UiPath ($PATH) - AI agents and software robotics

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UiPath has long provided customers with a comprehensive suite of functions related to various software automation / robotics. These are used to automate workflows in companies, e.g., in marketing and invoicing.

Over time, AI agents have now emerged alongside robotics. This part is likely the bigger option going forward, as companies try to leverage the AI hype.

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The IPO was in 2021, from which it has come down significantly. The ATH (All-Time High) appeared to be $90, now $16-17. Many similar drops have been seen for companies listed in 2020-2021.

However, a turnaround has been underway for a while, which could indicate that the bottom has possibly been reached.

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Image source: https://x.com/futurist_lens/status/1982875728640369086

Q2/2026 Investor Materials, note: exceptional fiscal year

https://d1io3yog0oux5.cloudfront.net/_222be9233fe64b9c00eee2bc786763df/uipath/db/1172/17099/pdf/UiPath_2Q-2026_Earnings-Slides.pdf

Revenue is growing steadily

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Financial Situation

The Trailing 12-month chart below (source: GuruFocus) shows that operations are finally turning positive. At this point, the market usually starts to become interested in the company and price it using other multiples than just EV/S. It still requires time, but at this stage, it best hits my radar.

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Gross margin is typically a whopping 85% for a software company, and cash flow is positive.

However, annual stock-based compensation of $350-400M eats into the profit, pushing the bottom line clearly into the negative.

UiPath is net debt-free and with a clear margin. The balance sheet shows liabilities of $926.6M and assets of $2592.3M. The majority of these are cash and short-term investments.

Valuation

It’s not worth trying to value it based on earnings yet, as the turnaround is underway.

EV/S is now \~5

Marketscreener forecasts the following, multiples are melting fast.

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Ostin/myin juuri Àsken (Osa 7)
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The idea is to find companies benefiting from AI, in addition to data center builders or their hardware suppliers.

UiPath, for its part, responds to this demand as companies need tools for automating data processing.

Here is an example model diagram of how the steps related to creating a new employee can be automated into different systems.

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UiPath has been appealing to even large customers over the past year.

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Valuation multiples are still a bit tight. With these growth figures, the tightness eases relatively quickly, but doesn’t leave much room for error. Especially when profitability turns profitable, the market’s view usually also becomes more positive.

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I really have to rave about this. I’m following UiPath with great excitement right now as AI agents are breaking into everyday life. This is the moment I’ve been waiting for since ChatGPT was released. An agent-like workflow, like having your own digital team that handles boring clicks, reads documents, calls models, makes decisions, and takes actions to completion. UiPath already has a strong foothold in companies and a broad ecosystem, so if anyone can bring agents into real processes at scale, I believe it’s this company. If customer acquisition and deployments are successful, I see a realistic possibility for multi-fold growth in the long term. I also wouldn’t be surprised if a larger player saw the same potential and made an acquisition offer at a good price.

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Zacks Strongly Bullish With This

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Across industries, organizations are moving from experimentation with AI to operationalizing it within business-critical workflows. At Microsoft, we are partnering with UiPath—a preferred enterprise agentic automation platform on Azure—to empower customers with integrated solutions that combine automation and AI at scale.

One example is Azure AI Foundry agents and UiPath agents (built on Azure AI Foundry) orchestrated by UiPath Maestroℱ in business processes, ensuring AI insights seamlessly flow into automated business processes that deliver measurable value.

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AI Summary

  • Agentic AI = The Next Phase in Automation: UiPath CEO Daniel Dines sees agentic AI combining AI agents, robotics, and humans into comprehensive enterprise automation – a significant leap in productivity is possible.

  • RPA + AI Don’t Compete, They Complement: Traditional Robotic Process Automation (RPA) handles rule-based tasks, while agentic AI solves dynamic processes requiring decision-making. The combination can transform business operating models and cost structures.

  • A New Developer Profile Emerges: Companies will need “functional-technical” developers who combine business understanding with prompt engineering. This creates a new job market segment and service business opportunities.

  • Adoption Barriers: The biggest challenge is not technology but a lack of skills and change management – for investors, this means time-consuming implementation, but also significant “winner takes all” advantages for successful players.

  • Market Potential: Agentic AI enables scalable utilization of LLM technologies in enterprises — investment targets emphasize platform solutions, agent orchestration frameworks, and secure autonomous workflows.

  • Action Recommendation for Investors: Invest in companies that build ecosystems (not just applications) – especially those offering tools for agent management, governance solutions, and low-code development.

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Q3-26: double beat and first profitable quarter.

https://x.com/B2F_Investing/status/1996333503735324718?t=2PRw7KZX7IrlWkplPjicFA&s=19

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Looks good in terms of numbers :cowboy_hat_face:

A profitable quarter, which is an excellent starting point for re-evaluating the stock price. A couple more of these, and it will start hitting many screenings.

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Based on previous years, Q4 is clearly better than other quarters.
However, Non-GAAP still looks good in expectations - this will also flow into GAAP figures :slight_smile:

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Adding a direct link to the presentation transcript

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UiPath’s stock rose after it announced it would be joining the S&P MidCap 400 index in early January.

According to the article below, inclusion in the index is significant because funds tracking the index must now purchase the company’s shares.

https://www.investing.com/news/stock-market-news/uipath-stock-rises-after-inclusion-in-sp-midcap-400-index-93CH-4422094

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According to the tweet below, UiPath has a big problem, as existing customers are buying less over time.

This is measured by the NRR figure, and most recently it was 107 percent, which is quite low. If they want to sell more AI solutions to the same customers, the figure should be rising. The trend is downward; where will the turnaround come from?

https://x.com/nanalyzetweets/status/2006455836713812330

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UiPath’s results were better than expected and performance looked relatively stable overall.

Revenue, recurring billing, and profit moved in the right direction, cash also accumulated well, and guidance promises more growth.

The company is also buying back its own shares. Management emphasized that customers are now seeking more practical benefits, reliability, etc., from AI, which can be interpreted as an advantage for the company.

https://x.com/earnings_guy/status/2031825051901714724

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The company’s own materials

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