UiPath: Q2 profit up 23-fold, but market focuses on slowing ARR

3 сентября UiPath, Inc. раскрыла результаты за второй квартал 2027 финансового года (закончился 31 июля 2026). Выручка выросла на 13,4% до 410,3 млн долл., чистая прибыль составила 36,1 млн долл. против 1,6 млн годом ранее. Акции после отчёта подешевели на 15,6% – рынок разглядел замедление роста ARR и осторожный прогноз. По нашей оценке, бумага выглядит скорее привлекательной: мультипликаторы ниже исторических, а модель портала даёт потенциал +15%.

Key takeaways

— Net profit up 23-fold on operating leverage and one-offs

— Revenue grows double-digits, but ARR decelerates to 12%

— First positive GAAP quarterly margin – cost control pays off

— Operating cash flow up in H1, but free cash flow flat

— Buybacks exceed free cash flow generation

— Valuation: EV/EBITDA 38.4 – below 3-year average, portal model implies +15%

Attractiveness

Key figures, USD bn

Net profit up 23-fold on operating leverage and one-offs

In Q2 FY2027, net profit reached $36.1 million versus $1.6 million a year ago – a 23-fold increase. The main driver was improved operating margin: GAAP operating income hit $31.6 million against a $20.2 million loss last year. The company also booked $10.5 million in other income, boosting the bottom line.

One-off items, such as changes in fair value of contingent consideration and a charitable donation of shares, had a minor impact. Excluding them, growth would have been less spectacular but still significant – operations improved structurally.

Revenue grows double-digits, but ARR decelerates to 12%

Q2 revenue grew 13.4% to $410.3 million, consistent with prior quarters (13–17%). However, the key metric ARR rose only 12% to $1.938 billion, versus 15.9% a year ago. The deceleration in ARR signals that new sales are not accelerating.

Net new ARR was just $37 million in the quarter, while dollar-based net retention was 109%. That means existing customers are expanding, but new customer acquisition has slowed. Management guides ARR to $2.065–2.070 billion by year-end, implying further deceleration to ~10%.

First positive GAAP quarterly margin – cost control pays off

GAAP operating margin was 8% in Q2 versus -6% a year ago. The company cut R&D expenses by 15% (to $83.4 million) and sales & marketing by 1% (to $164.6 million), driving GAAP profitability even before one-offs.

Non-GAAP operating margin rose to 22% from 17%, reflecting cost discipline. Management guides non-GAAP operating income of about $100 million in Q3 and $445 million for the full year, implying further margin expansion.

Operating cash flow up in H1, but free cash flow flat

In H1, operating cash flow was $162.6 million versus $160.6 million a year ago. However, after capex and other adjustments, non-GAAP adjusted free cash flow was virtually flat at $160.8 million versus $161.6 million.

Capex fell to $4.1 million from $12.8 million, but the company spent $149.4 million on acquisitions, which is not included in free cash flow. Thus, organic cash generation is stagnating despite profit growth.

Buybacks exceed free cash flow generation

In H1, UiPath, Inc. spent $268.5 million on share buybacks, well above its free cash flow of $160.8 million. The company funds buybacks from its cash pile, which shrank from $871.2 million to $607.4 million by end of July.

Net debt is negative at -$789.9 million, meaning the company has more cash than debt. However, at the current pace of buybacks and M&A spending, the cash position will keep declining, potentially limiting future shareholder returns.

Valuation: EV/EBITDA 38.4 – below 3-year average, portal model implies +15%

Current EV/EBITDA is 38.4 – below the three-year average, which we estimate at around 45. P/E LTM is 21.4, also moderate for a company with double-digit revenue growth.

According to the portal's model, the stock has +15% upside to fair value. This is our own calculation based on EBITDA growth and target multiple. At the current price, the stock trades at a discount to its own history, making it rather attractive.

Valuation on the latest reported figures

Bottom line

The report showed strong operational dynamics: the company achieved its first positive GAAP operating margin, cut costs, and increased net profit 23-fold. However, the market focused on ARR deceleration to 12% and cautious guidance, sending shares down 15.6%. Valuation remains moderate: EV/EBITDA of 38.4 is below the three-year average, and the portal's model implies +15% upside. The key question for holders is whether ARR growth can reaccelerate in H2 or if the slowdown is a trend. For now, we view the stock as rather attractive.