Company: PATH
Filing Date: 2025-12-08
Form Type: 10-Q
Source: 0001734722-25-000050
Chunk: 139

Company: UiPath, Inc.
Filing Date: 2025-12-08
Form: 10-Q
Item: Part I, Item 2
Chunk 139
---
. Of the growth in total revenue, 19% was attributable to new customers and 81% was attributable to existing customers. Subscription services revenue is recognized ratably over the subscription term; therefore, the increase in subscription services revenue is driven by both sales in prior periods for which we continue to provide maintenance and support and SaaS, and by new sales in the current period.

Cost of Revenue and Gross Margin

 Nine Months Ended October 31,   20252024ChangeChange % (dollars in thousands)Licenses$3,779 $7,334 $(3,555)(48)%Subscription services116,818 123,770 (6,952)(6)%Professional services and other76,452 51,304 25,148 49 %Total cost of revenue$197,049 $182,408 $14,641 8 %Gross margin83 %82 %  

Total cost of revenue increased by $14.6 million, or 8%, for the nine months ended October 31, 2025 compared to the nine months ended October 31, 2024, due to a a $25.1 million increase in cost of professional services revenue, partially offset by a $7.0 million decrease in cost of subscription services revenue and a $3.6 million decrease in cost of licenses revenue. The increase in cost of professional services and other revenue was primarily driven by a $22.4 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 $14.9 million decrease in personnel-related expenses, which included an $8.9 million decrease in salary-related and bonus expenses associated with reduced headcount, a $3.7 million decrease in stock-based compensation expense, and a $1.4 million aggregate decrease in employee insurance costs and employer payroll taxes. This decrease was partially offset by a $6.9 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services and a $0.9 million aggregate increase in depreciation 

36

and amortization and rent expense. The decrease in cost of licenses revenue was primarily driven by a $2.1 million decrease in depreciation and amortization expense and a $1.4 million decrease in software services costs.

Our gross margin increased to 83% for the nine months ended October 31, 2025