Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Oct. 31, 2025

Basis of Presentation and Summary of Significant Accounting Policies

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with U.S. GAAP.

Fiscal Year

The Company's fiscal year ends on January 31. For example, references to fiscal year 2026 and 2025 refer to the fiscal year ending January 31, 2026 and the fiscal year ended January 31, 2025, respectively.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, allocation of revenue to the license element in the Company's self-managed subscriptions, estimating the amortization period for capitalized costs to obtain a contract, allowance for doubtful accounts, taxation of intangible property in company formation, merger, or acquisition transactions, valuation allowance for deferred income taxes, reserves for unrecognized income tax benefits, valuation of acquired intangibles assets and impairment of goodwill. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.

Principles of Consolidation

The condensed consolidated financial statements include 100% of the accounts of wholly owned subsidiaries as well as a variable interest entity for which the Company is the primary beneficiary. The ownership interest of other investors is recorded as noncontrolling interest. All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

There were no significant changes to the Company’s significant accounting policies disclosed in “Note 2” of the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025.

Segment Reporting

The Company derives revenue globally and manages its business activities on a consolidated basis. The Company’s primary offering is GitLab, a complete DevSecOps platform delivered as a single application which is offered on both self-managed and SaaS models.

The Company operates its business as one operating and reportable segment as the Company’s chief operating decision maker (“CODM”), the Company’s CEO, reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance.

The Company’s CODM primarily uses consolidated net loss as the measure of profit or loss to facilitate analysis of the Company’s financial trends, and for internal planning and forecasting purposes. Consolidated expense information is included on the condensed consolidated statements of operations. The measure of segment assets is reported on the condensed consolidated balance sheet as total assets.

The Company presents financial information about geographical mix of revenue in “Note 3. Revenues” of the condensed consolidated financial statements.

Revision of Previously Issued Condensed Consolidated Financial Statements

As previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025, in connection with the Consolidated Financial Statements as of and for the fiscal year ended January 31, 2025, the Company identified errors related to the understatement of certain tax liabilities associated with the formation of our joint venture, JiHu in February 2021. The Company concluded that the impact of the errors on previously issued condensed consolidated financial statements were immaterial. However, the Company has revised the prior-period condensed consolidated financial statements to correct these errors.

The following tables summarize the revisions of previously-issued condensed consolidated financial statements (in thousands) for the periods presented:

Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Loss


	Three Months Ended October 31, 2024						Nine Months Ended October 31, 2024
	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Other income, net	$	4,992	$	(193)	$	4,799	$	5,457	$	(287)	$	5,170
Loss before income taxes	(11,154)		(193)		(11,347)		(80,477)		(287)		(80,764)
Benefit from income taxes	(39,421)		269		(39,152)		(66,131)		801		(65,330)
Net income (loss)	$	28,267	$	(462)	$	27,805	$	(14,346)	$	(1,088)	$	(15,434)
Net income (loss) attributable to GitLab	29,565		(462)		29,103		(12,130)		(1,088)		(13,218)
Foreign currency translation adjustments	(5,637)		(155)		(5,792)		(8,183)		(165)		(8,348)
Comprehensive income (loss) attributable to GitLab	$	23,999	$	(617)	$	23,382	$	(19,461)	$	(1,253)	$	(20,714)

Impacted financial statement line items appearing in the Company’s condensed consolidated statements of stockholders’ equity have also been revised accordingly. Cash flows from operating, investing and financing activities for the above periods were not impacted by this immaterial correction of an error. However, net loss was revised, as shown above, with an offset to the prepaid expenses and other current assets and accrued expenses and other current liabilities captions within operating activities on the condensed consolidated statements of cash flows. Accordingly, a revision table for the condensed consolidated statement of cash flows is not included.

Recently Issued Accounting Standards Not Yet Adopted

In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (“Subtopic 350-40”): Targeted Improvements to the Accounting for Internal-Use Software. This ASU amends the guidance in ASC 350-40 to reflect that software is not always developed in a linear manner, removing all references to development stages and adding new guidance on how to evaluate whether the probable-to-complete threshold has been met. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027 and for interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.