Core Viewpoint - Madison Small Cap Fund's fourth-quarter 2025 performance was challenging, underperforming the Russell 2000 Index, with a return of -0.4% compared to the benchmark's 2.2% [1] Fund Performance - The fund's sector allocation negatively impacted its performance, particularly in the healthcare sector, which was the weakest [1] - The fund remains optimistic about the speculative market losing momentum but is cautious about market irrationality [1] GitLab Inc. Overview - GitLab Inc. (NASDAQ:GTLB) is a software development lifecycle platform that covers DevSecOps stages, with a market capitalization of $3.881 billion [2] - As of March 12, 2026, GitLab's stock closed at $22.82 per share, with a one-month return of -22.77% and a 52-week loss of 56.18% [2] Investment Position in GitLab - Madison Small Cap Fund initiated a new investment position in GitLab, highlighting its strategic software tools that assist developers throughout the software development pipeline [3] - GitLab has mid-teens operating margins, a strong balance sheet, and is experiencing double-digit growth in a large market [3] - The company operates in a duopoly with Microsoft's GitHub platform, and the fund has confidence in the recently appointed CEO, Bill Staples [3] - The stock has faced pressure due to concerns about AI-powered competitors, but the fund believes that increased software development will enhance the demand for GitLab's tools [3] - The estimated intrinsic value of GitLab's stock is $75 per share, indicating an attractive investment opportunity at current prices [3]

Core Viewpoint - GitLab Inc. reported better-than-expected earnings and revenue for the third quarter, but its stock price fell significantly in after-hours trading following the announcement of its financial results and future guidance [1][4]. Financial Performance - GitLab reported quarterly earnings of $0.25 per share, surpassing the analyst estimate of $0.20 [2]. - The company's quarterly revenue reached $244.35 million, exceeding the Street estimate of $239.63 million [2]. Management Changes - GitLab announced the appointment of Jessica Ross as chief financial officer, effective January 15, 2026 [3]. Future Outlook - The company raised its fiscal 2026 adjusted EPS guidance to a range of $0.95 to $0.96, compared to the previous analyst estimate of $0.83 [4]. - GitLab also increased its fiscal year revenue outlook to between $946 million and $947 million, above the prior estimate of $941.13 million [4]. Stock Performance - Following the earnings report, GitLab's stock price fell by 7.86% to $39.96 in Tuesday's extended trading [4].