Revenue growth has decelerated to 21.3% in Q2 2027, while gross margins have contracted to 84.1% and operating losses have widened to $56.9M, indicating margin pressure and elusive operating leverage.
GitLab Inc. (GTLB) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 |
|---|
| Sales/Revenue | 1.06B | 955.22M | 759.25M | 579.91M | 424.34M | 252.65M | 152.18M | 81.23M |
| Revenue Growth % | 22.99% | 25.81% | 30.93% | 36.66% | 67.95% | 66.03% | 87.35% | - |
| Cost of Goods Sold | 150.33M | 120.74M | 85.14M | 59.71M | 51.68M | 29.98M | 18.46M | 9.38M |
| COGS % of Revenue | - | 12.64% | 11.21% | 10.3% | 12.18% | 11.87% | 12.13% | 11.54% |
| Gross Profit | 904.84M | 834.48M | 674.11M | 520.2M | 372.66M | 222.67M | 133.71M | 71.85M |
| Gross Margin % | 85.75% | 87.36% | 88.79% | 89.7% | 87.82% | 88.13% | 87.87% | 88.46% |
| Gross Profit Growth % | - | 23.79% | 29.59% | 39.59% | 67.36% | 66.53% | 86.1% | - |
| Operating Expenses | 995.04M | 904.96M | 816.82M | 707.64M | 584.07M | 351.63M | 347.6M | 200.22M |
| OpEx % of Revenue | - | 94.74% | 107.58% | 122.03% | 137.64% | 139.17% | 228.42% | 246.49% |
| Selling, General & Admin | 690.9M | 630.39M | 577.17M | 506.8M | 427.92M | 254.41M | 240.95M | 140.85M |
| SG&A % of Revenue | - | 65.99% | 76.02% | 87.39% | 100.85% | 100.69% | 158.34% | 173.41% |
| Research & Development | 304.14M | 274.57M | 239.65M | 200.84M | 156.14M | 97.22M | 106.64M | 59.36M |
| R&D % of Revenue | - | 28.74% | 31.56% | 34.63% | 36.8% | 38.48% | 70.08% | 73.08% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -90.2M | -70.48M | -142.72M | -187.44M | -211.41M | -128.96M | -213.88M | -128.37M |
| Operating Margin % | -8.55% | -7.38% | -18.8% | -32.32% | -49.82% | -51.04% | -140.55% | -158.03% |
| Operating Income Growth % | - | 50.61% | 23.86% | 11.34% | -63.94% | 39.71% | -66.62% | - |
| EBITDA | -77.54M | -59.14M | -131.73M | -180.91M | -205.82M | -127.75M | -213.66M | -128.37M |
| EBITDA Margin % | -7.35% | -6.19% | -17.35% | -31.2% | -48.5% | -50.56% | -140.4% | -158.03% |
| EBITDA Growth % | 13.65% | 55.11% | 27.18% | 12.1% | -61.11% | 40.21% | -66.45% | - |
| D&A (Non-Cash Add-back) | 12.66M | 11.35M | 10.99M | 6.54M | 5.59M | 1.21M | 222K | 0 |
| EBIT | -49.47M | -48.06M | -85.79M | -164.39M | -177.76M | -159.07M | -213.88M | -128.37M |
| Net Interest Income | 47.48M | 45.71M | 47.73M | 39.11M | 14.5M | 736K | 1.07M | 3.63M |
| Interest Income | 47.48M | 45.71M | 47.73M | 39.11M | 14.5M | 736K | 1.07M | 3.63M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 40.73M | 22.42M | 56.92M | 23.05M | 33.65M | -30.11M | 24.52M | -1.17M |
| Pretax Income | -49.47M | -48.06M | -85.79M | -164.39M | -177.76M | -159.07M | -189.36M | -129.54M |
| Pretax Margin % | -4.69% | -5.03% | -11.3% | -28.35% | -41.89% | -62.96% | -124.44% | -159.48% |
| Income Tax | 4.55M | 10.5M | -76.67M | 265.14M | 4.03M | -1.51M | 2.83M | 1.2M |
| Effective Tax Rate % | -9.2% | -21.84% | 89.37% | -161.29% | -2.27% | 0.95% | -1.5% | -0.93% |
| Net Income | -52.69M | -55.96M | -6.33M | -425.68M | -173.41M | -155.14M | -192.19M | -130.74M |
| Net Margin % | -4.99% | -5.86% | -0.83% | -73.4% | -40.87% | -61.4% | -126.3% | -160.96% |
| Net Income Growth % | -417.78% | -784.54% | 98.51% | -145.48% | -11.78% | 19.28% | -47% | - |
| Net Income (Continuing) | -54.02M | -58.56M | -9.12M | -429.54M | -181.79M | -157.56M | -192.19M | -130.74M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 45.96M | 45.58M | 45.4M | 46.62M | 53.7M | 24.4M | 0 | 0 |
| EPS (Diluted) | -0.31 | -0.35 | -0.04 | -2.75 | -1.16 | -1.06 | -1.45 | -0.99 |
| EPS Growth % | -882.55% | -775% | 98.55% | -137.07% | -9.43% | 26.9% | -46.46% | - |
| EPS (Basic) | - | -0.35 | -0.04 | -2.75 | -1.16 | -1.06 | -1.45 | -0.99 |
| Diluted Shares Outstanding | 168.7M | 165.8M | 160.58M | 154.28M | 148.41M | 144.74M | 132.49M | 132.49M |
| Basic Shares Outstanding | 168.7M | 165.8M | 160.58M | 154.28M | 148.41M | 144.74M | 132.49M | 132.49M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying GTLB stock.
