GitLab Inc. (NASDAQ: GTLB) reported its first quarter fiscal year 2026 financial results, highlighting a substantial growth trajectory with revenue reaching $214.5 million, up 27% year-over-year. The company’s non-GAAP operating margin stood at 12%, a significant improvement from a loss of 2% in the same quarter last year.

The total annual recurring revenue (ARR) grew as well, with 10,104 customers reporting over $5,000 in ARR, marking a 13% increase year-over-year. Notably, the cohort of customers with over $100,000 in ARR rose by 26% to 1,288. The dollar-based net retention rate was recorded at 122%, driven primarily by seat expansion at approximately 80%, tier upgrades at approximately 15%, and increased customer yield at around 5%.

For the first quarter, non-GAAP operating income was reported at $26.1 million, compared to a loss of $3.8 million in the same quarter a year ago. The company’s non-GAAP gross margin was reported at 90%, slightly down from 91% year-over-year. Total revenue per customer increased with average revenue per user (ARPU) growing by 40% year-over-year to $955.1. Concurrently, contract revenue backlog, or current remaining performance obligations (cRPO), rose by 34% year-over-year to $584.8 million.

GitLab experienced strong cash flow performance during Q1, generating $106.3 million in operating cash flow and achieving a record non-GAAP adjusted free cash flow of $104.1 million, representing a free cash flow margin of 49%.

Looking ahead, GitLab provided guidance for Q2 FY 2026, forecasting revenue between $226 million and $227 million, which implies a year-over-year growth rate of approximately 24%. The expected non-GAAP operating income for the quarter is in the range of $23 million to $24 million, with a projected non-GAAP net income per share of $0.16 to $0.17 based on approximately 171 million diluted shares outstanding. For the full fiscal year 2026, GitLab anticipates total revenue between $936 million and $942 million, with a non-GAAP operating income forecast of $117 million to $121 million, and non-GAAP net income per share expected to range from $0.74 to $0.75 with approximately 172 million diluted shares.

In terms of operational highlights, GitLab introduced GitLab 18, featuring significant advancements across core DevOps workflows, security, and AI capabilities. The company also announced strong adoption rates for its new GitLab Duo product, and achieved Authority to Operate status under the Federal Risk and Authorization Management Program (FedRAMP) for its dedicated government solutions.

GitLab’s focus on enhancing its platform continues to foster broad industry engagement, underscored by substantial customer contributions to product development. The company’s impressive first quarter results reinforce its position as a leading player in the DevSecOps market, bolstered by ongoing investment in AI and software development technologies.