UiPath reported a solid QQ2 2025 quarter with meaningful progress on ARR growth, cloud adoption, and AI-enabled product momentum, signaling a durable shift toward a cloud-first, AI-powered automation platform. Revenue rose 10% YoY to $316.3 million, while ARR reached $1.551 billion—up 19% year over year—driven by net new ARR of $43 million. Cloud ARR exceeded $850 million, climbing more than 65% YoY, underscoring the company’s successful push toward cloud-based deployments and hybrid SaaS models. Despite a negative GAAP bottom line in the quarter, the company posted a positive non‑GAAP operating income of $6 million (2% non‑GAAP operating margin) and non-GAAP adjusted free cash flow of $49 million, with a robust balance sheet including roughly $940 million in cash and no debt.
Management attributes the improved execution to organizational realignment and a sharper customer-centric GTM approach, including regionalizing functions, tightening focus on high‑ROI growth initiatives, and accelerating the integration of AI across the platform (IDP, Autopilot, and process orchestration). Notable wins and initiatives include a large test-suite deal with a leading technology company, SAP/Deloitte partnerships expanding automation programs, and FedRAMP authorization advancing UiPath’s public‑sector pipeline. Management increased full-year guidance across key metrics, reflecting confidence that AI-enabled automation and cloud adoption will sustain growth and improve margins over time.
Looking forward, Q3 revenue guidance is $345–$350 million, with ARR of $1.60–$1.605 billion and non-GAAP operating income of about $27 million. For FY2025, UiPath now targets revenue of $1.420–$1.425 billion, ARR of $1.665–$1.670 billion, and non-GAAP adjusted free cash flow of approximately $325 million, with non-GAAP operating income around $170 million. While the growth trajectory remains challenged by macro variability and near‑term profitability pressure, the company’s cloud-first strategy, expanding AI capabilities, and strategic partnerships provide a clear path to longer‑term margin expansion and durable ARR growth.