Intapp (INTA) Q1 2026: Cloud ARR Jumps 30% as Vertical AI and Microsoft Partnership Accelerate Enterprise Expansion
Intapp’s Q1 marked a decisive acceleration in cloud adoption, with cloud annual recurring revenue (ARR) up 30% and now 80% of total ARR, underscoring the shift from on-premise to SaaS across legal, financial, and consulting verticals. Applied AI features, deeper Microsoft co-selling, and robust client expansion fueled cross-sell and upsell momentum, while partner leverage and compliance-driven demand set the stage for further scale. Despite conservative guidance, execution on vertical AI and large enterprise migrations positions Intapp for continued durable growth.
Summary
- Cloud Migration Momentum: Cloud ARR now 80% of total, with enterprise clients driving adoption and 20-30% uplift on migrations.
- AI Product Expansion: Applied and generative AI features are accelerating client wins and deepening product attach rates.
- Partner Ecosystem Leverage: Microsoft co-selling and expanding partner network are amplifying deal size and reach.
Performance Analysis
Intapp delivered total revenue growth of 17% year-over-year, with SaaS revenue up 27% and cloud ARR surging to $401 million, now representing 80% of the $504 million total ARR base. The company’s cloud-first strategy is evident in the rapid mix shift: SaaS now comprises 70% of total revenue, up over five points from the prior year. License revenue grew modestly, while professional services revenue declined 8%, reflecting the ongoing transition away from on-premise implementations and toward more scalable, partner-led delivery models.
Gross margin improved to 77.7% on the back of higher cloud mix and operational efficiency, with non-GAAP operating income up meaningfully. Free cash flow remained positive even after a $50 million share repurchase, signaling disciplined capital allocation. The client base at $100K+ ARR expanded by 15% year-over-year, now accounting for 30% of total clients, while cloud net revenue retention (NRR) held at a robust 121%, highlighting strong upsell and cross-sell activity.
- Cloud Mix Shift: SaaS revenue’s share of total revenue rose sharply, reflecting client migration and higher attach rates for AI modules.
- Professional Services Drag: Declining services revenue reflects Intapp’s pivot to scalable, productized SaaS delivery and partner-led implementations.
- Enterprise Expansion: The number of large clients ($100K+ ARR) grew, underpinning durable ARR growth and increasing wallet share per client.
Overall, the quarter validated Intapp’s vertical SaaS model, with cloud and AI adoption outpacing legacy segments and partner-driven sales opening new markets and larger deal opportunities.
Executive Commentary
"We continue to execute on our vertical AI roadmap, specifically through applied AI innovation and growing client adoption. Our industry specific AI solutions do automate rote manual tasks. But more importantly, they deliver actionable insights drawn from a firm's proprietary data, knowledge and relationships, which are unified and enriched with our own industry graph data model and trusted third party sources. Critically, our solutions do all this while helping firms maintain compliance with the industry's most complex regulations. These advanced, tailored compliance capabilities are what set Intap apart and why firm leadership continues to invest in our technology."
John Hall, Chairman and CEO
"Cloud annual recurring revenue surpassed $400 million in Q1, a 30% year-over-year increase as we expanded enterprise wallet share across our vertical markets. We excelled on both upsell and cross-sell activity this quarter while continuing to transition client spend to the cloud. We're also seeing strong progress in executing our vertical applied AI strategy with absolute growth in AI skew ACD dollars and attach rates, while maintaining discipline in our operating model, proving that efficiency and leverage are tenable."
David Morton, Chief Financial Officer
Strategic Positioning
1. Vertical AI as Differentiator
Intapp’s vertical AI strategy, focused on industry-specific automation and actionable insight, is resonating with knowledge-centric firms in legal, financial, and consulting verticals. AI features like GenAI-powered timekeeping and agentic AI for deal management are driving both new client wins and deeper expansion within existing accounts. The company’s ability to deliver compliance-centric AI is a core competitive moat, especially as clients face increasingly complex regulatory environments.
2. Microsoft Partnership and Partner-Led Scale
Microsoft’s role as a strategic partner is amplifying Intapp’s reach, especially in the enterprise segment. Over half of the top ten Q1 deals were executed jointly with Microsoft, with Azure investment dollars accelerating deal cycles and budget approvals. The partner ecosystem, now at 145 curated partners, is enabling Intapp to scale efficiently and enter new geographies, such as Latin America through Lexsoft, without proportional increases in internal costs.
