GitLab (GTLB) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue grew 31% year-over-year to $182.6–$183 million, driven by new customer wins, expansion within the existing base, and strong demand for the DevSecOps platform.

• Non-GAAP operating margin improved to 10%, up over 1,300 basis points year-over-year, with significant GAAP and non-GAAP margin expansion.

• Net income was $12.3–$12.9 million, reversing a net loss in the prior year, aided by a $39.4 million income tax benefit.

• Dollar-based net retention rate was 126%, with customers over $100,000 ARR up 33% to 1,076 and base customers over $5,000 ARR up 19% to 9,314.

• Recognized as a leader in AI-powered DevSecOps by Gartner and Forrester, with notable enterprise wins and increased customer ROI.

Financial highlights

• Q2 revenue: $182.6–$183 million, up 31% year-over-year.

• Non-GAAP gross margin at 91%; GAAP gross margin at 88%.

• Q2 non-GAAP operating income: $18.2 million; non-GAAP net income: $24.5 million; net income margin: 7–13%.

• Cash from operations: $11.7 million; adjusted free cash flow: $10.8 million, both impacted by timing of employee gathering payments.

• Total RPO grew 51% year-over-year to $747.9 million; CRPO up 42% to $475 million.

Outlook and guidance

• Q3 FY2025 revenue expected at $187–$188 million; non-GAAP operating income $19–$20 million; non-GAAP EPS $0.15–$0.16.

• FY2025 revenue guidance raised to $742–$744 million, ~28% growth year-over-year; non-GAAP operating income $55–$58 million; non-GAAP EPS $0.45–$0.47.

• Management expects continued investment in R&D and sales to support long-term growth, with short-term profitability potentially impacted.

• Price increases will continue to layer in as renewals occur, supporting future growth.

• Cash, cash equivalents, and short-term investments of $1.1 billion expected to be sufficient for at least the next 12 months.