UiPath Inc.

06/04/2026 | Press release | Distributed by Public on 06/04/2026 14:37

Quarterly Report for Quarter Ending April 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" for the fiscal year ended January 31, 2026 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 25, 2026 (the "2026 Form 10-K"). This discussion, particularly information with respect to our future results of operations or financial condition, business strategy, and plans and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading "Special Note Regarding Forward-Looking Statements" in this Quarterly Report on Form 10-Q. You should review the disclosure under Part I, Item 1A, "Risk Factors," in the 2026 Form 10-K for discussion of important factors that could cause our actual results to differ materially from those anticipated in these forward-looking statements.
Overview
Building upon decades of leadership in automation, UiPath is pioneering the evolution from rule-based automation to intelligent, agentic automation. The UiPath Platform™ uniquely combines controlled agency, developer flexibility, and seamless integration to help organizations scale agentic automation safely and confidently. Committed to security, governance, and interoperability, we support enterprises as they transition into a future where automation delivers on the full potential of AI to transform industries.
Historically, we have grown our revenue and ARR significantly by helping customers adopt automation as a tool, process by process, to unlock human potential. Today, our automation platform builds upon this experience by providing our customers with a foundation for enterprise-scale agentic automation.
Business Highlights for the Three Months Ended April 30, 2026:
•Revenue of $418.4 million increased 17% year-over-year.
•ARR at April 30, 2026 of $1,901.2 million increased 12% year-over-year.
•Gross margin was 82% for the three months ended April 30, 2026 and 2025.
•Cash flow from operations was $131.9 million for the three months ended April 30, 2026, compared to $119.0 million for the three months ended April 30, 2025.
•Cash and cash equivalents, restricted cash, and marketable securities were $1,417.2 million as of April 30, 2026, compared to $1,689.9 million as of January 31, 2026.
Macroeconomic Environment
As a corporation with a global presence, we are subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to, the impact of changes in geopolitical relationships, fluctuating inflation and interest rates, monetary and trade policy changes, government efficiency initiatives, and foreign currency fluctuations. Additionally, these macroeconomic impacts have generally disrupted the operations of our customers, prospective customers, and partners.
Internationally, we price our platform in currencies that may not be the functional currency. Accordingly, the heightened volatility of global markets has exposed us and will continue to expose us to foreign currency fluctuations, which may impact demand for our platform, our near-term results, comparability of results to prior periods, and our ability to predict future results.
Further, cash, cash equivalents, and marketable securities represent a significant portion of our total assets, and the return on our cash, cash equivalents, and marketable securities is sensitive to changes in interest rates. Volatility in the interest rate environment may impact the amount of interest and other income reported on our condensed consolidated statements of operations, the comparability of these amounts to prior periods, and our ability to predict future profitability.
We continuously monitor the direct and indirect impacts of these circumstances on our business and financial results, as well as the overall global economy and geopolitical landscape.
Fiscal Year 2025 Workforce Restructuring
On July 8, 2024, our board of directors approved restructuring actions (the "Fiscal Year 2025 Workforce Restructuring") to reshape the organization by streamlining our structure, particularly in operational and corporate functions, to better prioritize our go-to-market investments and focus our research and development investments on AI and driving innovation across our platform. The Fiscal Year 2025 Workforce Restructuring was completed during the second quarter of fiscal year 2026.
Key Performance Metric
We monitor annualized renewal run-rate ("ARR") to help us measure and evaluate the effectiveness of our operations.
ARR is the key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance and support obligations assuming no increases or reductions in customers' subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and support. ARR also does not reflect nonrecurring rebates payable to partners (upon establishing sufficient history of their nonrecurring nature), the impact of nonrecurring incentives (such as one-time discounts provided under sales promotional programs), and any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for certain reserves (for example those for credit losses or disputed amounts). At April 30, 2026 and 2025, our ARR was $1,901.2 million and $1,692.7 million, respectively, representing a growth rate of 12%. Approximately 30% of this growth rate was due to new customers and 70% of this growth rate was due to existing customers. Our dollar-based net retention rate, which represents the net expansion of ARR from existing customers over the preceding 12 months, was 109% and 108% as of April 30, 2026 and 2025, respectively. We calculate dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these same customers as of the current period end ("Current Period ARR"). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but does not include ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate.
