One-glance verdict
Undervalued
$28.57 our estimate vs market $12.85
Wall Street consensus: $15.50 (-45.8% lower than our fair-value estimate)
55% below our estimate, below the bear case
Fundamentals snapshot
UiPath, Inc.
PATH · NYQ · Technology · Software - Infrastructure
Current price
$12.85
52-week range
$9.20 - $19.84
Market cap
$6.70B
Balance sheet
Healthy
1.18x Concerning
Net cash $1.20B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 6.8% last year.
- Reward Returns 20.0% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 4/10 years.
What this company does
UiPath, Inc.
UiPath makes software that acts like a digital workforce, automating repetitive computer tasks for other businesses, such as processing invoices or updating customer records. It primarily earns money by charging subscription fees for access to its platform, which generates recurring revenue (income that comes in at regular intervals, like a Netflix subscription). This business model is significant because a steady, predictable stream of income can make a company's financial future more stable.
How the company got here
Founded in Bucharest, Romania, in 2005 by Daniel Dines and Marius Tîrcă, UiPath started as a small company named DeskOver. For a decade, the company focused on building automation technology for other software developers. A major turning point came in 2015 when they shifted focus to Robotic Process Automation (RPA), a way for businesses to automate repetitive digital tasks, and rebranded as UiPath. This move led to explosive growth, transforming the small Romanian startup into a global leader in enterprise automation, culminating in one of the largest U.S. software IPOs (Initial Public Offering, when a private company first sells shares to the public) in April 2021.
What it actually does
UiPath creates software that acts like a digital robot to take over boring, repetitive computer tasks that people usually do. Think of it as a software 'robot' that can be taught to click, type, open applications, and move data around, just like a person would, but much faster and without getting tired. This helps businesses in areas like finance, healthcare, and manufacturing to free up their employees from tedious work like data entry or processing invoices so they can focus on more important things. The company's main product is a platform that lets businesses discover which tasks to automate, build these software robots, manage them, and see how well they are working.
Licenses
This is the traditional way UiPath has made money, by selling licenses for others to use its software. A license is basically a permission slip that allows a customer to use the software for a specific period. This is a significant part of the company's business, providing the foundational technology that customers use to start automating their tasks. Customers pay these license fees to get access to the core tools for building and deploying their software robots.
Subscriptions (SaaS)
A large and growing part of UiPath's business comes from selling its automation platform as a subscription service, often called SaaS (Software-as-a-Service). Instead of buying a license upfront, customers pay a recurring fee, usually monthly or annually, to access the platform through the cloud. This model is built around what's called Annual Recurring Revenue (ARR), a key metric for subscription businesses that measures the predictable revenue they can expect in a year. This approach makes it easier for companies to get started with automation and allows UiPath to build long-term relationships with its customers.
Maintenance and Support
Beyond just selling the software, UiPath makes money by providing ongoing support and maintenance services. Customers pay for this to ensure their automation systems run smoothly, get help when things go wrong, and receive software updates with new features and security patches. This creates a steady and reliable stream of revenue for the company. It's similar to paying for a warranty and service plan for a car to keep it in good working order.
What management is betting on now
UiPath's leadership is heavily focused on moving beyond simple task automation to become the central control tower for all of a company's business processes. They are betting heavily on Artificial Intelligence (AI), integrating it into their platform to handle more complex and less structured work, a concept they call 'agentic automation'. The strategy is to make their platform indispensable by not just automating individual tasks but by orchestrating (coordinating) entire workflows across people, software robots, and AI agents. This involves expanding partnerships and making their platform the go-to solution for large companies looking to use AI to improve how they operate.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$23.20M
FY2025 Q4
$138.69M
FY2026 Q1
$106.17M
FY2026 Q2
$41.59M
FY2026 Q3
$25.11M
FY2026 Q4
$179.30M
FY2027 Q1
$129.24M
FY2027 Q2
$29.31M
Revenue
$410.26M
Net income
$36.09M
Diluted EPS
0.07
Operating cash flow
$30.70M
Free cash flow
$29.31M
Fetching…
Sources
Revenue
$418.38M
Net income
$22.52M
Diluted EPS
0.04
Operating cash flow
$131.93M
Free cash flow
$129.24M
Fetching…
Sources
Revenue
$481.11M
Net income
$104.46M
Diluted EPS
0.19
Operating cash flow
$182.35M
Free cash flow
$179.30M
Fetching…
Sources
Revenue
$411.11M
Net income
$198.84M
Diluted EPS
0.37
Operating cash flow
$28.27M
Free cash flow
$25.11M
Fetching…
Sources
Revenue
$361.73M
Net income
$1.58M
Diluted EPS
0.00
Operating cash flow
$41.59M
Free cash flow
$41.59M
Fetching…
Sources
Revenue
$356.62M
Net income
$-22.55M
Diluted EPS
-0.04
Operating cash flow
$119.00M
Free cash flow
$106.17M
Fetching…
Sources
Revenue
$423.65M
Net income
$51.79M
Diluted EPS
0.09
Operating cash flow
$146.08M
Free cash flow
$138.69M
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Sources
Revenue
$354.65M
Net income
$-10.65M
Diluted EPS
-0.02
Operating cash flow
$28.07M
Free cash flow
$23.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $28.57 vs current price $12.85
Wall Street consensus is the average analyst price target: $15.50 (-45.8% lower than our fair-value estimate).
Our most-likely fair value is $28.57 a share — about 122.4% above today's price of $12.85, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $1.2B - more cash than debt. Interest coverage 1.2x.
Net debt
$-1.20B
Interest coverage
1.18x
UiPath, Inc.'s profit covers its interest bill about 1.2 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PATH
BASELINE
UiPath, Inc.
Total debt $79.76M Interest coverage 1.18x This is the baseline the peer rows are being compared against.
Total debt $128.81B Interest coverage 50.88x +4,205% vs PATH Carries about 43.0x more debt cushion than PATH.
Total debt $8.45B Interest coverage 79.30x +6,610% vs PATH Carries about 67.1x more debt cushion than PATH.
Total debt $72.02M Interest coverage 221.32x +18,625% vs PATH Carries about 187.2x more debt cushion than PATH.
Total debt $295.33M Interest coverage 0.03x -98% vs PATH Carries about 40.5x less debt cushion than PATH.
Total debt $7.78B Interest coverage 3.31x +180% vs PATH Carries about 2.8x more debt cushion than PATH.
What you should know
The case for and against PATH
3 Rewards
0 Risks
Rewards
-
Revenue grew 6.8% last year.
-
Returns 20.0% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.18x
Forward P/E
13.95x
P/B
3.44x
P/S
3.89x
EV/EBITDA
29.75x
PEG ratio
0.40x
Profitability
How much profit each dollar creates
Gross margin
82.6%
Operating margin
8.9%
Net margin
21.0%
ROE
20.0%
ROA
3.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
2.39x
Quick ratio
2.14x
Total debt
$79.76M
Total cash
$1.28B
Growth
How the business has been compounding
Revenue TTM
$1.72B
Revenue 5Y CAGR
15.9%
EPS TTM
0.67
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$373.25M
Free CF TTM
$352.16M
FCF margin
20.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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