INTA

Hello, everyone, and welcome to the Intapp 2nd quarter fiscal 2026 earnings webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. Now it's my pleasure to turn the call over to Senior Vice President, Investor Relations, David Trone. The floor is yours.

Thank you. Welcome to Intapp's fiscal 3rd quarter 2026 financial results. On the call with me today are John Hall, Chairman and Chief Executive Officer of Intapp, and David Morton, Chief Financial Officer. During the course of this conference call, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business, including guidance provided for our fiscal 4th quarter and full year 2026. These forward-looking statements are based on management's current views and expectations, entail certain assumptions made as of today's date, and are subject to various risks and uncertainties, including those described in our SEC filings and other publicly available documents that are difficult to predict and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Intapp disclaims any obligation to update or revise any forward-looking statements except as required by law.

Further on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results, including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP diluted net income per share, and free cash flow. Our GAAP financial results, along with reconciliations of GAAP to non-GAAP financial measures, can be found in today's earnings release and its supplemental financial tables, which is available on our website and as an exhibit to the Form 8-K furnished with the SEC prior to this call, or a supplemental financial presentation, which is available on our website. With that, I'll hand the conversation over to John.

Thanks, David. Good afternoon, everyone. Thank you for joining us. Q3 was a strong quarter, one that reflects both the health of our core business and the momentum building behind where Intapp is headed. Today, I'll share our Q3 results, reflect on what we put in motion at Investor Day at Amplify in February, and walk through the client wins and early signals that speak to the opportunity ahead. First, the numbers. We achieved solid quarterly results in Q3, supported by the addition of new clients and the expansion of client accounts around the world. Our cloud ARR grew to $459 million, up 31% year-over-year. Cloud now represents 82% of our total ARR of $560 million.

In the quarter, we earned SaaS revenue of nearly $108 million, up 27% year-over-year, and total revenue of $146 million, up 13% year-over-year. February was a significant month for Intapp. We brought Amplify, our annual client and product showcase, to New York and London, and we hosted our second Investor Day. Together, those events put a single thesis on the table. Intapp is entering its most consequential chapter with strength, and we have a tremendous roadmap ahead to unlock new value for our clients. If you weren't there, I'd encourage you to watch the recordings. I want to use the next few minutes to revisit that thesis. Demand for the professional firms we serve is growing, and we expect that to continue.

As the economy expands, companies need outside counsel for high-stakes litigation, bankers for acquisitions, and auditors for assurance. These firms provide functions that are fundamental to capitalism, expert advice, and accepted third-party accountability that clients can't replicate internally. Their core economic value has nothing to do with technology, but their staying competitive does. These firms must transform. The opportunity to use AI to become more efficient, more capable, and more competitive is significant. The firms that move decisively will be the ones that win. They're also learning something after experimenting with first-generation horizontal tools. Generic AI wasn't built for how these highly regulated firms actually work or for the professional trust and compliance standards they're required to uphold. For these firms, professional compliance is an existential issue. That's why we built Celeste, an AI-native agentic platform designed from the ground up for professional firms.

Celeste delivers expert agents directly into the workflows that drive firm performance, business origination, deal and asset management, business intake and compliance, and revenue management. Built for firms, not adapted from tools built for everyone else. Celeste works as a standalone platform and as a context and compliance layer that makes other leading AI tools more effective inside a firm, giving them the firm specific context and professional compliance protections they need to operate in a highly regulated environment. Leading AI companies joined us on stage at Amplify as we launched Celeste. We are re-architecting our core business applications to run as expert agents powered by Celeste. We demonstrated expert agents for deal development, professional compliance, and revenue management, all grounded in Intapp data and systems, all running on Celeste. These innovations expand our addressable market meaningfully.

As AI automates knowledge work inside firms, Intapp can move beyond competing for software budgets and capture a larger share of overall personnel budgets. Pricing for the value that expert agents create and for the volume of activity flowing through the platform. Matters opened, deals managed, engagements resourced, compliance actions approved. Celeste enables consumption-based pricing alongside our existing enterprise and seat models, giving us more ways to grow with our clients as adoption deepens. We're entering the agent market from a position of significant structural advantage. With thousands of firms already running on Intapp, we manage their end-to-end business workflows, their most critical data, and their professional compliance programs now with a trusted, professionally compliant agentic platform. No competitor can match that position. We grow as the firms do, and there is no one better positioned to lead this next chapter.

At Amplify, three of the most consequential companies in AI spoke publicly about why they're building with Intapp. Our strategic alliance with Microsoft continues to deepen. On stage, Microsoft was direct about what enterprise AI actually requires for professional firms. Quote, "AI is becoming part of the enterprise backbone. In order to make this really work at the enterprise level, especially for sensitive firms, we really need to think about Intapp Walls to make sure that the data only shows up for the right people at the right time." Winston Weinberg, CEO of Harvey, discussed their collaboration with Intapp as a way to help clients succeed.

Quote, "Intapp has been working on this for so long, and you have built such an incredible structure and trust with all the clients, making sure that we can integrate with all of your systems and making it the best for the end user." Eleanor Dorfman, head of industries at Anthropic, articulated why our two platforms are built to work together. Quote, "We're very ecosystem driven. We build primitives that we then work with our partners like Intapp to deliver so customers experience customized value inside of these products. This is exactly the way we want to deliver AI into regulated enterprise environments." This is what it looks like when the market validates your position, and the signals we're seeing from clients and prospects back that up. Let me share a few highlights.

Amplify drew over 40% more client attendees than last year with an 80% increase in digital impressions and more than a 110% increase in client and partner engagement across social and digital channels. The appetite for Celeste is clear. Celeste content is generating 3 times the average engagement across our channels, and the Celeste overview is averaging over 9 minutes per individual visit, the highest in our portfolio. Our April webinar series featuring Celeste, one for each industry vertical, set company records for both registrants and attendees. Sales development meetings in April exceeded monthly goals by over 65%, a new high watermark. That momentum runs alongside a business that continues to execute and now with Celeste.

Q3 growth came from all 3 of our core motions: new clients, expansion within existing accounts, and cloud migrations while we continued building traction across newer verticals, products, and geographies. In our legal vertical, we saw a continuing trend of firms seeking to modernize and expand their technology while continuing to require the trust and professional compliance expertise we provide. We mentioned last quarter that Ropes & Gray, an Am Law 100 firm, chose our compliance solutions to modernize intake and conflicts. This quarter, they decided to add to those solutions, choosing DealCloud to help accelerate their business development activity and Intapp Celeste to drive their agentic agenda. PLT, a current client utilizing conflicts, chose to further modernize their solutions and migrate to the cloud with Intapp Time. They also purchased Intapp Terms with Assist and Walls as they work to simplify their tech stack via a single provider.

Kobre & Kim chose Intapp Time to increase overall efficiency and provide enhanced features to improve compliance. An Am Law 100 firm chose Intapp Time for its trusted AI capabilities after a well-funded AI startup competitor fell short of what their firm actually required. This is a pattern in the market. In the accounting industry, technology purchases continue to be driven by both the need for AI capabilities and the continuing competition resulting from PE investments and mergers. Among the firms that turned to Intapp for AI-driven modernization this quarter, Mauldin & Jenkins, an Accounting Today Top 100 firm, needed a central place to track, monitor, and review engagements. They chose Intapp Employee Compliance to deliver reliable confirmation with regulatory requirements. U.K.-based Sumer Group looked to Intapp to solve inefficiencies from multiple systems brought together from acquisitions.

Using Intapp Collaboration, they will be able to streamline operations and improve collaboration across the firm. The European offices of two major accounting firms chose Intapp as well. One purchased Intapp Collaboration to increase internal productivity and satisfaction. The other purchased both Intapp Collaboration and Walls to assure greater control over data with geographic sensitivities. In our financial services verticals, firms continue to choose our purpose-built solutions for their industry specificity. A global private investment firm replaced a competing platform with Intapp DealCloud, choosing industry depth over a generic solution in order to drive adoption and value firm-wide. We also added new clients and real assets. A leading residential builder chose Intapp Properties to consolidate their workflows into one centralized repository. Essential Properties, an internally managed REIT, chose Intapp Properties to meet their growing demand for modern technology solutions.

