Why This Fund Dumped $35 Million of UiPath Even as Revenue Grew 17%

Capital Impact Advisors disclosed in a May 14, 2026, SEC filing that it sold 2,753,724 shares of UiPath (NYSE:PATH), an estimated $35.07 million transaction based on quarterly average pricing.

What happened

According to a SEC filing dated May 14, 2026, Capital Impact Advisors, LLC reduced its stake in UiPath (NYSE:PATH) by 2,753,724 shares during the first quarter. The estimated transaction value is $35.07 million, calculated using the quarterly average share price. The fund’s remaining holding at quarter end stood at 434,882 shares, with a reported value of $4.83 million. The quarter-end position value fell by $47.43 million, a figure that includes both trading and market price movements.

What else to know

• The sale decreased the UiPath stake to 1.95% of the fund’s reportable AUM as of March 31, 2026.
• Top holdings after the filing:
  • NASDAQ:NVDA: $19.39 million (7.8% of AUM)
  • NASDAQ:META: $16.01 million (6.5% of AUM)
  • NYSE:UI: $13.38 million (5.4% of AUM)
  • NYSE:ANET: $12.42 million (5.0% of AUM)
  • NASDAQ:PLTR: $12.17 million (4.9% of AUM)
• As of Friday, UiPath shares were priced at $11.72, down about 10% over the past year and well underperforming the S&P 500, which is instead up about 28%.

Company Overview

Company Snapshot

• UiPath offers an end-to-end automation platform featuring robotic process automation (RPA), AI-driven process discovery, low-code development tools, and centralized management for enterprise automation initiatives.
• The firm generates revenue primarily through software licensing, maintenance, and professional services, including training and implementation support.
• It serves large enterprises and government entities across sectors such as banking, healthcare, and financial services, with a global presence in the United States, Romania, and Japan.

UiPath Inc. is a leading provider of enterprise automation solutions, delivering scalable RPA and AI-based software to streamline business processes. The company leverages a comprehensive platform to help organizations automate repetitive tasks, improve operational efficiency, and ensure compliance. With a strong focus on innovation and global reach, UiPath has established itself as a key player in the automation software industry.

What this transaction means for investors

UiPath appears to be showing the kind of operational progress investors have been waiting for after a tough stretch for the stock (as with many in software). In its latest quarter, revenue rose 17% year over year to $418 million, annual recurring revenue climbed 12% to $1.9 billion, and the company posted its first-ever quarter of GAAP operating profitability. Management also highlighted growing adoption of its agentic AI products, with CEO Daniel Dines saying customers are increasingly standardizing on UiPath's platform as the orchestration layer for enterprise AI initiatives.

The company generated $132 million in operating cash flow and finished the quarter with $1.42 billion in cash, cash equivalents, and marketable securities, giving it plenty of flexibility to invest in growth.

Ultimately, the stock has lagged the broader market over the past year, but the business is moving in the right direction. And while Capital Impact clearly decided to reduce exposure, the latest results suggest the turnaround narrative might remain intact.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks, Meta Platforms, Nvidia, Palantir Technologies, and UiPath. The Motley Fool recommends Ubiquiti. The Motley Fool has a disclosure policy.