Our ARR may fluctuate as a result of a number of factors, including customers' satisfaction or dissatisfaction with our platform, pricing, competitive offerings, economic conditions, overall changes in our customers' spending levels, acquisitions, and our ability to successfully execute on our strategic goals. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to be combined with or to replace these items. For clarity, we use annualized invoiced amounts per solution SKU rather than revenue calculated in accordance with U.S. GAAP to calculate our ARR. Our invoiced amounts are not matched to transfer of control of the performance obligations associated with the underlying subscription licenses and maintenance and support obligations. This can result in timing differences between our U.S. GAAP revenue and ARR calculations. Generally speaking, our ARR calculation simply takes our invoiced amounts per solution SKU under a subscription license or maintenance agreement as of the end of an invoiced period and divides that amount by the corresponding term and multiplies by 365 days to derive the annualized renewal value. In contrast, for our revenue calculated in accordance with U.S. GAAP, subscription licenses revenue derived from the sale of term-based licenses hosted on-premises is recognized at the point in time when the customer is able to use and benefit from our software, which is generally upon delivery to the customer or upon the commencement of the renewal term, and maintenance, support, and software-as-a-service ("SaaS") revenue is recognized ratably over the term of the arrangement. ARR is not a forecast of future revenue. Unlike ARR, revenue is impacted by contract start and end dates and duration. The timing of recognition of ARR is determined by contract billing structure, whereas billing structure will neither accelerate nor delay recognition of future revenue. For example, in a multi-year contract invoiced upfront, ARR is the annualized invoiced amount per solution SKU related to the final year of the contract assuming no reserve is applied, whereas revenue is determined by total contract value and timing of satisfaction of the underlying performance obligations. ARR does not include invoiced amounts associated with perpetual licenses or professional services. Investors should not place undue reliance on ARR as an indicator of our future or expected results. Moreover, our presentation of ARR may differ from similarly titled metrics presented by other companies and may not be comparable to such other metrics.
A summary of ARR-related data at April 30, 2026 and 2025 is as follows:
At April 30,
2026 2025
(dollars in thousands)
ARR $ 1,901,211 $ 1,692,683
Incremental ARR (1)
208,528 184,953
Customers with ARR ≥ $1 million:
Number of customers 374 316
Percent of current period revenue 52 % 47 %
Customers with ARR ≥ $100 thousand:
Number of customers 2,624 2,365
Percent of current period revenue 87 % 87 %
Dollar-based net retention rate 109 % 108 %
(1) For the twelve months ended April 30, 2026 and 2025, respectively
Components of Results of Operations
Revenue
We derive revenue from the sale of: (1) software licenses for use of our proprietary software and related maintenance and support; (2) the right to access certain software products we host (i.e., SaaS); and (3) professional services.
We have a unified commercial offering for software products with both on-premises and cloud deployment options that allows customers the choice of either deployment option throughout the term of the contract. These offerings are comprised of three types of performance obligations: term license, maintenance and support, and SaaS.
Licenses
Our term licenses (typically sold as a part of flexible deployment offerings) provide customers the right to use software for a specified period of time. Revenue for licenses is recognized at the point in time at which the customer is able to use and benefit from the software, which is generally upon delivery to the customer or upon commencement of the renewal term. As licenses revenue is recognized at a point in time, any shift in license start dates or duration will have a direct impact on our licenses revenue.
Subscription Services
We generate subscription services revenue through the provision of: (1) maintenance and support services, which include technical support and unspecified updates and upgrades on a when-and-if-available basis for our licenses, and (2) SaaS products (typically sold as a portion of flexible deployment offerings). Maintenance and support and SaaS products represent stand-ready obligations for which revenue is recognized ratably over the term of the arrangements.
