Company: PATH
Filing Date: 2025-09-08
Form Type: 10-Q
Source: 0001734722-25-000043
Chunk: 71

Company: UiPath, Inc.
Filing Date: 2025-09-08
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 shares.Stock-Based Compensation ExpenseStock-based compensation expense is classified in the condensed consolidated statements of operations as follows (in thousands):Three Months Ended July 31,Six Months Ended July 31,2025202420252024Cost of subscription services revenue$3,682 $5,284 $7,556 $9,560 Cost of professional services and other revenue2,358 3,015 5,086 5,485 Sales and marketing23,402 37,473 46,988 73,689 Research and development36,087 32,654 70,682 61,796 General and administrative12,477 15,879 24,055 32,502 Total$78,006 $94,305 $154,367 $183,032 

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