Intapp (INTA) Q3 2025: Cloud ARR Jumps 28% as AI and Real Assets Expansion Drive Pipeline
Intapp’s Q3 saw cloud ARR surge and vertical expansion accelerate, underpinned by product innovation and targeted M&A. Execution on AI-enabled solutions and real assets integration positioned the business for continued durable growth, while management’s focus on client-specific needs and compliance continues to differentiate the platform. Forward guidance remains robust as the company leans into industry-tailored AI and cloud adoption, setting up a multi-year runway for expansion.
Summary
- AI-Driven Product Expansion: New applied AI features and Intap Amplify event fueled engagement and pipeline.
- Vertical Penetration Deepens: Real assets acquisition and legal sector wins highlight strategic execution in underserved markets.
- Margin Leverage Maintained: Operational efficiency and disciplined investment support profitable growth outlook.
Performance Analysis
Intapp delivered a third quarter marked by strong cloud momentum and disciplined execution across its vertical SaaS model, with cloud annual recurring revenue (ARR) reaching $352 million, up 28% year-over-year, and now representing 77% of total ARR. Total revenue grew 17% year-over-year to $129 million, driven by robust SaaS adoption, new client wins, and continued migration of legacy on-premise customers to the cloud platform. International operations contributed over one-third of revenue and grew 20% YoY, underscoring the global resonance of Intapp’s industry-specific solutions.
Gross margin expansion to 77.9% (from 75.1% a year ago) reflected the ongoing shift away from lower-margin professional services, as well as operational leverage from scale. Free cash flow conversion was strong at 27% of revenue, and the company ended the quarter with $323 million in cash, providing ample flexibility for continued investment and M&A. While professional services revenue declined 6% YoY due to strategic outsourcing, this move supported higher client satisfaction and co-sell pipeline generation, aligning with the company’s long-term cloud-first focus.
- Cloud Net Revenue Retention: 119% net revenue retention in cloud underscores Intapp’s ability to land and expand within its client base.
- Large Account Focus: Enterprise-targeted go-to-market changes are yielding a stronger pipeline, particularly among law, accounting, and private capital firms.
- Partner Ecosystem Growth: Certifications up 75% YoY, with 140+ partners now supporting co-sell and integration motions.
DealCloud, vertical CRM tailored for investment and advisory firms, continues to be the engine for both new logo wins and cross-sell expansion, with the real assets segment emerging as a material growth vector following the Termsheet acquisition.
Executive Commentary
"We are growing by adding new capabilities and increasing our global enterprise go-to-market reach. We see continued opportunity both to add new clients across a broad TAM and to deliver greater value by expanding our existing client base."
John Hall, Chairman and CEO
"The durability of our cloud business was evident in Q3, driven by progress with large accounts across verticals and geographies, as well as success in transitioning client spend to the cloud. We also continue to demonstrate improving efficiencies and leverage within the model."
David Morton, Chief Financial Officer
Strategic Positioning
1. Applied AI and Industry-Specific Innovation
Intapp’s product roadmap is centered on “applied AI,” meaning AI features tailored to the workflows and compliance needs of professional services and financial firms. Recent launches—such as Intap DealCloud Activator, AI-driven origination, and smart tagging—illustrate the company’s commitment to embedding intelligence where it drives tangible client value. The Intap Amplify event showcased these capabilities, generating strong client engagement and pipeline build, particularly as firms seek to modernize business development and timekeeping processes.
2. Real Assets Expansion via Termsheet Acquisition
The acquisition of Termsheet, a real estate software provider, deepens Intapp’s penetration in the real assets vertical, bringing new personas and capabilities into the fold. By integrating DealCloud and Termsheet, Intapp aims to deliver a comprehensive operating system for the entire real assets investment lifecycle, a segment historically underserved by generic CRM solutions. Early client feedback validates this move as a differentiator and accelerant for future growth.
3. Go-to-Market Shift Toward Enterprise Accounts
Sales organization restructuring at the start of the year prioritized coverage of large enterprise clients, a segment comprising 70% of Intapp’s total addressable market (TAM). This has resulted in a stronger pipeline of high-value deals, albeit with longer sales cycles, positioning Intapp to capture outsized wallet share as these clients standardize on its platform.
