0001565687-26-000014
SEC filingIntapp's Q2 FY26 revenue grew 16% YoY to $140.2M, driven by 28% SaaS growth, with gross margin improving to 75%.
For the three months ended December 31, 2025 (Q2 FY26), Intapp reported total revenues of $140.2 million, a 16% increase from $121.2 million in Q2 FY25. The growth was primarily driven by SaaS revenue, which surged 28% to $102.5 million, accounting for 73% of total revenue. License revenue declined 9% to $25.4 million as clients continued migrating to the cloud, while professional services revenue fell 7% to $12.3 million due to a strategic shift toward third-party implementation partners.
Gross profit rose 18% to $105.1 million, with gross margin expanding to 75% from 73% in the prior year. The improvement was led by SaaS gross margin, which increased to 82% (from 80% in Q2 FY25) as cloud hosting costs grew slower than revenue. License gross margin remained high at 95%, while professional services gross margin worsened to -26% (from -10%) due to higher contractor costs.
Operating loss improved to $7.2 million (5.1% of revenue) from $10.2 million (8.4%) in Q2 FY25. Operating expenses increased 14% but at a slower pace than revenue. Research and development expenses rose 18% to $39.3 million, driven by personnel costs and stock-based compensation. Sales and marketing expenses increased 14% to $46.7 million, reflecting higher commissions and personnel costs. General and administrative expenses grew 6% to $26.3 million. Net loss narrowed to $5.9 million from $10.2 million in the prior year.
For the six months ended December 31, 2025, total revenues were $279.2 million (up 16% YoY), with SaaS revenue of $200.0 million (up 27%). Gross margin remained at 75%, and operating loss widened to $21.6 million from $17.4 million in H1 FY25, primarily due to higher operating expenses. Net loss increased to $20.3 million from $14.7 million.
SaaS remains the growth engine, with revenue accelerating and margins improving. The 31% increase in Cloud ARR to $433.6 million and a Cloud NRR of 124% indicate strong retention and expansion within the existing client base. License revenue continues to shrink as expected, and professional services is being deliberately de-emphasized, leading to lower revenue and negative margins. The overall revenue mix is shifting favorably toward higher-margin SaaS.
Management's outlook emphasizes continued investment in innovation (R&D) and sales to capture market share, particularly in large firms. The company expects cloud adoption to drive future growth, with ARR and Cloud ARR as key metrics. While no formal guidance is provided in the MD&A, the $200.0 million stock repurchase authorization (January 2026) signals confidence in the business. The restructuring plan initiated in January 2026 aims to optimize costs, with accelerated payments of $3.0 million related to the TDI acquisition. Liquidity remains strong with $191.2 million in cash and an undrawn $100.0 million credit facility.
As of December 31, 2025, Intapp reported cash and cash equivalents of $191.2 million, down from $313.1 million at June 30, 2025, primarily driven by share repurchases. The company had no borrowings outstanding under its $100.0 million revolving credit facility and remained in full compliance with all covenants. Total stockholders' equity decreased to $410.2 million from $519.8 million, reflecting the $150.1 million buyback and $20.3 million net loss, partly offset by $58.5 million in stock-based compensation.
Intapp disclosed a remaining purchase commitment of $66.1 million under its December 2021 cloud services agreement with Microsoft Corp. (original commitment of $110.0 million). The committed spend period runs through December 2028, with a potential extension to December 2029. No other material purchase commitments were entered into during the six-month period. The company also disclosed a restructuring plan initiated in January 2026, expecting total charges of approximately $5.0 million.
During the six months ended December 31, 2025, Intapp completed its $150.0 million share repurchase program authorized in August 2025, repurchasing 3.4 million shares (2.3 million shares for $100.0 million in Q2 alone). The program was fully exhausted by period end. On January 29, 2026, the Board authorized a new $200.0 million repurchase program. No dividends were declared or paid. Capital expenditures totaled $1.2 million, and capitalized internal-use software costs were $4.4 million. The credit facility remained undrawn.
Intapp operates as a single reportable segment. Revenue by geography for the six months ended December 31, 2025: U.S. $192.2 million, U.K. $43.1 million, Rest of the world $44.0 million. No single client accounted for 10% or more of revenues in any period. As of December 31, 2025, total remaining performance obligations were $777.1 million, with 54% expected to be recognized within 12 months.
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