Q3 was a strong quarter, and it came at a defining moment. We launched Celeste in limited availability. Our clients are engaged, and the early signals are strong. Our ecosystem is aligned, and our core business continues to execute across new logos, expansions, and migrations. What comes next is what we've been building toward. Professional firms are transforming. The firm AI market is growing, and as Celeste moves toward broader availability, no one is better positioned to lead it than Intapp. To our clients, partners, investors, board, and the global Intapp team, thank you. This is the result of your trust and dedication. David, over to you.

Thank you, John, and thanks to everyone for joining us today. I'd also like to acknowledge those who participated in our Investor Day in February, both virtually and in person. Alongside our annual Amplify event, it marked an important step forward in articulating Intapp's firm AI strategy. We highlighted three key areas: the introduction of Celeste, our agentic AI platform, purpose-built for professional firms, and the incremental TAM it unlocks, the strength of our enterprise go-to-market motion, and our framework and line of sight to $1 billion in total ARR. We remain confident in that trajectory, underpinned by our differentiated position, serving highly regulated professionals with professional trust, compliance-native, workflow-critical, industry-specific AI solutions. Turning to the quarter, we delivered strong fiscal 3rd quarter results, reflecting continued momentum in our cloud business and growing market adoption of our AI offerings.

Alongside strong quarterly performance across our growth, compliance, and profitability offerings, our Celeste AI offering is now translating into meaningful contribution. Just a few months removed from our Celeste product announcement, over 15% of net new bookings in the quarter was driven by our Celeste AI solutions, including early monetization from firm AI pilots. We're seeing strong enterprise adoption across land, expand, and vertical motions, reinforcing AI as a durable driver of cloud growth. Following our Amplify event, we also saw a meaningful uptick in demand generation, not just for Celeste, but across our broader product suite, driven by increased customer engagement with our AI capabilities. Cloud ARR grew 31% year-over-year to $459.3 million, supported by expansion within our 100,000+ ARR client base and a 123% cloud net revenue retention rate.

We continue to operate the business with discipline. Growth and operating margins expanded year-over-year. Q3 marked a record free cash flow quarter, and we continued executing on our share repurchase program. Together, these results reflect our focus on driving operating leverage while investing for long-term growth. Our SaaS revenue was $107.9 million, up 27% year-over-year. It now represents nearly three-quarters of total revenue, driven by both new client wins and expansion within the installed base. License revenue was $24.8 million, down 22% year-over-year, consistent with expectations as clients prepare for migration to the cloud. Professional services revenue totaled $13.4 million, up 7% year-over-year, supported by increased partner-led implementations. Total revenue was $146 million, up 13% year-over-year.

Following the completion of our initial repurchase program, our board authorized an additional $200 million in January. During Q3, we repurchased $100 million or approximately 3.9 million shares, bringing fiscal year-to-date repurchases to over 7 million shares. This reflects both our confidence in the long-term value of the business and our continued focus on managing dilution. Our partner eco- the important growth lever. Our co-sell motion with Microsoft continued to gain traction in Q3 with strong alignment and expanding Azure marketplace participation and MACC utilization driving improved deal velocity, larger transaction sizes, and reduced execution risk in the enterprise engagements. At the same time, our broader partner network is scaling alongside our AI roadmap. As highlighted at Amplify, we are building a targeted ecosystem around Celeste to expand both capability and reach.

Non-GAAP gross margin was 78.8%, up from 77.9% a year ago, driven by cloud mix and efficiency gains. Non-GAAP operating expenses were $89.3 million, compared to $80.3 million in the prior year period, reflecting continued investment in go-to-market capacity, pipeline generation, and scaled client and partner events, including Amplify. Our non-GAAP operating income was $25.7 million, up from $20.3 million last year, and non-GAAP diluted EPS was $0.29. Free cash flow was $63.4 million, a record quarter, and we ended Q3 with $146.8 million in cash and cash equivalents. Some of our key metrics include Cloud ARR grew 31% year-over-year to $459.3 million, and total ARR increased 23%.

Remaining performance obligations were $791.4 million, up 27% year-over-year, providing strong forward visibility. Clients generating at least $100,000 in ARR reached 858, representing more than 100 net adds year-over-year. We exited the quarter with over 1,375 clients at the $50,000 plus ARR. This cohort represents approximately 95% of total ARR and will be a go-forward quarterly disclosure. Turning to our guidance, for the fourth quarter of fiscal 2026, we expect SaaS revenue to be between $113.1 million-$114.1 million. Total revenue between $149.1 million-$150.1 million. non-GAAP operating income between $28.4 million-$29.4 million.

Non-GAAP EPS between $0.36 and $0.38 based on approximately 79 million diluted shares. For the full fiscal year, we expect SaaS revenue between $421 million and $422 million. Total revenue between $574.3 million and $575.3 million. non-GAAP operating income between $102.7 million and $103.7 million. non-GAAP EPS between $1.22 and $1.24 based on approximately 82 million diluted shares. Thank you. I'll now turn the call back to the operator.

We will now start the question and answer session. I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. Your first question comes from the line of Kevin McVeigh with UBS. Your line is open.

Great. Thanks so much, and congratulations on the continued execution. Hey, I wonder if you could give us just any initial feedback on Celeste and whether or not, you know, that's what's driving some of the uptick in, you know, the average client size? 'Cause clearly you're seeing pretty good momentum there, and just maybe help dimensionalize that a little bit.

Thanks, Kevin.

Sure.

The feedback on Intapp Celeste has been tremendous. We had a very exciting set of programs at Intapp Amplify, where people got to see us for the first time. We released it in limited availability, so we've been managing the number of clients that we're engaging with. The list of people who have looked at it, had us come and talk to them about what it can do is off the charts. We're very excited about how well it's been received. What's been really interesting to hear back from the prospects is they've really struggled with some of the first-generation tools in exactly the areas that we designed Intapp Celeste to address. MCP is an important technology architecture for this generation, but it is revealing and creating a lot of new repositories of business information that are essentially ungoverned.

By the firm's professional compliance requirements. What we've done with the Celeste architecture is exactly what addresses this core point. There's a lot of excitement about the opportunity, and we've been working with several of the limited availability clients on some really exciting solutions already. We were able to share with you all that Ropes & Gray bought the product in the quarter. We have a group that is in the pipeline to do more. I think there's a really exciting opportunity for us to enter into this agentic space here. Obviously, we announced the product two-thirds, three-quarters of the way through Q3. It was a small part of the time that we had been marketed in the quarter.

That's helpful. Really helpful, John. Just to follow up there, as the clients have started to season some of the LLMs, have they shifted preference in terms of any specific LLMs, or they kinda stayed the course?

That's also interesting. We're seeing a wide range across the market. There are people who had committed to OpenAI and ChatGPT early. We're seeing folks who have adopted Claude and like the Anthropic models. We're seeing a big footprint for Microsoft's Copilot because this is such a Microsoft-oriented market, and the overall relationship they have with Microsoft and the ability of Copilot to work with that whole environment is important to them. It's a very interesting mix. We're even seeing some clients asking us about some of the other systems like xAI and Google. I think that there is a rich competition going for those models out there. Celeste is importantly designed with a lot of feedback from our clients to be model-agnostic.

We will allow clients to use whichever of the models fits best for their firm or even for each solution, because some people prefer certain models for certain solution areas versus others, and they want to have a mix inside their firm. We provide the professional compliance capability and the agentic orchestration for all of those across multiple solution types and multiple models at the same time. People really like that design.

Thank you so much.

Your next question comes from the line of Alexei Gogolev with JP Morgan. Your line is open.

Hi, this is Bella Camaj on for Alexei Gogolev. Starting with the adjusted EBIT guidance, it looks like the full-year guidance raise was smaller in magnitude than the 3Q beat. Is that mainly just a product of expense timing with 3Q spend being pushed into 4Q? Or are you planning to step up an investment next quarter into Celeste or other initiatives?