4. Partner Ecosystem and Co-Sell Motions
Expansion of the partner ecosystem, now over 140 strong, is amplifying Intapp’s reach and accelerating pipeline generation. New partnerships with data and onboarding providers, as well as co-hosted events with Microsoft, are reinforcing Intapp’s ecosystem strategy and supporting scalable, profitable growth.
Key Considerations
Intapp’s Q3 performance highlights the strategic value of vertical SaaS and applied AI in driving durable, client-centric growth. Several factors will shape the company’s trajectory as it enters FY26:
Key Considerations:
- Vertical Cloud Adoption: Professional services and financial firms remain in early innings of cloud and AI adoption, providing a long runway for Intapp’s purpose-built solutions.
- Cross-Sell and Upsell Dynamics: Net revenue retention above 119% reflects strong expansion within existing accounts, especially as clients migrate more workflows to the cloud.
- International Opportunity: Over one-third of revenue is now international, with growth outpacing the overall business, pointing to further global expansion potential.
- Margin Expansion Levers: Outsourcing professional services and operational discipline are driving gross margin gains, with continued investment in R&D balanced by efficiency gains.
- Integration Execution: Successful integration of Termsheet and realization of real assets synergies will be critical to sustaining momentum in this vertical.
Risks
Intapp’s exposure to professional and financial services provides some acyclicality, but large enterprise deal cycles can be extended and subject to macro delays. Integration risk from recent acquisitions, especially Termsheet, could impact near-term execution. As AI adoption accelerates, competitive intensity from both legacy CRM vendors and new AI-native entrants bears monitoring. Management’s guidance assumes continued client migration and expansion, which could be challenged if digital transformation budgets tighten or if partner ecosystem ramp lags expectations.
Forward Outlook
For Q4 2025, Intapp guided to:
- SaaS revenue of $89 to $90 million, implying 26% to 27% YoY growth
- Total revenue of $131.5 to $132.5 million
- Non-GAAP operating income of $20 to $21 million
- Non-GAAP EPS of $0.22 to $0.24
For full-year 2025, management maintained guidance:
- SaaS revenue of $330.8 to $331.8 million, up 28% YoY
- Total revenue of $500.6 to $501.6 million
- Non-GAAP operating income of $74.3 to $75.3 million
- Non-GAAP EPS of $0.88 to $0.90
Management emphasized ongoing investment in product innovation, partner ecosystem expansion, and a continued focus on profitable growth as the company enters FY26. Initial Termsheet contribution in Q4 will be immaterial, with more impact expected in FY26.
Takeaways
Intapp’s Q3 reinforced the durability of its vertical SaaS model and the strategic advantage of applied AI, with cloud ARR acceleration and real assets expansion setting up a multi-year growth runway.
- AI and Cloud Tailwinds: Purpose-built, compliance-focused AI features are resonating with professional services clients, supporting both new client acquisition and expansion.
- Vertical Focus Yields Results: Real assets and legal vertical wins, along with the Termsheet integration, are unlocking new addressable markets and deepening competitive moats.
- Execution on Margin and Scale: Operational leverage and partner ecosystem expansion are driving improved profitability, with management balancing investment and efficiency as pipeline builds into FY26.
Conclusion
Intapp’s Q3 showcased the power of vertical SaaS combined with applied AI, delivering robust growth, margin expansion, and strategic wins in both core and emerging segments. With a clear focus on client-driven innovation and disciplined go-to-market execution, the company is well-positioned for continued durable growth and market share gains in a large, underpenetrated market.
Industry Read-Through
Intapp’s results highlight the growing appetite for vertical SaaS and applied AI solutions within professional services and financial firms, a trend likely to benefit other industry-specific software vendors. The success of tailored AI features and compliance-centric platforms signals that horizontal CRM and productivity tools will face increasing displacement risk in regulated, workflow-intensive sectors. The real assets expansion underscores the opportunity for SaaS providers to serve historically underserved asset classes, while the partner ecosystem approach points to the value of alliances in accelerating cloud adoption and driving co-sell momentum. Competitors and adjacent players should monitor the pace of AI adoption and the importance of integration and compliance as differentiators in the next wave of enterprise software deployment.