GitLab joins the tracked set today, the day before it reports the July quarter on 1 September. The timing is not ideal for a first look, so treat the numbers below as the board the print will be scored against rather than a verdict.
Start with the fact that frames everything else. During the quarter that ended 30 April 2026 GitLab repurchased 2,378,892 of its own Class A shares for $50.0 million — an average of $21.04 a share. It closed on 31 August at $46.54. The company was buying at a price the market has since more than doubled, and the 52-week range, $18.73 to $52.38, tells you the re-rating happened inside these twelve months.
The operating record
Thirteen stored quarters, back to the April 2023 one. GitLab's fiscal year ends on 31 January, so the quarter ending 30 April 2026 is fiscal 2027's first, and the labels below are fiscal.
| Quarter | Revenue | YoY | FCF | FCF margin | R40 |
|---|---|---|---|---|---|
| 2025 Q1 | $169.2M | +33.3% | $37.4M | 22.1% | 55.5 |
| 2025 Q2 | $182.6M | +30.8% | $10.8M | 5.9% | 36.7 |
| 2025 Q3 | $196.0M | +31.0% | −$178.1M | −90.8% | −59.8 |
| 2025 Q4 | $211.4M | +29.1% | $62.1M | 29.4% | 58.5 |
| 2026 Q1 | $214.5M | +26.8% | $105.4M | 49.1% | 75.9 |
| 2026 Q2 | $236.0M | +29.2% | $46.5M | 19.7% | 48.9 |
| 2026 Q3 | $244.4M | +24.6% | $28.4M | 11.6% | 36.3 |
| 2026 Q4 | $260.4M | +23.2% | $41.8M | 16.0% | 39.2 |
| 2027 Q1 | $264.2M | +23.1% | $146.8M | 55.6% | 78.7 |
On a trailing-four-quarter basis the Rule of 40 score is 51.1: $1.005 billion of revenue growing 24.9% against a 26.2% free-cash-flow margin. Growth has decelerated in a straight line — 33.3%, 30.8%, 31.0%, 29.1%, 26.8%, 29.2%, 24.6%, 23.2%, 23.1% — and cash generation has done all the work of holding the score up.
Two quarters in that column are seasonal artefacts and one is not.
The 78.7 and the 75.9 are collection quarters. GitLab bills annually and the first fiscal quarter, February to April, is when the cash arrives: accounts receivable fell from $304.3 million to $200.3 million over the April 2026 quarter. Operating cash flow of $149.2 million on $264.2 million of revenue is a working-capital swing, not a margin. The four quarters together — 26.2% — are the number that means something.
The −59.8 is a tax bill. In the quarter ended 31 October 2024, GitLab paid out the income tax it had accrued under its bilateral advance pricing agreement, a $241.7 million reversal in accrued liabilities that turned nine-month operating cash flow from positive to −$127.2 million. GitLab excludes it from its own "adjusted free cash flow"; the series here does not, because it was cash that left the building. It is the single reason a company whose other twelve stored quarters carry a 21.7% aggregate free-cash-flow margin shows a −90.8% one in this table.
No P/E, and that is the point
GitLab has never earned a GAAP profit over a full fiscal year. Diluted GAAP EPS across the stored quarters runs −$0.35, −$0.33, −$1.84, −$0.23, −$0.35, $0.08, $0.18, $0.04, −$0.22, −$0.06, −$0.05, −$0.02, −$0.03. Trailing four-quarter EPS is negative at the April 2026 quarter, so the P/E series is empty by design rather than by omission — there is no denominator to divide by.
The loss is small and shrinking. The April quarter's GAAP operating margin was −6%, against −16% a year earlier, and the GAAP net loss was $5.0 million on $264.2 million of revenue. Non-GAAP operating income was $37.5 million, a 14% margin. The gap is almost entirely stock compensation, and the gross margin has been sliding as agent workloads consume inference: 90.2% in the January 2024 quarter, 85.8% in the April 2026 one.
What changed at the top
Co-founder Sytse "Sid" Sijbrandij resigned as chief executive on 5 December 2024 and became executive chair; former New Relic chief executive Bill Staples took the job the same day. The finance and engineering seats then turned over in sequence — CFO Brian Robins resigned in September 2025, CTO Sabrina Farmer at the end of December, and Jessica Ross (from Frontdoor, via Salesforce) and Sivaprasad Padisetty (New Relic's CTO, and Staples' colleague there) filled both in mid-January 2026.
On 11 May 2026 Staples filed a letter with the SEC titled "GitLab Act 2", announcing an openly-run restructuring with a voluntary separation window and ten "core beliefs" about the agentic era. The 2 June results put numbers on it: roughly 350 roles cut, 14% of the workforce, an exit from 22 countries, and $30–35 million of pre-tax restructuring charges, of which about $19 million lands in the July quarter that reports tomorrow.
What the 1 September print has to answer
- Whether the guide holds. GitLab guided the July quarter to $272–274 million of revenue and $0.17–0.18 of non-GAAP diluted EPS, and the full year to $1.112–1.118 billion. The low end of the Q2 guide is 15.3% growth against a quarter that grew 29.2% a year ago; the deceleration is guided, not feared.
- Where the restructuring charge actually lands. About $19 million was expected in this quarter with the remainder spread over the following three. It hits GAAP, not the non-GAAP line the guidance is set on.
- Whether the gross margin stops sliding. Four consecutive quarters down, from 88.3% to 85.8%, while the company sells more agent inference. This is the line that decides whether the agentic pivot is accretive or dilutive.
- What the analysts do next. Eleven firms raised their targets in the two weeks to 31 August — Cantor to $50, BTIG to $52, RBC to $46, BofA and D.A. Davidson to $45 — and yet the S&P Global consensus target of $38.91 across 27 analysts still sits $7.63 below the closing price. The consensus rating is Hold. The sell side is behind the tape and has been raising into it.
Revenue, gross profit, diluted GAAP EPS, operating cash flow, purchases of property and equipment and total assets are taken from GitLab's own filings via the SEC XBRL company-facts API (CIK 0001653482), with fourth-quarter figures derived as the fiscal year less the first three quarters and free cash flow as operating cash flow less purchases of property and equipment. Fourth-quarter per-share figures are read from the three-month column of each year's Exhibit 99.1. EPS is GAAP throughout — GitLab's non-GAAP figure for the April quarter was $0.23 against the −$0.03 used here. Guidance, the restructuring plan, the buyback and the customer metrics are from the 8-K filed 2 June 2026 and its Exhibit 99.1 and from the 10-Q for the quarter ended 30 April 2026. Analyst actions and the closing price are via stockanalysis.com as of 31 August 2026.
