{"podcast":{"title":"Charged Alpha Stock Encyclopedia","slug":"charged-alpha-stock-encyclopedia-7819792","podcast_index_feed_id":7819792,"rss_url":"https://feed.podbean.com/chargedalpha/feed.xml","website_url":"https://chargedalpha.podbean.com","image_url":"https://pbcdn1.podbean.com/imglogo/image-logo/22241603/charged_alpha_logo_2048.png","author":"Colton Thomas","episode_count":1630,"summary":"Charged Alpha reviews earnings for each stock in the Russel 1000 every quarter. Each podcast gives thorough analysis, along with an in-depth profile in the beginning of the episode of the company, what they do, how they earn money and what to look for.","last_synced_at":"2026-09-04T06:17:14.359815+00:00","page_url":"https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792"},"episode":{"title":"GTLB Stock: Shares Rose 10%, Gross Margin Fell A Sixth Time - GitLab Q2 FY2027","slug":"gtlb-stock-shares-rose-10-gross-margin-fell-a-sixth-time-gitlab-q2-fy2027","published_at":"2026-09-03T01:37:39+00:00","page_url":"https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/gtlb-stock-shares-rose-10-gross-margin-fell-a-sixth-time-gitlab-q2-fy2027","show_page_url":"https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792","url":"https://chargedalpha.podbean.com/e/gtlb-stock-shares-rose-10-gross-margin-fell-a-sixth-time-gitlab-q2-fy2027/","audio_url":"https://mcdn.podbean.com/mf/web/rmls3oorcz0q513l/audio_n.mp3","summary":"GitLab (GTLB) Q2 FY2027 — Shares closed at $49.59 on September 2, up 9.98% on the print - but they opened at $55.20 and handed back more than half the move before the close, on 28.9M shares against a 5.4M daily norm. GitLab's revenue rose 21.3% to $286.3M and beat its own guide by $13.3M. Gross profit grew only 16.0%. Gross margin fell to 84.1% from 87.9% - the SIXTH consecutive quarterly decline, 513 basis points over eighteen months. The 10-Q names the cause in its own words: of the $17.1M rise in cost of revenue, $11.0M was 'third party hosting costs for SaaS and cloud usage', and another $3.4M and $3.6M of the same hosting sits in selling and engineering. That is $18.0M of the $50.3M of new revenue - 36 cents in every new dollar - going straight back out as rented compute. The marginal gross margin is 66% against 84% on the average book, and subscription cost of revenue grew 75.9% against subscription revenue up 21.5%. Demand is fine and we say so. The problem is that FY2027 adjusted free cash flow of about $240M sits against $255M of stock compensation, so the owner's cash is negative. Our fair value is $23.50 and we rate GitLab a SELL against a $49.59 close. THE CALL: SELL (3/5, MODERATE) — base-case value ~$23.5 vs ~$49.59 today. KEY METRICS: - Revenue $286.3M +21.3%, $13.3M past the guided midpoint; gross profit $240.6M, up only 16.0% - Gross margin 84.1% vs 87.9% - the sixth straight quarterly fall (89.2 to 84.1, 513bp since Q4 FY2025) - 10-Q: $11.0M of the $17.1M cost-of-revenue rise is 'third party hosting costs for SaaS and cloud usage' - Add $3.4M in selling and $3.6M in engineering: $18.0M of hosting against $50.3M of new revenue = 35.8% - Marginal gross margin 66% against 84.1% on the average book - Subscription cost of revenue +75.9% against subscriptio…","meta_description":"GitLab (GTLB) Q2 FY2027 — Shares closed at $49.59 on September 2, up 9.98% on the print - but they opened at $55.20 and handed back more than half the mov…","key_points":[],"chapters":[],"topics":[],"duration_seconds":939,"processing_state":"not_requested","actions":[{"name":"request_transcript","method":"POST","url":"https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/gtlb-stock-shares-rose-10-gross-margin-fell-a-sixth-time-gitlab-q2-fy2027/transcription-requests","description":"Idempotently request low-priority transcript generation for this episode."},{"name":"read_markdown","method":"GET","url":"https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/gtlb-stock-shares-rose-10-gross-margin-fell-a-sixth-time-gitlab-q2-fy2027.md","description":"Read the agent-friendly Markdown representation of this episode resource."}]}}