Intapp (INTA) Q4 2025: Cloud ARR Jumps 29% as AI and Enterprise Push Drive Expansion
Intapp delivered a quarter defined by accelerating cloud adoption and deepening enterprise traction, with AI-powered solutions and strategic partnerships fueling momentum. The company’s vertical SaaS model is gaining ground in regulated markets, while operational discipline and partner ecosystem maturity are translating to robust profitability and expanding deal sizes. Guidance signals confidence in durable growth levers and continued capital allocation flexibility for fiscal 2026.
Summary
- Cloud and AI Penetration Deepens: Cloud ARR and AI adoption are reshaping Intapp’s growth mix.
- Enterprise and Partner Ecosystem Scale: Strategic accounts and Microsoft partnership are now central to large deal flow.
- Margin Expansion on Operating Leverage: Efficiency gains and revenue mix are supporting higher profitability into FY26.
Performance Analysis
Intapp’s fourth quarter showcased a business in transition from mid-market SaaS to a verticalized, enterprise-first cloud platform. Cloud annual recurring revenue (ARR) surged 29% year over year to $383 million, now representing 79% of total ARR, a clear sign that the company’s cloud migration and expansion strategy is resonating. SaaS revenue grew 27% year over year, while total revenue climbed 18% on the back of new client wins, upsell, and strong cross-sell into regulated verticals.
Enterprise momentum was evident as the number of clients with over $1 million in ARR rose 49% year over year, reaching 109. The company’s cloud net revenue retention rate of 120% points to both low churn and increasing wallet share. AI-powered modules are gaining traction, now accounting for 35% of new DealCloud wins, up sharply from 8% the prior year. Operating leverage was evident as non-GAAP gross margin expanded to 78%, and free cash flow for the quarter reached $37.5 million, or 28% of revenue.
- Enterprise Account Expansion: Nearly half of large deals were co-executed with Microsoft, with strategic accounts now 70% of the addressable market focus.
- Partner-Driven Bookings Surge: Partner-influenced bookings grew over 50% year over year, with partners involved in 17 of the 20 largest deals.
- AI Solutions Shift Revenue Mix: AI modules are materially increasing attach rates and driving competitive differentiation in regulated sectors.
While professional services revenue declined slightly, this reflects a deliberate shift toward partner-led implementations, supporting scalable growth and improved gross margins. The company’s financial discipline and product innovation position it well for continued expansion in FY26.
Executive Commentary
"We continued progress on our applied AI strategy and roadmap this year. We launched several new AI solutions and showcased our innovation at our largest client event Intap Amplify in February. Our AI strategy reduces costs through automation and helps the professionals to grow revenue by providing back to them unique insights from the firm's proprietary data, relationships, and knowledge, all while staying compliant with the industry's complex regulations."
John Hall, Chairman and Chief Executive Officer
"We scaled our million-dollar-plus annual recurring revenue, or ARR, client base into triple digits, with both the number of clients and corresponding ARR more than doubling compared to FY23. We grew our cloud business through land, expand, and migration motions, with nearly 80% of total ARR now in the cloud. We surpassed the half billion dollar mark in annual revenue, and we generated well over $100 million in free cash flow."
David Morton, Chief Financial Officer
Strategic Positioning
1. Vertical SaaS and Compliance Differentiation
Intapp’s vertical SaaS model, delivering industry-specific solutions for regulated sectors, is its core differentiation. The company’s focus on compliance-driven workflows, particularly in legal, financial, and real asset markets, is increasingly resonating as regulatory complexity rises. Management highlighted that regulatory shifts (such as Australia’s AML and the upcoming QC 1000 accounting change) are expanding the need for tailored, compliant technology—an area where horizontal SaaS providers are less competitive.
2. AI-Driven Product Innovation and Attach
AI modules like Intap Assist and VeoCloud Activator are now integral to the company’s platform strategy. These features automate compliance, drive business development, and provide actionable insights from proprietary client data. The attach rate of AI modules has grown sharply, and management cited major client wins where AI was the deciding factor. This AI-first approach is helping Intapp win replacements of legacy and horizontal solutions, especially in law and investment banking verticals.
3. Enterprise Go-to-Market and Strategic Accounts
The enterprise sales motion is now central to Intapp’s growth trajectory. The creation of a dedicated enterprise group has enabled the company to target the top 2000 accounts, representing 70% of its serviceable available market (SAM). This shift has driven a 49% increase in million-dollar ARR clients and is supporting larger, stickier contract wins. Management is investing in further scaling this team in FY26, signaling confidence in the model’s repeatability.
