Executive Summary / Key Takeaways

• Intapp (NASDAQ: INTA) is a leading provider of AI-powered vertical SaaS solutions, uniquely tailored for the highly regulated professional and financial services industries, including accounting, consulting, investment banking, legal, private capital, and real assets firms.
• The company delivered robust financial performance in fiscal year 2025, with SaaS revenue growing 28% year-over-year to $331.95 million and Cloud ARR increasing 29% to $383.1 million, now representing 79% of total ARR. Cloud Net Revenue Retention (NRR) stood strong at 120%.
• Strategic initiatives, including a focused enterprise sales group and an active cloud migration program, are driving significant client expansion, evidenced by a 49% year-over-year increase in clients with over $1 million in ARR.
• Deepening partnerships with technology giants like Microsoft (MSFT) and Snowflake (SNOW), alongside strategic acquisitions such as TermSheet, are amplifying Intapp's market reach and technological differentiation, particularly in applied AI.
• Intapp's fiscal year 2026 outlook projects continued SaaS revenue growth to $411.4 million - $415.4 million and substantial non-GAAP operating income of $96 million - $100 million, underpinned by prudent investments and strong operational leverage.

The Unseen Engine of Elite Professional Services

Intapp stands as a critical, yet often unseen, technological backbone for the world's premier professional and financial services firms. As a global provider of AI-powered vertical Software as a Service (SaaS) solutions, Intapp caters to the exacting demands of accounting, consulting, investment banking, legal, private capital, and real assets firms. These industries, collectively representing a significant portion of the global economy, operate within complex, highly regulated ecosystems, where expertise, relationships, and compliance are paramount.

Historically, these elite, partner-led firms have grappled with outdated internal systems or ill-fitting horizontal software, necessitating extensive and costly customization. Intapp's foundational strength, honed over 25 years since its inception in 2000, lies in its deep domain expertise and purpose-built technology. This specialized approach allows Intapp to deliver solutions that align precisely with unique workflows, ethical obligations, and regulatory requirements, a critical differentiator against generalist competitors. The underlying demand for digitalization and compliance in these underserved markets has proven acyclical, enabling Intapp to demonstrate consistent growth through various economic cycles, including the 2008 recession and the COVID-19 pandemic. This resilience underscores the fundamental need for modern, industry-specific technology to drive efficiency and competitive advantage.

Technological Edge: Applied AI as the Differentiator

At the heart of Intapp's value proposition is its Intelligent Cloud platform, a modern, cloud-based infrastructure built on Microsoft Azure. This platform features a multi-tenant architecture, ensuring scalability, high availability, and enterprise-grade security, compliant with international standards such as ISO 27001, SOC 2, and CSA STAR. A single unified codebase allows for rapid deployment of quarterly major releases and monthly maintenance updates, ensuring all cloud clients benefit from the latest innovations immediately.

Intapp's Applied AI strategy is deeply embedded across this platform, leveraging automation, machine learning, deep learning, and generative AI to help firms optimize critical processes, manage risk, and enhance decision-making. This industry-specific AI is a centerpiece of Intapp's differentiation, designed to arm professionals with unique insights from their firm's proprietary data, relationships, and knowledge, all while adhering to stringent industry regulations.

Recent AI product innovations highlight this strategic focus:

• Intapp DealCloud Activator is an AI-enabled growth platform that integrates behavioral science and AI into business development workflows, providing real-time analytics and actionable recommendations.
• Intapp Assist for DealCloud offers advanced capabilities such as origination recommendations, which use AI to pattern-match ideal target companies, and smart tagging, which automates data capture and organization. This innovation is gaining significant traction, accounting for approximately 35% of new DealCloud wins in fiscal year 2025, a substantial increase from 8% in the prior year.
• Intapp Assist for Terms is a generative AI feature that enables legal professionals to query client contractual obligations conversationally within Microsoft Teams, significantly reducing the time and research needed for compliance with outside counsel guidelines.
• Intapp Walls for AI/Copilot provides crucial protection against the oversharing of confidential data by AI tools, extending secure access controls across firm systems, including Microsoft Copilot and OneDrive. This ensures AI-powered collaboration remains confidential and compliant.
• The next-generation Intapp Intake features AI-powered persona-driven summaries and Intapp Data integration, streamlining new business acceptance.
• The transformed Intapp Time product, powered by generative AI, is set for release, promising faster and easier timekeeping, enhanced billing accuracy, and improved compliance.

These technological advancements provide tangible benefits, enabling firms to streamline complex workflows, accelerate billing cycles, enforce confidentiality, and surface actionable insights at the earliest stages of client engagement. This focus on compliant, embedded AI directly contributes to Intapp's competitive moat, driving client adoption and superior financial performance through enhanced value propositions.

Strategic Expansion: Enterprise Focus and Ecosystem Power

Intapp's growth strategy is multifaceted, emphasizing expansion within its existing client base, acquiring new logos, and accelerating cloud migrations. A significant strategic shift in fiscal year 2025 involved solidifying an enterprise sales group, dedicating more resources to the largest accounts that represent 70% of Intapp's serviceable addressable market (SAM). This focus has yielded impressive results, with the number of clients generating over $1 million in Annual Recurring Revenue (ARR) growing by 49% year-over-year to 109 clients in FY25. The number of clients with over $100,000 in ARR also expanded to 795.

