GitLab Inc. (NASDAQ:GTLB) reported fiscal second-quarter revenue of $286.3 million, up 21% year over year, as gross bookings reached a company record. Annual recurring revenue, or ARR, is the annualized run rate of subscription revenue at period end and excludes professional services. GitLab Inc. (NASDAQ:GTLB) defines Net ARR as the change in ARR between periods on a bookings basis, measured by opportunity close date. Quarterly Net ARR grew more than 40%, which does not mean total ending ARR grew at that rate.
Dollar-based net retention was 117%, the same rounded figure as the first quarter. GitLab Inc. (NASDAQ:GTLB) said the underlying rate accelerated sequentially, although it declined from 121% one year earlier. Customers generating more than $100,000 of ARR increased 17% to 1,571. Current remaining performance obligations, or contracted revenue expected to be recognized within 12 months, rose 20% to $744.7 million. Total remaining performance obligations increased 16% to $1.2 billion.
Record bookings and management-reported sequential improvement in dollar-based net retention create a credible path to future subscription revenue. First orders more than doubled, while first-order Net ARR grew nearly 40%. Deals worth at least $500,000 increased more than 150%, and the Ultimate tier reached 59% of ARR after growing approximately 35%.
AI and consumption products are gaining early traction. Duo Agent Platform paid consumption run rate grew roughly 50% sequentially. GitLab Inc. (NASDAQ:GTLB) defines paid consumption run rate as a point-in-time annualized measure of credit and Flex commitments plus paid on-demand consumption, excluding trials and promotional credits. It exceeded $40 million, up from $15 million entering the quarter, but is not revenue or ARR. The increase included Flex, where existing subscription dollars can enter the commitment pool, so it was not necessarily incremental consumption demand.
GitLab Flex attracted more than 130 customers and over $20 million of commitments during its first six weeks, with most occurring at renewal. Flex lets customers allocate one commitment across seats, credits, and eligible consumption products, potentially reducing procurement friction as AI-driven activity grows.

#revenue #consumption #gtlb #first

Updated Sept 02, 2026, 2:17 pm EDT / Original Sept 02, 2026, 5:52 am EDT
GitLab
GTLB
-0.56%
stock was surging on Wednesday—but investors should be wary of chasing that rally, even after a second-quarter earnings beat.
GTLB
-0.56%
Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

#wednesday #reserved

RGA Investment Advisors, an investment management company, has released its second-quarter 2026 investor letter. The letter can be downloaded here. The letter addresses the incorporation of AI into investment strategies and the dramatic changes in market dynamics that have emerged, specifically referencing the AI Bottleneck 40. This group of stocks is crucial to data center infrastructure. Initially, these stocks were closely aligned with the S&P, but by mid-2025, they began to diverge and outperform the index, exhibiting significant volatility, with realized volatility rates approaching 60%. The letter stresses the importance of continually monitoring these trends and adjusting the investment strategy. Also, check the fund's top five holdings to see its best picks in 2026.
In its Q2 2026 investor letter, RGA Investment Advisors highlighted GitLab Inc. (NASDAQ:GTLB). GitLab Inc. (NASDAQ:GTLB) develops a platform that supports the software development lifecycle, covering DevSecOps lifecycle stages. On August 24, 2026, GitLab Inc. (NASDAQ:GTLB) closed at $42.03 per share, reflecting a market capitalization of $7.099 billion. GitLab Inc. (NASDAQ:GTLB) posted a one‑month return of 27.50%, while its shares lost 3.98% over the past 52 weeks.
RGA Investment Advisors stated the following regarding GitLab Inc. (NASDAQ:GTLB) in its Q2 2026 investor letter:
"We bought shares in GitLab Inc. (NASDAQ:GTLB). GitLab is a software company offering DevSecOps and git management for enterprises, serving as an essential "orchestrating" layer for companies to securely manage their codebase and IP. AI is unquestionably driving demand for GitLab's offerings, but there is concern around its traditional per seat pricing model versus a consumption-based model. If AI reduces the number of employees in technical roles at large enterprises, this presents a headwind to growth. This headwind has slowed top-line growth faster than GitLab's budding consumption-based models for AI agents have been able to replace the lost revenue. As it stands today, AI-based revenues are a small piece of the pie, but we expect substantial growth over time. At sub-4x EV/sales, around 20x EV/EBITDA and a free cash flow yield over 5%, we think the valuation is compelling for a business still growing its top line in the high teens and playing an increasingly important role in enterprise AI workflows."
GitLab Inc. (NASDAQ:GTLB) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held GitLab Inc. (NASDAQ:GTLB) at the end of the second quarter, which was 43 in the previous quarter. While we acknowledge the potential of GitLab Inc. (NASDAQ:GTLB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI

GitLab Inc. (NASDAQ:GTLB) is one of the 10 Best Stocks to Buy in Glen Kacher's Light Street Portfolio.
On June 10, 2026, GitLab Inc. (NASDAQ:GTLB) announced new enterprise-scale capabilities designed to optimize agent-driven software delivery. The updates aim at solving operational bottlenecks and compliance risks in addition to unpredictable costs ****** ociated with automated workflows. Key rollouts include Next Generation Source Code Management, which replaces repository clones with API access to speed up task execution by 50x while consuming fewer tokens; GitLab Orbit, which introduces a unified context graph and cuts token usage as well as reduces AI hallucinations; Governance for Agents introducing new AI auditing and compliance controls; and GitLab Flex that unifies platform seats and credits into a single, adaptable annual contract.
In a separate development, on the same day, GitLab Inc. (NASDAQ:GTLB) and Google Cloud (GOOG) have expanded their partnership to launch a managed DevSecOps platform delivered by the company-certified service providers. Building upon an April agreement, this collaboration aims to ****** ist enterprises by ensuring smooth transitions to the company's DevSecOps platform and architecture.
Founded in 2014, GitLab Inc. (NASDAQ:GTLB) is a leader in software development lifecycles. Based in California, the company provides a single, comprehensive DevSecOps platform that unifies planning, coding, security, and deployment into a streamlined workflow.
While we acknowledge the potential of GTLB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.