Group 1: Hong Kong Stock Market Highlights - China Tobacco Hong Kong (06055) rose over 2% after announcing exclusive distribution agreements for brand cigars with Hubei and Shandong Tobacco [1] - Sportswear stocks generally increased, with Li Ning (02331) up nearly 1% and Tmall (06110) up nearly 2%, following a government directive to enhance the modern sports industry and boost consumption [1] - He Yu-B (02256) surged over 3% as the company announced multiple positive developments, including the approval of oral PD-L1 combined with Gorai Leisai for Phase II clinical trials [1] - Gold stocks collectively rose, with Lingbao Gold (03330) up over 4%, China Gold International (02099) up over 1%, and Zijin Mining (02899) up over 3%, amid expectations of a U.S. interest rate cut [1] - UBTECH (09880) increased over 2% after Citigroup reported that the company has received 400 million RMB in humanoid robot orders and secured a $1 billion strategic investment from a Middle Eastern fund [1] - Huimai Technology (01860) surged over 12%, reaching a historical high, with a year-to-date stock price increase of over 110% due to the continuous iteration of its AI-driven smart bidding system [1] Group 2: Other Notable Stocks - Wanka Yilian (01762) rose over 11% after announcing a comprehensive cooperation memorandum with Alibaba Cloud to create an AI marketing ecosystem [2] - Longpan Technology (02465) increased over 10%, with Citic Securities indicating potential opportunities in the battery sector due to an upcoming significant meeting [2] - Juzi Bio (02367) rose over 4%, with institutions optimistic about the recovery of live streaming during the upcoming Double Eleven shopping festival [2] - Shoucheng Holdings (00697) increased over 8% after its subsidiary announced additional investment in Songyan Power amounting to several million RMB [2] Group 3: U.S. Stock Market Highlights - Salesforce (CRM.US) fell 4.85% after reporting a 9.8% year-over-year revenue growth for Q2, with Q3 revenue guidance slightly below expectations [3] - American Eagle (AEO.US) surged 37.96% after exceeding expectations in its Q2 earnings report [3] - Hewlett Packard Enterprise (HPE.US) rose 1.49% with a 19% year-over-year revenue growth in Q3, marking a record high [3] - United Microelectronics (UMC.US) increased 3.46%, reporting a 1.86% year-over-year sales growth for the first eight months of the year [3] - ZTO Express (ZTO.US) continued to rise by 0.94%, with the logistics industry index in China at 50.9%, up 0.4 percentage points from the previous month [3] - Bilibili (BILI.US) rose 0.99%, with research indicating high growth in the gaming industry supported by policy, expecting continued quarter-over-quarter improvement [3] - Waterdrop (WDH.US) increased 2.25%, reporting nearly a 120% growth in net profit attributable to shareholders, driven by AI model empowerment [3] Group 4: Additional U.S. Stock Movements - Sanofi (SNY.US) fell 9.14% despite achieving all primary and secondary endpoints in a Phase III study for Amlitelimab, as results did not meet market expectations [4] - Toyota (TM.US) rose 2.40% after announcing plans to produce a pure electric vehicle model at its Czech factory, marking its first electric vehicle production in Europe [4] - Baidu (BIDU.US) increased 1.88% following the release of an action plan by the Ministry of Industry and Information Technology to enhance intelligent cloud services [4] Group 5: Earnings Reports and Forecasts - C3.ai (AI.US) fell 7.31% after reporting Q1 results and revenue guidance for FY2026 that fell short of expectations [5] - Samsara (IOT.US) rose over 10% with a 30% year-over-year revenue growth in Q2 [5] - UiPath (PATH.US) increased nearly 5%, reporting Q2 revenue of $362 million, a 14% year-over-year growth, and projecting FY2026 revenue between $1.571 billion and $1.576 billion [5] - DocuSign (DOCU.US) rose nearly 9% after reporting Q2 revenue of $800.6 million, a 9% year-over-year increase, with GAAP gross margin at 79.3% [5]

