UiPath(PATH) - 2025 Q4 - Annual Results

Executive Summary & Company Overview Fourth Quarter & Full Year Fiscal 2025 Highlights UiPath reported its Q4 and full-year fiscal 2025 results, highlighting revenue and ARR growth, significant AI innovations, and the acquisition of Peak AI Key Financial Highlights for Q4 Fiscal 2025: | Metric | Amount | YoY Growth | | :--- | :--- | :--- | | Revenue | $424 million | 5% | | ARR | $1.666 billion | 14% | | GAAP Operating Income | $34 million | - | | Non-GAAP Operating Income | $134 million | - | Key Financial Highlights for Full Year Fiscal 2025: | Metric | Amount | YoY Growth | | :--- | :--- | :--- | | Revenue | $1.430 billion | 9% | | ARR | $1.666 billion | 14% | | GAAP Operating Loss | $(163) million | - | | Non-GAAP Operating Income | $241 million | - | - The company completed the acquisition of Peak AI Limited, an AI-native agentic application company, to accelerate AI adoption in retail and manufacturing for inventory and pricing optimization[5][6] CEO Statement CEO Daniel Dines highlighted fiscal 2025 as UiPath's most innovative year, focusing on new AI-driven products and a commitment to customer value and operational rigor - Fiscal 2025 was UiPath's most innovative year, launching AI capabilities and products like Autopilot, Agent Builder, Agentic Orchestration, and Agentic Testing[2] - The company is committed to stabilizing its go-to-market organization, enhancing customer-centricity, accelerating innovation, and deepening strategic partnerships[2] - Looking to fiscal 2026, the company will continue to innovate on its agentic roadmap, help customers realize value from their investments, and drive operational rigor[2] About UiPath UiPath is a leading enterprise automation and AI software company that develops AI to mimic human intelligence and accelerate the shift to agentic automation - UiPath develops AI technology to mimic human intelligence at increasing levels of sophistication, transforming how enterprises operate, innovate, and compete[13] - The UiPath Platform™ accelerates the transition to an agentic automation era, where agents, robots, people, and models integrate for autonomous processes and smarter decisions[13] - The company focuses on security, accuracy, and resilience to shape a world where AI enhances human potential and revolutionizes industries[13] Financial Performance Fourth Quarter Fiscal 2025 Financial Highlights UiPath achieved solid revenue and ARR growth in Q4 fiscal 2025, maintaining high gross margins and strong operating cash flow with significant non-GAAP operating income Q4 Fiscal 2025 Financial Data: | Metric | As of Jan 31, 2025 ($ millions) | YoY Growth | | :--- | :--- | :--- | | Revenue | 424 | 5% | | ARR | 1,666 | 14% | | Net New ARR | 60 | - | | Dollar-Based Net Retention Rate | 110% | - | | GAAP Gross Margin | 85% | - | | Non-GAAP Gross Margin | 87% | - | | GAAP Operating Income | 34 | - | | Non-GAAP Operating Income | 134 | - | | Net Cash from Operating Activities | 146 | - | | Non-GAAP Adjusted Free Cash Flow | 145 | - | | Cash, Cash Equivalents, and Marketable Securities | 1,700 | - | Full Year Fiscal 2025 Financial Highlights For the full fiscal year 2025, UiPath delivered sustained growth in revenue and ARR, with strong non-GAAP operating income and substantial cash flow generation Full Year Fiscal 2025 Financial Data: | Metric | As of Jan 31, 2025 ($ millions) | YoY Growth | | :--- | :--- | :--- | | Revenue | 1,430 | 9% | | Net New ARR | 202 | - | | GAAP Gross Margin | 83% | - | | Non-GAAP Gross Margin | 85% | - | | GAAP Operating Loss | (163) | - | | Non-GAAP Operating Income | 241 | - | | Net Cash from Operating Activities | 321 | - | | Non-GAAP Adjusted Free Cash Flow | 328 | - | Financial Outlook UiPath anticipates continued revenue and ARR growth for fiscal 2026, though its outlook reflects global macroeconomic uncertainty, particularly in the U.S public sector - COO & CFO Ashim Gupta stated the company's focus on operational excellence resulted in record non-GAAP operating margin and strong non-GAAP adjusted free cash flow[7] - The company has observed increased global macroeconomic uncertainty, particularly in the U.S public sector, which is reflected in the financial outlook for fiscal 2026[7] First Quarter Fiscal 2026 Outlook First Quarter Fiscal 2026 Outlook: | Metric | Expected Range ($ millions) | | :--- | :--- | | Revenue | $330 - $335 | | ARR (as of April 30, 2025) | $1,686 - $1,691 | | Non-GAAP Operating Income | approx $45 | Full Year Fiscal 2026 Outlook Full Year Fiscal 2026 Outlook: | Metric | Expected Range ($ millions) | | :--- | :--- | | Revenue | $1,525 - $1,530 | | ARR (as of January 31, 2026) | $1,816 - $1,821 | | Non-GAAP Operating Income | approx $270 | Business Developments Business Acquisition: Peak AI UiPath acquired Peak AI Limited, an AI-native agentic application company, to accelerate AI adoption in retail and manufacturing with industry-specific solutions - UiPath acquired Peak AI Limited, a company focused on accelerating AI applications in retail and manufacturing to optimize product inventory and pricing[5] - Peak AI will introduce UiPath's first vertically specialized agents, optimized for industry-specific