Replit’s Margins Illustrate the High Costs of Coding Agents

At Replit, a maker of artificial intelligence–powered programming tools, the launch of a new coding agent last September put its sales into overdrive. Annualized revenue at the startup surged to more than $32 million in February from a measly $2 million last August. In July 2025, it hit $144 million, according to a person close to the company.

But its potential to become profitable is another story. As revenue has picked up, so have the costs of paying for the underlying AI models that power its agents—sinking its gross margins, which have ranged from negative 14% to 36% this year.