Group 1 - UiPath reported revenue of $361.73 million for the quarter ended July 2025, reflecting a year-over-year increase of 14.4% [1] - The company's EPS for the quarter was $0.15, up from $0.04 in the same period last year, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $347.82 million by 4%, and the EPS surpassed the consensus estimate of $0.08 by 87.5% [1] Group 2 - UiPath's Annual Recurring Revenue (ARR) stood at $1.72 billion, matching the average estimate from four analysts [4] - The company achieved a Net New ARR of $31 million, exceeding the average estimate of $25.49 million from three analysts [4] - The dollar-based net retention rate was 108%, slightly above the average estimate of 107.8% [4] Group 3 - Revenue from licenses was reported at $112.16 million, slightly above the average estimate of $111.03 million, representing a year-over-year change of -0.1% [4] - Revenue from professional services and other sources was $11.2 million, significantly higher than the average estimate of $9.64 million, showing a year-over-year increase of 20.1% [4] - Subscription services revenue reached $238.36 million, surpassing the average estimate of $227.06 million, with a year-over-year growth of 22.4% [4] Group 4 - Over the past month, UiPath's shares have returned -3%, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1: Earnings Performance - UiPath reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and up from $0.04 per share a year ago, representing an earnings surprise of +87.50% [1] - The company posted revenues of $361.73 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 4.00%, compared to $316.25 million in the same quarter last year [2] - Over the last four quarters, UiPath has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - UiPath shares have declined approximately 14.4% since the beginning of the year, while the S&P 500 has gained 9.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.13 on revenues of $386.36 million, and for the current fiscal year, it is $0.56 on revenues of $1.55 billion [7] Group 3: Industry Context - The Internet - Software industry, to which UiPath belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Second quarter revenue grew to $362 million, an increase of 14% year over year, with a normalized growth of 12% after accounting for foreign exchange impacts [23][27] - Annual Recurring Revenue (ARR) totaled $1.723 billion, reflecting an 11% increase driven by $31 million in net new ARR [7][23] - Non-GAAP operating income increased to $62 million, representing a 17% margin, up more than 1,500 basis points year over year [8][27] - Dollar-based net retention rate remained at 108%, indicating strong customer retention [25] Business Line Data and Key Metrics Changes - The launch of agentic automation solutions has led to increased deal sizes and customer engagement, with 450 customers actively developing agents [34][35] - The company ended the quarter with over $1.08 billion in cloud ARR, an increase of more than 25% [23] - Customers with $100,000 or more in ARR increased to 2,432, while those with $1 million or more rose to 320 [24] Market Data and Key Metrics Changes - The financial sector and healthcare are identified as pockets of strength in customer demand [78] - The public sector is showing signs of stabilization, with recent wins from agencies like the Veterans Affairs and the Coast Guard [44][78] Company Strategy and Development Direction - The company is focused on combining automation and AI to enhance enterprise transformation, emphasizing the importance of orchestration through its Maestro platform [5][6] - There is a strategic push towards deepening customer relationships and expanding usage across the install base, particularly through partnerships with GSIs [22][66] - The company aims to build an open agentic ecosystem, enhancing its platform capabilities with new API workflows and low-code solutions [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of their public sector strategy, anticipating a return to normalized buying behavior [28][84] - The company maintains a prudent outlook while acknowledging the positive momentum in customer demand and operational execution [28][84] - Management highlighted the importance of operational efficiency and disciplined execution as key drivers for future growth [21][27] Other Important Information - The company repurchased 8.3 million shares of its Class A common stock at an average price of $12.10 during the second quarter [27] - The company was recognized as a leader in the 2025 Gartner Magic Quadrant for Robotic Process Automation for both ability to execute and completeness of vision [13] Q&A Session Summary Question: Client demand progression on agentic solutions - Management noted encouraging progress with 450 customers actively working on agentic technology, leading to increased deal sizes and uncovering more automation opportunities [34][35] Question: Stability of dollar-based net retention rate - Management indicated that they expect stability in the dollar-based net retention rate, with positive signs from the public sector returning to normal buying behavior [36] Question: Key pitch for Maestro - The key pitch for Maestro is its agnostic approach, allowing customers to integrate across multiple business systems without being locked into a single platform [38] Question: Performance of U.S. federal business - Management reported strong momentum in the public sector, with recent wins and positive feedback from major customers like the U.S. Navy and IRS [44] Question: Incremental contributions from U.S. public sector - Management confirmed expectations for incremental contributions from the U.S. public sector in the second half of the year, reflecting a more predictable buying environment [84]

