Rankings Software, cloud & internet GitLab
GitLab
57
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Multiples vs own history−9
- Absolute price level−7
- AI agents versus the seat model−5
Strengths
- Net cash+2
- Raised guidance+2
- Net retention+1
How the score is built
From 100 to 57, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 52.11 USD
- Median analyst target
- 55.50 USD
- Upside to median
- +6.5%
- Analysts
- 28
- Target range
- 45.00 – 70.00 USD
- 52-week change
- +7%
- P/E (trailing)
- n/a
- Forward P/E
- 59.7
- PEG
- 2.05
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−9 of −30
- −4Stock-based compensation versus FCFStock-based compensation was 230m $ TTM (22% of revenue), more than FCF of 214m $. FCF after stock compensation is approx. -16m $, and the share count has risen 3.1% over a year despite buybacks.
- −3Margin (GAAP loss)GAAP operating margin is -6% TTM (-64m $), and there has never been a GAAP profit. Gross margin is high (86%) but falling from 89.8% (FY24) because agent workloads burden the infrastructure.
- −2Growth quality (slowdown)Revenue growth has fallen from 68% (FY23) to 37%, 31%, 26% and now 21% in Q2; full-year guidance implies about 18.5% and next year 16%. The business is getting bigger but is still growing more slowly.
Price
Today's multiples against the company's own history and its peers. · 2 findings−16 of −35
- −9Multiples vs own historyP/S 8.7 and forward P/E 63 are lower than in FY23-25 (P/S 15.6-19.1), but far above January 2026 (P/S 6.2, forward P/E 36, P/FCF 26.5). P/FCF is now 43, and the share price is about 2.5 times higher since March.
- −7Absolute price levelThe FCF yield is 2.3% (about 0% after share-based compensation), EV/FCF 37 for a company with a GAAP loss and growth below 20%. The price targets are only 1% above the share price.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−11 of −35
- −5AI agents versus the seat modelCore revenue is Premium/Ultimate per developer user, so AI coding agents can reduce the number of seats, and GitHub Copilot (Microsoft) is a strong competitor. GitLab itself calls seat pricing for AI a divide between 'haves' and 'have-nots' and is introducing credits, but that revenue is not expected to take off until 2028.
- −4Governance (voting control and litigation)Co-founder and chairman Sytse Sijbrandij holds B shares with more votes. In April 2026 he and the board were sued for using a $400m buyback programme to push his voting share above 50% and postpone the expiry of the B shares, after he had sold shares for about $64m.
- −2RestructuringIn June 2026, 14% of employees (approx. 350) were cut, and the company is withdrawing from 22 countries (approx. 37% of its geographic footprint). The cost is 30–35m $, and it creates execution risk in sales.
Plus
Only documented strengths. · 4 findings+6 of +15
- +2
- +2Raised guidanceQ2 revenue was $286.3m (+21%), and net ARR growth was over 40%. Full-year guidance has been raised from $1.099-1.118bn to $1.129-1.133bn.
- +1Net retentionDollar-based net retention is 117% and improving for the first time since 2024; gross retention is above 90%. 1,571 customers have over $100,000 in ARR (+17%).
- +1Insider buyingCEO Bill Staples has bought shares on the open market: approx. 6,000 shares at approx. 21.50 $ in March 2026 and for approx. 123,000 $ in August. The amounts are small.
Caveats
What the score does not capture, or where the data is weak.
The fiscal year ends 31/1 (Q2 FY27 = May-July 2026). The stock is about 2.5 times higher than the March low (about $21). GAAP loss; the restructuring costs $30-35m over four quarters. Monetization of AI agents (Duo Agent Platform, credits) is not expected to gain traction until 2028. Staples' insider purchases are from aggregators and not checked in Form 4. Q3 comes in early December.
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