3. Enterprise Migration and Upsell Engine
Enterprise clients are migrating to the cloud and expanding their Intapp footprint, generating 20-30% ARR uplift per migration. The consolidation trend among large law and accounting firms, combined with private equity roll-ups, is increasing the need for scalable, compliant SaaS solutions. Intapp’s cross-sell and upsell engine is now the largest driver of net revenue retention, with new AI and compliance modules pulling through additional product adoption.
4. International Expansion via Partners
International revenue is now about one-third of the business, with growth in the UK, Australia, Canada, and Asia-Pacific. Partner-led go-to-market, including new offices in Singapore and local alliances, is opening underpenetrated markets and accelerating adoption of cloud and AI solutions globally.
5. Product Innovation and Advisory-Led Growth
Intapp’s product roadmap is deeply informed by client advisory boards, ensuring new features and modules address real workflow pain points. Early adopter feedback on GenAI and timekeeping tools has been positive, supporting a deliberate rollout and monetization strategy for AI across the platform.
Key Considerations
This quarter underscores Intapp’s transition from legacy on-premise to a SaaS-first, compliance-driven vertical software platform, with AI and partner leverage as core accelerants. Execution on enterprise migration, cross-sell, and global expansion are the major levers for the next phase of growth.
Key Considerations:
- Cloud Uplift Economics: Migrations from on-premise to cloud deliver 20-30% ARR uplift, driven by expanded seat counts and higher attach rates for AI and compliance modules.
- AI Monetization Models: Intapp is experimenting with usage-based, user-based, and firm-size pricing for AI modules, with early adopters willing to pay for demonstrable ROI.
- Partner Ecosystem Efficiency: The expanding partner network is reducing go-to-market costs and accelerating deal cycles, especially in new geographies and verticals.
- Enterprise Mix Shift: Large clients are now a larger share of revenue, raising both opportunity and execution complexity as Intapp targets the next scale milestone ($1B revenue).
- Conservative Guidance Stance: Despite strong Q1 results, management maintained a prudent outlook, citing macro caution and the need to balance investment with profitability.
Risks
Intapp faces risks from uneven billings growth, as legacy license transitions and ASC 606 dynamics create volatility in deferred revenue. Professional services revenue softness may persist as cloud adoption accelerates, putting pressure on services utilization rates. Competitive threats remain from both horizontal SaaS giants and point-solution AI startups, though Intapp’s compliance focus is a differentiator. Regulatory changes and client IT budget cycles could also impact migration velocity.
Forward Outlook
For Q2 2026, Intapp guided to:
- SaaS revenue of $100-101 million
- Total revenue of $137-138 million
For full-year 2026, management maintained a cautious guidance stance, raising the outlook modestly despite the Q1 beat. Key factors influencing guidance include:
- Continued migration of large clients to cloud and AI modules
- Ongoing investment in product innovation, go-to-market, and international expansion
Takeaways
- Cloud and AI Are Now Core Growth Engines: The mix shift to SaaS and rapid AI module adoption are driving higher ARR growth and improved gross margins, validating Intapp’s vertical SaaS model.
- Partner Leverage Is Scaling the Business: Microsoft and the broader partner ecosystem are enabling larger, faster deals and geographic expansion without proportional cost increases.
- Watch for Deeper Enterprise Penetration and Global Expansion: Execution on enterprise migration and international growth will be critical to sustaining momentum and reaching the next revenue milestone.
Conclusion
Intapp’s Q1 results demonstrate a successful pivot to cloud and AI-powered vertical SaaS, with partner leverage and enterprise migration fueling durable ARR growth. While guidance remains conservative, the underlying operational momentum and product innovation position the company for continued expansion and margin improvement.
Industry Read-Through
Intapp’s quarter signals a broader inflection for vertical SaaS players, as compliance-driven cloud migration and applied AI adoption accelerate across professional services and financial verticals. The success of partner-led go-to-market, especially with hyperscalers like Microsoft, highlights the value of ecosystem leverage for scaling enterprise SaaS. Competitors in legaltech, fintech, and consulting software should note the rising importance of compliance-centric AI and the economic uplift from cloud migrations. The verticalization of AI and cloud is now a durable, cross-industry theme, with Intapp’s execution providing a template for others targeting regulated, knowledge-intensive sectors.