Financial Data and Key Metrics Changes - Second quarter revenue increased to $362 million, representing a 14% year-over-year growth, with a normalized growth of 12% after accounting for foreign exchange impacts [23][26] - Annual Recurring Revenue (ARR) grew 11% to $1.723 billion, driven by $31 million in net new ARR, with a normalized growth of 11% after foreign exchange adjustments [5][23] - Non-GAAP operating income rose to $62 million, reflecting a 17% margin and an improvement of over 1,500 basis points year-over-year [6][26] - Dollar-based net retention rate remained at 108%, indicating strong customer retention and expansion [25] Business Line Data and Key Metrics Changes - The launch of agentic automation solutions has led to increased deal sizes and customer engagement, with 450 customers actively developing agents [5][33] - The company reported that over 95% of new logos included core automation capabilities, indicating strong demand for foundational automation solutions [8] - The cloud ARR exceeded $1.08 billion, marking a growth of over 25% [23] Market Data and Key Metrics Changes - The financial and healthcare sectors showed strong demand, while the public sector is stabilizing with recent wins from agencies like the U.S. Navy and IRS [80][43] - The company ended the quarter with approximately 10,820 customers, with a focus on long-term enterprise clients [24] Company Strategy and Development Direction - The company is focused on combining automation and AI to enhance enterprise transformation, emphasizing the importance of orchestration through its Maestro platform [4][10] - The strategy includes deepening partnerships with major GSIs and technology platforms, such as Microsoft and Deloitte, to enhance agentic automation capabilities [17][66] - The company aims to continue investing in innovation while driving operational efficiencies to capture the growing automation market [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the public sector's return to normalized buying behavior and the overall macroeconomic environment stabilizing [27][84] - The company anticipates continued growth in ARR and revenue, with guidance for the third fiscal quarter set between $390 million to $395 million [28][29] - Management acknowledged that while agentic capabilities are still in early adoption phases, they expect to contribute more significantly in the future [27][74] Other Important Information - The company repurchased 8.3 million shares of Class A common stock at an average price of $12.10, reflecting confidence in long-term opportunities [26] - The company launched initiatives to support customer adoption of agentic automation, including a no-sign-up testing environment called UiPath Playground [11] Q&A Session Summary Question: Client demand progression on agentic solutions - Management noted encouraging progress with 450 customers actively working on agentic solutions, leading to increased deal sizes and uncovering more automation opportunities [33][34] Question: Stability of dollar-based net retention rate - Management indicated that the dollar-based net retention rate is stabilizing and reflected a prudent outlook on the macroeconomic environment [35][36] Question: Key pitch for Maestro orchestration - The key pitch emphasizes an agnostic approach to orchestration, allowing customers to integrate across multiple business systems without being locked into a single platform [38][39] Question: Performance of U.S. federal business - Management reported strong momentum in the public sector, with recent wins and positive feedback from major customers [42][43] Question: Incremental contributions from U.S. public sector - Management expects incremental contributions from the U.S. public sector in the second half of the year due to a more stabilized environment [84][86]

2Q FY 2026 Earnings Supplemental Slides Safe Harbor Statements we make in this presentation may include statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, which are usually identified by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "possible," "projects," "outlook," "seeks," "should," "will," and variations of such words or similar expressions, inclu ...

