GitLab Reports 29 Percent Revenue Growth
GitLab(NASDAQ:GTLB) reported results for Q2 FY2026 on September 2, 2025, delivering 29% year-over-year revenue growth to $236 million and expanding non-GAAP operating margin to 16.8%. Management sustained its full-year revenue guidance but raised its profit outlook, citing robust non-GAAP operating leverage and the initiation of a hybrid seat plus usage-based monetization model tied to its AI-powered Duo Agent platform. The following analysis highlights major operational shifts, product innovation progress, and evolving go-to-market execution with clear implications for the long-term investment thesis.
Annual recurring revenue (ARR) expansion was concentrated within the enterprise and mid-market, with 10,338 customers contributing at least $5,000 in ARR and the $100,000-plus cohort grew by 25% year over year to 1,344 accounts. Non-GAAP gross margin remained at a strong 90%, and adjusted free cash flow reached $46 million, or a 20% margin.
Durable expansion within existing accounts, a low customer concentration risk, and a resilient ARR mix support stable long-term revenue compounding, while subdued reliance on price increases underscores the quality of GitLab's value proposition.
Source Fool.com
