0001565687-25-000101
SEC filingIntapp's SaaS revenue grew 27% YoY, driving total revenue up 17% to $139.0M; gross margin improved 200 bps to 75%.
For the three months ended September 30, 2025, Intapp reported total revenues of $139.0 million, a 17% increase from $118.8 million in the prior-year period. The growth was driven primarily by SaaS subscriptions, which rose 27% to $97.5 million, fueled by new client wins, expansion within existing accounts, and continued migrations from on-premise to cloud solutions. License revenue edged up 2% to $29.2 million, aided by compliance uplift contracts, partially offset by migrations. Professional services revenue declined 8% to $12.3 million as the company shifted service delivery to third-party partners.
Gross profit increased 20% to $103.8 million, with gross margin improving from 73% to 75%. SaaS gross margin expanded to 81.7% from 80.1%, as revenue growth outpaced cloud hosting and personnel costs. License margin remained high at 94.6%, while professional services continued to operate at a gross loss of -28.0%, though the loss widened from -10.6%.
Operating expenses totaled $118.3 million, up 26% from $94.1 million, leading to an operating loss of $14.5 million compared to a loss of $7.3 million in the prior year. Research and development costs rose 26% to $40.9 million, driven by stock-based compensation, salary increases, and acquisition-related deferred consideration. Sales and marketing expenses increased 29% to $48.8 million, reflecting higher personnel costs, event spending, and commissions. General and administrative costs grew 19% to $28.6 million, impacted by personnel increases, stock compensation, fair value adjustments on contingent consideration, and cloud computing impairment charges.
Net loss amounted to $14.4 million, compared to a net loss of $4.5 million a year ago, as operating losses deepened and interest and other income declined 69% to $1.1 million due to foreign currency losses.
SaaS remains the primary growth engine, contributing 70% of total revenue (up from 65%). Cloud ARR reached $401.4 million, up 30% year-over-year, and now constitutes 80% of total ARR ($504.1 million, +21%). Cloud net revenue retention was 121%, improving from 119%, indicating strong cross-sell and upsell momentum. The number of clients with annual recurring revenue over $100,000 grew 15% to 813. License revenue, while relatively flat, continues to generate high-margin income, though its share is declining as the business transitions to the cloud. Professional services revenue is being deliberately deemphasized in favor of partner-led delivery, resulting in a revenue decline and margin pressure.
Management expects to continue investing in research and development and sales and marketing to capture market share and drive cloud adoption. The company highlighted its $100.0 million revolving credit facility (undrawn as of September 30, 2025) and $273.4 million in cash as sufficient liquidity for at least the next twelve months. No specific quantitative guidance was provided. A $150.0 million stock repurchase program was authorized in August 2025, with $50.0 million executed in the quarter. The company intends to pursue both organic investments and strategic acquisitions to complement growth. Key risks include the pace of cloud migrations and the ability to maintain client retention and margin expansion.
As of September 30, 2025, Intapp held $273.4 million in cash and cash equivalents, down from $313.1 million at June 30, 2025, primarily due to $50.0 million in stock repurchases. The company has no outstanding borrowings under its $100.0 million revolving credit facility (JPMorgan Credit Facility) and remained in compliance with all covenants. Total assets stood at $823.3 million, with stockholders' equity of $486.4 million. Deferred revenue (net) totaled $239.2 million, reflecting the company's subscription-based revenue model.
Intapp has a significant purchase commitment with Microsoft Corp. for cloud services, with a minimum spend of $110.0 million. As of September 30, 2025, $71.3 million remained on this commitment, which runs through December 2028 (with an option to extend to December 2029). No other material purchase commitments were entered into during the quarter. Operating lease liabilities totaled $23.7 million, with remaining lease terms averaging 4.1 years.
On August 7, 2025, the Board authorized a new $150.0 million common stock repurchase program. During the three months ended September 30, 2025, the company repurchased approximately 1.1 million shares for $50.0 million, leaving $100.0 million remaining under the authorization. No dividends were declared or paid. Capital expenditures (including capitalized internal-use software costs) totaled $2.9 million, or 2.1% of total revenues. The company did not issue or repay any debt during the period.
Intapp operates as a single operating and reportable segment. The CODM (CEO) reviews consolidated financial information to allocate resources and assess performance. Geographic revenue breakdown for the three months ended September 30, 2025: U.S. $97.0 million (69.8%), U.K. $20.7 million (14.9%), and Rest of World $21.3 million (15.3%). No single client accounted for 10% or more of total revenues.
Net loss of $14.4 million was offset by $27.3 million in stock-based compensation and other non-cash items, resulting in positive operating cash flow of $13.8 million. However, this was down 43.6% from $24.4 million in the prior year, driven largely by a $21.9 million decrease in accounts payable and accrued liabilities and a $19.8 million decline in deferred revenue. Working capital movements consumed cash relative to last year.
Capital expenditures (capex) totaled $2.9 million, or 21% of operating cash flow. While free cash flow is not explicitly stated, the implied FCF would be approximately $10.9 million (CFO minus capex), but the company does not report it.
Share repurchases of $50.0 million were funded by operating cash and existing cash reserves, with cash balances declining from $313.3 million to $273.6 million. The financing cash flow was negative $47.2 million due to the buyback, partially offset by $2.8 million in stock option proceeds. There were no dividends paid.
Overall, cash generation remains positive but declined due to working capital outflows. The repurchase activity signals management's confidence, but investors should monitor the sustainability of operating cash flow given the large deferred revenue decrease.