Financial Performance - UiPath reported quarterly earnings of 15 cents per share, exceeding the Street estimate of 8 cents [1] - Quarterly revenue reached $362 million, surpassing the analyst consensus estimate of $347.53 million and increasing from $316.25 million in the same quarter last year [1] Annual Recurring Revenue (ARR) - ARR grew 11% year-over-year to $1.723 billion, indicating improved execution and growing momentum in the company's capabilities [3] - Net new ARR was reported at $31 million [5] - The dollar-based net retention rate stood at 108% [5] Profitability Metrics - Non-GAAP gross margin was 84% [5] - Non-GAAP operating income amounted to $62 million [5] - Non-GAAP adjusted free cash flow was $45 million [5] Future Outlook - UiPath raised its fiscal 2026 revenue outlook to between $1.571 billion and $1.576 billion, compared to the previous estimate of $1.566 billion [4] Stock Performance - Following the earnings report, UiPath stock increased by 2.49%, reaching $11.12 in extended trading [4]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 FY26 Performance Overview](index=1&type=section&id=Q2%20FY26%20Performance%20Overview) UiPath reported strong financial results for the second quarter of fiscal 2026, exceeding guidance across key metrics, driven by growth in agentic automation capabilities Second Quarter Fiscal 2026 Key Financial Highlights: | Metric | Value | Year-over-Year Change | | :--------------------------------- | :---------------- | :-------------------- | | Revenue | $362 million | +14% | | ARR (as of July 31, 2025) | $1.723 billion | +11% | | Cash flow from operations | $42 million | N/A | | Non-GAAP adjusted free cash flow | $45 million | N/A | [CEO & CFO Commentary](index=1&type=section&id=CEO%20%26%20CFO%20Commentary) The CEO highlighted strong ARR growth and the momentum of agentic capabilities, emphasizing the combined strength of automation and agentic AI. The CFO noted strong execution, exceeding guidance, and a focus on operational efficiency positioning the company well for the second half of the year - CEO Daniel Dines stated that **ARR growth** reflects improved execution and the growing momentum of agentic capabilities, with customers moving beyond pilots into production deployments, orchestrating agents, robots, and humans to achieve real outcomes. He emphasized that automation and agentic AI are stronger together, delivering value and positioning UiPath to lead enterprise transformation[2](index=2&type=chunk) - CFO Ashim Gupta highlighted **strong execution** across the business, exceeding the high end of guidance for all key financial metrics. He noted momentum from customers and partners around the agentic automation platform, combined with a continued focus on operational efficiency, as key factors for a strong second half of the year[4](index=4&type=chunk) [Financial Highlights & Outlook](index=1&type=section&id=Financial%20Highlights%20%26%20Outlook) [Second Quarter Fiscal 2026 Financial Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%202026%20Financial%20Highlights) UiPath reported significant year-over-year growth in revenue and ARR, alongside improved gross margins and a shift from GAAP operating loss to non-GAAP operating income for Q2 FY26 Q2 Fiscal 2026 Financial Highlights (as of July 31, 2025): | Metric | Value | YoY Change | | :--------------------------------- | :---------------- | :--------- | | Revenue | $362 million | +14% | | ARR | $1.723 billion | +11% | | Net new ARR | $31 million | N/A | | Dollar based net retention rate | 108% | N/A | | GAAP gross margin | 82% | +2 ppts | | Non-GAAP gross margin | 84% | +1 ppt | | GAAP operating loss | $(20) million | Reduced from $(103)M | | Non-GAAP operating income | $62 million | Increased from $6.4M | | Net cash flow from operations | $42 million | N/A | | Non-GAAP adjusted free cash flow | $45 million | N/A | | Cash, cash equivalents, and marketable securities | $1.52 billion | N/A | [Financial Outlook (Q3 FY26 & Full Year FY26 Guidance)](index=1&type=section&id=Financial%20Outlook%20(Q3%20FY26%20%26%20Full%20Year%20FY26%20Guidance)) UiPath provided optimistic financial guidance for Q3 FY26 and the full fiscal year 2026, projecting continued growth in revenue, ARR, and non-GAAP operating income Financial Outlook: | Metric | Q3 Fiscal 2026 Guidance | Full Year Fiscal 2026 Guidance | | :-------------------------- | :-------------------------- | :----------------------------- | | Revenue | $390 million to $395 million | $1.571 billion to $1.576 billion | | ARR (as of period end) | $1.771 billion to $1.776 billion | $1.834 billion to $1.839 billion | | Non-GAAP operating income | Approximately $70 million | Approximately $340 million | - Reconciliation of non-GAAP operating income guidance to GAAP measures is not available without unreasonable efforts due to high variability and low visibility of excluded charges, particularly stock-based