UiPath, Inc.

UiPath, Inc. (NYSE: PATH) is a software company specializing in enterprise automation and artificial intelligence (AI). Its core focus lies in creating and managing automation solutions while advancing computer vision technology. The company equips customers with a comprehensive suite of tools to identify automation opportunities, deploy a digital workforce that works alongside humans, and manage automation programs at scale to support critical business operations.

As per previous Kalkine’s Artificial Intelligence and Emerging Technologies Report published on ‘PATH’ on Jan 07, 2025, Kalkine provided an ‘Buy’ stance on the stock at USD 13.81 based on fundamental analysis and the stock price has now moved up by ~ 24.11% since then.

Noted below are the details of support and resistance levels provided in our previous report:

Rationale:

• Operating Loss Under GAAP Standards: Despite reporting strong revenue and ARR growth, UiPath recorded a GAAP operating loss of USD 20 million in the second quarter. While the company posted a positive non-GAAP operating income, the recurring GAAP-level losses highlight the continued burden of expenses such as stock-based compensation and restructuring charges. This underlines a challenge in translating top-line growth into consistent profitability under generally accepted accounting standards.
• Slower ARR Momentum: UiPath achieved an 11% year-over-year increase in annualized recurring revenue (ARR), reaching USD 1.723 billion. However, this growth rate trails the company’s prior-year performance and suggests a gradual deceleration in ARR expansion. The modest addition of USD 31 million in net new ARR may raise concerns about the pace of new customer acquisition or expansion within existing accounts, potentially limiting long-term scalability.
• Dependence on Adjusted Metrics: UiPath continues to rely heavily on non-GAAP measures such as adjusted operating income and free cash flow to demonstrate profitability. The company explicitly stated that it cannot reconcile forward-looking non-GAAP operating income to GAAP measures due to high variability, particularly stock-based compensation. This ongoing reliance on adjusted results creates reduced transparency for investors, who may question the sustainability of reported profitability when adjusted metrics mask GAAP-level losses.
• Intensifying Market Competition: Although UiPath remains a recognized leader in robotic process automation (RPA) and agentic AI, the broader automation sector is becoming increasingly competitive with the rise of enterprise AI providers, cloud-native automation tools, and ERP-integrated solutions. This intensifying competition could put pressure on UiPath’s pricing power, margins, and ability to differentiate its offerings, potentially constraining future revenue growth despite its current leadership position.

Valuation (Using Price/Earnings per share Multiple)

Share Price Chart 

Conclusion

UiPath’s performance, while showing revenue and ARR growth, reflects underlying weaknesses that temper its momentum. The company continues to post GAAP operating losses, relying on non-GAAP adjustments to present profitability, which raises concerns about transparency and sustainability. ARR growth of 11% year-over-year signals a slowdown compared to prior periods, with only modest net new ARR contribution. Combined with intensifying competition in automation and AI markets, these factors suggest pressure on margins and question the durability of UiPath’s long-term growth trajectory.

Based on the notional gains, valuation downside and price action stance, a "Sell" recommendation on UiPath, Inc. (NYSE: PATH) has been given at the closing market price of USD 17.14 as on 13 October 2025.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 13 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.