GitLab Inc. (GTLB) shares tumbled 9.18% in after-hours trading Tuesday following the release of its third-quarter fiscal 2026 results, which revealed a surprise GAAP loss despite stronger-than-expected revenue and adjusted earnings.

The company reported a loss of $8.3 million (5 cents per share), swinging from a profit of $29.1 million a year earlier, even as revenue climbed 25% to $244.4 million, surpassing analyst estimates. Adjusted EPS of 25 cents also beat expectations. Investors appeared to focus on the GAAP loss and gross margin of 87%, which reflected ongoing cost pressures.

GitLab simultaneously announced the appointment of Jessica Ross as its new CFO, effective January 2026, while raising its full-year revenue and adjusted EPS guidance. The market reaction suggests concerns over profitability and execution risks during the leadership transition.