Professional Services and Other
Professional services and other revenue consists of fees associated with professional services, including deployment of agentic automation, customer education, and training services. Our professional services contracts are structured on a time and materials or fixed price basis and the related revenue is recognized as the services are rendered.
Cost of Revenue
Licenses
Cost of licenses revenue consists of all direct costs to deliver our licenses to customers, amortization of software development costs related to our licenses, and amortization of acquired developed technology.
Subscription Services
Cost of subscription services revenue primarily consists of personnel-related expenses of our customer support and technical support teams, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Cost of subscription services revenue also includes third-party consulting services, hosting costs related to our SaaS products, amortization of acquired developed technology and capitalized software development costs related to SaaS products, depreciation, and allocated overhead. Overhead is allocated based on applicable headcount. We recognize these expenses as they are incurred. We expect cost of subscription services revenue to increase in absolute dollars in the longer term, particularly with regard to hosting and cloud infrastructure costs as our SaaS business grows. In the future, we expect further expansion of our cloud-based deployments, and as more of our customer base deploys our products via SaaS, we expect our gross margin to be impacted by these costs.
Professional Services and Other
Cost of professional services and other revenue primarily consists of personnel-related expenses of our professional services team, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Cost of professional services and other revenue also includes expenses related to subcontracted third-party services, depreciation, and allocated overhead. We recognize these expenses as they are incurred. We expect cost of professional services and other revenue to increase in absolute dollars for the foreseeable future.
Operating Expenses
Our operating expenses consist of sales and marketing, research and development, and general and administrative expenses. Personnel-related expenses are the most significant component of operating expenses and consist of salaries and bonuses, stock-based compensation expense, and employee benefit costs. Operating expenses also include allocated overhead.
Sales and Marketing
Sales and marketing expenses consist primarily of personnel-related expenses associated with our sales and marketing teams and related sales support teams, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Sales and marketing expenses also include sales and partner commissions, marketing event costs, advertising costs, travel, trade shows, other marketing materials, amortization of acquired customer relationships, and allocated overhead. We expect that over the longer term our sales and marketing expenses will decrease as a percentage of revenue, although this percentage may fluctuate from period to period due to timing and extent of expenses.
Research and Development
Research and development expenses consist primarily of personnel-related expenses, including salaries and bonuses, stock-based compensation expense, and employee benefit costs, for our research and development employees, hosting and software services costs, and allocated overhead. Research and development costs are expensed as incurred, with the exception of certain software development costs which are eligible for capitalization. We expect that our research and development expenses will increase in absolute dollars for the foreseeable future as we continue to invest in efforts to develop new technology and enhance the functionality and capabilities of our existing products and platform infrastructure. Our research and development expenses may fluctuate as a percentage of revenue from period to period due to the timing and extent of expenses.
General and Administrative
General and administrative expenses consist primarily of personnel-related expenses, including salaries and bonuses, stock-based compensation expense, and employee benefit costs, associated with our finance, legal, human resources, compliance, and other administrative teams, as well as accounting and legal professional services fees, other corporate-related expenses, and allocated overhead. We expect that over the longer term our general and administrative expenses will decrease as a percentage of revenue, although this percentage may fluctuate from period to period due to timing and extent of expenses.
Interest Income
Interest income consists of interest earned on our cash and cash equivalents and marketable securities.
Other Income (Expense), Net
Other income (expense), net primarily consists of foreign exchange gains and losses. Other income (expense), net also includes accretion of discounts and premiums on marketable securities.
Provision For Income Taxes
Provision for income taxes consists of U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business. Our effective tax rate is impacted by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as by non-deductible expenses as permanent differences, and by changes in our valuation allowances. We currently maintain a partial valuation allowance on certain U.S. state DTAs and a full valuation allowance on our Romania DTA, as we have concluded as of April 30, 2026 that it is more likely than not that these DTAs will not be fully realized. However, given our current earnings and anticipated future earnings, we believe that there is a reasonable possibility that sufficient positive evidence may become available to allow us to conclude that a valuation allowance is no longer needed for these U.S. state DTAs during fiscal year 2027, and for these Romania DTAs, or a portion thereof, during fiscal year 2028, which would result in income tax benefit in the period of the respective release.
