UiPath (PATH) Q2 2025 earnings summary

Executive summary

• Revenue for the quarter was $316.3 million, up 10% year-over-year, with ARR at $1.551 billion, up 19% year-over-year.

• Non-GAAP operating income was $6.5 million, while GAAP operating loss was $(103.3) million; net loss for the quarter was $86.1 million.

• Cash flow from operations was $46 million, and non-GAAP adjusted free cash flow was $49 million.

• Strategic restructuring and workforce reduction were implemented to drive operational efficiency and focus on AI and high-growth products.

• Leadership changes included the CFO taking on the COO role, effective September 5, 2024.

Financial highlights

• ARR grew 19% year-over-year to $1.551 billion, with cloud ARR surpassing $850 million, up over 65%.

• Revenue reached $316.3 million for the quarter, with a 10% year-over-year increase.

• GAAP gross margin was 80%; non-GAAP gross margin was 83%.

• Non-GAAP operating margin was 2% for the quarter.

• Non-GAAP adjusted free cash flow was $49 million; cash and equivalents totaled $1.7 billion with no debt.

Outlook and guidance

• Q3 FY25 guidance: revenue of $345–$350 million, ARR of $1.6–$1.605 billion, non-GAAP operating income of ~$27 million.

• FY25 guidance: revenue of $1.420–$1.425 billion, ARR of $1.665–$1.670 billion, non-GAAP operating income of ~$170 million, and non-GAAP adjusted free cash flow of ~$325 million.

• Guidance reflects a prudent approach given ongoing macroeconomic variability and investment in AI innovation.