UiPath (PATH) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue was $355 million, up 9% year-over-year, with ARR reaching $1.607 billion, a 17% increase year-over-year.

• Dollar-based net retention rate stood at 113%, reflecting strong customer expansion.

• Non-GAAP operating income was $50 million, with a 14% non-GAAP operating margin; GAAP operating loss was $43 million.

• Net loss for Q3 was $10.7 million, improved from $31.5 million in the prior year; non-GAAP net income was $59.8 million.

• Major product launches and innovations, including agentic automation, Autopilot for Everyone, and Agent Builder, are driving customer interest and expansion.

Financial highlights

• Non-GAAP gross margin was 85% for Q3; GAAP gross margin was 82%.

• Non-GAAP adjusted free cash flow for Q3 was $33 million; net cash flow from operations was $28 million.

• Subscription services revenue rose 24% year-over-year, offsetting a 7% decline in licenses revenue.

• Cash, cash equivalents, and marketable securities totaled $1.6 billion at quarter-end.

• Customers with ARR ≥ $100,000 reached 2,235, and those with ARR ≥ $1 million reached 302.

Outlook and guidance

• Q4 FY2025 revenue expected between $422 million and $427 million; ARR projected at $1.669 billion to $1.674 billion.

• Q4 non-GAAP operating income expected at approximately $100 million.

• Management expects continued investment in AI and innovation, with a focus on expanding the platform and go-to-market initiatives.

• Net new ARR dollars expected to stabilize and adjusted free cash flow growth rate to accelerate in FY26.

• The company believes existing liquidity and cash flows are sufficient to fund operations for at least the next twelve months and long term.