0001734722-25-000043
SEC filingRevenue grew 14% YoY to $361.7M, driven by subscription services, with gross margin expanding to 82%.
For the three months ended July 31, 2025, UiPath reported total revenue of $361.7 million, a 14% increase year-over-year. The growth was primarily driven by a 22% increase in subscription services revenue to $238.4 million, which now represents 66% of total revenue. Licenses revenue remained flat at $112.2 million, while professional services and other revenue grew 20% to $11.2 million. Gross margin improved to 82% from 80% in the prior year quarter, driven by higher subscription services revenue and margin. Operating loss narrowed significantly to $20.2 million from $103.3 million, reflecting a 14% reduction in sales and marketing expenses and a 17% reduction in general and administrative expenses. The company achieved net income of $1.6 million compared to a net loss of $86.1 million in the prior year quarter.
Subscription services revenue growth of 22% YoY was the primary driver of overall revenue growth, with 71% of total revenue growth attributable to existing customers. The company's ARR reached $1.72 billion, up 11% year-over-year, with a dollar-based net retention rate of 108%. The transition to Flex Offerings, which combine term licenses, maintenance and support, and SaaS, continued to impact revenue mix, with licenses revenue declining 5% for the six-month period. Professional services revenue grew 20% YoY, driven by increased use of third-party subcontractors, though this segment remains a small portion of total revenue at 3%.
Management highlighted that the Fiscal Year 2025 Workforce Restructuring was completed during the quarter, which should reduce future restructuring expenses. The company expects cost of subscription services revenue to continue increasing in absolute dollars as the SaaS business grows, which may impact gross margins. Research and development expenses are expected to increase in absolute dollars as the company continues to invest in AI and platform innovation. The company believes existing cash and marketable securities of $1.52 billion will be sufficient to fund anticipated cash requirements for the next 12 months and the long term. No specific forward guidance was provided in the MD&A section.
As of July 31, 2025, UiPath held $628.6M in cash and cash equivalents and $894.0M in marketable securities, totaling $1.523B in liquid assets. The company has no debt. Shareholders' equity stood at $1.666B. Deferred revenue (current and non-current) was $611.3M, while remaining performance obligations (RPO) were $1.209B, of which 65% is expected to be recognized within 12 months.
UiPath has $356.2M in non-cancelable purchase obligations, mainly for hosting, software, and strategic partner commitments. Additionally, operating lease liabilities total $79.3M (undiscounted $110.8M), with $2.9M in commitments for leases not yet commenced. The company also has $2.9M in letters of credit outstanding.
During the six months ended July 31, 2025, UiPath repurchased 30.2M shares for $329.1M at an average price of $10.87. The board authorized an additional $500M repurchase program on August 30, 2024, with no expiration date. No dividends were declared. Capital expenditures were $12.8M (1.8% of revenue).
UiPath operates as a single reportable segment. For the six months ended July 31, 2025, total revenue was $718.4M, up 10.3% YoY. Geographic revenue: Americas $342.5M (48%), EMEA $236.7M (33%), and APAC $139.2M (19%). The CODM uses net income as the segment profit measure, which was a loss of $21.0M for the six-month period.