Hi, thank you for the question. Yeah, you know, if you step back over 2 years ago when we started framing the conversation in and around the leverage that we'll be driving towards the 300 to 500 basis points, clearly the 1st year, we drove over 600 basis points. This past year, the implied guide will land you around the 300 basis points while letting us continue to invest ratably across our go-to-market efforts with everything that we've announced in the last Amplify event. We're getting really good traction, as well as, in our product, our rate of pace of innovation has been nothing but spectacular. When you think about not having a 100% leverage per se of all your incremental revenue, that's kind of how we've been scaling the company appropriately.

You get into a little bit timing, and what I mean by that is in Q2, you provide an annual guide that's across, you know, $4 million versus now we're very centered in, of course, the last quarter of the fiscal year. That guide, midpoint is across only $1 million. You get into a little bit of rounding there too. Obviously, we're gonna continue to drive our top-line growth and continue to scale appropriately the company as we've guided both in our long-term and near-term targets.

Got it. That's helpful. Just a follow-up question. Looking at the impressive cloud NRR performance, could you quantify the mix between the drivers there, such as CDD, module attach, or AI-related expansion? How should we think about NRR normalizing over the next two quarters?

Yeah. We gave some windows of near-term success of kind of what's added to that, both with some incremental disclosures at Investor Day. I would say those trends continue both through our cross-sell and up-sell matter. You know, our NRR of the 123%-124% cadence that we've been operating at, you know, has some durability. We're continuing to see the cohort that we're selling to, this enterprise motion, which also ties into the 50K+ ARR cohort ads that we saw over this past quarter. All in all, the team executed really strong, and they're driving both the actions, both on incremental up-sell as well as cross-sell across the board.

Great. Very helpful. Thanks for taking our questions.

Your next question comes from the line of Terry Tillman with Truist Securities. Your line is open.

Hi, team. Thank you for taking my question. This is Luke Radissian for Terry. I know you mentioned the revenue monetization for Celeste will come, what are some key milestones and KPIs in terms of integrating Celeste are you looking for in the coming quarters and years?

Thanks for the question. We have a strong roadmap for the rollout of Celeste through this limited availability period and into general availability. There's a whole series of engagements with our clients that we're doing across our target markets. In addition to Celeste as a standalone platform, you can buy each of our products now with Celeste integrated into it. DealCloud with Celeste, Compliance with Celeste, etcetera.

There's a set of solutions that clients have already asked us to help them build out with agents, which gives us access to a whole new value proposition and TAM inside the firms. In addition to the traditional opportunity to sell our software into the IT budget, the firms are creating a second budget for AI solutions specifically, which we're now able to sell into. We're looking increasingly at the conversations with firms about their personnel budget, because part of the promise of the agentic strategy is can you offset some of your hiring in the future with agents rather than additional headcount as your firm continues to scale? If you look across our solution areas, we're bringing agents into each of them, and the key milestones will be the extension of our products into agentic workflows in each of those key areas.

The value for that is enormous. We've had some very positive experiences with a lot of the engagements that we've had since the limited availability launch. You'll see more news from us as we grow and roll out more of the agentic solutions inside each of the areas that we serve.

Awesome. Thank you. I was hoping for a follow-up going into the compliance officer hiring that you mentioned within your client base. If you could just double tap into that and potentially share any use cases from there.

Yeah. The compliance officer, they go by several titles, but that role is an increasingly sought out role across the firms in our market because of their unique professional compliance obligations. Intapp has always had a very strong business being the system that enables the firms to run strong professional compliance programs, avoiding conflicts of interest, meeting their duties of loyalty, meeting their duties of independence, managing material non-public information across deals and across clients and across investors in a way that the firms really trust us to have the deep understanding of what this existential risk is to their firm. The compliance officers that are being hired are increasingly getting involved in the AI strategy of these firms because there's such a risk as AI rolls out of these firms of creating ungoverned repositories of new information.

Many of these systems encourage the users to drag documents and information into them so they can do really exciting analysis. What's happening is larger and larger pools of ungoverned information are being formed inside these firms as they try these first generation AI tools.

They've been in the market long enough now that the compliance officers, the risk officers, and the AI leaders are getting together and saying, "We need to start looking at how to manage the information governance risk, the professional compliance risk that goes along with all these tools." The experience that they've had these first couple of years has really set them up well to meet us when we come to talk to them about the Intapp Celeste design, and they appreciate what we've built in from the ground up in this AI native agentic platform that is designed to help manage and govern the AI from the Intapp systems, but also from the other AI systems that they're adopting.

We're the trusted provider in this category, and there really isn't a great counterpart for it in the competitive arena where we face a lot of competition. I think this is an area where we have a lot of ability to affect the risk profile of these firms in a way the compliance officers are gonna be delighted with, and which they need to do. We're excited about this, and the growth in that role is something that we're really targeting in our go-to-market.

Thank you. Very helpful. Congrats on the quarter.

Your next question comes from the line of Parker Lane with Stifel. Your line is open.

Hey, guys. Thanks for taking the questions here. John, as you look at the different use cases and workflows for Celeste, be it compliance or intake or business origination, are there any particular areas that the clients are looking to tackle first here, with the launch of Celeste and the initial bookings momentum? Is that relatively representative of the existing apps that people have or anything that has hit the ground running that you'd call out?

Yeah. Thanks, Parker. We have focused initially on the areas that the firms are already working with us. Obviously, that's gonna be the fastest go-to-market for a general purpose compliant agentic platform is to work with them in the areas that we can demonstrate value very quickly and then grow from there. The first areas would be intake, business acceptance, all the compliance issues that are associated with how firms onboard new clients, key to their growth. Business origination, sourcing and origination, and all the work that firms do sourcing fundraising or sourcing opportunities to deploy funds. It's also in the lateral area. A lot of the firms grow by hiring lateral partners and bringing books of business or bringing particular areas of expertise with them. This is a very complex maneuver, but is central to a big part of the market's growth strategy.

There's also the private equity trend coming into accounting and consulting, the area of helping firms with mergers and getting through the compliance issues of bringing these larger and larger accounting firms together. Then in the time area, we have incredible opportunity to deploy agents in the whole realm of business utilization. How are firms using the resources they have? How are they starting to use AI in place of people, and how are they going to capture that and the activity as a way to figure out what their pricing and profitability management needs to be? All the business of the firm areas that Intapp has built such a strong position are perfect for us rolling out Celeste.

It's complementary to a lot of the areas in the practices where the firms have deployed other tools, but they really haven't had a great solution for the business side. It's, you know, half to two-thirds of the population of the firm spends most of their time on these things. It's a huge area for us, and we're very excited about how that's rolling out.

That's great feedback. David, I think you mentioned that 50% of net new bookings were from Celeste. I'd love to hear how the initial conversations have gone around the monetization of that and the business model there. Obviously, you haven't priced on seats fully in the past, but this is even a different business model altogether. Can you just give us some initial impressions of how those conversations have gone?

Yeah. I'll add some and then invite John to as well. Just, so we're clear, it was 1, 5, 15% of the approximately 15. I thought you might have said 50, but, you know, everything rose last quarter, so it was really successful. You know, no, it's been after Amplify, you know, just the demand and outreach directly from our key clients as well as net new. It's been kind of pulling everything through, not only within just those specific SKUs or that platform, but along a lot of our other products that we offer as well, 'cause they would like that whole suite. You know, it's been more of a portfolio conversation.

You know, they'll continue to engage with us as we look forward to future deployments. Everything we've seen thus far has been very, very positive. John, I don't know if you wanted to add any other notes on some of those as well.

No. I gave a few stats in the prepared remarks about the engagement that we have across the client base. It's incredible the volume that we're dealing with of people who are interested in getting engaged with Celeste. I think it really is speaking to one of the limitations of the general horizontal models that people have been trying to work with, and they really appreciate the architecture and the compliance design that we're bringing in. I also, you know, am super excited because we were only in the market for 4 or 5 weeks of the quarter there at the end, and these are generally enterprise engagements, so people need a little time to go through, work with the product, and come to conclusion they want to come on board. For us to get to this progress in just 4 or 5 weeks, I'm thrilled.

