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GitLab

GTLB
36
Software - Application · Technology
Price
$41.67
-0.41 (-0.97%)
Market Cap
$7.04B
Exchange
NASDAQ
Winston Score
36
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Apr 30, 2026
How the score breaks down
Quality
Mixed
Growth
Good
Cash Flow
Mixed
Stability
Data not available
Valuation
Data not available

Share count rising — dilution

+14.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 144.7M (2022) → 165.8M (2026)

Winston Score History

The full picture

GitLab makes software that helps teams of programmers write, test, and ship code. Its main product is a platform called GitLab, which combines tools for storing code, tracking bugs, running automated tests, and deploying software — all in one place. It competes in the DevOps industry, where its closest rival is GitHub (owned by Microsoft), and it stands out by offering a single application that replaces what many companies stitch together from dozens of separate tools.

GitLab earns money primarily through subscriptions, selling tiered plans to businesses that want more features, security controls, and support. It operates globally, with customers ranging from small startups to large enterprises and government agencies. The company's high gross margin of roughly 87% reflects the low cost of delivering software, but it is still spending more than it earns, running at a small operating loss. The key growth driver is convincing more large organizations to consolidate their development tools onto GitLab's platform, while the main risk is intense competition from Microsoft and other well-funded rivals.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+23.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-122.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$275M/ year

Rising (+15% vs prior year)

28.7% of revenue

1.9x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

16.8%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.3B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

GitLab is putting 29% of revenue into R&D and that number is rising. That's 1.9x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
85.8%
Premium pricing power — 85.8% gross margin
Profit after running costs
Operating Margin
-6.0%
Losing money on operations — -6.0%
Return on the money invested
ROCE
-5.2%
Weak — -5.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
+24.9%
Fast-growing sales (+24.9% YoY)
Profit growth
EPS YoY
-237.2%
Earnings shrinking (-237.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
26.2%
Converts sales into free cash efficiently (26.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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