Free cash flow is volatile, swinging from a $178.1M burn to a $146.8M generation, with operating cash flow heavily inflated by $75.0M in quarterly stock-based compensation that obscures true cash generation.
GitLab Inc. (GTLB) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 |
|---|
| Cash from Operations | 223.29M | 232.86M | -63.97M | 35.04M | -77.41M | -49.81M | -73.58M | -60.17M |
| Operating CF Margin % | - | 24.38% | -8.43% | 6.04% | -18.24% | -19.72% | -48.35% | -74.07% |
| Operating CF Growth % | 24.22% | 464% | -282.57% | 145.27% | -55.39% | 32.3% | -22.3% | - |
| Net Income | -52.69M | -55.96M | -9.12M | -429.54M | -181.79M | -157.56M | -192.19M | -130.74M |
| Depreciation & Amortization | 12.66M | 11.35M | 10.99M | 6.54M | 5.59M | 1.21M | 222K | 0 |
| Stock-Based Compensation | 229.91M | 214.95M | 185.9M | 163.05M | 122.57M | 30.01M | 111.85M | 40.87M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 61.73M | 70.97M | 39.95M | 52.66M | 19.74M | 53.95M | -5.39M | 12.34M |
| Working Capital Changes | -26.27M | -8.46M | -291.69M | 242.33M | -43.52M | 22.57M | 11.94M | 17.36M |
| Change in Receivables | -266.19M | -35.72M | -99.65M | -36.34M | -54.17M | -38.22M | -14.74M | -13.46M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -746K | 1.61M | 5.5M | -3.44M | 287K | 1.88M | 1.47M | 914K |
| Cash from Investing | -134.2M | -267.29M | -30.49M | -86.24M | -543.96M | -27.45M | -842K | 0 |
| Capital Expenditures | -9.62M | -10.83M | -11.43M | -1.6M | -6.07M | -3.54M | -933K | 0 |
| CapEx % of Revenue | 0.91% | 1.13% | 1.5% | 0.28% | 1.43% | 1.4% | 0.61% | - |
| Acquisitions | 0 | 0 | -20.21M | 0 | 61.73M | 26.13M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 457K | -2.95M | -9.62M | 0 | 91K | 0 |
| Cash from Financing | -124.25M | 34.81M | 32.62M | 45.23M | 35.76M | 674.74M | 12.95M | 271.26M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -122.4M | 35.76M | 37.52M | 45.23M | 38.89M | 674.74M | -820K | 271.26M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -154.69M | 0 | 0 | 0 | 0 | -590K | -820K | 0 |
| Other Financing | -1.85M | -945K | -4.9M | 0 | -3.14M | 0 | 13.77M | 0 |
| Net Change in Cash | -34.92M | 1.93M | -60.35M | -9.91M | -586.77M | 601.82M | -60.48M | 343.33M |
| Free Cash Flow | 213.67M | 222.03M | -67.74M | 33.44M | -83.48M | -53.35M | -73.58M | -60.17M |
| FCF Margin % | 20.25% | 23.24% | -8.92% | 5.77% | -19.67% | -21.12% | -48.35% | -74.07% |
| FCF Growth % | 496.27% | 427.79% | -302.55% | 140.06% | -56.46% | 27.49% | -22.3% | - |
| FCF per Share | 1.27 | 1.34 | -0.42 | 0.22 | -0.56 | -0.37 | -0.56 | -0.45 |
| FCF Conversion (FCF/Net Income) | -4.06x | -4.16x | 10.11x | -0.08x | 0.45x | 0.32x | 0.38x | 0.46x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 3.53M | 4.76M | 190.83M | 6.9M | 838K | 1.31M | 1.9M | 1.99M |
Quick answers to the most common questions about buying GTLB stock.
GitLab Inc. (GTLB) generated $232.9M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
GitLab Inc. (GTLB) generated $222.0M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
GitLab Inc. (GTLB) spent $10.8M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
SBC dilution masking true cash burn
Metrics are mathematically derived from official filings.
Earnings Quality Masked by SBC
The relationship between net income and operating cash flow is heavily distorted by stock-based compensation, which averaged $52.6M per quarter over the last ten periods, suggesting the underlying cash generation from core operations is significantly weaker than headline OCF figures imply.
Operating cash flow has been consistently positive, but this is almost entirely driven by the non-cash add-back of SBC, which is a substantial portion of the company's compensation structure. The OCF/NI ratio is volatile and often negative, indicating that net losses are not being converted into cash. This dynamic means investors must scrutinize the quality of earnings, as the reported operating cash flow does not reflect the true cash cost of running the business.
FCF Volatility Undermines Growth Narrative
Free cash flow has swung dramatically from a -$178.1M burn in Q3 2025 to a $146.8M generation in Q1 2027, a trajectory that appears driven by lumpy working capital movements rather than sustainable operational improvement, as FCF margins remain inconsistent.
The FCF margin has been highly erratic, ranging from -90.8% to 55.6% over the last ten quarters, which suggests the business has not yet established a predictable cash generation profile. The recent Q2 2027 result of -1.2% FCF margin, following a strong Q1, highlights this instability. This pattern indicates that GitLab's path to consistent positive free cash flow is not yet secured and remains vulnerable to shifts in working capital and the timing of cash collections.
Working Capital Swings Drive Cash Flow
Working capital changes have been the primary driver of operating cash flow volatility, with a massive $87.0M positive swing in Q1 2027 followed by a $54.9M negative swing in Q2 2027, indicating unpredictable cash collection and payment cycles.
The company's cash flow is highly sensitive to changes in working capital, which can swing by over $100 million between quarters. This volatility suggests that the timing of customer payments and vendor settlements has a disproportionate impact on reported cash flow, potentially obscuring the underlying operational trend. Investors should monitor whether these swings are becoming more predictable or remain a source of significant quarterly noise.
SBC Obscures True Cash Burn
Stock-based compensation, which totaled $526.7M over the last ten quarters, is a non-cash expense that inflates operating cash flow and masks the true economic cost of the business, making it difficult to assess sustainable cash generation.
The cash flow statement adds back SBC to arrive at operating cash flow, but this is a real cost to shareholders through dilution. When SBC is considered, the company's cash burn from operations is significantly worse than the reported OCF suggests. This accounting treatment can lead to an overestimation of the company's financial health and its ability to fund operations without external financing.
Capital Deployment Shifts to Buybacks
After a period of minimal capital deployment, GitLab initiated $154.6M in share repurchases over the last two quarters, a significant shift that may indicate management's view that the stock is undervalued but also reduces cash available for growth investments.
The company has historically spent little on dividends, acquisitions, or buybacks, but the recent $104.6M and $50.0M repurchases in Q2 and Q1 2027, respectively, represent a new use of cash. This move could be interpreted as a confidence signal, but it also occurs during a period of negative free cash flow in the most recent quarter, raising questions about the prioritization of capital allocation.