UiPATH Q3 EARNINGS CALL: DOUBLE BEAT ON EARNINGS

UiPath’s third quarter was about proving it is now a steady, profitable platform, not a boom-bust RPA trade. Growth has re-accelerated a touch, margins are inflecting, and the product story is all in on agentic automation plugged into the big AI stacks.

Key quarter stats

• Revenue: $411.1m, up 16% year on year

• ARR: $1.782b, up 11% year on year

• Net new ARR: $59m in the quarter

• Dollar-based net retention: 107%

• GAAP operating income: $13.1m, ~3% margin

• Non-GAAP operating income: $87.8m, ~21% margin (14% a year ago)

• GAAP net income: $198.8m, boosted by a $184.5m tax benefit

• Non-GAAP net income: $85.2m, roughly $0.16 diluted EPS

• Free cash flow (first 9 months): $189.5m on $1.13b revenue, mid-teens % FCF margin

• Cash and securities: $1.52b, net cash balance sheet

• Share repurchases: $329.1m year to date

Q4 revenue guidance: $462m–$467m

Q4 ARR guidance: $1.844b–$1.849b (net new ARR ~$62m–$67m)

Q4 non-GAAP operating income: about $140m, implying high-20s % margin

Context behind the numbers

Revenue at 16% growth is a clear step up from the high single to low teens patch. ARR at 11% is the real underlying pace of the franchise, and the gap between revenue and ARR tells you some of the beat is timing and mix rather than a structural re-acceleration. ARR is still the line you watch, because it drives everything that happens in 2026 and beyond.

Dollar-based net retention at 107% says customers are still expanding, but the 120%+ era from the early RPA boom is gone. The new leg has to come from product attach and agentic upsell, not just piling on more seats.

Profitability and cash are where the story really tightens up. UiPath delivered its first GAAP profitable Q3, with non-GAAP operating margin stepping up from 14% to 21% as revenue grew 16% and operating expenses stayed roughly flat. Free cash flow is in the mid-teens % of revenue, capex is minimal, and the company is using a net-cash balance sheet to buy back stock while still sitting on more than $1.5b of liquidity.

Guidance says management is comfortable leaning into this profile: slightly higher net new ARR in a seasonally strong Q4, and non-GAAP operating margin likely in the high-20s %. The real debate is whether ARR growth can return to the mid-teens or remain anchored near 11%. That line will drive the multiple more than any one-off EPS print, especially given GAAP earnings this quarter were inflated by the tax allowance release.

Strategic read-through

On the product side, everything is about agentic automation and orchestration. UiPath is stitching itself into Microsoft, OpenAI, Google, NVIDIA and Snowflake, and positioning Maestro as the control plane that sits above those stacks. Certifications and analyst badges are aimed squarely at regulated enterprises that care about security and governance around AI agents.

Put simply, this quarter confirms the phase change. UiPath is no longer a speculative hypergrowth story, it is a maturing automation platform with real earnings power and tight AI linkages. The bull case leans into the platform position and margin expansion. The bear case leans into slowing ARR and lower net retention. The next few quarters of ARR trend and agentic monetisation will decide which side gets paid.

LONG $PATH, $100b VALUTION WITHIN 3 YEARS