On September 15, GitLab, Inc. rose 5.1% in regular trading, trading at $49.42 per share, with turnover of approximately $87.28 million. The gain was driven by a UBS Securities research note suggesting the company's Flex consumption pricing model may pose a smaller revenue headwind than the market had feared.

UBS estimated that Flex could reduce fiscal 2028 revenue growth by only about 1 to 2 percentage points, as adoption is likely to be slower and more phased than initially anticipated. The firm cited public-sector contracting limitations, large deals already in progress, and limited availability in certain international markets as factors that could delay customer migration. UBS also noted that the near-term opportunity in artifact management appears more modest than previously expected, with GitLab now anticipating a mix of new deployments and replacements rather than widespread displacement of competitors.

The note comes on the heels of GitLab's strong fiscal Q2 results reported earlier this month, in which revenue reached $286.3 million, up 21% year-over-year and beating consensus by approximately 5%. Net ARR grew over 40%, gross bookings hit a record high, and the company raised its full-year revenue guidance to $1.129-$1.133 billion, above market expectations. Multiple investment banks subsequently raised their price targets.

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