Executive Summary

Q1 FY26 delivered 27% y/y revenue growth to $214.5M, modestly above S&P Global consensus, with non-GAAP operating margin of 12% and record adjusted FCF of $104.1M; DBNRR was 122% and RPO/cRPO grew 40%/34% y/y, reinforcing visibility .
Versus estimates (S&P Global), revenue beat by ~$1.3M and non-GAAP diluted EPS beat by ~$0.02; note the beat was “skinny,” with CFO citing a higher SaaS mix and back-end weighted linearity (fewer days in the quarter vs last year) . Values retrieved from S&P Global.*
FY26 guidance maintained on revenue ($936–$942M) but raised on non-GAAP operating income ($117–$121M) and non-GAAP EPS ($0.74–$0.75), reflecting operating leverage; Q2 revenue guided to $226–$227M with 16–17c non-GAAP EPS .
Key catalysts: continued Ultimate mix (52% of ARR) and Duo adoption, new FedRAMP Moderate authorization for GitLab Dedicated for Government, and deeper AWS Amazon Q integration; management reiterated a 22% projected non-GAAP tax rate framework for FY26 .

What Went Well and What Went Wrong

What Went Well
- Strong unit economics and cash generation: adjusted FCF of $104.1M (49% margin) on seasonally strong collections; non-GAAP op margin expanded to 12% from -2% y/y .
- AI momentum and Ultimate mix: Duo first-time purchases +35% q/q; Ultimate reached 52% of ARR; Q1 DBNRR 122% driven ~80% by seats, ~15% tier upgrades (Ultimate), ~5% yield .
- Federal and enterprise traction: FedRAMP Moderate authorization; public sector outperformed expectations in Q1; notable wins/expansions across regulated verticals (e.g., NatWest, Forvia Hella, R+V Versicherung) .
What Went Wrong
- Narrow beat on top line and EPS vs consensus with back-end linearity; CFO called out higher SaaS mix and fewer days vs Q1 last year; management kept FY26 revenue guide unchanged despite robust bookings metrics .
- Net new customer adds >$5k showed pressure at the low end (SMB/low mid-market price sensitivity), though CFO said it didn’t impact financials; mix dynamics (expand/contract into $5k bucket) were the main driver .
- GAAP operating loss widened sequentially as seasonality shifted from Q4 to Q1; GAAP opex included FX losses and ongoing JiHu-related expenses (~$3.1M non-GAAP in Q1; ~$18M FY26 modeled) .

Financial Results

Quarterly performance (oldest → newest):

Metric	Q3 FY2025	Q4 FY2025	Q1 FY2026
Revenue ($M)	$196.0	$211.4	$214.5
YoY Growth (%)	31%	29%	27%
GAAP Gross Margin (%)	89%	89%	88%
Non-GAAP Gross Margin (%)	91%	91%	90%
GAAP Operating Margin (%)	(15)%	(7)%	(16)%
Non-GAAP Operating Margin (%)	13%	18%	12%
GAAP Diluted EPS ($)	$0.18	$0.06	$(0.22)
Non-GAAP Diluted EPS ($)	$0.23	$0.33	$0.17
Net Cash from Ops ($M)	$(177.0)	$63.2	$106.3
Adjusted Free Cash Flow ($M)	$9.7	$62.1	$104.1

Actual vs S&P Global consensus (quarterly):

Metric	Q4 FY2025 Actual	Q4 FY2025 Consensus*	Q1 FY2026 Actual	Q1 FY2026 Consensus*
Revenue ($M)	211.431	206.482*	214.509	213.247*
Non-GAAP Diluted EPS ($)	0.33	0.228*	0.17	0.152*

Values retrieved from S&P Global.*

Revenue mix / “segments”:

Revenue Detail ($M)	Q3 FY2025	Q4 FY2025	Q1 FY2026
Subscription—self-managed and SaaS	175.257	185.562	194.481
License—self-managed and other	20.790	25.869	20.028
Total	196.047	211.431	214.509

KPIs and go-to-market indicators:

KPI	Q3 FY2025	Q4 FY2025	Q1 FY2026
Customers >$5k ARR	9,519	9,893	10,104
Customers >$100k ARR	1,144	1,229	1,288
Dollar-Based Net Retention Rate	124%	123%	122%
Total RPO ($M)	811.8	945.0	955.1
cRPO ($M)	515.2	579.2	584.8
Ultimate % of ARR	—	50%	52%
SaaS as % revenue (y/y growth)	—	29% (+36% y/y)	30% (+35% y/y)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	FY2026	$936–$942	$936–$942	Maintained
Non-GAAP Operating Income ($M)	FY2026	$109–$114	$117–$121	Raised
Non-GAAP Diluted EPS ($)	FY2026	$0.68–$0.72 (173M WADSO)	$0.74–$0.75 (172M WADSO)	Raised
Revenue ($M)	Q2 FY2026	N/A (not previously issued)	$226–$227	New
Non-GAAP Operating Income ($M)	Q2 FY2026	N/A	$23–$24	New
Non-GAAP Diluted EPS ($)	Q2 FY2026	N/A	$0.16–$0.17 (171M WADSO)	New
Non-GAAP Tax Rate Framework	FY2026	22% projected (introduced)	22% projected (reiterated)	Maintained

