UiPath, Inc.

What they do

UiPath was founded in Bucharest in 2005 and incorporated in Delaware in 2015, initially built on computer vision and user interface automation in its RPA offering, which the company says remains the foundation of its platform. The UiPath Platform combines controlled agency, developer flexibility, and integration so organizations can deploy agentic automation with governance and orchestration. It sells subscription licenses plus maintenance and support, measured by ARR, which was $1.938 billion as of July 31, 2026.

Revenue drivers

• Subscription platform (licenses, maintenance and support) — Revenue is billed per solution SKU as subscription licenses plus maintenance and support; ARR, the company's key metric, reached $1.9377 billion at July 31, 2026, up 12% year-over-year. Total revenue was $1.6106 billion in fiscal 2026, up 13%.
• Agentic automation and AI products — The company is repositioning from rule-based automation toward intelligent agentic automation, including new products such as Maestro Case for orchestrating dynamic processes. Management frames AI agents as extending automation into judgment-based work, with vertical agentic solutions cited as a growth area.
• Existing customer expansion (net retention) — Dollar-based net retention rate was 109% in the second quarter of fiscal 2027, and net new ARR was $37 million in that quarter. The company ties ARR growth to acquiring new subscription customers and expanding existing ones.
• International and partner channels — MD&A lists growing the partner base and penetrating international markets among company-specific factors affecting results. Internationally, the platform is priced in currencies that may not be the functional currency, exposing results to foreign exchange.

Recent performance

For the second quarter of fiscal 2027 ended July 31, 2026, revenue was $410.3 million, up 13% year-over-year, and ARR was $1.9377 billion, up 12%. GAAP operating income was $32 million and non-GAAP operating income was $89 million; GAAP gross margin was 80% versus 82% a year earlier, and non-GAAP gross margin was 82%. Net cash flow from operations was $31 million for the quarter, while cash flow from operations was $162.6 million for the six months ended July 31, 2026 versus $160.6 million a year earlier. Cash and cash equivalents, restricted cash, and marketable securities fell to $1,406.5 million at July 31, 2026 from $1,689.9 million at January 31, 2026. Full fiscal 2026 revenue was $1.6106 billion, up 13%, with ARR of $1.8526 billion, up 11%, and gross margin of 83%.

Strategy

UiPath is investing to move customers from rule-based automation to what it calls intelligent agentic automation, built on controlled agency, governance, and integration. Management highlights trends it is positioning around: agent-centric operating models, a shift from AI pilots to production ROI, growth in vertical agentic solutions, and centralized 'agentic command center' governance. The company says it intends to keep funding platform development, sales capacity, and acquisitions, and it completed the Fiscal Year 2025 Workforce Restructuring in the second quarter of fiscal 2026 to prioritize go-to-market and AI R&D. In September 2026 it announced leadership changes, including Hitesh Ramani as CFO and Ashim Gupta focusing exclusively on COO, and appointed Yazdi Bagli to its board.

Risks

• History of net losses — The 10-K states UiPath has incurred net losses in the past, may incur them in the future, and expects significant operating expenses for the foreseeable future.
• Growth depends on new and expanded customer subscriptions — MD&A ties results to attracting new customers and increasing sales to existing ones, which depend on product effectiveness, pricing, competition, and customers' willingness to invest in automation.
• Competitive and innovation pressure — The company says sustaining automation leadership depends on R&D investment, collaboration with other technology companies for integrations, and executing acquisitions.
• Macroeconomic and foreign currency exposure — The 10-K cites geopolitical shifts, inflation and interest rate changes, monetary and trade policy, government efficiency initiatives, and foreign currency volatility as factors that have disrupted customers, partners, and demand.

Outlook

For the third quarter of fiscal 2027, UiPath guides revenue of $440 million to $445 million, ARR of $1.992 billion to $1.997 billion as of October 31, 2026, and non-GAAP operating income of approximately $100 million. For full fiscal 2027, it guides revenue of $1.789 billion to $1.794 billion, ARR of $2.065 billion to $2.070 billion as of January 31, 2027, and non-GAAP operating income of approximately $445 million. The company states it cannot reconcile non-GAAP operating income guidance to GAAP without unreasonable effort, citing stock-based compensation variability. Management attributes confidence to operating discipline and platform momentum with customers and partners.