Company: PATH
Filing Date: 2025-09-08
Form Type: 10-Q
Source: 0001734722-25-000043
Chunk: 121

Company: UiPath, Inc.
Filing Date: 2025-09-08
Form: 10-Q
Item: Part I, Item 8
Chunk 121
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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.We had a provision for income taxes of $1.7 million, reflecting an effective tax rate of 52.4%, for the three months ended July 31, 2025, and a provision for income taxes of $3.8 million, reflecting an effective tax rate of (4.7)%, for the three months ended July 31, 2024.We had a provision for income taxes of $4.6 million, reflecting an effective tax rate of (27.9)%, for the six months ended July 31, 2025, and a provision for income taxes of $7.6 million, reflecting an effective tax rate of (7.1)%, for the six months ended July 31, 2024.

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

For the three and six months ended July 31, 2025, our effective tax rate differed from the U.S. federal statutory rate primarily as a result of not recognizing deferred tax expenses due to a full valuation allowance on U.S. and Romania deferred tax assets ("DTAs") and due to tax rate differences between the U.S. and foreign countries. For the three and six months ended July 31, 2024, our effective tax rate differed from the U.S. federal statutory rate primarily as a result of a full valuation allowance on U.S., Romania, and U.K. DTAs and due to tax rate differences between the U.S. and foreign countries.The realization of tax benefits of net 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 July 31, 2025, based on the available positive and negative evidence, we believe it is more likely than not that the DTAs associated with the U.S. and Romania will not be realized and we continue to maintain a full valuation allowance against such DTAs. We intend to maintain each of these full valuation allowances until sufficient positive evidence exists to support a reversal of,