compensation expense[4](index=4&type=chunk)[7](index=7&type=chunk) [Recent Business Developments](index=2&type=section&id=Recent%20Business%20Developments) [Strategic Collaborations & Partnerships](index=2&type=section&id=Strategic%20Collaborations%20%26%20Partnerships) UiPath advanced its strategic digital transformation initiatives through key collaborations, including a successful ERP modernization with Deloitte and a strategic partnership with HCLTech to accelerate agentic automation for global enterprises - UiPath collaborated with Deloitte to redefine ERP modernization, successfully migrating to SAP S/4HANA with **93% clean core in solution design** and **88% clean core across overall implementation**, advancing operational excellence[12](index=12&type=chunk) - UiPath announced a strategic partnership with HCLTech to accelerate agentic automation for global enterprises, aiming to drive large-scale transformation and enable more intelligent, self-sufficient operations with minimal human intervention[12](index=12&type=chunk) [Leadership Appointments](index=2&type=section&id=Leadership%20Appointments) UiPath strengthened its leadership team with the appointment of Michael Atalla as Chief Marketing Officer, bringing over 20 years of experience to elevate the company's leadership in agentic AI and orchestration - Michael Atalla was appointed Chief Marketing Officer, responsible for global marketing strategy and elevating UiPath's leadership in agentic AI and orchestration, leveraging over **20 years of experience** from F5 and Microsoft[12](index=12&type=chunk) [Industry Recognition](index=2&type=section&id=Industry%20Recognition) UiPath was recognized as a Leader in the 2025 Gartner Magic Quadrant™ for Robotic Process Automation for the seventh consecutive year, demonstrating its strong ability to execute - UiPath was positioned as a Leader in the 2025 Gartner Magic Quadrant™ for Robotic Process Automation (RPA) for the **seventh year in a row**, recognized for the highest Ability to Execute[12](index=12&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About UiPath](index=3&type=section&id=About%20UiPath) UiPath is a global leader in agentic automation, providing a platform that combines controlled agency, developer flexibility, and seamless integration to help enterprises scale AI-driven automation securely and confidently - UiPath is a **global leader in agentic automation**, enabling enterprises to use AI agents for autonomous execution and optimization of complex business processes[14](index=14&type=chunk) - The UiPath Platform™ offers controlled agency, developer flexibility, and seamless integration, supporting enterprises in transitioning to an AI-transformed future with a focus on security, governance, and interoperability[14](index=14&type=chunk) [Disclaimers & Definitions](index=3&type=section&id=Disclaimers%20%26%20Definitions) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines the company's forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from projections - Statements in the press release that are not historical facts are considered forward-looking, covered by safe harbor provisions of the Private Securities Litigation Reform Act of 1995[15](index=15&type=chunk)[16](index=16&type=chunk) - Forward-looking statements include financial guidance, growth strategies, market opportunity, platform success, collaborations, customer behavior, and stock repurchase programs, all subject to risks such as revenue variability, ability to manage growth, customer retention, and market competition[17](index=17&type=chunk) - Investors are cautioned that actual results may differ materially due to various risks and uncertainties detailed in SEC filings, and the company assumes no obligation to update these statements[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Key Performance Metric Definitions](index=4&type=section&id=Key%20Performance%20Metric%20Definitions) This section defines key performance metrics, Annualized Renewal Run-rate (ARR) and Dollar-based net retention rate, used by UiPath to manage its business and evaluate customer relationships - Annualized Renewal Run-rate (ARR) is defined as annualized invoiced amounts per solution SKU from subscription licenses and maintenance/support, excluding perpetual licenses or professional services, and is a key metric for acquiring and expanding customer relationships[20](index=20&type=chunk) - Dollar-based net retention rate represents the net expansion of ARR from existing customers over the preceding 12 months, calculated by comparing current period ARR from a cohort of customers to their prior period ARR, net of contraction or attrition[21](index=21&type=chunk) - Investors should not unduly rely on ARR or dollar-based net retention rate as indicators of future results, as their presentation may differ from other companies[22](index=22&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section