In This Article:
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Revenue: $424 million for Q4 2025; $1.43 billion for fiscal year 2025.
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ARR (Annual Recurring Revenue): $1.666 billion, a 14% increase year over year.
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Net New ARR: $60 million for Q4 2025.
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Gross Margin: Overall gross margin at 87%; software gross margin at 91% for Q4 2025.
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Operating Income: GAAP operating income of $34 million for Q4 2025; non-GAAP operating income of $134 million for Q4 2025.
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Non-GAAP Operating Margin: 32% for Q4 2025.
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Free Cash Flow: Non-GAAP adjusted free cash flow of $145 million for Q4 2025; $328 million for fiscal year 2025.
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Cash and Equivalents: $1.7 billion with no debt at the end of fiscal year 2025.
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Share Repurchases: 744,000 shares repurchased in Q4 2025 at an average price of $12.57; $390 million returned to shareholders for the full fiscal year.
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Guidance for Q1 2026: Revenue between $330 million to $335 million; ARR between $1.686 billion to $1.691 billion; non-GAAP operating income of approximately $45 million.
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Guidance for Fiscal Year 2026: Revenue between $1.525 billion to $1.530 billion; ARR between $1.816 billion to $1.821 billion; non-GAAP operating income of approximately $270 million.
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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UiPath Inc (NYSE:PATH) reported a revenue of $424 million for the fourth quarter, with an ARR of $1.666 billion, marking a 14% year-over-year increase.
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The company has made significant progress in its Agentic platform, with strong customer engagement and approximately 3,000 agents created for mission-critical processes.
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UiPath Inc (NYSE:PATH) achieved a non-GAAP operating margin of 32% in the fourth quarter, reflecting improved operational efficiency.
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The company ended the year with a robust balance sheet, holding $1.7 billion in cash, cash equivalents, and marketable securities, with no debt.
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UiPath Inc (NYSE:PATH) has seen healthy adoption of its AI products, with an attach rate of approximately 20% of total customers and over 85% for customers with greater than $1 million in ARR.
Negative Points
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The company faced headwinds from the ongoing geopolitical climate, impacting the timing of deal closures, particularly in the public sector.
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There has been significant volatility in the macroeconomic environment, leading to uncertainty around customer budgets and foreign exchange fluctuations.
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UiPath Inc (NYSE:PATH) experienced a slight shortfall in ARR expectations for the fourth quarter due to the transition in the government and macroeconomic challenges.
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The company anticipates a 2% headwind to full-year revenue growth due to the shift towards SaaS offerings.
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Despite progress, the public sector transition has created short-term uncertainty for deal closures, affecting the company's guidance for fiscal 2026.