Intapp, Inc. Q2 FY2026 earnings

Intapp's fiscal second quarter showed a business still growing at a healthy clip, but the profit picture remains mixed. Total revenue rose 15.7% year over year to $140.2 million. Gross profit rose 18.5% to $105.14 million, and gross margin improved to 75.0%, up 1.8 percentage points. Deferred revenue was $287.08 million, up 20.6%, while remaining performance obligations were $777.10 million, up 26.3%. Cloud annual recurring revenue reached $433.6 million, up 31%, and total ARR was $535.0 million, up 22%. Cloud ARR represented 81% of total ARR, up from 76%. The trailing twelve months cloud net revenue retention rate was 124%. Those backlog and retention metrics suggest demand is not fading.

The bottom line is less tidy. Operating loss narrowed 29.5% to $7.18 million, and net loss narrowed 41.9% to $5.93 million. Diluted EPS was -$0.07, an improvement of $0.06. Operating margin was -5.1%, up 3.3 percentage points. On a non-GAAP basis, operating income was $27.7 million, net income was $27.6 million, and diluted EPS was $0.33. For the first six months, revenue rose 16.3% to $279.24 million, but net loss widened 37.7% to $20.29 million. The year-to-date swing reflects higher operating expenses and a larger loss than the prior-year period.

Cash generation softened. Operating cash flow was $22.88 million for the quarter, down 9.3%, and $36.68 million for the six months, down 26.2%. Capital expenditures were $0.66 million, up 971.0%. Free cash flow, which subtracts capital expenditures from operating cash flow, was $22.2 million for the quarter and $35.5 million for the six months. On January 29, 2026, the board authorized a new $200.0 million repurchase program. No amounts were borrowed under the $100.0 million credit facility. A restructuring plan initiated in January 2026 accelerated approximately $3.0 million of payments related to the acquisition of TDI that will be paid in fiscal 2026.

Guidance points to continued momentum. For the third quarter of fiscal 2026, Intapp guided non-GAAP operating income to $23.1 million to $24.1 million and non-GAAP diluted EPS to $0.27 to $0.29. For the full fiscal year 2026, the company guided non-GAAP operating income to $99.9 million to $103.9 million and non-GAAP diluted EPS to $1.20 to $1.24. The guidance excludes estimated stock-based compensation of $28.7 million for the third quarter and $112.6 million for the full year, plus amortization of intangible assets of $2.9 million for the third quarter and $10.6 million for the full year.

Operationally, Intapp served more than 2,750 clients as of December 31, 2025. Of those, 834 had contracts greater than $100,000 of ARR. No single client represented more than 10% of total revenues. The company added clients such as accounting firm Ostberg Sinclair and law firm Buchanan Ingersoll Rooney. Intapp DealCloud was named Deal Origination Solution of the Year Credit at the 2025 Private Equity Wire U.S. Awards. Risks remain familiar for a growing vertical software company. They include the ability to continue growth at or near historical rates, future profitability, global economic conditions, data breaches, sales cycle variability, competition including AI products, integration of acquisitions, tariffs and taxes, foreign currency swings, and the health of clients in financial services and other targeted industries. The quarter shows solid demand and improving margins, but GAAP profitability and cash flow trends still need watching.