Results of Operations
The following tables set forth selected condensed consolidated statement of operations data and such data as a percentage of total revenue for each of the periods indicated:
Three Months Ended April 30,
2026 2025
(in thousands)
Revenue:
Licenses $ 149,309 $ 128,286
Subscription services 252,903 217,303
Professional services and other 16,170 11,035
Total revenue 418,382 356,624
Cost of revenue:
Licenses (1)
1,664 1,268
Subscription services (1)(2)(3)(4)
43,988 38,468
Professional services and other (2)(3)(4)
31,276 24,121
Total cost of revenue 76,928 63,857
Gross profit 341,454 292,767
Operating expenses:
Sales and marketing (1)(2)(3)(4)
167,859 159,661
Research and development (2)(3)(4)
92,902 94,839
General and administrative (1)(2)(3)(4)
52,706 54,679
Total operating expenses 313,467 309,179
Operating income (loss) 27,987 (16,412)
Interest income 10,401 12,648
Other income (expense), net 2,580 (15,964)
Income (loss) before income taxes 40,968 (19,728)
Provision for income taxes 18,443 2,827
Net income (loss) $ 22,525 $ (22,555)
(1) Includes amortization of acquired intangible assets as follows:
Cost of licenses revenue $ 251 $ 240
Cost of subscription services revenue 2,314 681
Sales and marketing 2,011 456
General and administrative 30 31
Total amortization of acquired intangible assets $ 4,606 $ 1,408
(2) Includes stock-based compensation expense as follows:
Cost of subscription services revenue $ 2,268 $ 3,874
Cost of professional services and other revenue 1,783 2,728
Sales and marketing 16,782 23,586
Research and development 24,741 34,595
General and administrative 7,736 11,578
Total stock-based compensation expense $ 53,310 $ 76,361
(3) Includes employer payroll tax expense related to equity transactions as follows:
Cost of subscription services revenue $ 52 $ 70
Cost of professional services and other revenue 19 27
Sales and marketing 468 447
Research and development 446 390
General and administrative 142 127
Total employer payroll tax expense related to equity transactions $ 1,127 $ 1,061
(4) Includes restructuring expense as follows:
Cost of subscription services revenue $ - $ 458
Sales and marketing - 1,981
Research and development - (331)
General and administrative - 903
Total restructuring expense $ - $ 3,011
Three Months Ended April 30,
2026 2025
(as a percentage of revenue)
Revenue:
Licenses 36 % 36 %
Subscription services 60 % 61 %
Professional services and other 4 % 3 %
Total revenue 100 % 100 %
Cost of revenue:
Licenses - % - %
Subscription services 11 % 11 %
Professional services and other 7 % 7 %
Total cost of revenue 18 % 18 %
Gross profit 82 % 82 %
Operating expenses:
Sales and marketing 40 % 45 %
Research and development 22 % 27 %
General and administrative 13 % 15 %
Total operating expenses 75 % 87 %
Operating income (loss) 7 % (5) %
Interest income 2 % 4 %
Other income (expense), net 1 % (4) %
Income (loss) before income taxes 10 % (5) %
Provision for income taxes 5 % 1 %
Net income (loss) 5 % (6) %
Comparison of the Three Months Ended April 30, 2026 and 2025
Revenue
Three Months Ended April 30,
2026 2025 Change Change %
(dollars in thousands)
Licenses $ 149,309 $ 128,286 $ 21,023 16 %
Subscription services 252,903 217,303 35,600 16 %
Professional services and other 16,170 11,035 5,135 47 %
Total revenue $ 418,382 $ 356,624 $ 61,758 17 %
Total revenue increased by $61.8 million, or 17%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025, primarily due to a $35.6 million increase in subscription services revenue and a $21.0 million increase in licenses revenue. Total revenue grew across all geographical regions. Of the growth in total revenue, 20% was attributable to new customers and 80% was attributable to existing customers. Subscription services revenue is recognized ratably over the subscription term; therefore, the increase in subscription services revenue is driven both by sales in prior periods for which we continue to provide maintenance and support and SaaS, and by new sales in the current period.
