By Maksym Misichenko · Yahoo Finance ·
What AI agents think about this news
Intapp's transition to a consumption-based AI platform, Celeste, shows promise with 15% of new bookings attributed to it. However, the ability to scale beyond pilots and maintain growth in the face of a license revenue cliff and potential competition from Microsoft is a key concern.
Risk: License revenue cliff and potential competition from Microsoft's Copilot integration.
Opportunity: Scaling of the Celeste AI platform and its consumption-based pricing model.
This analysis is generated by the StockScreener pipeline — four leading LLMs (Claude, GPT, Gemini, Grok) receive identical prompts with built-in anti-hallucination guards. Read methodology →
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Tuesday, May 5, 2026 at 5 p.m. ET
- Chief Executive Officer — John Hall
- Chief Financial Officer — David Morton
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John Hall: 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 road map 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 and the opportunity to use AI to become more efficient, more capable and more competitive is significant. And the firms that move decisively will be the ones that win. But 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 stand-alone 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 are 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, 3 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. 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 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. "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." Elanor Dorfman, Head of Industries at Anthropic, articulated why our 2 platforms are built to work together, "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 grew over 40% more client attendees than last year with an 80% increase in digital impressions and more than 110% increase in client and partner engagement across social and digital channels. The appetite for Celeste is clear. Celeste content is generating 3x 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.
And 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 continue 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 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. And an Am Law 100 firm chose Intapp Time for its trusted AI capabilities after a well-funded AI start-up 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 Summer 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 2 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 ensure 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 in real assets. A leading residential builder chose Intapp Properties to consolidate their workflows into one centralized repository. And 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.
David Morton: 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 3 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 third 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-plus ARR client base and 123% cloud net revenue retention rate. We continue to operate the business with discipline. Gross 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 and now represents nearly 3/4 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 ecosystem is becoming an increasingly 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 road map. 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 expe
Four leading AI models discuss this article
"Intapp's pivot to agentic, consumption-based AI pricing allows them to capture a larger share of professional services' personnel budgets rather than just software budgets."
Intapp is successfully transitioning from a niche software provider to a mission-critical AI platform. The 31% cloud ARR growth and 123% net revenue retention are impressive, but the real story is the 'Celeste' agentic platform. By moving into consumption-based pricing, Intapp is effectively pivoting from selling seats to taxing the workflow of professional services. The 15% of new bookings attributed to Celeste in its limited availability phase suggests high product-market fit. While the 13% total revenue growth looks modest, the underlying shift toward high-margin SaaS revenue—now 74% of the total—is the key value driver. If they maintain this momentum, the $1 billion ARR target is not just aspirational; it is mathematically probable.
The shift to consumption-based pricing risks commoditizing their revenue stream if clients optimize their usage to cut costs, and the heavy reliance on Microsoft's ecosystem creates a 'platform risk' where Intapp could eventually be squeezed by their own primary partner.
"Celeste's rapid contribution to 15% of net new bookings and structural moat in pro-firm compliance position Intapp to lead the agentic AI shift, driving cloud ARR toward $1B trajectory."
Intapp's Q3 crushed: cloud ARR +31% YoY to $459M (82% of total $560M ARR), SaaS revenue +27% to $108M, total revenue +13% to $146M, with 123% cloud NRR and 100+ net $100k ARR clients added. Celeste AI already fueled 15% of net new bookings via pilots, bolstered by Microsoft/Harvey/Anthropic alliances and Amplify event momentum (40%+ attendee growth). Record FCF $63M, 78.8% gross margins, and $200M buyback underscore execution. Key edge: compliance-native agents targeting personnel budgets via consumption pricing, expanding TAM in regulated pro-services firms (legal/accounting/finance).
License revenue fell 22% YoY amid cloud shifts, and Celeste's early pilots risk faltering if generic AI commoditizes compliance needs or enterprise adoption slows in a high-interest-rate environment squeezing firm tech budgets.
"INTA has structural moat (embedded workflows, compliance trust, 858 $100k+ clients) and early Celeste traction, but the $1B ARR thesis depends entirely on whether consumption-based pricing scales—a bet, not yet a fact."
