Company: PATH
Filing Date: 2025-09-08
Form Type: 10-Q
Source: 0001734722-25-000043
Chunk: 89

Company: UiPath, Inc.
Filing Date: 2025-09-08
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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,   20252024ChangeChange % (dollars in thousands)Licenses$2,468 $4,994 $(2,526)(51)%Subscription services76,697 80,283 (3,586)(4)%Professional services and other49,072 33,368 15,704 47 %Total cost of revenue$128,237 $118,645 $9,592 8 %Gross margin82 %82 %  

Total cost of revenue increased by $9.6 million, or 8%, for the six months ended July 31, 2025 compared to the six months ended July 31, 2024, due to a a $15.7 million increase in cost of professional services revenue, partially offset by a $3.6 million decrease in cost of subscription services revenue and a $2.5 million decrease in cost of licenses revenue. The increase in cost of professional services and other revenue was primarily driven by a $14.0 million increase in costs associated with the use of third-party subcontractors to deliver professional services to our customers. The decrease in cost of subscription services revenue was primarily driven by a $9.0 million decrease in personnel-related expenses, which included a $5.8 million decrease in salary-related and bonus expenses associated with reduced headcount, a $2.0 million decrease in stock-based compensation expense, and a $0.8 million aggregate decrease in employee insurance costs and employer payroll taxes. Cost of subscription 

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services revenue was also impacted by a $1.0 million decrease in costs associated with the use of third-party vendors. These decreases were partially offset by a $5.7 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services. The decrease in cost of licenses revenue was primarily driven by a $1.4 million decrease in depreciation and amortization expense and a $1.1 million decrease in software services costs.

Our gross margin remained relatively constant at 82% for the six months ended July 31, 2025 compared to 82% for the six months ended July 31, 2024, reflecting increased subscription services revenue and margin offset by a decrease in the proportion of higher-margin licenses revenue.

Operating Expenses

Sales and Marketing

 Six Months Ended July 31,   20252024ChangeChange % (dollars in thousands)Sales and marketing$325,964 $374,