Moreover, the pipeline going forward is very strong. I think we're really tapping into an area here. It's still early, obviously, but I think we're really tapping into an area of need. Firms are trying to figure out how to get the best value and leverage out of this AI strategy, but they need to do it in a industry-aware, compliance-aware way. I think the opportunity here is huge.

Thanks, guys.

Your next question comes from the line of Steven Enders with Citi.

Hi. This is Palak for Steven Enders. Thank you so much for taking our questions. I think my first question is you mentioned winning over very well-funded generic LLMs. As your customers become, you know, more cognizant of token costs, how does this benefit or impact Intapp and Celeste adoption?

Thanks for the question. I think your question is about how do firms react as they start to look at their scaling token costs.

Correct. Yes.

I think one of the things to realize is that firms have been experimenting in a lot of different ways with these tools. One of the things that they've discovered is that generic MCP creates a lot of traffic because they have to try things over and over, or the system, the agent, the tool has to try things over and over to try to find the right answer, and it takes a few iterations or several iterations each time. One of the design principles in Celeste with our semantic layer, our context engine, is to really understand the deterministic information inside the firm that so many of these solutions on the enterprise side and on the firm side are designed to go get and serve up as part of a general business workflow in many of these different functions inside the firm.

What they're discovering is the Celeste architecture is actually much better at getting truer facts, more reliable facts out of the business systems as part of the workflows in a more effective and efficient way than a lot of the things that they were trying to develop or put together in a DIY model. This is one of the deeper arguments for why I think there's a huge opportunity for these vertical companies with deep expertise to build solutions for this LLM and agentic generation in a way that really understands how the correct architecture should be put together, and particularly for highly regulated industries like this one, it's not just a token cost issue, although that is certainly something that they need to manage.

It's an information risk issue which has serious implications for the firm's reputation and standing and compliance generally with their clients and with their regulators and with the courts. I think there's a real argument here for a vertical specific program and architecture like Celeste. I think it plays to our favor.

Perfect. That's very helpful. Thank you so much. My next question is just trying to understand the contribution of AI to net new. You said Celeste is at about 15% of new ARR, and if I'm not wrong, I think Assist last quarter was about 10% of net new. Is the math right that at this point AI contributes to about over 25%? Or how to think about the overall contribution from AI?

So it is-

No, we don't.

-growing Yeah, go ahead, Dave.

No, go ahead, John. Sorry.

It's growing rapidly. We did incorporate the Assist technology into a new generation when we released Celeste. This quarter, you had a period when we were selling Assist because we had not announced Celeste yet. In the last month of the quarter, we were selling and marketing and delivering Celeste, but only in limited availability. What you're seeing is an evolution of the mix there.

Got it. Okay, perfect. That's very helpful. Thank you.

Your next question comes from the line of Alexander Sklar with Raymond James. Your line is open.

Hey, guys. Thank you. This is Johnathan McCary on for Alex. I'll start with John. You alluded to winning against a well-funded startup in a bid for time. I'm actually just curious on the back of that, how often are you seeing those sorts of competitors in bake-offs, and then in which areas of the platform is that most common? How important are the partnerships with the likes of Anthropic and Microsoft when you're going into a competitive conversation like that with a prospect?

Thank you for the question. In several areas, there have been venture-backed companies that have started in spaces that we've had a long history in. We've actually been very excited about the fact that we have such a rich enterprise position with strong data and strong compliance and strong trust in these firms, that we're able to offer a very compelling case for why we have an enterprise class system versus something that some of the smaller companies have put together. There's no question that competition has grown over the years inside the space, but one of the things I'm very impressed by what the team has done is that we've actually seen firms who have tried some of these newer tools for a little while and then turn them off and come back.

A lot of the opportunity here, I think, is to build on the enterprise-grade capabilities that we have developed over so many years and bring the Celeste technology in to meet the client's needs. I think the partnerships, certainly with Anthropic more recently, but in this area, Microsoft has a huge influence. Our ability to build on the Microsoft relationship overall, I think really helps us, particularly with the enterprise class firms for whom this is a core business function where they want to trust a scaled vendor. We have to keep up with the competition in certain areas, but we also have set the pace in many areas of the product that is keeping everybody else on their toes too. It's a vibrant market, but I'm very impressed with how well the team has developed our offering here.

I gave a lot of examples in the script about our time win specifically on this point so that you all have some insight into how that's actually going out there.

Yeah, very, very helpful. Thanks, John. I'll pivot to 1 for David Morton. We heard about this at the Investor Day a bit, but on the increased focus on the 2,800 named accounts, I'm curious what you think is left to do there from a hiring perspective. Now in AI world with Intapp Celeste out there in the market, what go-to-market adjustments do you think are needed now to kind of succeed and enable those clients, you know, the largest accounts with your AI offering? Thanks, guys.

Yeah, no, good question. We're gonna continue to drive scale and efficiency with our sales and marketing motions, specifically on densifying those key enterprise accounts. We still have a lot to go, but we like the progress we've done thus far. You know, we're already busy at work thinking about FY 2027 and what that portends and the, you know, massive amount of opportunities in front of us that we're really excited about. More to come on that, but we like how everything is being set up thus far.

Your next question comes from the line of Saket Kalia with Barclays.

Okay, great. Hey, guys. Thanks for taking my questions here. John, maybe for you, I just wanna zoom out. There's a lot of great product stuff that I wanna dig into. Maybe just at the highest level, I know that you spend a lot of time with customers. What do you hear from them around their hiring plans going forward? Because we've got such a diverse business, maybe you can just compare and contrast how those are different, if at all, between sort of professional services and financial services.

Yeah. Thank you, Saket. We've been on quite a tour here leading up to Amplify with our advisory boards, and then after Amplify, I've met a lot of the firms along with many of the executives on the team who've been out with the team. It is really interesting conversation because I ask this too, and almost everyone has said, "Yes, there's an opportunity for AI to bring efficiency into our business. We're not really looking at profound staffing changes for this next 12 months.

Maybe the summer classes will be a little more controlled, but we don't feel like we're ready to say that all the work is suddenly going to be done with AI. That being said, what they are saying, and I think this is very interesting positioning, is rather than reduce the size of the team, they're looking to deploy more AI and more agents so that they can continue to scale their businesses, all of whom are growing and grow with the economy or faster, without firing as many people going forward, which is a much more culturally sensitive way of building these partnership firms and scaling them. That's been our messaging with Celeste, is to help firms scale from here, and it's very positively received.

There are pockets where people are saying, "Oh, these are areas inside the firm that we think are a place where we can re-reduce expenses and automate the activity." Where that's the case, we're able to build an ROI case for agents that can be very compelling. I think the firms are selective about where in the firm they're proposing to do that. Your question about professional services versus financial services, I think the firms that are still partnerships are a little more sensitive in this regard. The firms that have converted to corporations years ago or more recently who are looking to drive, particularly the PE-backed investment drive efficiency for the bottom line, are saying there's a little bit more opportunity to deploy AI and agents to transform parts of the business.

One of the things I'm really excited about is in these expert-driven businesses where so much of their value is the people who really represent the firm and have the knowledge for execution, it's in the business services areas that support all those folks that will, I think, will be the first areas where they make transformative moves with staffing. We are uniquely positioned on the business services side to help the firms deploy agents, and this is exactly what Celeste is for and what it's designed to do. I think the area where they're gonna go first is exactly the area where we're set up to serve them.

Got it. Got it. That makes a ton of sense and very helpful. Dave, maybe for you just on the back of that, it's great to hear about the early success with Celeste and, you know, limited availability, so realize this is an unfair question 'cause the sample size is still small. I'm curious how you think about the uplift that you can get from an existing customer as they sort of add Celeste on, if that makes sense.

It does. A good question. You know, we're just really scratching the surface here. You know, one of the thesis is that it unlocks a whole new SAM and TAM that we rolled out at Investor Day. As you recall, our TAM that we're often servicing is $20 billion of the core IT SAM that we offer, there's the whole $30 billion of non-IT spend, which is really the workforce that we think that we can tap into. When you look at our performance, we're just a couple weeks out. Yeah, I think there's a large appetite there. Just seeing the pull-through and the demand and the pipe gen thus far, has been really encouraging. You know, we look forward to, you know, continue to provide updates on this trajectory.