A robust partner ecosystem, comprising over 145 strategic, technology, data, services, and implementation partners, is a cornerstone of Intapp's expansion. Partner-influenced bookings grew by over 50% year-over-year in FY25, underscoring the effectiveness of this collaborative approach. The strategic alliance with Microsoft is particularly impactful, serving as a "major growth driver." Nearly half of Intapp's largest Q4 FY25 wins were jointly executed with Microsoft. This partnership allows clients to leverage existing Microsoft Azure Consumption Commitment (MACC) agreements to purchase Intapp solutions via the Azure Marketplace, reducing sales cycle times and simplifying budget allocation. Microsoft sales representatives are also incentivized to co-sell Intapp products, further aligning strategic objectives. Beyond Microsoft, new partnerships with Snowflake and MSCI (MSCI) enhance analytics and market intelligence, providing clients with integrated access to firm-wide data and private capital market insights.

Strategic acquisitions have also played a vital role in extending Intapp's platform and market leadership. In April 2025, Intapp acquired TermSheet, LLC, a software provider for real estate teams. This acquisition significantly broadens DealCloud's capabilities within the real assets industry, extending beyond fundraising and coverage to encompass asset management throughout the asset lifecycle. TermSheet also brought a strong AI-first team, bolstering Intapp's engineering talent. While TermSheet's contribution to incremental Cloud ARR was less than 5% in Q4 FY25, it is expected to contribute more materially to overall Intapp growth in FY26, representing a long-term strategic investment in a significant, underserved market. Earlier acquisitions, such as delphai (AI for firmographic data), Transform Data International (reseller), Paragon Data Labs (employee compliance), and Billstream (pre-billing automation), have consistently enhanced Intapp's product portfolio and market reach.

Intapp has also initiated an official cloud migration program in fiscal year 2025, actively encouraging and assisting its remaining on-premise clients to transition to the cloud. This initiative is driven by the fact that generative AI capabilities are exclusively available in the cloud, coupled with the inherent scalability, reliability, and security benefits of cloud platforms. These conversions typically yield a nominal 20% upside in contract value, reflecting the enhanced capabilities and efficiencies gained by clients.

Financial Performance: Momentum Towards Profitability

Intapp concluded fiscal year 2025 with strong financial results, demonstrating significant momentum towards sustained profitability. Total revenue for FY25 reached $504.12 million, marking a 17% increase year-over-year. This growth was predominantly fueled by the SaaS segment, which saw revenues climb 28% to $331.95 million, now comprising 66% of total revenue. Cloud ARR, a key metric for the company's future growth, surged 29% year-over-year to $383.1 million by June 30, 2025, representing 79% of the total ARR of $485.4 million. The trailing twelve-month Cloud Net Revenue Retention (NRR) remained robust at 120%.

License revenue, representing legacy on-premise offerings, remained relatively flat at $120.02 million, growing 2% year-over-year, as new on-premise expansions were largely offset by the strategic migration of clients to cloud solutions. Professional services revenue decreased by 3% to $52.15 million, aligning with Intapp's strategy to de-emphasize this segment and increasingly rely on its partner ecosystem for implementation services.

Profitability metrics showed significant improvement. The non-GAAP gross margin for FY25 expanded to 77.3%, up from 74.2% in FY24, and reached 78% in Q4 FY25. This improvement was driven by the growing contribution of higher-margin SaaS revenues and increased efficiency in professional services, which has progressed towards breakeven or slight profitability. While the company reported a GAAP operating loss of $27.36 million and a net loss of $18.22 million for FY25, these figures represent a substantial improvement from the prior year's losses of $32.19 million and $32.02 million, respectively. On a non-GAAP basis, operating income nearly doubled to $75.6 million in FY25 from $38.7 million in FY24, and non-GAAP diluted EPS rose to $0.94 from $0.45.

Intapp's cash flow generation also strengthened considerably, with Free Cash Flow reaching $121.9 million for FY25, representing 24% of total revenue. The company maintains a healthy liquidity position, with $313.1 million in cash and cash equivalents as of June 30, 2025, and an unused $100 million revolving credit facility. In a vote of confidence, the Board of Directors authorized a $150 million common stock repurchase program in August 2025, signaling a balanced capital allocation strategy that prioritizes internal investments in product roadmap and AI, potential strategic M&A, and returning capital to shareholders.

Competitive Positioning: Vertical Depth vs. Horizontal Breadth

Intapp operates in a highly competitive enterprise software market, facing both established giants and nimble emerging players. Its competitive position is fundamentally strengthened by its deep domain expertise, rapid product innovation, and the trust it has cultivated with leading firms in its target industries. Intapp's solutions are purpose-built for operational controls and compliance, which is crucial in highly regulated sectors. This vertical depth is a key differentiator against horizontal platforms that often require extensive, costly customization to meet specialized industry needs.

