UiPath, Inc. (NYSE: PATH) develops AI technology for enterprise automation. For the fourth quarter of fiscal 2025, the company reported revenue of $424 million, representing a 5% year-over-year increase despite a $2 million foreign exchange headwind; without this impact, revenue would have been $426 million. For the full fiscal year, revenue was $1.43 billion, a 9% rise from the previous year.

Annualized recurring revenue (ARR) reached $1.666 billion at the end of the fiscal year, which is a 14% increase year-over-year. Net new ARR for the fourth quarter was $60 million, which would have been $61 million excluding foreign exchange effects. The company had a dollar-based net retention rate of 110% for the quarter.

Gross margins for the fourth quarter were 87% on a non-GAAP basis, with a GAAP gross margin of 85%. Operating income for the quarter was $34 million on a GAAP basis and $134 million on a non-GAAP basis, with a non-GAAP operating margin of 32%, up from 27% the previous year. Full-year results showed a GAAP operating loss of $163 million, while non-GAAP operating income was $241 million.

The company generated $146 million in net cash flow from operations in the fourth quarter and $321 million for the year, with non-GAAP adjusted free cash flow amounting to $145 million and $328 million, respectively. As of January 31, 2025, UiPath’s cash and cash equivalents totaled $1.7 billion, with no outstanding debt.

Looking ahead, UiPath provided guidance for the first quarter of fiscal 2026, forecasting revenue between $330 million and $335 million and ARR between $1.686 billion and $1.691 billion. Non-GAAP operating income for the quarter is expected to be around $45 million. For the full fiscal year 2026, revenue is projected to be in the range of $1.525 billion to $1.530 billion, with anticipated ARR of $1.816 billion to $1.821 billion and a non-GAAP operating income of approximately $270 million.

UiPath acknowledged uncertainty in the macroeconomic environment, particularly within the U.S. public sector, impacting deal closures and overall guidance. The company’s focus includes expanding cloud offerings, enhancing AI capabilities, and maintaining operational efficiencies.