explains UiPath's use of non-GAAP financial measures, detailing the specific exclusions from GAAP figures and the rationale for their presentation to investors - Non-GAAP financial measures, including gross profit, operating income, and net income, exclude stock-based compensation, amortization of acquired intangibles, employer payroll tax related to equity, restructuring costs, charitable donations, changes in fair value of contingent consideration, and estimated tax adjustments[23](index=23&type=chunk) - Non-GAAP adjusted free cash flow is calculated by adjusting GAAP operating cash flows for purchases of property and equipment, cash paid for employer payroll taxes on equity transactions, net payments/receipts of employee tax withholdings, and cash paid for restructuring costs[24](index=24&type=chunk) - UiPath uses these non-GAAP measures internally and believes they are useful to investors for evaluating ongoing operating results and trends, and for comparing financial results with industry peers, but they should be considered in addition to, not as a substitute for, GAAP measures[25](index=25&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(GAAP)) [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) The Condensed Consolidated Statements of Operations show UiPath's GAAP financial performance for the three and six months ended July 31, 2025, and 2024, indicating a significant reduction in net loss year-over-year Condensed Consolidated Statements of Operations (in thousands): | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $361,728 | $316,253 | $718,352 | $651,365 | | Total cost of revenue | $64,380 | $63,320 | $128,237 | $118,645 | | Gross profit | $297,348 | $252,933 | $590,115 | $532,720 | | Operating loss | $(20,185) | $(103,349) | $(36,597) | $(152,814) | | Net income (loss) | $1,584 | $(86,097) | $(20,971) | $(114,833) | | Net income (loss) per share, basic | $0.00 | $(0.15) | $(0.04) | $(0.20) | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) The Condensed Consolidated Balance Sheets provide a snapshot of UiPath's financial position as of July 31, 2025, compared to January 31, 2025, showing changes in assets, liabilities, and equity Condensed Consolidated Balance Sheets (in thousands): | Metric | As of July 31, 2025 | As of January 31, 2025 | | :--------------------------------- | :------------------ | :------------------- | | Total current assets | $2,030,736 | $2,338,559 | | Total assets | $2,592,317 | $2,865,270 | | Total current liabilities | $738,417 | $798,920 | | Total liabilities | $926,614 | $1,019,508 | | Total stockholders' equity | $1,665,703 | $1,845,762 | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows detail UiPath's cash movements from operating, investing, and financing activities for the six months ended July 31, 2025, and 2024, showing increased cash provided by operations Condensed Consolidated Statements of Cash Flows (in thousands): | Metric | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $160,589 | $146,413 | | Net cash used in investing activities | $(80,578) | $(5,893) | | Net cash used in financing activities | $(346,806) | $(260,887) | | Net decrease in cash, cash equivalents, and restricted cash | $(250,579) | $(122,365) | | Cash, cash equivalents, and restricted cash - end of period | $629,055 | $939,751 | [Non-GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20Reconciliations) [Cost of Revenue, Gross Profit and Margin Reconciliation](index=9&type=section&id=Cost%20of%20Revenue%2C%20Gross%20Profit%20and%20Margin%20Reconciliation) This section reconciles GAAP cost of revenue, gross profit, and gross margin to their non-GAAP counterparts, primarily by adjusting for stock-based compensation and amortization of acquired intangibles Reconciliation of GAAP to Non-GAAP Gross Profit and Margin (in thousands, except percentages): | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP gross profit | $297,348 | $252,933 | $590,115 | $532,720 | | GAAP gross margin | 82% | 80% | 82% | 82% | | Non-GAAP gross profit | $304,814 | $263,185 | $605,659 | $551,398 | | Non-GAAP gross margin | 84% | 83% | 84% | 85% | | **Adjustments:** | | | | | | Stock-based compensation expense | $6,040 | $8,299 | $12,642 | $15,045 | | Amortization of acquired intangible assets | $1,176 | $1,414 | $2,097 | $2,851 | | Employer payroll tax expense related to employee equity transactions | $105 | $95 | $202 | $338 | | Restructuring costs | $145 | $444 | $603 | $444 | [Operating Expenses, Loss and Margin Reconciliation](index=10&type=section&id=Operating%20Expenses%2C%20Loss%20and%20Margin%20Reconciliation) This section reconciles GAAP operating expenses and loss to non-GAAP operating expenses and income, highlighting adjustments for stock-based compensation, amortization, and restructuring costs, which significantly improved operating results Reconciliation of GAAP to Non-GAAP Operating Income and