For fiscal year 2026, GitLab Inc. (GTLB) reported total revenue of $955.2M. This represents a 1076.0% increase compared to $81.2M in 2020.
GitLab Inc. (GTLB) reported a net loss of $56.0M for the fiscal year ending 2026.
GitLab Inc. (GTLB) reported an operating income of $-70.5M, resulting in an operating profit margin of -7.4%. This margin reflects the operational efficiency of the business before interest and taxes.
GitLab Inc. (GTLB) generated $834.5M in gross profit for the year, representing a gross profit margin of 87.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Operating leverage not yet proven
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Scale
GitLab's revenue growth has decelerated from over 30% in early 2025 to 21.3% in Q2 2027, a trend that suggests the law of large numbers is beginning to impact the company's top-line expansion as it scales.
The sequential decline in year-over-year revenue growth from 33.3% in Q1 2025 to 21.3% in Q2 2027 indicates a maturing growth profile. While still robust for a software company, this deceleration implies that the initial wave of rapid market penetration is transitioning to a phase where growth will depend more on upselling existing customers and expanding into new use cases rather than pure new customer acquisition. Investors should monitor whether this trend stabilizes or continues, as it directly impacts the company's valuation multiple.
Gross Margin Compression Signals Mix Shift
Gross margins have contracted by nearly 500 basis points over the last ten quarters, from 88.9% to 84.1%, which may indicate a strategic shift toward higher-cost SaaS delivery or increased hosting expenses.
The steady erosion in gross margin, despite the company's high fixed-cost software model, warrants investigation. This trend could be driven by a growing mix of cloud-hosted SaaS revenue, which carries third-party infrastructure costs, versus the lower-cost self-managed deployments. If this mix shift is intentional to drive broader adoption, it represents a strategic trade-off between top-line growth and near-term profitability that will need to be offset by operating leverage.
Operating Leverage Remains Elusive
Despite consistent revenue growth, operating losses have widened in absolute terms, with Q2 2027 operating loss of $56.9M representing a significant deterioration from the $15.7M loss in Q1 2027.
The income statement reveals a concerning lack of operating leverage. While gross profit has grown, operating expenses—particularly SG&A—have scaled nearly in lockstep, preventing the conversion of revenue growth into improved operating income. The Q2 2027 results, where SG&A jumped to $202.6M from $170.9M in the prior quarter, suggest that sales and marketing investments are not yet yielding proportional returns, indicating that the path to profitability may be longer than anticipated.
SG&A Dominance Constrains Path to Profit
SG&A expenses consistently consume over 70% of revenue, dwarfing R&D and indicating that the company's cost structure is heavily weighted toward customer acquisition and retention rather than product development.
The cost structure is dominated by SG&A, which in Q2 2027 was 70.8% of revenue, compared to R&D at 33.2%. This allocation highlights a business model that is currently in a heavy investment phase for market share. The discipline required to achieve profitability will hinge on the company's ability to scale this SG&A line item as a percentage of revenue, a challenge given the competitive nature of the DevOps market and the need for a global sales presence.
Profitability Trajectory Undermined by Q2 Results
The Q2 2027 results, showing a sharp deterioration in operating and net margins, challenge the narrative of a smooth glide path to profitability and suggest underlying cost pressures may be intensifying.
A short-seller would focus on the Q2 2027 quarter, where operating margin swung from -6.0% to -19.9% and net loss widened dramatically. This reversal, following several quarters of improvement, indicates that the company's cost structure is not yet fully under control and that profitability may be more volatile than the market expects. The significant increase in stock-based compensation to $75.0M in the quarter also raises questions about the true cash cost of operations and potential shareholder dilution.