Dear Reader,
Democrats have won both the House and the Senate.
That could make things a lot harder for President Trump.
Obviously, now comes the debate over what he can get done in the remainder of his term, and what it means for your money.
But before you make any changes to your investments, there’s something else worth thinking about.
What if the next big financial problem starts OUTSIDE Washington?
As you probably already know, companies are spending huge sums on AI data centers… counting on future revenue to justify the current expenditure.
But what happens if that revenue falls short?
The losses could hit not just AI stocks but also banks and retirement funds. And Washington could face pressure for another bailout.
Our new briefing explains all our concerns and also the steps you can take to prepare.
You’ll also find out how to get our reports on buying gold and silver in a crisis.
As Washington adjusts to the election results, take a moment to check how prepared your money is for what comes next.
Eliza Lasky
Weiss Advocate
GitLab’s Real Edge Is Governance, Not Code Generation
The most revealing number in enterprise software right now is not a revenue figure. It is this one: 43% of organizations cannot reliably tell AI-generated code from human-written code inside their own codebases. That finding, from GitLab’s AI Accountability Report released in June 2026, surveyed 1,528 developers and technology buyers across six countries. It describes a risk that every compliance officer, every CISO, and every general counsel at a Fortune 500 company will eventually have to answer for.
GitLab (GTLB) is positioning itself to be that answer.
The conventional framing for GitLab is competitive: a DevSecOps platform fighting GitHub, Atlassian, and a long list of point-solution vendors for developer mindshare. That framing misses the structural argument. 91% of organizations now run two or more AI coding tools simultaneously, and 78% report faster code output since adopting them. Speed is not the problem. Control is. GitLab’s research found that 92% of enterprise teams report governance challenges with AI-generated code, and 85% believe the next phase of AI in software will focus less on generating code and more on governing it.
That is precisely the terrain GitLab occupies. Its unified platform embeds governance, security, and policy enforcement directly into the development workflow rather than bolting them on afterward. When AI agents write a function, modify an infrastructure file, or resolve a security vulnerability automatically, GitLab maintains the audit trail. That matters enormously as regulators and boards begin asking who is accountable for what software does.
The financial results are starting to reflect this positioning. In Q2 fiscal year 2027, ended July 31, 2026, GitLab reported revenue of $286.3 million, up 21% year over year, with non-GAAP diluted EPS of $0.24. Annual recurring revenue was not disclosed in the Q2 press release, but GitLab highlighted net ARR growth exceeding 40% year over year. More telling: transactions valued at $500,000 or more grew more than 150% year over year, and dollar-based net retention improved sequentially to 117%, its first uptick since 2024. These are not metrics of a company selling a commodity tool. They reflect deepening wallet share inside its largest accounts.
GitLab’s new Flex consumption model, launched in Q2 FY2027, drew more than $20 million in commitments from more than 130 customers in its first six weeks. The shift from seat-based pricing to consumption-based pricing is a meaningful structural change. It aligns GitLab’s revenue directly with how much AI-assisted work flows through its platform. As agentic AI scales, GitLab collects more. That is a business model designed for the world its own research describes.
The consumption model is not the only structural shift agentic AI is forcing on enterprise software pricing. Okta’s upgrade wave is being driven by the same agentic rollout creating demand for non-human identity at enterprise scale.
The risks are real. GAAP operating margin sat at negative 20% in Q2, and the company is investing heavily in AI products at the expense of near-term profitability. GitHub, backed by Microsoft’s distribution, remains a formidable competitor. And Q3 guidance of $281 million to $283 million implies a growth deceleration to roughly 15-16%.
The tension between strong operating metrics and a punishing near-term cost structure is not unique to GitLab. Oracle’s market reaction after its strongest quarter in years shows how aggressively investors are discounting heavy AI infrastructure spending against future revenue conversion.
But the governance problem is not going away. Approximately 50% of the Fortune 100 trust GitLab’s platform. With Q3 results expected on December 1, 2026, the question is whether the GitLab Duo Agent Platform is converting that installed base into something bigger than a seat license. The evidence so far suggests it is.
