On June 1, 2026, the Board approved the '2027 Plan' restructuring affecting approximately 14% of GitLab's global workforce, with total expected charges of $30M–$35M. The quarter recognized $23.3M in restructuring charges ($16.2M severance, $2.0M retention incentives, $3.9M modified/accelerated stock-based compensation, $1.1M other). The plan includes exiting operations in approximately 22 countries; employee separations are expected to be substantially complete by the end of fiscal 2027.
In June 2026, GitLab launched GitLab Flex, a purchasing model letting customers commit a single annual dollar amount and reallocate it month-to-month across platform seats, AI usage, and add-on capabilities without contract amendments. As of July 31, 2026, customers had committed $40.4M in non-cancellable Flex customer advances (of which $15.0M had been billed and provisioned). Total remaining performance obligations stood at approximately $1.2 billion, with 65% (excluding Flex advances) expected to be recognized within 12 months.
Q2 revenue was $286.3M, up 21% year-over-year. Dollar-Based Net Retention Rate declined to 117% from 121% a year earlier. Base Customers (>$5K ARR) rose 8% to 11,114, and customers with $100K+ ARR grew 17% to 1,571. Gross margin compressed four points to 84% (from 88%), driven primarily by an $11.0M increase in third-party SaaS and cloud hosting costs as SaaS and the Duo Agent Platform represent a growing share of revenue.
On May 14, 2026, Co-Founder and Executive Chair Sytse Sijbrandij converted 15,134,451 Class B shares (ten votes per share) into Class A on a one-for-one basis. As a subsequent event on August 21, 2026, all remaining Class B shares—by then representing less than 5% of aggregate common stock—automatically converted, eliminating GitLab's dual-class structure and leaving a single class of common stock outstanding.
JiHu, the consolidated China joint-venture (VIE) in which GitLab retains ~54%, grew Q2 revenue to $3.3M from $2.2M a year earlier and swung to a $1.5M net income from a $47.4M loss in the prior-year quarter. Executive departures at JiHu triggered a net reversal of $1.2M in stock-based compensation. GitLab also recognized a $5.9M withholding-tax benefit following the final JiHu formation settlement with the China Tax Authority, in which the CTA agreed not to assess late-payment interest on $6.1M of WHT payments.
(Filed on June 2, 2026)
+23.1%
85.8%
$335.4M
Restructuring plan (subsequent event, approved June 1, 2026): Board approved a plan to realign the operating structure, anticipating approximately 14% of the global workforce (as of January 31, 2026) will be impacted and the company will exit 22 countries, reducing its geographic footprint by roughly 37%. GitLab expects $30–35 million in pre-tax charges (primarily severance and termination benefits), with approximately $19 million to be recorded in Q2 FY2027 and the majority of the remainder over the following three quarters; the plan is expected to be substantially complete by the end of fiscal 2027.
Customer base and revenue metrics: Total revenue for the quarter was $264.2 million, up 23% year-over-year. Base Customers (defined as customers with >$5,000 ARR) increased to 10,831 from 10,104 (+7% YoY), and customers with $100,000+ ARR grew to 1,519 from 1,288 (+18% YoY). Dollar-Based Net Retention Rate was 117%, down from 122% a year earlier. SaaS subscription revenue rose to $88.2 million (33% of total revenue) from $64.2 million (30%) in the prior-year quarter, and remaining performance obligations were approximately $1.1 billion, of which GitLab expects to recognize about 64% over the next 12 months.
Capital allocation and infrastructure: In March 2026 the board authorized a $400 million share repurchase program; during the quarter GitLab repurchased 2,378,892 Class A shares for $50.0 million at an average price of $21.04 per share, leaving $350 million available. The company also entered a new $10 million, one-year agreement with a third-party cloud services provider during the quarter, and achieved the milestone on the second payment tranche of the 2024 Oxeye Security acquisition, paying $1.1 million to the co-founders.
Financial trajectory: Net loss attributable to GitLab narrowed to $5.0 million (from $35.9 million in the prior-year quarter); operating loss improved to $15.7 million (from $34.6 million). Gross margin declined two points to 86% (from 88%), driven primarily by a $7.5 million increase in third-party hosting costs for SaaS and cloud usage. Adjusted free cash flow was $146.7 million (vs. $104.1 million in the prior-year quarter), and cash, cash equivalents, and short-term investments totaled $1,357.5 million at quarter-end.