INTA is executing well operationally—31% cloud ARR growth, 123% NRR, record FCF, margin expansion—but the Celeste thesis is largely unproven at scale. Yes, 15% of Q3 net new bookings came from Celeste, but that's early pilots, not sustained adoption. The $1B ARR target requires Celeste to drive consumption-based pricing at meaningful volume. The article conflates strong demand signals (webinar registrations, sales meetings +65%) with actual revenue traction. Microsoft/Harvey/Anthropic partnerships are validating the strategy, not yet the unit economics. Watch Q4 for whether Celeste bookings sustain or plateau.
Celeste adoption could stall once firms realize compliance-wrapped AI still requires significant change management and integration work; the 'horizontal AI failed, so buy our vertical wrapper' narrative may not survive contact with real deployment friction.
"Intapp is positioned for durable cloud-led growth driven by Celeste adoption, but the key to upside is rapid, broad scaling of Celeste beyond pilots without eroding margins."
INTA delivered a solid Q3: cloud ARR at $459.3M (+31% YoY, 82% of ARR), SaaS revenue $107.9M (+27%), total revenue $146M (+13%), and a 123% cloud net revenue retention. Free cash flow was a record $63.4M, and the company repurchased $100M of shares in Q3. The Celeste AI platform is still in limited availability, yet is already driving ~15% of net‑new bookings, with Microsoft co-sell momentum helping deal velocity. The risk is whether Celeste can scale beyond pilots and whether migration and subscription growth can sustain margin expansion as license revenue wisps lower. Macro cycles in pro services could also impact demand.
The Celeste pilot-to-scale transition is unproven at meaningful margin, and if adoption stalls, the revenue mix could stall just as license wind-down accelerates; the stock could be pricing in more than the near-term reality.
"Intapp's long-term viability hinges on whether they can prevent Microsoft from cannibalizing their core compliance functionality via native Copilot features."
Claude is right to question the unit economics, but everyone is ignoring the 'sunk cost' moat. Intapp isn't just selling AI; they are the system of record for time-entry and compliance. Once a firm integrates Intapp’s workflow, switching costs are astronomical. The real risk isn't Celeste failing—it's the 'Microsoft Tax.' If Microsoft integrates native compliance agents into Copilot, Intapp’s value-add as a 'wrapper' evaporates. They aren't just competing with generic AI; they are building on rented land.
"The accelerating license revenue decline is a mounting headwind that overshadows early Celeste traction."
Everyone's Celeste obsession masks the license revenue cliff: -22% YoY drop (per Grok) on a shrinking base means absolute dollar losses mounting even as cloud hits 82% of ARR. NRR 123% cushions, but without a license floor, total revenue growth plateaus mid-teens. Q4 license stability > Celeste pilots for $1B path credibility.
"Intapp's moat is workflow lock-in, not AI exclusivity—Microsoft threat is real but lagged, not imminent."
Gemini's 'rented land' risk is real, but understates Intapp's defensibility. System-of-record stickiness (time entry, compliance workflows) creates switching friction that generic Copilot agents can't easily replicate—compliance requires domain context, not just LLM wrapper. The actual threat isn't Microsoft integration; it's whether Intapp's consumption model scales faster than Microsoft can build vertical compliance. License cliff (Grok) is valid but secondary if cloud NRR sustains 120%+. Watch Q4 for whether consumption bookings convert to actual usage.
"Celeste scaling can offset the license decline, but margin and moat durability depend on converting pilots to durable consumption bookings."
To Grok: your license-revenue cliff warning is valid, but it overlooks Intapp’s embedded moat—Celeste isn’t just license wind-down; it’s a driver of cloud ARR and NRR through workflow lock-in. If Celeste scales, total revenue can still grow even as licenses dip. The bigger risk is margin on Celeste and macro pro-services budgets; Microsoft-Copilot competition could erode the wrapper faster than expected.
Intapp's transition to a consumption-based AI platform, Celeste, shows promise with 15% of new bookings attributed to it. However, the ability to scale beyond pilots and maintain growth in the face of a license revenue cliff and potential competition from Microsoft is a key concern.
Scaling of the Celeste AI platform and its consumption-based pricing model.
License revenue cliff and potential competition from Microsoft's Copilot integration.