UiPath delivered another quarter of solid top-line performance and meaningful progress in its AI-driven agentic automation strategy, while navigating a backdrop of macrovolatility and public-sector transition. For the fourth quarter of 2025, revenue was $423.6 million, up 4.5% year over year (YoY) and 19.5% quarter over quarter (QoQ), with gross margin of 87% (software gross margin 91%). Non-GAAP operating income rose to $134 million, yielding a record non-GAAP operating margin of 32%, while GAAP profitability was achieved for the second consecutive quarter with GAAP operating income of $34 million on stock-based compensation of $88 million. The year ended with ARR of $1.666 billion, a 14% YoY increase, and cloud ARR of $975 million, up more than 50% YoY, highlighting the accelerating shift to cloud/SaaS offerings. UiPath finished FY2025 with approximately 10,750 customers, a mature balance sheet (cash and equivalents of about $0.88 billion and no debt), and free cash flow generation of $328 million on a non-GAAP basis for the year. Net retention remained industry-leading at 110%, with gross retention at 98%, underscoring durable value delivery for customers.
Key Performance Indicators
Revenue
423.65M
QoQ: 19.45% | YoY:4.54%
Gross Profit
359.11M
84.77% margin
QoQ: 23.45% | YoY:2.26%
Operating Income
33.61M
QoQ: 177.50% | YoY:122.72%
Net Income
51.79M
QoQ: 586.10% | YoY:52.71%
EPS
0.09
QoQ: -55.00% | YoY:50.50%
Revenue Trend
Margin Analysis
Key Insights
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.
Net income & EPS: Q4 2025 net income $51.794 million; diluted EPS $0.09.
EBITDA: $33.609 million; EBITDA margin ~7.93%.
Financial Highlights
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.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
423.65M
4.54%
19.45%
Gross Profit
359.11M
2.26%
23.45%
Operating Income
33.61M
122.72%
177.50%
Net Income
51.79M
52.71%
586.10%
EPS
0.09
50.50%
-55.00%
Key Financial Ratios
currentRatio
2.93
grossProfitMargin
84.8%
operatingProfitMargin
7.93%
netProfitMargin
12.2%
returnOnAssets
1.81%
returnOnEquity
2.81%
debtEquityRatio
0.04
operatingCashFlowPerShare
$0.27
freeCashFlowPerShare
$0.25
priceToBookRatio
4.24
priceEarningsRatio
37.82
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management provided a number of thematic takeaways from the earnings call. Strategy and product roadmap: UiPath reaffirmed its focus on agentic automation as a core growth pillar, stressing that Agent Builder has generated broad traction and that Agentic Orchestration and Agent Testing are advancing toward general availability. Daniel Dines stated that agentic automation is transforming the way businesses operate and highlighted the breadth of use cases now being explored, from vendor disputes to ERP testing. Market conditions & execution: management acknowledged increased macro volatility and government procurement transitions in the US public sector, noting that some deals are being re-reviewed or delayed; they emphasized a disciplined approach to forecasting and guidance. Partnerships and ecosystem: UiPath underscored its expanding partner ecosystem, including Deloitte’s Agentic ERP collaboration and a strengthening alliance with Microsoft to leverage Azure, Copilot and UiPath Agents. Customer engagement and retention: the company highlighted strong retention metrics (gross 98%, net 110%), ongoing cloud migration (cloud ARR >$975M, +50% YoY), and a high attach rate for AI products (20% overall, >85% for $1M+ ARR customers). Monetization and go-to-market: discussions around monetizing agents via consumption-based models with GA planned for late April/May 2025; go-to-market changes are largely complete, and the company is driving higher-quality pipelines and executive sponsorship.
ARR totaled $1.666 billion, an increase of 14% year-over-year.
— Ashim Gupta
Agentic automation is transforming the way businesses operate.
— Daniel Dines
Forward Guidance
UiPath’s 2026 outlook reflects a cautious but constructive stance given macro headwinds and ongoing public-sector transition. The company targets revenue of $1.525–$1.530 billion in FY2026 and ARR of $1.816–$1.821 billion, with non-GAAP operating income around $270 million. Management warns of a SaaS-related headwind (~2% to full-year revenue growth) and plans for a more pronounced second-half seasonality as go-to-market transitions mature. The near-term forecast implies slower first-half growth, followed by stronger second-half execution, consistent with historical seasonality. The monetization of agentic products via consumption-based pricing is expected to ramp into fiscal 2026, with GA in late April/May 2025. Key factors to monitor include: (1) the pace of US public sector re-opening and procurement, (2) adoption rates for Agent Builder, Agent Orchestration and Agent Testing, (3) progress of cloud adoption and AI product attach within the installed base, (4) FX dynamics, and (5) progress of Peak AI integration into UiPath’s orchestration framework.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
PATH Focus
84.77%
7.93%
2.81%
37.82%
PANW
73.80%
10.90%
6.92%
80.32%
CRWD
74.10%
-8.06%
-2.81%
-266.29%
NET
76.40%
-7.55%
-1.23%
-720.78%
PLTR
78.90%
1.33%
1.58%
551.58%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
UiPath sits at the intersection of foundational RPA and a rapidly expanding agentic automation platform. The Q4 2025 results demonstrate durable ARR growth, strong cloud adoption, and a credible path to profitability through non-GAAP margin expansion and free cash flow generation. The company’s balance sheet remains exceptionally strong with a net cash position and no debt, supporting ongoing investments in product innovation and share repurchases. Management’s FY2026 guidance reflects conservatism amid macro uncertainty and public-sector transition, but the long-run trajectory remains favorable given the sizable ARR base, high Net Revenue Retention, and a multi-year runway for agentic offerings. Key catalysts include the GA of Agentic monetization, continued uptake of Agent Builder and Agent Orchestration, vertical acceleration via Peak AI, and deeper ecosystem partnerships (Deloitte, Microsoft). Investors should monitor: the pace of public-sector normalization, FX headwinds, propensity of customers to migrate more workloads to cloud/SaaS, and the medium-term contribution of agentic solutions to revenue growth. Overall, UiPath offers a high-growth, high-visibility automation platform with meaningful optionality, balanced by macro-related execution risk and a premium valuation.
Key Investment Factors
Growth Potential
Agentic automation remains the core catalyst: multi-product expansion (Agent Builder, Agent Orchestration, Agent Testing) and the integration of verticalized agents (Peak AI) position UiPath to expand both cross-sell within existing deployments and new logo penetration, particularly in healthcare and financial services. Cloud migration and AI-enabled workflows are expanding ARR and improving customer retention, with cloud ARR growing >50% YoY to $975M and AI attach rates improving cross-sell dynamics.
Profitability Risk
Key risks include macro volatility and prolonged procurement cycles in the US public sector, FX swings that impact reported results, potential delayed decision-making by CFOs amid uncertainty, and execution risk around monetizing agentic products at scale (consumption-based pricing). Competition in the automation space and potential slower-than-expected customer adoption of AI/agentic features also pose threats.
Financial Position
UiPath retains a robust balance sheet: net cash position of approximately $801 million; no debt; cash and equivalents around $0.88 billion; strong liquidity to fund growth investments and share repurchases. The company’s non-GAAP gross margin target of ~85% for FY2026 and operating margin expansion to ~270M of non-GAAP OI indicate improving operating leverage as cloud/SaaS offerings scale.