Cost of Revenue and Gross Margin
Three Months Ended April 30,
2026 2025 Change Change %
(dollars in thousands)
Licenses $ 1,664 $ 1,268 $ 396 31 %
Subscription services 43,988 38,468 5,520 14 %
Professional services and other 31,276 24,121 7,155 30 %
Total cost of revenue $ 76,928 $ 63,857 $ 13,071 20 %
Gross margin 82 % 82 %
Total cost of revenue increased by $13.1 million, or 20%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025, primarily due to a $7.2 million increase in cost of professional services and other revenue and a $5.5 million increase in cost of subscription services revenue. The increase in cost of professional services and other revenue was primarily driven by a $5.3 million increase in costs associated with the use of third-party subcontractors to deliver professional services to our customers and a $1.7 million increase in personnel-related expenses associated with higher headcount and merit increases. The increase in cost of subscription services revenue was primarily driven by a $5.6 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services and a $1.6 million increase in depreciation and amortization expense. These increases were partially offset by a $2.6 million decrease in personnel-related expenses, which included a $1.6 million decrease in stock-based compensation expense and a $1.3 million decrease in salary-related and bonus expenses.
Our gross margin remained constant at 82% for the three months ended April 30, 2026 compared to 82% for the three months ended April 30, 2025, reflecting increased subscription services revenue and margin offset by the aforementioned increase in cost of professional services and other revenue primarily driven by increased third-party subcontractor costs.
Sales and Marketing
Three Months Ended April 30,
2026 2025 Change Change %
(dollars in thousands)
Sales and marketing $ 167,859 $ 159,661 $ 8,198 5 %
Percentage of revenue 40 % 45 %
Sales and marketing expense increased by $8.2 million, or 5%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025. The increase was primarily attributable to a $3.0 million increase in sales commissions expense as a result of higher amortization of capitalized contract acquisition costs, a $2.6 million aggregate increase in marketing and travel-related expenses mainly related to marketing events, and a
$2.0 million increase in depreciation and amortization expense. Sales and marketing expense was also impacted by a $1.5 million increase in personnel-related expenses, which included a $4.8 million increase in salary-related and bonus expenses associated with higher headcount and merit increases, a $2.2 million increase in general employee severance, and a $1.5 million increase in employer payroll taxes, partially offset by a $6.8 million decrease in stock-based compensation expense. The aforementioned increases were partially offset by a $0.8 million decrease in third-party consulting fees.
Research and Development
Three Months Ended April 30,
2026 2025 Change Change %
(dollars in thousands)
Research and development $ 92,902 $ 94,839 $ (1,937) (2) %
Percentage of revenue 22 % 27 %
Research and development expense decreased by $1.9 million, or 2%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025. The decrease was largely attributable to a $1.6 million decrease in personnel-related expenses, which was driven by $9.9 million decrease in stock-based compensation expense partially offset by a $5.3 million increase in salary-related and bonus expenses, a $1.8 million increase in general employee severance, and a $0.7 million aggregate increase in employee insurance costs and employer payroll taxes.
General and Administrative
Three Months Ended April 30,
2026 2025 Change Change %
(dollars in thousands)
General and administrative $ 52,706 $ 54,679 $ (1,973) (4) %
Percentage of revenue 13 % 15 %
General and administrative expense decreased by $2.0 million, or 4%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025. The decrease was primarily attributable to a $2.6 million decrease in personnel-related expenses, which was driven by a $3.8 million decrease in stock-based compensation expense partially offset by a $1.5 million increase in salary-related and bonus expenses. General and administrative expense was also impacted by a $1.2 million decrease in charitable donations due to the reduced value of our Class A common shares contributed to a donor-advised fund in the current year and a $0.8 million decrease in software service and implementation costs. These decreases were partially offset by a $2.4 million increase in fair value of contingent consideration liability.