I do think, you know, we're continuing to participate, across different vectors, which then also get us into platform, consumption, seat, and so on and so on, along with our traditional enterprise motions that we've been doing. Anyway, more to come on that, Saket, but it's a, it's a fair question.

Very helpful. Thanks, guys.

There are no further questions for the question and answer session. I'd now like to turn the call back over to John Hall for final comments.

Thanks, everyone. We appreciate your attention and questions. We have a great Q3 behind us, and we're excited about our continued momentum to finish out fiscal 2026. Thanks again for your time today, and we'll look forward to talking to you again next quarter.

Thank you. With that, we conclude our program for today. We thank you for participating, and you may now disconnect.

Hello, everyone, and welcome to the Intapp, Inc. Second Quarter Fiscal 2026 Earnings Webcast. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question and answer session. Please be advised that today's conference is being recorded. Now it is my pleasure to turn the call over to Senior Vice President of Investor Relations, David Trone. The floor is yours.

Thank you. Welcome to Intapp, Inc.'s fiscal second quarter financial results. On the call with me today are John Hall, Chairman and CEO of Intapp, Inc., and David Morton, Chief Financial Officer. During the course of this conference call, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business, including guidance provided for our fiscal third quarter and full year 2026. These forward-looking statements are based on management's current views and expectations, and certain assumptions made as of today's date, and are subject to various risks and uncertainties, including those described in our SEC filings and other publicly available documents that are difficult to predict and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Intapp, Inc. disclaims any obligation to update or revise any forward-looking statements except as required by law. Further, on today's call, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results, including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP diluted net income per share, and free cash flow. Our GAAP financial results, along with reconciliations of GAAP to non-GAAP financial measures, can be found in today's earnings release and its supplemental financial tables, which are available on our website and as an exhibit to the Form 8-K furnished with the SEC prior to this call, or a supplemental financial presentation, which is available on our website. With that, I'll hand the conversation over to John.

Thank you, David. Good afternoon, everyone. Thank you for joining us today as we share the results of our fiscal second quarter. I'm happy to share that once again, we've achieved strong quarterly results, supported by the addition of new clients and the expansion of client accounts around the world. Our results also reflect our ability to serve enterprise clients, a growing partner ecosystem, and demand for our AI capabilities in the highly regulated industries we serve. I'll share details on these select growth drivers on this call. In Q2, our cloud ARR grew to $434 million, up 31% year over year. Cloud now represents 81% of our total ARR of $535 million. In the quarter, we earned SaaS revenue of $102 million, up 28% year over year, and total revenue of $140 million, up 16% year over year. Now I'd like to share some highlights from our fiscal second quarter. We continue to execute our vertical AI roadmap, which is designed to increase adoption of AI in the highly regulated industries we serve. As a reminder, our industry-specific AI solutions automate rote tasks, but more importantly, they deliver actionable insights that are drawn from a firm's proprietary information and are enriched with our industry graph data model and trusted third-party sources. These advanced, tailored compliance capabilities are what set Intapp, Inc. apart and why firms continue to invest in their technology. This leads me to my first example. You may recall that last quarter, we announced a significant new release of Intapp Time, which delivers faster, easier, and more accurate timekeeping powered by major new AI features. It's proven to be a catalyst for cloud migrations, with large firms like Buchanan, Ingersoll, and Rooney and multiple AmLaw 100 clients moving their time instances to the cloud. The new time release is also drawing large firms to buy the solution for the first time, sometimes in addition to their other Intapp, Inc. solutions. Examples include CypherX Shaw and Burren Forman. Additionally, we added more than 70 new AI capabilities and enhancements to our DealCloud platform. Among their many benefits, these new advancements save users time, surface personalized actionable data insights, and support InfoSec by monitoring data access in real-time. They come together in DealCloud to boost productivity, support regulatory compliance, unlock firm intelligence, and create a competitive edge. Let's turn to our partner network. We continue to grow our expansive partner ecosystem, anchored by Microsoft and a strategic set of more than 145 curated data technology and services partners. This powerful network continues to drive growth for us and greatly influenced many of our recent logo wins. In Q2, partners were directly involved in seven of our 10 largest deals, reflecting how deeply embedded our partners are in our go-to-market motions. Microsoft, in particular, continues to be a major growth driver. More than half of our largest wins this quarter were jointly executed with Microsoft, and in several, Microsoft even contributed Azure investment dollars to help us accelerate the deals. Our growth was also powered by adding new clients, expanding within existing clients, and migrating clients to the cloud. And we continue to gain traction in newer markets across our verticals, products, and global locations. In our legal vertical, we once again saw some distinct trends across our wins. First, we had some of the largest law firms in the US turn to Intapp, Inc. for AI-powered enterprise-grade compliance solutions. These clients include several AmLaw 100 firms. For example, Roche and Gray chose our compliance solutions to modernize their intake and complex checking processes in the cloud. This transaction was completed on the Azure Marketplace, with Microsoft providing investment dollars to accelerate the deal. An AmLaw 30 firm added our compliance solutions and chose to migrate time to the cloud after attending an event and seeing them in action. And an AmLaw 75 firm chose our compliance products to automate managing access to sensitive matters across applications. Second, law firms continue to choose DealCloud to strengthen their business development operations and innovate with AI. This quarter, Ford and Harrison, and an AmLaw 100 firm, among others, moved off their legacy horizontal or bespoke systems to support more strategic new business acquisition with DealCloud. And third, evolving anti-money laundering and know-your-client regulations are fueling the modernization of intake and conflicts processes globally. A few examples of firms who have chosen our AML solutions in response this quarter include another lens-based firm, Holding Redlich in Australia, and US-based Reed Smith. In the accounting industry, the influx of PE investments and mergers has continued to create disruption and increased competition across the industry. In response, firms, no matter their investment status, are modernizing their compliance practices and extending that modernization to collaboration and business development as well. Among the firms that turned to Intapp, Inc. for AI-driven modernization this quarter, one of the largest public accounting firms in the US deepened its investment in Intapp, Inc. employee compliance to modernize personal independence processes across its global employee base. BKL and Graviton both replaced their legacy systems with Intapp, Inc. collaboration. They needed a scalable cloud-based solution that integrates seamlessly with their Microsoft tools, streamlines collaboration, and sets them up for growth. And a top UK accounting firm chose DealCloud to establish a scalable foundation for relationship management and business development as it undergoes rapid growth through M&A. In the financial services vertical, firms are continuing to replace their legacy horizontal CRMs with DealCloud for AI-powered relationship and business intelligence, especially enterprise and mid-market investment banks. For example, one of the most prestigious boutique investment banks in the world chose DealCloud for its banker advisory business after a successful pilot with its private capital advisory team. The firm sees DealCloud as a way to help its business with purpose-built AI, allowing them to unlock key deal and relationship insights more easily. Meridian Capital chose DealCloud to improve visibility and management of deal origination, active mandates, buyer outreach, and business development and forecasting. Finally, our investments in real assets, including the April 2025 acquisition of Termsheet, continue to attract new clients who are coming to Intapp, Inc. for AI-driven solutions. I'll share a few examples. Neuberger Berman moved off its legacy horizontal CRM and onto DealCloud to improve reporting, streamline workflows, reduce key person risk, and eliminate duplicative and inaccurate data. A leading mixed-use and multifamily housing developer replaced its existing system with DealCloud to improve data quality, user experience, analytics, reporting, and optimization. And Smith Douglas replaced multiple legacy systems with DealCloud, which spans all their divisions and will help them improve workflows and operations so they can deliver homes faster. In conclusion, we're proud of our strong second quarter performance, and we continue to be optimistic about our growth opportunities. As our Q2 performance has shown, 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. We're serving a durable end market with our subscription revenue model, industry-specific cloud platform, and applied AI and compliance capabilities. We have a great growth opportunity to drive AI cloud adoption and modernization across all the industries we serve. As always, I'd like to thank our clients, our partners, our investors, our board, and our global Intapp, Inc. team for their teamwork and dedication. Thank you all very much. Okay, David? Over to you.