use cases to deliver faster time to value and greater outcomes for customers[6] Recent Business Highlights UiPath has made significant strides in product innovation, strategic partnerships, and market expansion, including new agentic testing solutions and global initiatives Product Launches & Enhancements - UiPath launched its first agentic testing solutions, including UiPath Autopilot™ for testers and UiPath Agent Builder, to disrupt the manual software testing market[10] Partnerships & Industry Recognition - UiPath deepened its collaboration with Deloitte to launch an agentic ERP solution, integrating UiPath agentic automation with leading ERP platforms for autonomous business process orchestration[10] - UiPath's 2025 Agentic AI Report revealed that 90% of U.S IT executives believe agentic AI can improve business processes, with 37% already using it and 93% expressing strong interest[10] - UiPath was named a Leader in the Everest Group Intelligent Automation Platforms PEAK Matrix® 2024 assessment, recognized for its platform that accelerates the shift to agentic automation[10][11] Global Expansion & Initiatives - UiPath opened an AI Innovation Center and office in London to drive AI research and development, collaborating with global tech leaders like UCL, Microsoft, SAP, and AWS[16] - At the ViVE 2025 health tech conference, UiPath showcased how agentic automation empowers healthcare organizations to streamline operations and improve outcomes[16] - UiPath partnered with the UAE AI Office to advance agentic automation, develop AI-driven solutions, and cultivate AI skills in support of the UAE's National AI Strategy[16] Financial Reporting Details Key Performance Metrics This section defines UiPath's key operational metrics, ARR and dollar-based net retention rate, which are used to manage the business but are not forecasts of future revenue - Investors should not rely on ARR or dollar-based net retention rate as indicators of future or expected results[22] Annualized Renewal Run-rate (ARR) - ARR is a key metric used by UiPath to manage its business and measure its ability to acquire new subscription customers and expand relationships with existing ones[19] - ARR is defined as the annualized invoiced amount from subscription licenses and maintenance obligations, exclusive of costs and non-recurring items[19] Dollar-based Net Retention Rate - The dollar-based net retention rate represents the net growth in ARR from existing customers over the last 12 months[20] - This metric is calculated by comparing the ARR from the same cohort of customers at the beginning and end of a 12-month period, including expansions and excluding new customers[20][21] Non-GAAP Financial Measures This section explains UiPath's use of non-GAAP financial measures, which exclude certain items to provide investors with a clearer view of operational performance - Non-GAAP financial measures provide investors with supplemental tools to evaluate ongoing operational results and trends by excluding items not indicative of daily operational performance[25] - Excluded items from non-GAAP measures include stock-based compensation, amortization of acquired intangibles, employer payroll taxes on employee equity transactions, restructuring costs, and charitable donations[23][26] - Non-GAAP adjusted free cash flow adjusts GAAP operating cash flow for capital expenditures and cash payments related to employee equity transactions and restructuring costs[24] Condensed Consolidated Financial Statements (GAAP) Condensed Consolidated Statements of Operations This section presents UiPath's condensed consolidated statements of operations for the fourth quarter and full fiscal year 2025, detailing key financial data Condensed Consolidated Statements of Operations (for the periods ended January 31): | Metric ($ thousands) | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | 423,646 | 405,253 | 1,429,664 | 1,308,072 | | License revenue | 197,609 | 219,985 | 587,162 | 621,392 | | Subscription services revenue | 215,221 | 176,038 | 801,947 | 649,918 | | Professional services and other revenue | 10,816 | 9,230 | 40,555 | 36,762 | | Gross profit | 359,112 | 351,903 | 1,182,722 | 1,112,148 | | Income (loss) from operations | 33,609 | 15,095 | (162,569) | (164,720) | | Net income (loss) | 51,794 | 33,916 | (73,694) | (89,883) | | Net income (loss) per share, basic | 0.09 | 0.06 | (0.13) | (0.16) | | Net income (loss) per share, diluted | 0.09 | 0.06 | (0.13) | (0.16) | Condensed Consolidated Balance Sheets This section provides UiPath's condensed consolidated balance sheets as of January 31, 2025, and January 31, 2024, showing the company's financial position Condensed Consolidated Balance Sheets (as of January 31): | Metric ($ thousands) | Jan 31, 2025 | Jan 31, 2024 | | :--- | :--- | :--- | | Total assets | 2,865,270 | 2,954,758 | | Cash and cash equivalents | 879,196 | 1,061,678 | | Marketable securities | 750,322 | 818,145 | | Total liabilities | 1,019,508 | 938,644 | | Deferred revenue, current | 569,464 | 486,805 | | Total stockholders' equity | 1,845,762 | 2,016,114 | Condensed Consolidated Statements of Cash Flows This section presents UiPath's condensed consolidated