Interest Income
Three Months Ended April 30,
2026 2025 Change Change %
(dollars in thousands)
Interest income $ 10,401 $ 12,648 $ (2,247) (18) %
Percentage of revenue 2 % 4 %
Interest income decreased by $2.2 million, or 18%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025 as a result of a period-over-period decrease in our aggregate balance of cash and cash equivalents and marketable securities.
Other Income (Expense), Net
Three Months Ended April 30,
2026 2025 Change Change %
(dollars in thousands)
Other income (expense), net $ 2,580 $ (15,964) $ 18,544 (116) %
Percentage of revenue 1 % (4) %
Other income, net, increased by $18.5 million, or 116%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025, primarily due to a $14.8 million increase in gains from foreign currency transactions and a $6.5 million decrease in legal expense related to shareholder litigation, partially offset by a $2.9 million decrease in accretion of net discounts on marketable securities.
Provision For Income Taxes
Three Months Ended April 30,
2026 2025 Change Change %
(dollars in thousands)
Provision for income taxes $ 18,443 $ 2,827 $ 15,616
NM(1)
Percentage of revenue 5 % 1 %
(1) Not meaningful
Provision for income taxes increased by $15.6 million for the three months ended April 30, 2026 compared to the three months ended April 30, 2025, driven by increased U.S. income tax expense following the release of full valuation allowances on our U.S. Federal and certain U.S. state DTAs during fiscal year 2026.
Liquidity and Capital Resources
As of April 30, 2026, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $1,415.7 million, and we had an accumulated deficit of $1,683.0 million. For the three months ended April 30, 2026, we reported net income of $22.5 million and net cash provided by operating activities of $131.9 million. Cash generated by our operations in recent periods has principally been used to fund working capital requirements such as personnel and facilities costs, invest in capital expenditures, engage in various business and asset acquisitions, and repurchase shares of our Class A common stock.
Our future capital requirements will depend on many factors, including our revenue growth rate, sales of our products and services, license renewal activity, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support development efforts, the introduction of new and enhanced products, the continuing market adoption of our products, expenses associated with international expansion, the timing and extent of capital expenditures to invest in existing and new office spaces, and the timing and extent of stock repurchases. We may in the future enter into arrangements to acquire or invest in complementary businesses or assets. We may be required to seek additional equity or debt financing. In the event that we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, operations, and financial condition.
We believe that our existing cash and cash equivalents, marketable securities, and cash flows from operations will be sufficient to fund our anticipated cash requirements for the next 12 months and the long term.
Stock Repurchases
On September 1, 2023, our board of directors authorized a stock repurchase program, pursuant to which we could repurchase from time to time up to $500.0 million of our outstanding shares of Class A common stock. On August 30, 2024 our board of directors authorized the repurchase of an additional $500.0 million of our outstanding shares of Class A common stock. During the three months ended April 30, 2026, we fulfilled the aforementioned authorizations, and in March 2026 our board of directors authorized a new stock repurchase program, pursuant to which we may repurchase from time to time up to $500.0 million of our Class A common stock. Refer to Note 11, Stockholders' Equity-Stock Repurchases for further details.
Cash Flows
The following table summarizes our cash flows for the periods presented:
Three Months Ended April 30,
2026 2025
(in thousands)
Net cash provided by operating activities (1)
$ 131,928 $ 119,002
Net cash used in investing activities $ (112,841) $ (79,923)
Net cash used in financing activities $ (252,191) $ (235,204)
(1) Inclusive of:
Cash paid for employer payroll taxes related to employee equity transactions $ (1,045) $ (1,113)
Net receipts (payments) of employee tax withholdings on stock option exercises $ 21 $ (2)
Cash paid for restructuring costs $ - $ (9,782)
Operating Activities
Our largest source of operating cash is cash generation from sales to our customers. Our primary uses of cash from operating activities are for personnel-related expenses, direct costs to deliver licenses and provide subscription and professional services, and marketing expenses.