Thank you, John, and thanks to everyone for joining us today. I'm pleased to share our fiscal second quarter results, which reflect continued strength in our cloud business and disciplined execution across the organization. Demand for our SaaS solutions remains strong, particularly among existing clients, driving solid growth and a higher mix of recurring revenue as we progress through our cloud transition. Our enterprise-focused go-to-market motion is working as intended. We're seeing strength both in net new logo acquisition and expansion within our installed base. As a vertical SaaS company, we have deep domain expertise and a clear understanding of the highly regulated markets we serve. Clients in these markets continue to value the application-specific capabilities we provide, from compliance workflows to applied AI, which reinforces the durability of our ARR growth. This is evident in the continued expansion of our $100,000+ ARR client base and our 124% cloud net revenue retention rate. At the same time, we continue to operate the business with a focus on margin expansion, cash generation, and capital discipline. Gross margins improved year over year, operating income increased meaningfully, and free cash flow remained strong. Combined with our share repurchase activity during the quarter, these results reflect our confidence in the long-term opportunity while maintaining a strong balance sheet. Before we get to the income statement, Cloud ARR hit $433.6 million this quarter, up 31% year over year, driven by enterprise clients deepening their relationship with Intapp, Inc., stronger co-sell activity, and growing adoption of our applied AI offerings. Turning to our fiscal second quarter results, SaaS revenue came in at $102.5 million, up 28% year over year, now representing 73% of total revenue, reflecting strong demand and a continued shift to our cloud offerings. License revenue was $25.4 million, down 9% year over year, consistent with our stated strategy and ongoing cloud migration efforts. Professional services revenue totaled $12.3 million, down 7% year over year. Our partner ecosystem continues to support cloud growth through co-sell execution, client satisfaction, and efficient implementations. Total revenue was $140.2 million, up 16% year over year, driven by strong growth in our cloud solutions. Turning to our capital allocation, as announced in August 2025, our board authorized a $150 million share repurchase program. During the second quarter, we repurchased $100 million or approximately 2.3 million shares. Combined with our first quarter activity, this authorization was fully utilized, resulting in approximately 3.4 million shares repurchased. In January 2026, our board authorized an additional $200 million share repurchase program, further reflecting our confidence in the long-term value of the business. Our partner ecosystem remains a key driver of long-term cloud growth. In Q2, we co-sold with partners on many new logo wins and participation in the Microsoft Azure marketplace, meaningfully year over year. We see this as a durable, repeatable motion, especially for supporting larger enterprise deployments. Service partner certifications rose 35% year over year, reinforcing Intapp, Inc.'s position as a growth engine within the ecosystem. Turning to margins and profitability, Q2 non-GAAP gross margin was 78.1%, up from 76.7% a year ago, driven by favorable mix and cloud efficiency gains. Non-GAAP operating expenses were $81.8 million, compared to $74.1 million in the prior year period, largely reflecting ongoing investments in our product-led growth organization and go-to-market spend. Non-GAAP operating income was $27.7 million, up from $18.9 million last year, and non-GAAP diluted EPS was $0.33. Free cash flow was $22.2 million for the quarter, and we ended Q2 with $191.2 million in cash and cash equivalents, reflecting the $100 million share repurchase. Turning to our key metrics, Cloud ARR increased 31% year over year, while total ARR grew 22%. Remaining performance obligations were $777.1 million, up 26% year over year, providing strong revenue visibility. Our enterprise-focused motion continues to show progress with 834 clients now generating at least $100,000 in ARR, up from 728 a year ago, representing 30% of our total client base. Now turning to our outlook, for 2026, we expect SaaS revenue between $105 million and $106 million, total revenue between $143.8 million and $144.8 million, non-GAAP operating income between $23.1 million and $24.1 million. This Q3 outlook includes incremental spend for targeted marketing campaigns associated with our upcoming product showcase at Intapp Amplify, as well as targeted investments to increase the rate of pace of delivery on our AI suite of offerings. Non-GAAP EPS between $0.27 and $0.29 based on approximately 83 million diluted shares. For the full fiscal year, we expect SaaS revenue between $415 million and $419 million, total revenue between $570.3 million and $574.3 million, non-GAAP operating income between $99.9 million and $103.9 million, non-GAAP EPS between $1.20 and $1.24 based on approximately 83 million diluted shares. And finally, I'd like to remind everyone of our upcoming Day in New York City, followed by our annual Intapp Amplify event, where we'll share our latest AI-powered innovations. You can find details on our investor relations website. Thank you, and I'll now turn the call back to the operator.

We will now start the question and answer session. To ask a question, press 1 on your telephone keypad. Our first question comes from the line of Kevin McVeigh from UBS. Your line is live.

In terms of how you're positioning Intapp, Inc. for just the kind of new flow out of Anthropic today?

Hey, Kevin. It's John. I just caught the tail end of that. Your voice was silent, but I think you were asking about the Anthropic news today.

Yes. That's it. I apologize if I'm breaking up on you.

Sure. No. That's a great question. So they've released some open-source plugins for the corporate legal department. And it's a good segment of legal opportunity. They are doing things like contract review and NDA. You can look up the plugins. Just to be clear, we have never been in the category of contract review. Our strategy has been differentiated over the long development of technology in these industries because we focused on the firms in professional and financial services. Sometimes you hear people distinguish between the practice of law and the business of law, but it applies across all the types of firms that we're selling to. So we focused on the senior leadership of the firm, how to help them grow their business, how to help their people pursue fundraising for new funds or new clients or new engagements. The compliance of how the firms do business, and operate internally with all of the sophisticated information governance around managing nonpublic information, penetrating information, or other information that needs to be kept confidential in a variety of ways in these complex institutions. Profitability, how the firms actually execute that successfully or drive returns talent management. So the business of these firms has been our emphasis. And there's huge opportunity for AI in all the contract review type things. The LLMs are great at it. We're using a lot of it too. But I think from the value process of the company standpoint, purchasing a giant underserved category that was spent a long time working with the firms to grow. And we've had some great response to our offerings here, and we've really been paying attention to how the firms have the best opportunities to deploy AIoT. So you're not really in this space although it is very complementary to what we do. And the firms actually have come to us and said, can you help us with the whole compliance infrastructure for the agents and everything to help them succeed as they deploy these different use cases to be individual users of the firm. So I actually think our history and our relationship with these firms gives us a tremendous position to be a big influence over how the firms deploy AI in our own products and how they deploy AI generally.

Very helpful. Thank you.

Your next question comes from the line of Alexei Gogolev from JPMorgan. Your line is live.

Hi. This is Bella on for Alexei. Just one question from us. So you announced a partnership with DecimalPoint Analytics last month. And in light of that, I wanted to ask, how do you balance utilizing third-party partnerships to advance your data strategy while also safeguarding the proprietary data that gives you a competitive advantage in the ecosystem?

Yeah. Thanks, Bella. We have a very significant investment in an ecosystem strategy that we talk about each quarter because we're bringing a whole product to each of the firms in each of the industries. And part of that is all the professionals have a very rich set of market information or press information that they're looking to bring into their environment to make better decisions about the clients or the deals that they take on and how they execute that work. So we have a strong program. You mentioned one of our important partners, we absolutely have a program of managing data for the firms, each of whom views their experience and their expertise in the particular area as their intellectual property that helps them compete. And this is actually one of the areas of information governance that we are first in the world in is to help the firms manage and safeguard their proprietary information so that they can reuse it. To win new deals competitively, serve those clients successfully, and we have a wide range of data partners that we work with to enable the firms to do that, but we're also focused on helping the firms themselves protect their data. We have some proprietary data that we enable them to use as well. But our fundamental goal is helping each firm differentiate itself using their own expertise. That's how the industry works, and we're sort of at the center of that. And I think it's one of the reasons why our compliance program has been so successful in making its way through the market. And the same is true with the AI era, by the way. The firms are going to use their proprietary knowledge and expertise and experience to differentiate themselves in how they go win new business.

Got it. Very helpful. Thank you for taking the question, and congrats on the quarter.

