UiPath (PATH) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 FY2025 was $355 million, up 9% year-over-year, with ARR reaching $1.607 billion, a 17% increase year-over-year.

• Non-GAAP operating income was $50 million, with a 14% non-GAAP operating margin; GAAP operating loss was $43 million.

• Net loss for Q3 was $10.7 million, improved from $31.5 million in the prior year; non-GAAP net income was $59.8 million.

• Large customer base continues to expand, with 2,235 customers ≥$100k ARR and 302 customers ≥$1M ARR.

• Major product launches included agentic automation capabilities, Autopilot for Everyone, and Agent Builder, with public previews and expanded SAP and Anthropic partnerships.

Financial highlights

• GAAP revenue was $354.7 million, up from $325.9 million in Q3 2024; non-GAAP gross margin was 85%, GAAP gross margin was 82%.

• Net new ARR was $56 million; non-GAAP adjusted free cash flow was $33 million for the quarter.

• Non-GAAP net income for Q3 was $59.8 million, or $0.11 per diluted share.

• Cash, cash equivalents, and marketable securities totaled $1.6 billion at quarter-end, with no debt.

• Dollar-based net retention rate was 113% as of October 31, 2024.

Outlook and guidance

• Q4 FY2025 revenue expected between $422 million and $427 million; ARR guidance is $1.669 billion to $1.674 billion.

• Q4 non-GAAP operating income expected to be approximately $100 million.

• Fiscal 2026 net new ARR dollars expected to stabilize, with accelerated adjusted free cash flow growth.

• Management expects continued investment in AI and innovation, focusing on platform expansion and go-to-market initiatives.

• Liquidity and cash flows are expected to fund operations for at least the next twelve months and long term.