Notes: WADSO = weighted average diluted shares outstanding.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY25, Q4 FY25)	Current Period (Q1 FY26)	Trend
AI/Technology initiatives	Q3: Announced integrated offering with AWS; Advanced SAST GA . Q4: Private beta of Duo Workflow; strong Duo momentum .	Duo first-time purchases +35% q/q; Duo Chat/Code Suggestions included in Premium/Ultimate; Duo Enterprise for Premium; Duo Workflow private beta expanding; Amazon Q GA bundle .	Strengthening; packaging broadened to drive adoption.
Ultimate adoption	Q4: Ultimate reached 50% of ARR; large enterprise lands/upgrades .	Ultimate now 52% of ARR; 8 of top 10 deals included Ultimate .	Upward mix shift sustained.
Federal/Public Sector	Q3: —. Q4: Dedicated grew ~90% y/y; strong regulated verticals .	FedRAMP Moderate achieved; Q1 federal “overexceeded” expectations .	Tailwind increasing.
SaaS/Dedicated mix	Q4: SaaS 29% of revenue (+36% y/y); Dedicated +90% y/y .	SaaS 30% (+35% y/y); new Dedicated wins/expansions (e.g., Forvia Hella, NatWest) .	SaaS/Dedicated scaling with margin resilience.
Pricing/Packaging	Q4: Pricing benefit ~halfway through; more to come in FY26 .	Lowered friction by including Duo features in Premium/Ultimate; availability of Duo Enterprise to Premium .	Monetization levers broadened; pricing tailwind ongoing.
Macro/Linearity	Q4: Guide assumed similar macro; focus on execution .	Back-end weighted linearity; higher SaaS mix; fewer days vs last year; environment “cautious but buying” .	Stable macro; execution adjusting to mix/timing.
Partnerships	Q3: AWS integration; recognition in Gartner .	Amazon Q bundle GA; 2025 Google Cloud partner award .	Expanding ecosystem.

Management Commentary

Strategic platform/AI differentiation: “We are the only AI-native cloud-agnostic model-neutral DevSecOps platform capable of running anywhere…with a unified data store” (CEO) .
AI go-to-market: “We now include chat and code suggestions with Premium and Ultimate…to lower barriers to adoption…with a smooth upgrade path to Pro and Enterprise” (CEO) .
Demand/mix insights: “Q1 DBNRR was driven by…~80% seats, ~5% yield, ~15% tier upgrades” (CFO) .
Cash generation: “There is nothing anomalous…we generated over $100 million in free cash flow [in Q1]” (CFO) .
Federal momentum: “We had a really great quarter in first quarter in federal. We overexceeded our expectations…” (CFO) .
Guidance philosophy: “No change in guidance philosophy; assuming same macro since April continues” (CFO) .

Q&A Highlights

Beat quality and linearity: Analysts flagged a “skinny beat”; CFO cited higher SaaS mix, back-end weighted linearity, and fewer days y/y; maintained revenue guide with raised profit metrics .
Customer additions: Net new >$5k adds affected by SMB/low mid-market price sensitivity; not financially material; main variance was expansions/ contractions across the $5k bucket .
AI competitive positioning: Customers often run bake-offs (Duo vs Copilot/Cursor/Windsurf); management confident on wins and on upcoming Duo Workflow agentic AI .
Free cash flow: Seasonality from Q4 billings to Q1 collections; no one-time items; record adjusted FCF .
Federal exposure: Public sector ~12% ARR; strong Q1; FedRAMP Moderate for Dedicated for Government bolsters pipeline .

Estimates Context

Q1 FY26 vs S&P Global: Revenue $214.509M vs $213.247M*; non-GAAP diluted EPS $0.17 vs $0.152* (modest beat on both) . Values retrieved from S&P Global.*
Q4 FY25 vs S&P Global: Revenue $211.431M vs $206.482M*; non-GAAP diluted EPS $0.33 vs $0.228* (clear beat) . Values retrieved from S&P Global.*
Implications: Expect modest upward revisions to FY26 profitability (already reflected in raised non-GAAP op income/EPS guidance) with revenue consensus likely stable given unchanged FY26 revenue guide .

Key Takeaways for Investors

Execution remains solid: durable 27–31% revenue growth cadence over the last three quarters with expanding non-GAAP margins and record Q1 cash conversion .
Profitability guidance raised: FY26 non-GAAP operating income and EPS moved higher despite unchanged revenue guide—operational leverage and pricing/mix (Ultimate, Duo, SaaS/Dedicated) are key drivers .
AI is a multi-quarter catalyst: broader Duo packaging (Chat/Code in Premium/Ultimate), Duo Enterprise for Premium, and Duo Workflow agents in private beta, plus Amazon Q GA bundle, should support attach and expansion .
Federal tailwind: FedRAMP Moderate authorization plus Q1 public sector outperformance position GTLB well in FY26 for regulated workloads (Dedicated for Government) .
Visibility is improving: RPO +40% y/y and cRPO +34% y/y support sustained growth; Ultimate mix at 52% enhances ARPU and upsell potential .
Watch list: monitor linearity and SMB sensitivity; track Duo Workflow milestones (public beta, GA) and Ultimate land/expand trends; observe SaaS mix impact on revenue recognition and quarterly beats .
Near-term trading lens: modest consensus beats plus raised profit guide can support sentiment; incremental news on federal wins, Duo Workflow beta/GA, or large enterprise consolidations could be upside catalysts .

Tables and figures sourced from company filings and transcripts as cited. Values retrieved from S&P Global* where noted.

Gitlab Inc. (GTLB)·Q1 2026 Earnings Summary