GitLab (NASDAQ:GTLB) Exceeds Q4 CY2025 Expectations

DevSecOps platform provider GitLab (NASDAQ:GTLB) reported Q4 CY2025 results topping the market’s revenue expectations , with sales up 23.2% year on year to $260.4 million. On the other hand, next quarter’s revenue guidance of $254 million was less impressive, coming in 0.8% below analysts’ estimates. Its non-GAAP profit of $0.30 per share was 30% above analysts’ consensus estimates.

Is now the time to buy GitLab? Find out in our full research report.

• Revenue: $260.4 million vs analyst estimates of $251.9 million (23.2% year-on-year growth, 3.4% beat)

• Adjusted EPS: $0.30 vs analyst estimates of $0.23 (30% beat)

• Adjusted Operating Income: $53.39 million vs analyst estimates of $38.81 million (20.5% margin, 37.6% beat)

• Revenue Guidance for Q1 CY2026 is $254 million at the midpoint, below analyst estimates of $256 million

• Adjusted EPS guidance for the upcoming financial year 2027 is $0.78 at the midpoint, missing analyst estimates by 24%

• Operating Margin: -2%, up from -7.3% in the same quarter last year

• Free Cash Flow Margin: 16%, up from 11.1% in the previous quarter

• Net Revenue Retention Rate: 118%, down from 119% in the previous quarter

• Market Capitalization: $4.41 billion

With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ:GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.

A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, GitLab grew its sales at an incredible 44.4% compounded annual growth rate. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.

Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. GitLab’s annualized revenue growth of 28.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, GitLab reported robust year-on-year revenue growth of 23.2%, and its $260.4 million of revenue topped Wall Street estimates by 3.4%. Company management is currently guiding for a 18.4% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 17.3% over the next 12 months, a deceleration versus the last two years. Still, this projection is commendable and suggests the market is forecasting success for its products and services.

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One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company’s products and services over time.

GitLab’s net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 120% in Q4. This means GitLab would’ve grown its revenue by 20% even if it didn’t win any new customers over the last 12 months.

Despite falling over the last year, GitLab still has a good net retention rate, proving that customers are satisfied with its software and getting more value from it over time, which is always great to see.

It was encouraging to see GitLab beat analysts’ revenue expectations this quarter. We were also glad its EPS guidance for next quarter slightly exceeded Wall Street’s estimates. On the other hand, its revenue guidance for next year suggests a significant slowdown in demand and its full-year revenue guidance fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 3.5% to $25.67 immediately following the results.

GitLab didn’t show it’s best hand this quarter, but does that create an opportunity to buy the stock right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.