Company: PATH
Filing Date: 2025-12-08
Form Type: 10-Q
Source: 0001734722-25-000050
Chunk: 48

Company: UiPath, Inc.
Filing Date: 2025-12-08
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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-based compensation expense is classified in the condensed consolidated statements of operations as follows (in thousands):Three Months Ended October 31,Nine Months Ended October 31,2025202420252024Cost of subscription services revenue$3,317 $5,041 $10,873 $14,601 Cost of professional services and other revenue2,359 2,953 7,445 8,438 Sales and marketing21,589 32,688 68,577 106,377 Research and development32,249 34,211 102,931 96,007 General and administrative11,961 12,595 36,016 45,097 Total$71,475 $87,488 $225,842 $270,520 

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Table of ContentsUiPath, Inc.Notes to Condensed Consolidated Financial Statements (Continued)(unaudited)

13. Income Taxes

Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in the applicable quarter. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate may change due to several factors, including the relative amount of income we earn in various jurisdictions and certain book-tax differences.For the three and nine months ended October 31, 2025, we had a benefit from income taxes of $174.2 million and $169.7 million, respectively. Our effective tax rate for these periods differed from the U.S. federal statutory rate primarily as a result of change in U.S. valuation allowance (as discussed below) and due to tax rate differences between the U.S. and foreign countries. For the three and nine months ended October 31, 2024, we had a benefit from income taxes of $14.8 million and $7.2 million, respectively. Our effective tax rate for these periods differed from the U.S. federal statutory rate primarily as a result of change in U.K. valuation allowance and due to tax rate differences between the U.S. and foreign countries.The realization of tax benefits of net deferred tax assets ("DTAs") is dependent upon future levels of taxable income of an appropriate character in the periods the items are expected to be deductible or taxable. As of October 31, 2025, based on the available positive and negative evidence, including the amount of taxable income in the U.S. in recent years and our