When compared to major competitors:

• Salesforce (CRM): Intapp's DealCloud offers more specialized efficiency for financial and professional services, particularly in managing complex compliance and deal processes, compared to Salesforce's broader CRM tools. Intapp differentiates through tailored expertise for mid-market to large professional services firms, which often find Salesforce's generalist approach lacking in depth for their unique workflows. Intapp's financial metrics in these niche segments may exhibit greater stability, potentially leading to stronger cash flow generation in specialized areas.
• Microsoft (MSFT) (via Dynamics 365): Intapp's solutions provide deeper customization for professional services workflows, such as engagement lifecycle management, compared to Microsoft's more generalized Dynamics tools. Intapp's AI and cloud architectures are specifically designed for compliance and deal processes, effectively leveraging Microsoft's underlying ecosystem for broader operational tools. Intapp leads in regulatory-focused features and offers lower implementation barriers for specific users within its target verticals.
• Thomson Reuters (TRI): Intapp's modern AI architectures offer greater adaptability for dynamic client lifecycle management compared to Thomson Reuters' more data-centric tools, which often emphasize information aggregation over workflow automation. Intapp leads in cloud-native flexibility and user interface modernity, addressing a potential lag in traditional professional information services.
• Oracle (ORCL): Intapp's specialized solutions offer significantly greater ease of use for financial services workflows compared to Oracle's more enterprise-heavy tools, which can entail higher upfront investment and complexity. Intapp focuses on delivering compliant AI without the burden of legacy system integration, while Oracle typically provides stronger data analytics capabilities at a broader enterprise level.

Intapp's competitive advantages, or moats, include its proprietary technology for industry-specific AI and cloud solutions, which enables significantly higher efficiency in compliance processes. This translates into stronger customer loyalty and recurring revenue, enhancing financial outcomes through superior margins and growth in regulated sectors. The company's focus on professional networks also fosters security and loyalty, helping it compete effectively. However, Intapp's relatively smaller scale compared to these tech giants could lead to higher customer acquisition costs and limit its adaptability in broader markets. The high R&D costs and specialized regulatory expertise required to compete in Intapp's markets act as significant barriers to entry, protecting its niche.

Outlook and Risks: Sustained Growth with Prudent Management

Intapp's outlook for fiscal year 2026 reflects continued confidence in its growth trajectory and operational efficiency. The company projects SaaS revenue between $411.4 million and $415.4 million, representing a 12-13% year-over-year growth. Total revenue is expected to be in the range of $566.7 million to $570.7 million. Non-GAAP operating income is guided to be between $96 million and $100 million, with non-GAAP diluted EPS in the range of $1.09 to $1.13. This outlook assumes a professional services revenue mix consistent with FY25 (approximately 10% of total revenue) and reflects increased participation in cloud migration efforts. Management characterizes this guidance as "prudent," underpinned by a "strongest pipeline it's ever been" and continued operational leverage.

Despite this optimistic outlook, several risks warrant investor attention. The rapid evolution of AI technology presents challenges related to accuracy, bias, privacy, security, and the uncertain landscape of intellectual property ownership for AI-generated content. Evolving global regulations, such as the EU AI Act, GDPR, CCPA, CPRA, and the EU Data Act, could impose additional compliance burdens and costs, potentially leading to significant fines. Cybersecurity threats, including sophisticated AI-powered attacks and reliance on third-party cloud providers, remain a constant concern given the sensitive nature of client data.

While Intapp's business has demonstrated macroeconomic resilience, severe downturns in its highly specialized target industries could still impact demand. The company's rapid growth also places significant demands on management and operational resources, requiring continuous investment in personnel, IT infrastructure, and systems. Intense competition from both large horizontal players and new AI entrants necessitates ongoing investment in product development and go-to-market strategies. Furthermore, expanding international operations expose Intapp to geopolitical instability, currency fluctuations, and the complexities of complying with diverse legal and regulatory frameworks.

Conclusion

Intapp is a compelling investment thesis, rooted in its specialized, AI-powered vertical SaaS platform that addresses the unique and complex needs of elite professional and financial services firms. The company's deep domain expertise, cultivated over two decades, positions it as a trusted partner in an underserved market that is undergoing a fundamental shift towards digitalization and AI adoption. Fiscal year 2025 showcased strong financial momentum, driven by robust SaaS revenue growth, expanding margins, and significant free cash flow generation, all while strategically investing in enterprise market penetration and a powerful partner ecosystem.

The company's technological leadership, particularly in Applied AI, provides a critical competitive advantage, enabling firms to enhance efficiency, manage risk, and drive growth in a compliant manner. With a prudent yet optimistic outlook for fiscal year 2026, Intapp is poised for continued expansion, leveraging its strategic partnerships and a dedicated cloud migration program. While risks associated with AI regulation, cybersecurity, and competitive intensity persist, Intapp's proactive approach to innovation and compliance, combined with its proven ability to execute in a high-value vertical, underscores its potential for sustained long-term growth and value creation for investors.