UiPath Inc (PATH) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic Advancements

In This Article:

  • Revenue: $357 million for the first quarter, an increase of 6% year over year.

  • Annual Recurring Revenue (ARR): $1.693 billion, up 12% year over year.

  • GAAP Operating Loss: Improved to $16 million from a loss of $49 million in the prior year.

  • Non-GAAP Operating Income: $70 million, representing a 20% margin, an improvement of 450 basis points year over year.

  • Gross Margin: Overall gross margin at 84%, with software gross margin at 90%.

  • Non-GAAP Adjusted Free Cash Flow: $117 million, representing a 33% margin, up over 250 basis points year over year.

  • Cash and Marketable Securities: $1.6 billion, with no debt.

  • Share Repurchase: 21.9 million shares of Class A common stock repurchased at an average price of $10.40.

  • Customer Count: Approximately 10,750 customers, with 2,365 customers having $100,000 or more in ARR, and 316 customers with $1 million or more in ARR.

  • Dollar-Based Gross Retention Rate: 97%.

  • Dollar-Based Net Retention Rate: 108%.

  • Remaining Performance Obligations (RPO): $1.231 billion, up 12%.

  • Guidance for Q2 2026: Revenue expected between $345 million to $350 million, ARR between $1.715 billion to $1.720 billion, and non-GAAP operating income of approximately $40 million.

  • Guidance for Fiscal Year 2026: Revenue expected between $1.549 billion to $1.554 billion, ARR between $1.820 billion to $1.825 billion, non-GAAP operating income of approximately $305 million, and non-GAAP adjusted free cash flow of approximately $370 million.

Release Date: May 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • UiPath Inc (NYSE:PATH) reported strong first-quarter financial performance, with revenue of $357 million and an ARR of $1.693 billion, marking a 12% year-over-year increase.

  • The company achieved a significant improvement in GAAP operating loss, reducing it to $16 million from $49 million in the prior year, and reported a non-GAAP operating income of $70 million, representing a 20% margin.

  • UiPath Inc (NYSE:PATH) launched its agentic automation platform, which has been well-received, with customers creating thousands of autonomous agents and generating over 250,000 agent runs.

  • The company has a strong partner ecosystem, with over 40 partners completing the agentic fast-track program, enhancing customer engagement and adoption.

  • UiPath Inc (NYSE:PATH) maintains a healthy balance sheet with $1.6 billion in cash, cash equivalents, and marketable securities, and no debt, allowing for strategic investments and share repurchases.