GitLab’s QQ2 2025 quarter delivered a resilient topline with 31% year-over-year growth to $182.6 million, marking another step in the company’s transition toward a higher mix of SaaS and AI-enabled subscription revenue. The non-GAAP operating margin expanded meaningfully to 10% (up ~1,300 bps YoY), supported by operating leverage as revenue grew >30% while keeping spend disciplined. The company generated $11.7 million of cash from operations and $10.8 million in adjusted free cash flow, contributing to a robust net cash position of roughly $438.3 million at quarter-end, underscoring financial flexibility as GTLB scales.
Management stressed AI adoption as a core growth driver, highlighted by Duo’s impact on productivity and deal sizes, and cited Gartner and Forrester research that frame a multi-year transition toward AI-enabled DevSecOps. Notable business momentum included DBNRR of 126%, 9,314 customers with ARR ≥ $5,000 (up ~19% YoY), and 1,076 customers with ARR ≥ $100,000 (up ~33% YoY), with Ultimate representing 47% of total ARR. The SaaS component now comprises 28% of revenue, up from prior periods, with SaaS revenue up 46% YoY.
Guidance reiterates solid growth trajectory: Q3 revenue of $187–$188 million ( +25% to +26% YoY ) and full-year revenue guidance of $742–$744 million (+~28% YoY), with non-GAAP operating income of roughly $19–$20 million in Q3 and $55–$58 million for the year. The company also provided JiHu expense expectations for FY25, reflecting ongoing deconsolidation efforts. Investors should monitor AI adoption velocity, the sustainability of booking/renewal mix (especially in Enterprise >$100k segments), the progression of Duo adoption within Ultimate customers, and the impact of pricing actions on unit economics over the back half of FY25 and into FY26.