Your next question comes from the line of Parker Lane from Stifel. Your line is live.

Hey, guys. Good afternoon. Thanks for taking the question. John, for the customers that have been to your early AI offerings here from Intapp, Inc., Assist. What has been the primary hook or motivation point that you've seen from them to get them across the goal line and using this? Is it a desire to do more with less? Is it just drive efficiencies in their business? What are the implications for headcount amongst the customers that are using this as well?

Thanks, Parker. Yeah. The Intapp, Inc. Assist take-up has been strong. We've been excited to see how many users at many levels of the firm are interacting with Assist in our AI offerings. Part of the hook is absolutely efficiency. The firms don't want to add tons and tons of headcount if they can get some help from the AI. But a lot of it too, and I think people may miss this, is that with the right AI and AgenTex setup, you can bring a universe of information to each person, whether they're an early career business development person, or a practitioner in the middle of their career or a later stage partner, you can bring a universe of information to them. That would have been cost-prohibitive to try to assemble with a human universe of researchers for them. So, really, the firms that are deploying Assist most successfully are getting much richer, better, clearer answers in a compliant way more comprehensively to all of their people. And they're using that for competitive advantage. So there is absolutely an efficiency angle to that, but part of it is a capability that's difficult to imagine doing in a totally human-powered world. And I think this is a huge focus of the firms because they're all focused on the fact that they don't do what someone else will. And they need to have this capability to compete as the world becomes more competitive with AI powering everybody.

Got it. And I appreciate the answer earlier on Anthropic, you know, being focused on the practice of law versus the business of law. You know, clearly, a lot of anxiety around not what that looks like today, but the future state of these models and where they can go over the long run. Are you starting to see instances of your customers or potential prospects testing these tools themselves, trying to develop things on their own, with any level of success, or are they primarily going to some of the incumbent vendors like yourself to figure out how to fully make this pivot to an AI-first world?

Well, you know, when we first started building the company in the market, it was a self-built technology universe. All the firms could not get technology that met the unique needs, including compliance of the industry. And so they were investing in big IT departments to develop everything themselves. The whole history of the company has been working to provide them with a commercial enterprise-grade secure now AI-enabled set of capabilities to replace all those. And we've built a business doing that. It's been very successful. I think as these AI tools come out, they're absolutely encouraging people to try, and the forward-looking IT departments absolutely are experimenting with them. One of the things that we've been studying over the past two years is what are the reactions of the firms to this? Are they going to change their posture? From what they've developed over the past few years, which is to work with specialist providers who really understand the issues and can provide a supported environment, or are they gonna go back to building it on their own? I think they're going to experiment, but I don't think that that's economically the right answer. I think the right answer is to have somebody who can really provide this to them and support with them, bringing together the best practices that are being developed around the market, which is the whole point of the company. And we've got a lot of clients who are saying to us, oh, that's what you're doing? Thank God I don't have to do it myself. So I think that kind of response, you're gonna see more and more. So we actually encourage the experimentation because it gives people more of a feel for what it's gonna take to really get the valuable solutions out of this. And then we come in and say, here's what we can do for you, and it turns into a continuing growth partnership.

Got it. Thanks for the feedback, John.

Your next question comes from the line of Koji Ikeda from Bank of America. Your line is live.

Hi. It's George McGreen on for Koji. I appreciate you guys taking our questions today. I wanted to ask one as it relates to CRPO, and you kinda look at that metric on a two-year stack, you know, that metric actually accelerated, and you know, that's kind of in line with the sequential step up in NRR that we're seeing. So I wanted to ask over the last few months, how customer conversations sounded, and is there any change in tone, and maybe particularly as it relates to adopting AI products generally versus a few months ago? Thank you.

Yeah. Thanks, George. The conversations have continued to accelerate. You know, we announced the first versions of this generation of AI just twenty-two months ago, and then a second version in February. We have our new event coming up here in about three weeks. But people have moved from curiosity to experimentation. And now there are a few places where we're really seeing people able to articulate, here is the business value that I can achieve by deploying Assist and AI technologies in these areas in these parts of my business process. Here's the efficiency I'm getting in people. Here's the increased visibility that those people are having in their decision-making, and here's that's flowing through to create a better experience for the senior folks who are working with clients or working with investors. So I think you are seeing really positive reactions. Now you're also seeing continued experimentation all over the place. So I think in the big picture, it is still relatively early. But what we're excited about are these use cases that are coming out that are really starting to pull forward some of our sales and some monetization opportunities that we were very focused on from the very beginning. I mean, we've long felt that the way you bring a next generation of true next generation of technology out is you have to get to those early stellar apps that really make a difference that people can point to and say, of all the infinite imaginings that we could do, that's the thing that I can put money behind and buy and bring it in. And that's what we've been focused on doing. We talk about applied AI, that's really the emphasis of that strategy.

Your next question comes from the line of Terry Tillman from Truist Securities. Your line is live.

Great. Good evening, Tim. Connor Pastoral on for Terry. Thank you for taking my question. Just wanted to touch on Microsoft for software. So you just you highlighted them as a major go-to-market partner over the past several years, Azure Marketplace execution, joint wins continuing in this quarter. Just kinda curious on in more of a risk-off type environment like today, does that partnership help to, I guess, de-risk the deal cycles or shorten time to close? Or is that more of an impact to visible in terms of expansion upsell as customers are live on the platform?

Yeah. Thanks, Connor. No. We're very appreciative of the ongoing strategic partnership with Microsoft. We have talked about some of the ways that we're working with them. Their sales team is aligned with ours on the firms in our target market. They actually get quota relief when we sell. So there's a lot of alignment in the field. But more recently, we've been doing more of these Azure Marketplace agreements. I mentioned a few of them on the call. And interestingly, they tend more towards the enterprise firms. So it's very consistent with our enterprise strategy. We're doing larger deals. They are shortening the sales cycle when the folks already have a Microsoft minimum Azure spend commitment in place. And we've actually won some very large business that we talked about on the call today from some firms that are brand new to us. That came to us through our introduction or relationship with Microsoft. And others that are our long-time partners who want to grow their relationship. So it's working in both growth dimensions for us. We've had folks who had those agreements with Microsoft, and it helped us move them to the cloud. So a lot of the key parts of our overall growth strategy have worked really well with that program. And as we've learned about it and the sales team has done more of it and the clients have gotten used to it and are talking to each other, it's actually growing as part of our overall go-to-market. So it's really helped us a lot.

That's helpful. Thanks, John. And just as a follow-up, looking at the macro environment, just particularly around the backdrop in financial services with the potential for M&A activity to pick up. Typically a tailwind associated with the growing deal pipeline as firms maybe look to check the box on tech enablement prior to an elevated period? Thank you.

Yes. I think so. Quite a bit of that. Banks have been doing good business with us. We emphasized on the call today some particularly large ones, in fact. We also have a lot of compliance support for firms that wanna increase their volume. There's this interesting trend happening in the accounting industry itself where private equity is coming in and changing the form of the business from partnerships to corporations and putting capital to work, and those firms are then going on an M&A program themselves, and all of those things are driving demand for upgrading and modernizing the technology infrastructure. So there's a lot of larger macro style trends or industry trends. We think we're really playing into with the strategy here. And as people do this, they wanna have an AI-forward approach to do all that. So I think we've got a great position to benefit from those trends.

Your next question comes from the line of Steve Enders from Citi. Your line is live.

Okay. Great. Thanks for taking the questions here. I guess maybe just to start, do wanna ask a little bit about the guidance for the full year and some of the change there. I think particularly looking at the revenue side, it looks like the full beat wasn't really rolled through. And so I just wanna get a little bit clarity on maybe some if there was some revenue that kind of shifts around or if it's a reflection of customers converting more to the SaaS solution faster than expected. Yeah. Just getting any kind of clarity around some of those dynamics would be helpful to search.