Post-period governance change: On May 14, 2026, Executive Chair Sytse Sijbrandij converted 15,134,451 shares of 10-vote Class B common stock into Class A common stock, reducing the Class B overhang while he remains the largest individual Class A shareholder; the dual-class structure (10:1 voting) otherwise continues until the earlier of October 14, 2031, his death/disability, a two-thirds Class B vote, or Class B falling below 5% of total outstanding shares.
(Filed on March 17, 2026)
+23.2%
86.6%
$229.6M
Q4 product milestone: GitLab Duo Agent Platform reached general availability in January 2026, introducing orchestration of AI agents across the software lifecycle (planning, development, security, deployment) with enterprise governance controls. The launch included a new usage-based pricing model via 'GitLab Credits' (on-demand or monthly commitment pools) for AI agent capabilities, alongside existing seat-based Duo Pro and Duo Enterprise add-on subscriptions.
Q4 operational and legal events: Arch (formerly Meltano), the company's equity-method investment in data engineering, ceased operations in November 2025; GitLab received no distributions from the liquidation. The Dolly securities class action and three shareholder derivative suits (Preciado, Jones, Lianto), all alleging misrepresentations regarding AI monetization, were dismissed with prejudice on January 26, 2026.
Annual context (fiscal year ended January 31, 2026): Revenue was $955.2M, up 26% year-over-year; SaaS revenue grew to $296.2M (32% of total, up from 28%). Base Customers (>$5K ARR) reached 10,682 (from 9,893); $100K+ ARR customers grew to 1,456 (from 1,229); $1M+ ARR customers grew 26% to 155. Dollar-Based Net Retention Rate declined to 118% from 123%. Remaining performance obligations were $1,135.8M, with 63% expected to be recognized within 12 months.
Annual context: The company incurred $1.6M in restructuring charges for fiscal 2026 related to organizational realignments and workforce reductions (vs. $1.9M in fiscal 2025 and $8.0M in fiscal 2024). Headcount was approximately 2,580 team members across 60 countries as of January 31, 2026. The open-source platform maintained 172 consecutive months of monthly releases with 5,200+ contributors; users submitted 6,500+ merge requests in calendar 2025.
Subsequent events (post-Q4): The Chief Information Security Officer vacated the role on February 26, 2026; the Security Operations Vice President is serving as interim CISO during a search. On March 2, 2026, the board approved a share repurchase program authorizing repurchase of up to $400M of Class A common stock, to be funded from existing cash, short-term investments, and operating cash flow.
(Filed on December 3, 2025)
+24.6%
86.8%
$224.2M
For the quarter ended October 31, 2025, total revenue grew 25% YoY to $244.4M. Base Customers (>$5K ARR) rose 10% to 10,475 and $100K+ ARR customers grew 23% to 1,405, but Dollar-Based Net Retention Rate declined to 119% from 124% a year earlier, indicating slowing expansion within the existing customer base. SaaS revenue reached 31% of total (up from 29%), and the company has maintained monthly product releases for 169 consecutive months.
During the nine months ended October 31, 2025, GitLab entered into two new cloud infrastructure agreements: a five-year contract with $130M in total minimum commitments (annual amounts ranging from $17.3M to $36.3M) and a one-year contract with $42.5M in annual minimum commitments. Total purchase obligations reached $242.6M as of October 31, 2025. Gross margin compressed 2 points to 87% (from 89%), driven primarily by a $5.7M increase in hosting expenses tied to growing SaaS and cloud usage.
The Dolly v. GitLab securities class action (alleging misrepresentations regarding AI features and monetization) was effectively resolved: on August 14, 2025, the court granted GitLab's motion to dismiss with leave to amend, and on September 8, 2025, the plaintiff filed a stipulation declining to amend or appeal, requesting dismissal with prejudice. Three related shareholder derivative suits (Preciado, Jones, Lianto), filed in February-March 2025, remain stayed pending the Dolly matter's conclusion.
On November 25, 2025 (a subsequent event), GitLab entered into a Right of First Refusal Agreement with Kilo Code, Inc., an affiliate of Sytse Sijbrandij, the company's Executive Chair. The agreement grants GitLab a 10-business-day window to match any bona fide third-party acquisition proposal for Kilo Code received before August 24, 2026. The Audit Committee reviewed and approved the arrangement.
The One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, permitted immediate expensing of U.S. R&D expenditures effective in the current fiscal year, which the company noted significantly reduced its domestic taxable income to a loss position and materially lowered the current-quarter tax provision. Additionally, a $3.5M indirect tax credit expense related to the JiHu China joint venture formation was recorded in other expense, reflecting a change in accounting estimate. JiHu generated $2.3M in quarterly revenue and a $1.1M net loss.
