Forecast (FY): $1.59B

• Rating: 69 Neutral
• Price Target: $17.50 ▲(18.32% Upside)

Score is supported primarily by strong cash generation and a low-leverage balance sheet, plus a constructive earnings update with raised guidance and a milestone GAAP-profitable quarter. The rating is held back by still-mixed operating profitability signals, a fairly expensive P/E, and only neutral-to-mixed near-term technical momentum.

Positive Factors

Strong free cash flow generation

Sustained, high free cash flow growth and an FCF-to-net-income near 1.0 provide durable capacity to fund R&D, product development, and go-to-market investments without heavy external financing. This improves resilience and optionality over the next several quarters.

Low financial leverage

Very low leverage gives the company long-term financial flexibility to invest in product roadmap, partnerships, or acquisitions, while insulating operations from interest-rate or credit shocks and reducing refinancing risk over the 2–6 month horizon.

Record ARR and improving profitability

Rising ARR, accelerating revenue, and higher non‑GAAP margins reflect improving monetization and customer adoption. Combined with raised guidance and strong customer/partner engagement, this supports more sustainable top-line and operating leverage over coming quarters.

Negative Factors

Negative operating profitability signals

Despite strong gross margins, persistent negative operating margins and a very low net margin indicate core operating profitability remains fragile. Without consistent margin expansion, long-term return on capital and scalability of the business model are at risk.

Modest trailing revenue growth

TTM revenue growth running in the low single digits limits the firm’s ability to fully leverage high gross margins and achieve durable operating leverage. Slower top-line momentum makes sustained margin improvement and ARR expansion harder over the medium term.

Lower-end customer attrition

Ongoing attrition among smaller customers pressures dollar-based net retention and net new ARR, making expansion more dependent on a narrower set of larger accounts. This structural customer mix risk can slow durable ARR growth absent retention improvements.

UiPath Business Overview & Revenue Model

Company Description

UiPath 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 Money

UiPath generates revenue primarily through a subscription-based model, offering its software solutions on a yearly basis. Key revenue streams include licensing fees for its RPA software, cloud services, and additional offerings such as training and support services. The company also benefits from significant partnerships with major cloud providers and technology firms, which enhance its market reach and integration capabilities. Upselling and cross-selling additional features and services to existing customers further contribute to its earnings.

UiPath Financial Statement Overview

Summary

UiPath demonstrates solid revenue growth and strong cash flow generation, which are positive indicators for future performance. However, the company faces challenges in achieving operational profitability, as evidenced by negative EBIT and EBITDA margins. The balance sheet remains strong with low leverage, providing a stable financial foundation.

Income Statement

UiPath has shown a positive trend in revenue growth, with a TTM growth rate of 3.77%. The gross profit margin remains strong at 82.86%, indicating efficient cost management. However, the net profit margin is relatively low at 1.35%, and the EBIT and EBITDA margins are negative, suggesting challenges in operational profitability.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.044, indicating low leverage. The return on equity is modest at 1.16%, reflecting limited profitability on shareholders' equity. The equity ratio is strong, suggesting financial stability.

Cash Flow

UiPath exhibits robust cash flow management with a significant free cash flow growth rate of 61.7% in the TTM. The operating cash flow to net income ratio is 0.45, and the free cash flow to net income ratio is high at 0.93, indicating strong cash generation relative to net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.43B	1.31B	1.06B	892.25M	607.64M
Gross Profit	1.18B	1.11B	878.53M	723.38M	541.79M
EBITDA	-145.34M	-141.70M	-348.28M	-486.24M	-90.72M
Net Income	-73.69M	-89.88M	-328.35M	-525.59M	-92.39M
Balance Sheet
Total Assets	2.87B	2.95B	2.74B	2.57B	866.46M
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.88B	1.76B	1.87B	460.52M
Total Debt	77.82M	67.07M	63.44M	51.40M	20.08M
Total Liabilities	1.02B	938.64M	815.05M	650.53M	448.20M
Stockholders Equity	1.85B	2.02B	1.92B	1.92B	418.26M
Cash Flow
Free Cash Flow	305.64M	291.74M	-33.80M	-68.02M	25.98M
Operating Cash Flow	320.56M	299.08M	-9.98M	-54.96M	29.18M
Investing Cash Flow	-45.50M	-439.57M	-289.14M	-35.44M	-125.99M
Financing Cash Flow	-450.51M	-196.90M	-60.67M	1.47B	250.42M

UiPath Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATH, the sentiment is Neutral. The current price of 14.79 is below the 20-day moving average (MA) of 16.41, below the 50-day MA of 15.65, and above the 200-day MA of 13.30, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 10.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PATH.

UiPath Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDB	75 Outperform	$31.49B	-441.27	-3.23%	―	20.93%	68.47%
ACIW	73 Outperform	$4.69B	17.59	18.58%	―	7.01%	17.48%
PATH	69 Neutral	$8.22B	34.88	12.56%	―	10.05%	―
CFLT	67 Neutral	$10.90B	-33.89	-29.62%	―	21.58%	18.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
S	57 Neutral	$4.83B	-11.23	-25.79%	―	24.09%	-34.25%
VRNS	48 Neutral	$4.11B	―	-22.17%	―	11.37%	-34.44%