Executive Summary

Q4 FY2025 revenue was $424 million (+5% YoY), ARR reached $1.666 billion (+14% YoY), and non-GAAP operating income was a record $134 million with a 32% margin; GAAP diluted EPS was $0.09 .
Management flagged increasing macro volatility and delays in U.S. public sector procurement (including moratoriums), adding prudence to FY2026 guidance and modeling a stronger H2 than H1 .
Agentic Automation momentum accelerated: ~3,000 agents created in private preview, Agentic Orchestration launched, and “Agent Builder” had the company’s most successful preview; attach rates for AI products are ~20% overall and >85% among customers with >$1M ARR .
FY2026 outlook: revenue $1.525–$1.530B, ARR $1.816–$1.821B, non-GAAP operating income ≈$270M; Q1 FY2026 revenue $330–$335M, ARR $1.686–$1.691B, non-GAAP operating income ≈$45M .
Potential stock catalysts: record margins and disciplined cost structure, accelerating AI/Agentic roadmap and partnerships (Microsoft, Deloitte), offset by near-term macro/Public Sector headwinds and Q1/H1 guide conservatism .

What Went Well and What Went Wrong

What Went Well

Record non-GAAP operating margin at 32% with non-GAAP operating income of $134M, reflecting cost discipline and streamlined operations .
Strengthening cloud adoption: cloud ARR ≈$975M (+50% YoY), with large customers migrating workloads to leverage AI products and Agentic capabilities .
Agentic Automation traction: ~3,000 agents created; Agentic Orchestration launched; “Agent Builder” most successful preview; quote: “Agentic orchestration provides real differentiation… orchestrate teams of specialized agents… working in tandem with robots” (Daniel Dines) .

What Went Wrong

Public sector disruptions: procurement moratoriums and administration transition delayed deals; management reduced near-term expectations and embedded prudence in FY2026 guidance .
FX headwinds: $2M revenue impact in Q4; broader macro volatility increased notably in the last two weeks of the quarter, prompting caution in the outlook .
ARR slightly below internal expectation due to timing of closures; net new ARR $60M in Q4 vs $56M in Q3 and guidance commentary indicating weaker H1 seasonality .

Financial Results

Summary vs Prior Periods and Estimates

Note: S&P Global consensus estimates were unavailable at time of analysis; estimate comparisons are omitted. Values retrieved from S&P Global*.

Metric	Q4 2024	Q3 2025	Q4 2025
Revenue ($USD Millions)	$405.253	$355	$423.646
GAAP Diluted EPS ($)	$0.06	—	$0.09
Non-GAAP Diluted EPS ($)	$0.22	—	$0.26
GAAP Gross Margin (%)	83%	85%	85%
Non-GAAP Gross Margin (%)	85%	—	87%
GAAP Operating Income ($USD Millions)	$15.095	$(43)	$33.609
Non-GAAP Operating Income ($USD Millions)	$110.523	$50	$134.042
Non-GAAP Operating Margin (%)	27%	14%	32%
ARR ($USD Billions)	—	$1.607	$1.666
Net New ARR ($USD Millions)	—	$56	$60

Segment Revenue Breakdown (Q4 YoY)

Segment	Q4 2024 ($USD Millions)	Q4 2025 ($USD Millions)
Licenses	$219.985	$197.609
Subscription Services	$176.038	$215.221
Professional Services & Other	$9.230	$10.816
Total Revenue	$405.253	$423.646

KPIs and Cash Flow

KPI	Q3 2025	Q4 2025
Dollar-Based Net Retention Rate (%)	113%	110%
Dollar-Based Gross Retention (%)	97%	98%
Customers (Approximate)	~10,790	~10,750
Customers ≥ $100k ARR	2,235	2,292
Customers ≥ $1M ARR	302	317
RPO ($USD Billions)	—	$1.243
Current RPO ($USD Millions)	—	$806
Cloud ARR ($USD Millions)	>$850	≈$975
Net Cash Flow from Operations ($USD Millions)	—	$146
Non-GAAP Adjusted Free Cash Flow ($USD Millions)	$33 (Q3)	$145 (Q4)
Cash, Cash Equivalents & Marketable Securities ($USD Billions)	$1.6 (as of Oct 31)	$1.7 (as of Jan 31)

Non-GAAP adjustments exclude stock-based compensation, amortization of intangibles, employer payroll taxes on equity, restructuring costs, charitable stock donation, and certain tax effects .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q1 FY2026	—	$330–$335	New
ARR ($USD Billions)	Q1 FY2026	—	$1.686–$1.691	New
Non-GAAP Operating Income ($USD Millions)	Q1 FY2026	—	≈$45	New
Basic Share Count (Millions)	Q1 FY2026	—	≈553	New
Revenue ($USD Billions)	FY2026	—	$1.525–$1.530	New
ARR ($USD Billions)	FY2026	—	$1.816–$1.821	New
Non-GAAP Operating Income ($USD Millions)	FY2026	—	≈$270	New
Non-GAAP Gross Margin (%)	FY2026	≈85% (FY2025 commentary)	≈85%	Maintained
Non-GAAP Adjusted Free Cash Flow ($USD Millions)	FY2026	—	≈$370	New
First-Half Revenue ($USD Millions)	FY2026	—	≈$665	New
First-Half Net New ARR ($USD Millions)	FY2026	—	≈$48	New
Dilution (YoY)	FY2026	—	2–3%	New

