Company: PATH
Filing Date: 2025-12-08
Form Type: 10-Q
Source: 0001734722-25-000050
Chunk: 136

Company: UiPath, Inc.
Filing Date: 2025-12-08
Form: 10-Q
Item: Part I, Item 2
Chunk 136
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ChangeChange % (dollars in thousands)Licenses$1,311 $2,340 $(1,029)(44)%Subscription services40,121 43,487 (3,366)(8)%Professional services and other27,380 17,936 9,444 53 %Total cost of revenue$68,812 $63,763 $5,049 8 %Gross margin83 %82 %  

Total cost of revenue increased by $5.0 million, or 8%, for the three months ended October 31, 2025 compared to the three months ended October 31, 2024, driven by a $9.4 million increase in cost of professional services and other revenue, partially offset by a $3.4 million decrease in cost of subscription services revenue and a $1.0 million decrease in cost of licenses revenue. The increase in cost of professional services and other revenue was primarily driven by an $8.3 million increase in costs associated with the use of third-party subcontractors to deliver professional services to our customers and a $0.6 million increase in personnel-related expenses. The decrease in cost of subscription services revenue was primarily driven by a $5.9 million decrease in personnel-related expenses, which included a $3.1 million decrease in salary-related and bonus expenses associated with reduced headcount and a $1.7 million decrease in stock-based compensation expense, partially offset by a $1.2 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services and a $0.3 million aggregate increase in depreciation and amortization and rent expense.

Our gross margin increased to 83% for the three months ended October 31, 2025 compared to 82% for the three months ended October 31, 2024, reflecting increased subscription services revenue and subscription services revenue margin.

Operating Expenses

Sales and Marketing

 Three Months Ended October 31,   20252024ChangeChange % (dollars in thousands)Sales and marketing$179,186 $187,188 $(8,002)(4)%Percentage of revenue44 %53 %  

Sales and marketing expense decreased by $8.0 million, or 4%, for the three months ended October 31, 2025 compared to the three months ended October 31, 2024. The decrease was primarily attributable to a $15.6 million decrease in personnel