Company: PATH
Filing Date: 2025-12-08
Form Type: 10-Q
Source: 0001734722-25-000050
Chunk: 63

Company: UiPath, Inc.
Filing Date: 2025-12-08
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 $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-related expenses, which included an $11.1 million decrease in stock-based compensation 

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expense, a $2.9 million decrease in salary-related and bonus expenses associated with reduced headcount, and a $2.0 million decrease in employee termination benefits due to the completion of our Fiscal Year 2025 Workforce Restructuring during the second quarter of fiscal year 2026, partially offset by a $1.1 million increase in general employee severance. The decrease in personnel-related expenses was partially offset by a $5.4 million increase in third-party consulting fees and a $1.3 million increase in sales commissions expense.

Research and Development

 Three Months Ended October 31,   20252024ChangeChange % (dollars in thousands)Research and development$96,869 $96,976 $(107)— %Percentage of revenue23 %27 %  

Research and development expense remained relatively constant for the three months ended October 31, 2025 compared to the three months ended October 31, 2024. Hosting and software services costs decreased $3.8 million. This decrease was offset by a $2.9 million increase in personnel-related expenses, which was driven by a $4.6 million increase in salary-related and bonus expenses associated with higher