Intapp Posts Strong Q2 Results, but Shares Slide on Guidance and Cash Concerns
Intapp Inc (NASDAQ:INTA) reported financial results for its fiscal second quarter that surpassed analyst expectations on profitability, driven by robust demand for its cloud-based software in professional services firms. However, the company's shares fell sharply in after-hours trading, a reaction likely tied to its outlook for the coming quarter and a significant reduction in its cash balance.
Earnings and Revenue Versus Estimates
The provider of AI-powered software for advisory, legal, and capital markets firms delivered a clear beat on bottom-line performance for the quarter ended December 31, 2025.
- Non-GAAP Earnings Per Share (EPS): Reported $0.33, significantly above the analyst consensus estimate of $0.2648.
- Revenue: Reported $140.2 million, slightly below the analyst consensus estimate of approximately $140.9 million.
The earnings beat highlights the company's improving operational efficiency. Non-GAAP operating income jumped to $27.7 million from $18.9 million in the year-ago period, even as revenue growth was more modest. The slight revenue miss, while minor, may have contributed to investor caution.
Market Reaction and Outlook Concerns
Despite the earnings outperformance, INTA shares were down approximately 19% in after-hours trading following the report. This negative price action appears to be driven by two primary factors embedded in the quarterly update.
First, the company's provided outlook for the third quarter of fiscal 2026, while generally in line with analyst expectations, may not have met the market's hopes for a more significant raise following the strong Q2 beat. Intapp guided for Q3 non-GAAP EPS of $0.27 to $0.29, with the midpoint aligning closely with estimates. Revenue guidance of $143.8 million to $144.8 million also brackets the current consensus.
Second, and more notably, investors focused on the company's balance sheet. Cash and cash equivalents fell to $191.2 million as of December 31, down from $313.1 million at the end of June. This decline was largely due to an aggressive share repurchase program, through which the company bought back 3.4 million shares for $150.1 million during the first half of the fiscal year. While buybacks can signal confidence and boost per-share metrics, the substantial drawdown in liquidity may have unsettled some investors, especially in the context of the company's ongoing GAAP net losses.
Key Highlights from the Quarter
Beyond the headline numbers, Intapp's press release emphasized strong fundamental growth in its core subscription business and client expansion.
- SaaS Revenue Growth: Cloud subscription revenue grew 28% year-over-year to $102.5 million.
- Annual Recurring Revenue (ARR): Total ARR reached $535 million, up 22%, with Cloud ARR surging 31% to $433.6 million. Cloud ARR now represents 81% of the total, underscoring the successful transition to a subscription model.
- Client Retention and Expansion: The company's cloud net revenue retention rate was 124%, indicating that existing clients are spending significantly more year-over-year. Intapp now serves over 2,750 clients, with 834 generating over $100,000 in ARR.
- GAAP Profitability: The company continues to invest heavily in growth, resulting in a GAAP net loss of $5.9 million, though this improved from a $10.2 million loss in the prior-year period.
Conclusion
Intapp's second quarter demonstrated solid execution, with earnings comfortably exceeding forecasts and key SaaS metrics showing healthy expansion. The market's negative reaction, however, reflects a focus on forward-looking indicators and capital allocation. The combination of guidance that merely met expectations and a rapid depletion of cash for share repurchases appears to have outweighed the positive quarterly results in the near term. Investors will now watch closely for signs that the company's investments in growth and AI-driven solutions translate into accelerating revenue momentum and a clearer path to sustained GAAP profitability.
For a detailed look at Intapp's upcoming earnings estimates and historical performance, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
