VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Monday, December 29, 2025
UiPath, Inc.
PATH · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
UiPath is an enterprise automation software vendor focused on RPA and newer agentic automation capabilities. The core moat is demand-side switching and change costs: once automations are built and governed at scale, customers tend to expand use cases and renew. A complementary moat comes from ecosystem complements - partners, training, and community - which increases implementation capacity and lowers perceived adoption risk. Professional services is a small, competitive enablement layer with limited moat.
Primary segment
Automation Platform
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
2 segments · 6 tags
Updated 2025-12-29
Segments
Automation Platform
Enterprise automation software (RPA + agentic automation platform)
Revenue
97.2%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Professional Services and Enablement
Automation implementation & training services (RPA/agentic automation)
Revenue
2.8%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Automation Platform
Enterprise automation software (RPA + agentic automation platform)
Revenue_share computed from FY2025 10-K revenue lines: licenses $587.2m + subscription services $801.9m divided by total revenue $1,429.7m (https://www.sec.gov/Archives/edgar/data/1734722/000173472225000007/path-20250131.htm).
Training Org Change Costs
Demand
Training Org Change Costs
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 3 evidence
Deployments require workflow redesign, integration, and training; automation programs tend to expand within an organization, raising migration and retraining costs.
Erosion risks
- Hyperscaler/ERP-native automation reduces need for a standalone RPA layer
- AI copilots/agent tools commoditize portions of bot building
- Security or governance failures reduce willingness to standardize on the platform
Leading indicators
- Dollar-based net retention rate trend
- Customers with ARR >= $1M (count and revenue share)
- Net new ARR vs churn/downsells in public disclosures
Counterarguments
- Some automation workflows can be rebuilt on competing platforms with sufficient SI support
- Microsoft bundling (Power Platform) can shrink incremental willingness-to-pay for standalone RPA
Suite Bundling
Demand
Suite Bundling
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Single platform spanning discovery, automation execution, and operations/governance reduces point-solution sprawl and favors standardization on UiPath for enterprise automation programs.
Erosion risks
- Best-of-breed point solutions outperform bundled modules (process mining, testing, IDP)
- Large suite vendors replicate bundling and win via procurement consolidation
- Product sprawl increases complexity and harms UX
Leading indicators
- Attach rates of adjacent modules (process mining, testing, IDP) disclosed on calls/decks
- Mix shift toward subscription services vs licenses
- Competitive win/loss commentary in filings
Counterarguments
- Bundling is easier for larger incumbents (e.g., Microsoft) with broader suites and distribution
- Some customers prefer best-of-breed and integrate via iPaaS rather than commit to one vendor
Ecosystem Complements
Network
Ecosystem Complements
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Partner + developer ecosystem (training, certifications, community, marketplace) increases adoption and availability of skilled implementers, improving ROI and lowering perceived risk for enterprise buyers.
Erosion risks
- Partner ecosystem is non-exclusive and may prioritize competing platforms
- Developer mindshare shifts to open-source or embedded automation in other suites
- Reputational damage (security, reliability) reduces ecosystem engagement
Leading indicators
- Growth in certified professionals / Academy participation
- Marketplace activity (publishers, downloads) where disclosed
- Partner-sourced ARR/revenue mix where disclosed
Counterarguments
- Microsoft and other large ecosystems may dominate developer mindshare and integrations
- Systems integrators can deliver similar outcomes on multiple RPA tools, diluting ecosystem advantages
Professional Services and Enablement
Automation implementation & training services (RPA/agentic automation)
Professional services and other revenue was ~3% of FY2025 revenue (Form 10-K, https://www.sec.gov/Archives/edgar/data/1734722/000173472225000007/path-20250131.htm).
Training Org Change Costs
Demand
Training Org Change Costs
Strength: 2/5 · Durability: fragile · Confidence: 3/5 · 2 evidence
UiPath's own services can be sticky during initial rollout due to platform-specific know-how, but delivery is largely substitutable with systems integrators and other consultancies.
Erosion risks
- Services commoditization and price competition
- Partners capture the majority of delivery work
- Customers build internal centers of excellence and reduce external services
Leading indicators
- Professional services revenue share trend
- Professional services gross margin trend
- Partner ecosystem scale vs in-house services headcount
Counterarguments
- Large global SIs can replace vendor services quickly
- Customers often prefer independent integrators over vendor-delivered services
Evidence
Our customers sometimes request consulting and training to assist them in integrating our platform into their business.
Integration + change management implies meaningful switching costs once automations are embedded.
often expanding use cases and increasing their number of automations beyond their initial deployment.
Land-and-expand behavior; more automations and use cases raise replacement cost.
Dollar-based net retention rate 107% 113%.
Reported DBNRR above 100% indicates net expansion from existing customers over the prior 12 months.
seamlessly design and combine UI automations, API integrations, and AI-based document understanding in a single workflow.
Supports an integrated, multi-capability platform rather than isolated tools.
they're looking for a unified platform rather than standalone tools.
Management explicitly positions customer preference toward a unified platform approach.
Showing 5 of 8 sources.
Risks & Indicators
Erosion risks
- Hyperscaler/ERP-native automation reduces need for a standalone RPA layer
- AI copilots/agent tools commoditize portions of bot building
- Security or governance failures reduce willingness to standardize on the platform
- Best-of-breed point solutions outperform bundled modules (process mining, testing, IDP)
- Large suite vendors replicate bundling and win via procurement consolidation
- Product sprawl increases complexity and harms UX
Leading indicators
- Dollar-based net retention rate trend
- Customers with ARR >= $1M (count and revenue share)
- Net new ARR vs churn/downsells in public disclosures
- Attach rates of adjacent modules (process mining, testing, IDP) disclosed on calls/decks
- Mix shift toward subscription services vs licenses
- Competitive win/loss commentary in filings
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.