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 was appointed CEO, succeeding Sid Sijbrandij, who became 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.

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

• Focused on AI-powered platform differentiation, privacy, and compliance, with notable customer wins and product innovation.

Financial highlights

• Q3 FY25 revenue was $196.0 million, up 31% year-over-year; non-GAAP gross margin was 91%, GAAP gross margin was 89%.

• Non-GAAP operating margin reached 13.2%, up from 3.1% last year; GAAP operating margin improved to (15)% from (27)% year-over-year.

• Q3 non-GAAP operating income was $25.9 million; GAAP net income was $28.3 million, a turnaround from a $286.4 million loss last year, mainly due to a large tax benefit.

• Adjusted free cash flow was $9.7 million for Q3 FY25, up from negative $6.7 million a year ago.

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

Outlook and guidance

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

• FY25 full-year revenue guidance: $753–$754 million; non-GAAP operating income: $69–$70 million; non-GAAP net income per share: $0.63–$0.64.

• Management expects continued investment in R&D and sales to drive long-term growth, with sufficient liquidity for at least the next 12 months.

• JiHu (China JV) non-GAAP expenses forecasted at ~$14 million for FY25.