Net cash provided by operating activities for the three months ended April 30, 2026 of $131.9 million was driven by cash collections from our customers, with cash collections approximately 14% higher than during the three months ended April 30, 2025. These cash inflows were partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including fiscal year 2026 annual bonuses paid in the first quarter of fiscal year 2027. Other cash operating expenditures included payments for professional services, software, and office rent.
Net cash provided by operating activities for the three months ended April 30, 2025 of $119.0 million was driven by cash collections from our customers, partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including fiscal year 2025 annual bonuses paid in the first quarter of fiscal year 2026. Other cash operating expenditures included payments related to our Fiscal Year 2025 Workforce Restructuring, which was completed during the second quarter of fiscal year 2026, and payments for professional services, software, and office rent.
Investing Activities
Net cash used in investing activities for the three months ended April 30, 2026 of $112.8 million was driven by $155.0 million in purchases of marketable securities, a net payment of $149.4 million in connection with the acquisition of WorkFusion, and $2.7 million in capital expenditures primarily related to leasehold improvements, partially offset by $189.6 million in maturities of marketable securities and $4.6 million in other investing inflows.
Net cash used in investing activities for the three months ended April 30, 2025 of $79.9 million was driven by $153.4 million in purchases of marketable securities, a net payment of $24.8 million in connection with the acquisition of Peak, and $12.8 million in capital expenditures primarily related to leasehold improvements, partially offset by $111.1 million in maturities of marketable securities.
Financing Activities
Net cash used in financing activities for the three months ended April 30, 2026 of $252.2 million was primarily driven by $243.8 million in repurchases of Class A common stock under our stock repurchase program and $12.8 million in payments of tax withholdings on settlement of equity awards, partially offset by $4.0 million in proceeds from ESPP contributions.
Net cash used in financing activities for the three months ended April 30, 2025 of $235.2 million was primarily driven by $227.5 million in repurchases of Class A common stock under our stock repurchase program and $12.2 million in payments of tax withholdings on settlement of equity awards, partially offset by $4.2 million in proceeds from ESPP contributions.
Material Cash Requirements
Our material cash requirements predominantly relate to working capital requirements, including employee compensation, payment of employee tax withholdings on net settlement of equity awards, and material contractual obligations, including leases and purchase commitments.
As of April 30, 2026, accrued compensation and benefits of $61.2 million are included in current liabilities on our condensed consolidated balance sheet. Refer to Note 9, Condensed Consolidated Balance Sheet Components-Accrued Expenses and Other Current Liabilities for details of additional short-term payroll-related obligations included in accrued expenses and other current liabilities.
Refer to Note 8, Operating Leases for more detailed information regarding timing of future lease payments, and Note 10, Commitments and Contingencies-Non-Cancelable Purchase Obligations for more detailed information regarding timing of purchase commitments with terms of 12 months or longer. There were no significant changes during the three months ended April 30, 2026 from the contractual obligations disclosed in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations," set forth in the 2026 Form 10-K.
Our stock repurchase program may also represent a material use of cash depending upon the number of shares repurchased, which is ultimately discretionary. Refer to Note 11, Stockholders' Equity-Stock Repurchases for further details. Further, future cash payments under acquisition-related contingent consideration arrangements are based on performance outcomes and may be material. Refer to Note 5, Fair Value Measurements and Note 6, Business Acquisitions for information regarding the value of contingent consideration liabilities.
Critical Accounting Estimates
There have been no material changes to our critical accounting estimates as compared to those disclosed in the 2026 Form 10-K.
Recent Accounting Pronouncements
See Note 2, Summary of Significant Accounting Policies-Recently Issued Accounting Pronouncements, included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information.
UiPath Inc. published this content on June 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on June 04, 2026 at 20:37 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]