UiPath Inc (PATH) Q4 2025 Earnings Report

Revenue & profitability
- Q4 2025 revenue: $423.646 million; YoY +4.54%; QoQ +19.45%. Excluding a $2 million FX headwind, revenue would have been $426 million. Full-year 2025 revenue: $1.43 billion, up 9% YoY.
- Gross margin: 87% overall; software gross margin 91%.
- Operating leverage: Q4 2025 operating income $33.609 million; non-GAAP operating income $134.0 million; non-GAAP operating margin 32% (up ~400 bps YoY).
- Net income & EPS: Q4 2025 net income $51.794 million; diluted EPS $0.09.
- EBITDA: $33.609 million; EBITDA margin ~7.93%.
- Stock-based compensation: $88.0 million in Q4; full-year SBC $358 million (GAAP results).
- 2025 full-year non-GAAP operating income: $241 million; non-GAAP OI margin 17%.
ARR, customers & retention
- ARR: $1.666 billion, up 14% YoY; net new ARR $60 million (FX-adjusted would be $61 million).
- Cloud ARR: >$975 million, up >50% YoY; reflects accelerated cloud adoption and hybrid/SaaS mix.
- Customers: ~10,750; normalized count flat YoY; high-value segments expanding: ARR >$30k up 7%, $100k+ ARR customers 2,292; $1M+ ARR customers 317; 5M+ ARR customers grew 30% in FY2025.
- Retention: Dollar-based gross retention 98%; net retention 110% as of Q4 2025.
Product & AI momentum
- AI attach: ~20% AI product attach rate across total customers; >85% attach rate among customers with ARR >$1 million.
- Agentic roadmap: Private preview of Agent Builder launched December; hundreds of customers testing use cases across FS, healthcare, and operations; ~3,000 agents creating mission-critical processes; Agent Orchestration launched in public preview; Agent Testing in public preview; Autopilot for testers driving higher AI-assisted testing efficiency (Autopilot + Agent Builder).
- Acquisitions & partnerships: Peak AI acquisition to bolster verticalized agents; Deloitte collaboration to launch Agentic ERP; Microsoft partnership to combine Azure, Copilot and UiPath agents; Everest Group PEAK Matrix Leader placement in Intelligent Automation Platforms 2024.
Liquidity & cash flow
- Cash & equivalents: ~$879.6 million; no debt; net debt negative by ~$801 million.
- Operating cash flow: $146.1 million in Q4 2025; full-year operating cash flow $328 million (non-GAAP free cash flow).
- Share repurchases: 744,000 PATH shares repurchased in Q4 at an average price of $12.57; $390 million returned to shareholders in FY2025 via ~31.8 million shares repurchased (avg price $12.30).
- Balance sheet strengths: Current ratio 2.93; cash ratio 1.10; total current assets of $2.338B vs total current liabilities of $0.799B; total assets $2.865B; total stockholders’ equity $1.846B.
Guidance & outlook
- Q1 FY2026 guidance: Revenue $330–$335 million; ARR $1.686–$1.691 billion; non-GAAP operating income ≈$45 million; basic shares ≈553 million.
- FY2026 guidance: Revenue $1.525–$1.530 billion; ARR $1.816–$1.821 billion; non-GAAP operating income ≈$270 million; gross margin profile to include SaaS tailwinds/headwinds with full-year non-GAAP gross margin ≈85% as cloud offerings scale; anticipated first-half headwinds with more pronounced second-half strength; non-GAAP adjusted free cash flow ≈$370 million;
- Dilution: expected SBC dilution between 2%–3% in FY2026.
- Key caveats: Macro volatility, US public sector transition impacting near-term deal closure, SaaS headwinds (~2%), and FX fluctuations; management emphasizes prudence in guidance given current macro conditions.