Margin (in thousands, except percentages): | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP operating loss | $(20,185) | $(103,349) | $(36,597) | $(152,814) | | GAAP operating margin | (6)% | (33)% | (5)% | (23)% | | Non-GAAP operating income | $62,293 | $6,454 | $131,909 | $56,819 | | Non-GAAP operating margin | 17% | 2% | 18% | 9% | | **Adjustments:** | | | | | | Stock-based compensation expense | $78,006 | $94,305 | $154,367 | $183,032 | | Amortization of acquired intangible assets | $2,254 | $1,751 | $3,662 | $3,779 | | Employer payroll tax expense related to employee equity transactions | $1,099 | $1,135 | $2,160 | $3,646 | | Restructuring costs | $1,396 | $12,612 | $4,407 | $12,612 | | Charitable donation of Class A common stock | — | — | $4,187 | $6,564 | | Change in fair value of contingent consideration | $(277) | — | $(277) | — | [Net Income (Loss) and Net Income (Loss) Per Share Reconciliation](index=11&type=section&id=Net%20Income%20(Loss)%20and%20Net%20Income%20(Loss)%20Per%20Share%20Reconciliation) This section reconciles GAAP net income (loss) and per share figures to non-GAAP net income and per share, demonstrating a positive non-GAAP net income despite a GAAP net loss, primarily due to adjustments for non-cash expenses Reconciliation of GAAP to Non-GAAP Net Income and Per Share (in thousands, except per share data): | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP net income (loss) | $1,584 | $(86,097) | $(20,971) | $(114,833) | | Non-GAAP net income | $80,331 | $23,764 | $140,505 | $96,982 | | GAAP net income (loss) per share, diluted | $0.00 | $(0.15) | $(0.04) | $(0.20) | | Non-GAAP net income per share, diluted | $0.15 | $0.04 | $0.26 | $0.17 | | **Adjustments:** | | | | | | Stock-based compensation expense | $78,006 | $94,305 | $154,367 | $183,032 | | Amortization of acquired intangible assets | $2,254 | $1,751 | $3,662 | $3,779 | | Employer payroll tax expense related to employee equity transactions | $1,099 | $1,135 | $2,160 | $3,646 | | Restructuring costs | $1,396 | $12,612 | $4,407 | $12,612 | | Charitable donation of Class A common stock | — | — | $4,187 | $6,564 | | Change in fair value of contingent consideration | $(277) | — | $(277) | — | | Tax adjustments to add-backs | $(3,731) | $58 | $(7,030) | $2,182 | [Operating Cash Flow to Adjusted Free Cash Flow Reconciliation](index=12&type=section&id=Operating%20Cash%20Flow%20to%20Adjusted%20Free%20Cash%20Flow%20Reconciliation) This section reconciles GAAP operating cash flow to non-GAAP adjusted free cash flow, showing the adjustments made for capital expenditures, payroll taxes, and restructuring costs Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow (in thousands): | Metric | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | GAAP net cash provided by operating activities | $160,589 | $146,413 | | Non-GAAP adjusted free cash flow | $161,570 | $149,777 | | **Adjustments:** | | | | Purchases of property and equipment | $(12,832) | $(2,656) | | Cash paid for employer payroll taxes related to employee equity transactions | $2,270 | $3,267 | | Net payments (receipts) of employee tax withholdings on stock option exercises | $11 | $(9) | | Cash paid for restructuring costs | $11,532 | $2,762 | [Additional Information](index=2&type=section&id=Additional%20Information) [Conference Call and Webcast Details](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Details) Details for the conference call and webcast discussing UiPath's second quarter fiscal 2026 financial results and guidance - UiPath hosted a conference call on Thursday, September 4, 2025, at **5:00 p.m. Eastern Time** to discuss Q2 FY26 financial results and guidance[9](index=9&type=chunk) - Access to the call was available via dial-in (1-201-689-8057 domestic, 1-877-407-8309 international) with passcode 13754760, and a live webcast was available on the 'Investor Relations' page of UiPath's website (https://ir.uipath.com), with a replay archived for one year[9](index=9&type=chunk) [Gartner Disclaimer](index=2&type=section&id=Gartner%20Disclaimer) A standard disclaimer clarifying Gartner's role and the nature of its research publications, emphasizing that Gartner does not endorse vendors and its research consists of opinions, not statements of fact - Gartner is a registered trademark and service mark, and MAGIC QUADRANT is a registered trademark, used with permission[10](index=10&type=chunk) - Gartner does not endorse any vendor, product, or service in its research and does not advise technology users to select only top-rated vendors[11](index=11&type=chunk) - Gartner research publications consist of opinions and should not be construed as statements of fact, with Gartner disclaiming all warranties regarding the research[11](index=11&type=chunk) [Investor and Media Contacts](index=12&type=section&id=Investor%20and%20Media%20Contacts) Contact information for investor relations and media inquiries - Investor Relations Contact: Allise Furlani, Investor.relations@uipath.com[41](index=41&type=chunk) - Media Contact: PR@uipath.com[41](index=41&type=chunk)

