GitLab (GTLB) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue grew 27% year-over-year to $214.5M–$215M, driven by strong AI-native DevSecOps adoption and platform differentiation.

• Non-GAAP operating margin improved to 12%–12.2%, with record adjusted free cash flow of $104.1M and a margin of 49%.

• Dollar-based net retention rate was 122%, with 1,288 customers generating over $100K ARR, up 26% year-over-year.

• AI integration, product innovation, and partnerships (e.g., GitLab Duo, Amazon Q) accelerated customer adoption and productivity.

• Ultimate tier now represents 52% of total ARR, with significant expansion among large enterprise and public sector customers.

Financial highlights

• Q1 FY26 revenue: $214.5M–$215M, up 27% year-over-year.

• Non-GAAP operating margin: 12%–12.2%, up from negative 2%–2.3% a year ago.

• Adjusted free cash flow: $104.1M, margin 49%.

• Non-GAAP gross margin: 90%; GAAP gross margin: 88%.

• Ended Q1 with $1.1B in cash and investments.

Outlook and guidance

• Q2 FY26 revenue expected at $226–$227M; non-GAAP operating income $23–$24M; non-GAAP EPS $0.16–$0.17.

• FY26 revenue guidance: $936–$942M; non-GAAP operating income: $117–$121M; non-GAAP EPS: $0.74–$0.75.

• Guidance assumes continued macroeconomic conditions and strong federal sector performance.