GitLab’s revenue growth decelerated in 2025, with third-quarter revenue rising 25% year-over-year to $244.4 million—below the 30% pace investors had expected. The company’s guidance for the full year was also more conservative than analysts’ forecasts, contributing to a 33% share price decline over the course of the year. Despite an initial rebound following a better-than-expected fourth-quarter earnings report in early March, broader market concerns around tech valuations and trade tensions kept pressure on the stock, and GitLab hit a 52-week low by year’s end.

Trading at a forward price-to-sales multiple of just 6 and carrying a market capitalization of approximately $5.6 billion, GitLab appears cheap relative to high-growth SaaS peers. Its gross margin of 88% underscores strong unit economics, and a recent shift to a hybrid seat-plus-usage-based pricing model aims to capture more value from customers. However, investors remain skeptical about GitLab’s ability to maintain growth in the face of generative AI trends that could enable customers to build internal devops tools, as well as intensifying competition from Microsoft’s GitHub. To regain confidence, GitLab must demonstrate that its platform can leverage AI to drive stickier customer relationships, accelerate net-new logo acquisition and deliver consistent GAAP profitability.