Yeah. Thanks for the question, Steve. No. We continue to operate on our strategy that we articulated over two years ago at our Investor Day. You know, that being, we are cloud-first. And so, you know, clearly, that's what drives a lot of our key activity. With respect to everything else flowing through, you know, obviously, we'll have puts and takes both with services as well as licensed. That being said, you know, we continue to be successful and continue to orient more and more migrations. And so we'll talk more about how that is not only being modeled by our success vectors coming up here at Investor Day. And then even within our own services, clearly, we discussed just broader on the whole partner ecosystem, and it's always gonna be a delicate balance there as we continue to make investments as well as take that opportunity and more prone to items in and around our customer set and items that will clearly drive our cloud offerings even more so. So, you know, I don't view it as evergreen change to kind of the mix of revenue. We've always been cloud-first and the orientation of that, of which I do believe the full guide was passed through.

And then so Okay. Gotcha. That's helpful there. And then maybe shifting gears just on in terms of the buyback program. I guess, to see that, that re-upped here just you know, how are you kind of viewing kind of the forward cadence for those plans and putting that into place? And then guess, anything to read into, I guess, broader capital allocation and kind of the ramifications of investing in the business and other areas versus utilizing the buyback.

Yeah. We've never had a formal articulation of our capital allocation strategy. You know, that will come forward, more in earnest again at Investor Day. But just for the near term, we have been putting capital to work. We've been focused more so on antidilution measures and offsetting that. Think we've done a good job at that. And so, you know, clearly, we've got a lot of confidence not only in our ability but in the strength of our balance sheet that the board authorized an additional $200 million, and we'll put that to work to offset for dilution as well.

Okay. Perfect. Thanks for the questions, and looking forward to hearing more in a few weeks.

Your next question comes from the line of Alex Sklar from Raymond James. Your line is live.

Thank you. John, I want to start follow-up on your answer to George's question earlier, just in terms of what you're seeing on broader budgets and AI budgets, maybe within your named accounts, going to 2026. Any sense if these accounts are dedicating distinct spend to AI this year just as you're bringing more solutions to market? And then, Dave called out doing more in terms of increasing spend around delivering AI offerings. Can you just talk about how that fits into your strategy there? Thanks.

Yeah. Thanks, Alex. It varies across firms. A lot of firms do absolutely have specific AI budgets or innovation budgets that they're looking to make sure that their firms figure out how to take advantage of the change here. That's benefiting us. We've had several deals that are being funded out of AI budgets. There are also firms that are looking at their IT budgets generally and saying, how do they bring AI in to more traditional ways of budgeting and procuring, and it becomes part of the procurement process. So we've won things in that category as well. Internally, this is a huge focus for us, and it has been for several years. You know, we've tried to be both responsible and forward-leaning in investing in R&D for this generation of technology. We've brought the company through and benefited from each of the previous technology generations from on-prem to cloud to mobile and now AI. Coming up here, at our event in February with Investor Day, and our marketing event is called Intapp Amplify. This is the single largest release that we've ever done. This is the most consequential release that the company is setting up to bring to everybody, and it's been in the works for two years. Since this whole AI generation started to break. And we spent a lot of time working directly with our clients and all the folks who helped us build the company across the marketplace to really appreciate what is it that the potential of AI can do to drive success for these firms. Financially and in their business, compliance area with all the professionals, how do they become much more capable of using AI, applying it in the most successful possible way to compete? And I think there's really interesting learnings from this first couple years of experimentation, and we've integrated that all into our strategy here. And so I really could not be more excited about the February event because the early responses that we're getting from the folks on our ambassador program and our advisory board program could not be more positive about where we're headed here. Because I think these firms do have a disproportionate opportunity in how they can benefit from AI deployments. I also think for the enterprise-class firms, it's doubly complex because they have such significant work that they do for all of the world's capital markets transactions, M&A, litigations. I mean, these are serious projects that these firms execute. And we've grown up working with them, increasingly are the folks that they're turning to for AI. So I'm really excited about what's coming here, and I think the R&D investment has been fantastic and something that we're really excited to keep doing.

Alright. Great. Yeah. The product philosophy is definitely picked up, so look forward to more there. Dave, just maybe a quick follow-up for you. Can you just expand on some of the drivers? NRR stepped up pretty notably this quarter. What were kind of the big one, two, three things behind that? Thanks.

Yeah. For sure. You know, secondarily, we also orient it around. You know, first and foremost, our enterprise motion is working. Some successful talk tracks about our partner ecosystem. And so if you think about how not only our lands are getting bigger, but also our expanse, because of those two motions, and so in theory, it was both upsell and cross-sell. That we're seeing good uptake. We still have a lot more room to go.

Your next question comes from the line of Brian Schwartz from Oppenheimer. Your line is live.

Yeah. Hi. Thanks for taking my question this afternoon. John, wanted to ask you a question about different pricing models. Clearly, the forecasts are out there that were expected slow labor growth here, you know, on the heels of AI through the second half of the decade. I think you talked about in your comments how you're working with your customers and experimenting on different types of AI use cases and solutions. What about internally at Intapp, Inc. in terms of the pricing model? Are you experimenting at all in introducing a more consumption or value-based pricing model? Just wondering if there's any testing of that going on. And that potentially could be a new growth factor for the business in the future.

Yeah. Thanks very much, Brian. We do have today multiple pricing models in the business, just for clarity. We do have part of the business and part some of the relationships a historical per-user model, it has worked very well. And we are not fully penetrated in almost any of our firms. We have a lot of growth. That we achieve each quarter in that NRR number from getting more people onto the platform using the technology, including the AI capabilities. So platform. So that's absolutely a continued growth driver for us. But we also have today and for a long time a firm-based pricing model for enterprise agreements. It's originally started in our compliance business, but we offer it in other areas and have relationships in many other areas. Where the firm pays based on its size or other metrics that are not for users. So we just wanted folks to understand that. And then from there, so I think we've got a good relationship with firms for the contracts allow us to price to value, and historically, we've been able to do that. From there, we are very interested in what the opportunity is for consumption-based or other metric-based pricing that aligns well with the way that the clients are thinking about the value they're perceiving. I think fundamentally, you know, the software companies have always been able to price value. The mechanisms have changed over the years. But if you can get yourself in a position that they really see what it is that you're doing for them and they benefit and they wanna grow from that, they're happy to pay for it. And we benefited, you know, Bootstrap our company in this particular end market because these firms in comparison to many industries, they're very financially well off. And that's really helped us. They always pay their bills. They're very honorable folks, which I appreciate. And if we can come up with a value agreement, that they're happy with, they're happy to pay it. So we've grown the company for many years working with them, and I'm very interested in this question that you're raising because I think there is an interesting angle. As we grow and take more of the AI services into our own product. How do we monetize that and manage the financials and the economics of that? So we're very open to that, and experimenting a little bit.

Yeah. I agree. Thanks, John, for that explanation. That was really helpful. One follow-up for David. Just thinking about kind of tracking the progress of the AI SKUs in relation to the ARR growth, how do you think about the of AI? How that will play out for Intapp, Inc.? In the second half of the fiscal year, is there anything that investors that we should look to to be able to, you know, better gauge you know, how the AI products goods are doing for the business. Thanks, David.

Yeah. For sure. You know, these are things that we've been working through, obviously, not only at our annual updates, both from direct ARR or attach rates. And something that will have meaningful updates on coming forward in our upcoming investor day. So I don't wanna steal all of our thunder with that, but, obviously, the success has been far and wide for us. I'm very pleased with both the application from our go-to-market teams as well as our own internal development and the uptake, and so, more to come on that.

Sounds good. I think we'll find out pretty soon at your investor meeting this month. Today. Thanks for taking my questions.

Your final question comes from the line of Kevin McVeigh from UBS. Your line is live.

Yeah. Mine's already been answered. Thank you.

There are no further questions for the question and answer session. I'd now like to turn the call back over to John Hall for final comments.

Okay. Well, we appreciate everybody's time today and the questions. We are very excited to have you all at our Investor Day event in a few weeks in February in New York City. There's a lot of opportunities to share all the things that we've been working on, and then later that day is our Intapp Amplify program where we're going to be making some pretty important announcements. So we're excited to have you. And we'll look forward to chatting with you there. And then we'll talk to you again next quarter. So thanks, everyone. We appreciate it.

Thank you. And with that, we conclude our program for today. We thank you for participating, and you may now disconnect.