4. Ecosystem Leverage: Microsoft and Snowflake Partnerships
Intapp’s partner ecosystem, anchored by Microsoft and now including Snowflake, is a force multiplier for both sales and product integration. Microsoft contributed to nearly half of the largest Q4 deals, often accelerating deal cycles through Azure Marketplace agreements. The Snowflake partnership enables clients to integrate firm-wide analytics and unlock new data-driven use cases, further embedding Intapp’s solutions in enterprise workflows.
5. M&A and Expansion into Real Assets
The acquisition of Termsheet, though immaterial to ARR in Q4, extends Intapp’s reach into real asset management workflows. This expands the company’s addressable market and brings AI engineering talent, supporting future product innovation. Management views real assets as a significant, underserved vertical with similar compliance and workflow complexity as core segments.
Key Considerations
The quarter’s results reinforce Intapp’s evolution into a high-value, enterprise-centric SaaS provider with a defensible niche in regulated sectors. The interplay between product innovation, go-to-market execution, and ecosystem leverage is driving both growth and profitability.
Key Considerations:
- AI as Growth Catalyst: AI modules are not just add-ons—client adoption is materially influencing win rates and competitive displacement, especially in legal and investment banking verticals.
- Enterprise Focus Drives Scale: The strategic account model is yielding larger deals, higher retention, and deeper wallet share, but will require continued investment in sales capacity and enablement.
- Partner Ecosystem Maturity: Microsoft and Snowflake relationships are reducing sales friction, increasing deal velocity, and embedding Intapp in clients’ broader technology stacks.
- Margin Expansion from Mix Shift: Cloud and software revenue outpacing professional services is structurally improving gross margins, with operating leverage expected to continue.
- Capital Allocation Optionality: The new $150 million share repurchase authorization adds flexibility, but management remains focused on product investment and targeted M&A.
Risks
Execution risk remains around scaling enterprise sales capacity and maintaining high attach rates for AI modules as competition intensifies in vertical SaaS. Regulatory changes, while a tailwind, could also introduce complexity and lengthen sales cycles. The company’s shift away from services revenue increases reliance on partner execution, which could introduce variability in client satisfaction and implementation timelines.
Forward Outlook
For Q1 2026, Intapp guided to:
- SaaS revenue of $95.7 to $96.7 million
- Total revenue of $134.8 to $135.8 million
- Non-GAAP operating income of $16 to $17 million
- Non-GAAP EPS of $0.18 to $0.20
For full-year 2026, management guided to:
- SaaS revenue of $411.4 to $415.4 million
- Total revenue of $566.7 to $570.7 million
- Non-GAAP operating income of $96 to $100 million
- Non-GAAP EPS of $1.09 to $1.13
Management emphasized continued investment in enterprise sales, AI R&D, and partner enablement, while flagging some front-loaded go-to-market spend in Q1. Professional services are expected to remain about 10% of revenue as partners take on more implementation work.
- Focus on expanding strategic accounts and partner-driven sales
- Continued AI feature rollouts and attach rate growth
Takeaways
Intapp’s Q4 and FY25 results highlight a business successfully leveraging vertical SaaS, AI, and ecosystem partnerships to accelerate cloud adoption and expand enterprise presence. The company’s focus on regulated markets, operational discipline, and capital allocation flexibility underpin a credible long-term growth narrative.
- Cloud and AI Momentum: Rapid cloud ARR and AI module growth are driving higher retention and wallet share, validating the company’s vertical strategy.
- Enterprise and Partner Execution: Strategic account focus and mature partnerships are yielding larger deals and improved margin profile, but require continued investment in talent and enablement.
- Watch for AI Attach and Real Asset Expansion: Sustained AI adoption and success in real asset verticals will be key indicators of future upside and competitive durability.
Conclusion
Intapp’s transformation into an enterprise-focused, AI-driven vertical SaaS leader is gaining momentum, with cloud and partner strategies translating to durable growth and expanding profitability. The company’s execution against a large regulated market opportunity, combined with prudent capital allocation, positions it well for FY26 and beyond.
Industry Read-Through
Intapp’s results underscore the rising importance of vertical SaaS and AI-powered compliance solutions in regulated industries. The company’s success with enterprise sales, partner co-selling, and AI attach rates offers a playbook for other vertical software vendors seeking to move upmarket and deepen client penetration. The growing role of hyperscaler partnerships (Microsoft, Snowflake) in accelerating deal cycles and embedding software into client workflows is a trend likely to accelerate across B2B SaaS. For peers, the shift away from services revenue toward scalable, high-margin SaaS is a key lever for long-term value creation.