GitLab (GTLB) Q3 2025 earnings summary

Executive summary

• Revenue grew 31% year-over-year to $196.0 million in Q3 FY25, driven by new customer additions, expansion within existing accounts, and strong demand for AI-powered DevSecOps solutions.

• Bill Staples appointed CEO, succeeding Sid Sijbrandij, who transitions to Executive Chair due to health reasons.

• Dollar-based net retention rate reached 124%, with 9,519 customers over $5,000 ARR and 1,144 customers over $100,000 ARR, both up significantly year-over-year.

• Recognized as a Leader in the Gartner Magic Quadrant for DevOps Platforms for the second consecutive year.

• Net income was $28.3 million for the quarter, a turnaround from a net loss of $286.4 million last year, primarily due to a large income tax benefit.

Financial highlights

• Q3 FY25 revenue: $196.0 million, up 31% year-over-year; non-GAAP operating margin: 13.2%; non-GAAP gross margin: 91%.

• Non-GAAP operating income: $25.9 million; non-GAAP net income: $39.1 million; GAAP net income: $28.3 million.

• Adjusted free cash flow: $9.7 million, up from negative $6.7 million last year.

• Cash, cash equivalents, and short-term investments totaled $0.9 billion as of October 31, 2024.

• SaaS revenue grew 44% year-over-year, now 29% of total revenue.

Outlook and guidance

• Q4 FY25 revenue guidance: $205–$206 million; non-GAAP operating income: $28–$29 million; non-GAAP EPS: $0.22–$0.23.

• FY25 revenue guidance: $753–$754 million; non-GAAP operating income: $69–$70 million; non-GAAP EPS: $0.63–$0.64.

• Management expects continued investment in R&D and sales to drive long-term growth and customer expansion.

• Liquidity position is sufficient to support operations and capital requirements for at least the next 12 months.