GitLab Stock Sinks After Q2 Earnings Report: Here's Why

GitLab, Inc. GTLB released its second-quarter results after Wednesday's closing bell. Here's a look at the key figures from the quarter.

• GTLB stock is sliding after earnings. See the real-time price action here.

The Details: GitLab reported quarterly earnings of 24 cents per share, which beat the analyst estimate of 16 cents.

Quarterly revenue came in at $235.96 million, which beat the consensus estimate of $227.25 million and is up from revenue of $182.58 million from the prior year’s quarter.

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GitLab reported the following Q2 financial highlights:

• Customers with more than $5,000 of ARR reached 10,338, an increase of 11% year-over-year.
• Customers with more than $100,000 of ARR reached 1,344, an increase of 25% year-over-year.
• Dollar-Based Net Retention Rate was 121%.
• Total RPO grew 32% year-over-year to $988.2 million, while cRPO grew 31% to $621.6 million.

“This quarter’s results demonstrate the strength of GitLab’s AI-native DevSecOps platform as we continue to drive customer-focused innovation,” said Bill Staples, GitLab CEO.

“GitLab Duo Agent Platform represents our vision for human-AI collaboration across the software development lifecycle. With extensibility and interoperability at our core, GitLab gives customers the flexibility to build software with their choice of AI generation tools integrated directly within GitLab, underpinned by the full lifecycle data needed to deliver faster, higher quality AI outcomes,” Staples added.

Outlook: GitLab is looking for third quarter adjusted EPS of between 19 cents and 20 cents, versus the 19 cent estimate, and revenue of $238 million to $239 million, versus the $241.54 million analyst estimate.

GitLab raised its fiscal 2026 adjusted EPS guidance to a range of 82 cents to 83 cents, versus the 75 cent analyst estimate.

GTLB Stock Price: According to data from Benzinga Pro, GitLab stock was down 8.68% at $42.74 in Wednesday's extended trading. 

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