statements of cash flows for the twelve months ended January 31, 2025, and 2024, detailing cash flows from all activities Condensed Consolidated Statements of Cash Flows (for the twelve months ended January 31): | Metric ($ thousands) | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | 320,565 | 299,082 | | Net cash used in investing activities | (45,503) | (439,569) | | Net cash used in financing activities | (450,515) | (196,895) | | Cash, cash equivalents, and restricted cash, end of period | 879,634 | 1,062,116 | Reconciliation of GAAP to Non-GAAP Financial Measures Cost of Revenue, Gross Profit and Margin Reconciliation This section reconciles GAAP to non-GAAP cost of revenue, gross profit, and gross margin by excluding non-cash or non-recurring items for an adjusted performance view Reconciliation of GAAP to Non-GAAP Gross Profit and Margin (for the periods ended January 31): | Metric ($ thousands) | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP gross profit | 359,112 | 351,903 | 1,182,722 | 1,112,148 | | GAAP gross margin | 85% | 87% | 83% | 85% | | Non-GAAP gross profit | 370,362 | 360,074 | 1,222,124 | 1,144,461 | | Non-GAAP gross margin | 87% | 89% | 85% | 87% | - Key adjustments include stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax expense, and restructuring costs[34] Operating Expenses, Income (Loss), and Margin Reconciliation This section reconciles GAAP to non-GAAP operating metrics by adjusting for items like stock-based compensation and restructuring costs to clarify operational performance Reconciliation of GAAP to Non-GAAP Operating Income and Margin (for the periods ended January 31): | Metric ($ thousands) | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP income (loss) from operations | 33,609 | 15,095 | (162,569) | (164,720) | | GAAP operating margin | 8% | 4% | (11)% | (13)% | | Non-GAAP income from operations | 134,042 | 110,523 | 240,582 | 232,564 | | Non-GAAP operating margin | 32% | 27% | 17% | 18% | - Key adjustments include stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax expense, restructuring costs, and charitable donation of Class A common stock[37] Net Income (Loss) and Net Income (Loss) Per Share Reconciliation This section reconciles GAAP to non-GAAP net income and EPS by adjusting for various non-recurring or non-cash items to show adjusted net profit and earnings per share Reconciliation of GAAP to Non-GAAP Net Income (for the periods ended January 31): | Metric ($ thousands) | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP net income (loss) | 51,794 | 33,916 | (73,694) | (89,883) | | Non-GAAP net income | 144,573 | 128,514 | 301,361 | 310,380 | | GAAP net income (loss) per share, diluted | 0.09 | 0.06 | (0.13) | (0.16) | | Non-GAAP net income per share, diluted | 0.26 | 0.22 | 0.53 | 0.54 | - Key adjustments include stock-based compensation, amortization of acquired intangibles, employer payroll taxes, restructuring costs, charitable donations, and tax adjustments[39] Adjusted Free Cash Flow Reconciliation This section reconciles GAAP operating cash flow to non-GAAP adjusted free cash flow, illustrating the cash-generating capability of the company's core business operations Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow (for the twelve months ended January 31): | Metric ($ thousands) | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities (GAAP) | 320,565 | 299,082 | | Purchases of property and equipment | (14,923) | (7,342) | | Cash paid for employer payroll taxes related to employee equity transactions | 6,907 | 10,483 | | Net payments (receipts) of employee tax withholdings on stock option exercises | (3) | 980 | | Cash paid for restructuring costs | 15,283 | 6,180 | | Non-GAAP adjusted free cash flow | 327,829 | 309,383 | Additional Information Conference Call and Webcast UiPath held a conference call on March 12, 2025, to discuss its financial results and guidance, with a replay available via webcast - UiPath held a conference call on March 12, 2025, at 5:00 PM ET to discuss its Q4 and full-year fiscal 2025 financial results and fiscal 2026 guidance[12] - A live webcast of the conference call is available on the UiPath Investor Relations page, with a replay archived on the website for one year[12] Forward-Looking Statements This section contains UiPath's expectations for future performance and strategy, noting that these statements are subject to risks that could cause actual results to differ - Forward-looking statements cover expectations for fiscal 2026 guidance, future growth, operational efficiency, product expansion, market opportunities, and strategic initiatives[17] - These statements involve known and unknown risks and uncertainties that could cause actual results to differ materially, including risks related to revenue, ARR, expenses, profitability, and market conditions[17] - The company undertakes no obligation to update these forward-looking statements, except as required by law[18] Investor and Media Contacts This section provides contact details for UiPath's investor relations and media inquiries - Investor Relations Contact: Allise Furlani, Investor.relations@uipath.com[43] - Media Contact Email: PR@uipath.com[43]