Management also indicated H2 FY2026 seasonality stronger than H1, and a ~2-point headwind to revenue growth from SaaS mix shift .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 FY2025 & Q3 FY2025)	Current Period (Q4 FY2025)	Trend
AI/Agentic initiatives	Autopilot GA, embedded LLMs; Process Orchestration private preview ; Agentic roadmap unveiled, 1,000+ private preview registrations	~3,000 agents created; Agentic Orchestration launch; “Agent Builder” most successful preview	Accelerating adoption/productization
Public sector	FedRAMP authorization; positive long-term opportunity	Procurement moratoriums, transition delays; near-term headwind embedded in guidance	Near-term pressure
Macro/FX	Variable but stable	Increased volatility in final weeks; $2M FX headwind to Q4 revenue	Deteriorated
Cloud adoption	Cloud ARR >$850M (+65% YoY)	Cloud ARR ≈$975M (+50% YoY); migration enabling AI/Agentic	Strong growth
Partnerships	SAP SolEx integration; Deloitte Ascend	Deepening with Microsoft; Deloitte Agentic ERP solution	Expanding
Test automation	Largest Test Suite deal with ~$23M annual savings	Agentic Testing GA/private preview; ERP migration cost savings ~$5M case	Scaling
Cost structure	Workforce reduction; raised FY2025 non-GAAP OI to $170M	Record 32% non-GAAP margin; restructuring extended/increased	Margin expansion

Management Commentary

“We delivered revenue of $424 million… ARR of $1.666 billion… These results included an impact from the ongoing geopolitical climate… the transition in the government that began in January impacted the timing of deal closures” — Daniel Dines .
“Agentic orchestration provides real differentiation… orchestrate teams of specialized agents… working in tandem with robots… while avoiding vendor lock-in” — Daniel Dines .
“Fourth quarter revenue grew to $424 million… ARR totaled $1.666 billion… Non-GAAP operating income… record non-GAAP operating margin of 32%” — Ashim Gupta .
“We are going to monetize our agents and the Agentic orchestration via a consumption-based model… announce… as we plan to enter GA towards the end of April, beginning of May” — Daniel Dines .
“We ended the year with over $975 million in cloud ARR, up over 50% year-over-year… customers continue to adopt our AI product, and plan their Agentic road maps” — Ashim Gupta .

Q&A Highlights

Macro/public sector: Management highlighted procurement moratoriums and administrative transition effects in U.S. federal; delays across geographies (Canada cited) and broader macro uncertainty tightening budgets and deal approvals .
Agentic monetization: Agents and Agentic Orchestration to be priced consumption-based, with details coming at GA (end-April/early-May); near-term contribution to FY2026 revenue expected to be limited as adoption builds .
AI attach and adoption: AI product attach ~20% overall and >85% for $1M+ ARR customers; customers starting with POCs, some moving to larger deployments rapidly; three customers in limited GA to push agents to production .
Cloud migration: Both net-new and migrations driving cloud ARR growth; innovation pace and Agentic capabilities accelerating cloud adoption .
Guidance mechanics: H1 FY2026 revenue ≈$665M and net new ARR ≈$48M; FY gross margin ≈85%; adjusted FCF ≈$370M; stronger H2 seasonality expected .

Estimates Context

S&P Global/Capital IQ consensus estimates for Q4 FY2025 were unavailable due to data access limits; therefore, explicit comparisons to Wall Street consensus cannot be provided at this time. Values retrieved from S&P Global*.
Relative performance vs internal guidance: prior Q3 guide for Q4 revenue was $422–$427M, and non-GAAP operating income ≈$100M; PATH delivered $423.646M revenue and $134.042M non-GAAP operating income, while ARR ended at $1.666B vs guided $1.669–$1.674B .

Key Takeaways for Investors

Execution strengthened: Record non-GAAP margins (32%) and robust Q4 cash generation ($145M adjusted FCF) underscore a structurally improved cost base and operating rigor .
Agentic differentiation: UiPath’s ability to orchestrate agents, robots, and people across legacy and modern apps is a core moat; early traction (~3,000 agents) and upcoming consumption-based pricing could inflect monetization in FY2026–FY2027 .
Cloud momentum: Cloud ARR ≈$975M (+50% YoY) evidences migration tailwinds; expect sustained mix shift with a modest (~2pt) revenue headwind in FY2026 from SaaS timing .
Near-term caution: Macro volatility and U.S. public sector procurement transitions drive conservative Q1/H1 outlook; investors should expect seasonality with stronger H2 and track federal normalization .
AI attach and upsell: >85% attach among $1M+ ARR customers points to durable upsell potential in large accounts; watch for increased cross-sell of Autopilot, Communications Mining, IDP, and Agentic Testing .
Partnerships as accelerants: Deepening ties with Microsoft and Deloitte and SAP integration can shorten cycles and expand TAM for end-to-end process automation .
Corporate actions: Ongoing buybacks and CEO 10b5-1 plan (up to 5M shares; <5% of holdings) are relevant to float and sentiment; monitor execution against FY2026 targets and potential impact of any insider selling cadence .

Footnote: Estimates unavailable via S&P Global at time of request due to daily limit error; all reported values are from company disclosures and S&P Global fundamentals where noted.

UiPath, Inc. (PATH)·Q4 2025 Earnings Summary