GitLab Revenue Growth Slowed to 21% at $286.3 Million
The DevSecOps platform guided third-quarter revenue to $281 million to $283 million, below the $286.3 million it reported for the quarter ended July 31.
GitLab Inc. (GTLB), the intelligent orchestration platform for DevSecOps, reported second-quarter fiscal 2027 revenue of $286.3 million, up 21% from a year earlier, a slower year-over-year pace than the 23% growth it posted in the first quarter of the fiscal year.
The sequential deceleration in the growth rate was the quarter’s defining inflection. Dollar-based net retention held at 117%, the same level as the prior quarter, and Chief Financial Officer Jessica Ross said the company saw sequential acceleration in dollar-based net retention. Customers with more than $5,000 of annual recurring revenue reached 11,114, up 8% year-over-year, after 10,831 customers and 7% growth in the first quarter. Customers with more than $100,000 of ARR reached 1,571, up 17% year-over-year, after 1,519 customers and 18% growth a quarter earlier.
Remaining performance obligations cooled as well. Total RPO grew 16% year-over-year to $1.2 billion, slower than 18% growth to $1.1 billion in the first quarter. Current RPO grew 20% to $744.7 million, after 24% growth to $724.1 million. First-order growth was more than 100% year-over-year.
GAAP results absorbed a May 2026 restructuring. GAAP operating margin compressed to (20)% from (6)% in the prior quarter, and the GAAP operating loss widened to $56.9 million from $15.7 million. Restructuring charges of $19.4 million, primarily severance, retention costs and asset write-downs tied to the plan announced in May, appeared in the quarter. Non-GAAP operating income rose to $42.6 million from $37.5 million, and non-GAAP operating margin was 15%, versus 14% in the first quarter. Non-GAAP net income attributable to GitLab was $42.1 million, or $0.24 a share on a diluted basis.
Cash generation reversed. GAAP net cash from operations was $(3.1) million after $149.2 million in the first quarter. Non-GAAP adjusted free cash flow fell to $9.8 million from $146.7 million. Cash and cash equivalents were $226.5 million at July 31, 2026, with short-term investments of $1.03 billion. In the quarter, GitLab repurchased approximately 3.5 million shares; financing cash flows included $104.6 million of common stock repurchases.
Chief Executive Officer Bill Staples said the quarter produced record gross bookings and net ARR growth exceeding 40% year-over-year, and that as AI drives more software creation, the context, security, governance and control GitLab provides become increasingly valuable. The company introduced GitLab Flex, a commercial model covering platform seats, GitLab Credits and eligible capabilities under one annual commitment with monthly reservations that can be reshaped without contract amendments. It launched GitLab Secrets Manager as a usage-based add-on for Premium and Ultimate customers on GitLab.com, and put GitLab Orbit into public beta, connecting code, work items, pipelines, deployments and production signals into a unified context graph.
For the third quarter of fiscal 2027, GitLab expects revenue of $281 million to $283 million, below the $286.3 million reported in the second quarter. Non-GAAP operating income is expected at $35 million to $37 million, and non-GAAP diluted net income at $0.19 to $0.20 a share, assuming about 172 million weighted-average shares.
For the full fiscal year 2027, the company expects revenue of $1,129 million to $1,133 million, after $550.4 million of revenue in the six months ended July 31, 2026. Full-year non-GAAP operating income is expected at $148 million to $152 million, and non-GAAP diluted net income at $0.85 to $0.87 a share.
The DevSecOps platform said it would host a conference call on September 1, 2026, to discuss the results and the outlook.