Core Insights - UiPath Inc. (PATH) is scheduled to report its second-quarter fiscal 2026 results on September 4, with earnings expected to be 8 cents, reflecting a more than 100% increase year-over-year. Revenue estimates are set at $347.8 million, indicating a 10% year-over-year growth [1][8]. Earnings Performance - The company has a strong earnings surprise history, having exceeded the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 34.3% [2]. - However, the current model does not predict a definitive earnings beat for this quarter, as PATH has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [3][4]. Revenue Breakdown - The consensus estimate for license services revenues is $111 million, which represents a 19.1% decline year-over-year. In contrast, subscription revenues are expected to reach $227.1 million, showing a 9.7% increase year-over-year. Professional services and other revenues are estimated at $9.6 million, down 8.7% year-over-year [5][8]. Stock Performance - UiPath's stock has decreased by 13.7% over the past year, while its industry has surged by 39.6% and the Zacks S&P 500 Composite has increased by 15.5% [6]. - The stock is currently trading at a trailing 12-month price-to-earnings ratio of 18.87X, which is lower than the industry average of 38.82X [10]. Strategic Partnerships - Partnerships with Microsoft and Amazon have significantly enhanced UiPath's credibility and market reach. Microsoft regards UiPath as its preferred enterprise automation platform, while Amazon has integrated UiPath with its AWS offerings [12]. Annual Recurring Revenue - In the second quarter of fiscal 2026, PATH reported a 6% year-over-year increase in total revenue, with annual recurring revenues (ARR) growing by 12% year-over-year, reaching $1.6 billion. This indicates effective subscription model performance and strong client loyalty [13]. Analyst Sentiment - There have been no changes in earnings per share estimates over the past 60 days, suggesting a neutral outlook from analysts regarding the company's near-term performance [14].

Core Insights - Both UiPath (PATH) and BlackSky Technology (BKSY) are innovative technology companies focused on automation and intelligence, with UiPath specializing in robotic process automation (RPA) and BlackSky in space-based intelligence and satellite imagery [1] Group 1: UiPath (PATH) - UiPath's growth is driven by its AI-driven enterprise automation platform, with a 6% year-over-year revenue growth and a 12% increase in annual recurring revenues in Q1 of fiscal 2026, indicating strong customer adoption [2][3] - The company has a dollar-based net retention rate of 108% and a 7.5% year-over-year growth in free cash flow, showcasing its growth trajectory and robust capital allocation with a $227.5 million share purchase program [3] - UiPath's extensive automation platform differentiates itself by integrating RPA with AI, which positions the company for sustainable growth as AI adoption accelerates [4] - The global market for RPA and enterprise automation is expected to grow at a CAGR of 43.9% from 2025 to 2030, with UiPath maintaining a leadership position through strong partnerships with Amazon, Microsoft, and Salesforce [5] Group 2: BlackSky Technology (BKSY) - BlackSky's financial performance is linked to advancements in satellite technology and AI-driven analytics, with $18 million in revenues from imagery and software analytical services in the June quarter, driven by Gen-3 satellites [7] - The company has an ambitious revenue outlook of $105-$130 million, supported by a contract backlog of $356 million, with 85% of contracts from international customers [8][9] - Despite securing a $24 million facility monitoring order from the National Geospatial-Intelligence Agency, BlackSky reported a net loss of $41.2 million, with a significant increase in investment costs and an 11% year-over-year decline in top line [11][12] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for UiPath's 2025 sales is $1.6 billion, reflecting an 8.5% year-over-year increase, with earnings expected to rise by 5.7% to 56 cents per share [12] - For BlackSky, the 2025 sales estimate is $117.7 million, indicating a 15.2% year-over-year growth, but the consensus for loss is projected at $3.05 per share, worsening from the previous year's loss [14] - UiPath is trading at a forward price/sales ratio of 3.71X, below its median of 4.42X, suggesting undervaluation, while BlackSky appears overvalued at 4.47X against its median of 2.5X [15] Group 4: Overall Verdict - Both companies present promising growth narratives driven by AI and next-gen technology, but UiPath's strong recurring revenues, efficient capital allocation, and more attractive valuation suggest a better growth outlook [17][18]