INTA · Research
Intapp's Cloud ARR Grew 28% to $515.3M While Stock Pay Took 77.9% of Operating Cash
Intapp sells cloud software to law, accounting and advisory firms. Cloud ARR grew 28% and subscription revenue 28.67%, while license revenue fell 21.10% as clients move to cloud.
| Scorecard | Read |
|---|---|
| Thesis | Intapp is converting professional-services firms to cloud subscriptions at 28% growth, but stock pay absorbs nearly all of the cash that growth produces |
| What proves it wrong | Cloud ARR growth falls below 20%, or stock pay stays above 20% of revenue for another year |
| Next catalyst | Fiscal Q2 2027 results, early February 2027; date not yet announced |
| Key multiple | GAAP EBITDA is -$9.61M, so EV / EBITDA carries no signal; 19.47x EV / operating cash flow |
| Debt | $0. No borrowings |
| Stock pay | $125.78M from the cash flow line, 20.96% of revenue |
What Intapp sells and how it gets paid
Intapp sells cloud software to professional and financial services firms: law, accounting, consulting and investment firms. Products cover client intake, conflicts, risk, time and collaboration.
Fiscal Q1 2027 subscription revenue was $125.49M, up 28.67%. License revenue fell 21.10% to $23.03M, and professional services rose 3.48% to $12.74M [1].
Total revenue was $161.26M, up 15.99% [1]. Subscription is now 77.82% of revenue.
ARR was $607.1M, up 20%. Cloud ARR, the subscription part, was $515.3M, up 28%, and 85% of ARR, against 80% a year earlier [1].
Remaining performance obligations were $799.4M, with about 59% due in twelve months [1].
Margins by line
Subscription gross margin was 84.38% in Q1 [1]. License margin is higher but shrinking.
Professional services lose money. Revenue of $12.74M cost $14.89M to deliver, a loss of $2.15M [1].
Implementation is a cost of winning cloud clients.
Operating loss narrowed to $1.06M from $14.46M [1]. GAAP breakeven is close.
The toll-gate test
Intapp owns a regulated record. Conflicts checks are how a law firm proves it may take a client, and that history cannot be thrown away.
The weak test is pricing. Intapp charges per user, so revenue does not move with the value of matters it helps win.
The owner-cash staircase
Start with GAAP EBITDA of -$9.61M: operating income of -$26.70M plus D&A of $17.09M over the twelve months [1]. Each step down the staircase removes one thing an owner cannot spend.
Step one is operating cash flow of $161.47M, above EBITDA by $171.08M. GAAP EBITDA is negative because stock pay runs through operating expenses.
Operating cash adds it back, along with deferred revenue from annual billing.
Step two subtracts stock pay of $125.78M, taken from the cash flow line. That leaves $35.70M.
Stock pay is 20.96% of revenue and 77.90% of operating cash flow. This is the largest gap on any staircase in this coverage.
Step three subtracts all capex of $9.95M, including capitalized software. Owner cash is $25.75M, or 4.29% of revenue and more than EBITDA.
Capex is small: property and equipment of $0.33M plus capitalized internal-use software of $1.99M in the quarter [1].
| Step | Twelve months | What the gap is |
|---|---|---|
| GAAP EBITDA | -$9.61M | Operating income plus D&A |
| Operating cash flow | $161.47M | Working capital, cash taxes, interest and non-cash items |
| After stock pay | $35.70M | Stock pay treated as a real cost |
| After all capex | $25.75M | What an owner could take out |
Owner cash of $25.75M is 4.29% of revenue. On operating cash the company looks like a profitable growth business; after stock pay, it is close to breakeven.
Balance sheet and debt
Intapp has no debt. Cash was $147.69M at Sep 30, 2026 [1].
It has a commitment to spend at least $110.0M on Microsoft cloud services through December 2028 [1]. That is an off-balance-sheet obligation that behaves like debt.
What gets overlooked
Stock pay of $33.52M in the quarter compared with $25.0M of buybacks [1]. Buybacks offset only part of the dilution.
Tax withholding on vested shares took another $18.21M in the quarter [1]. That is cash spent on stock pay that does not appear as stock pay.
License revenue is recognized up front, so its decline makes reported growth look slower than cloud growth. Total revenue growth of 15.99% understates the subscription business.
Sales and marketing was $57.78M, 35.83% of revenue, up from $48.79M [1]. Spend is still rising faster than total revenue.
Where the money goes
R&D was $40.82M in the quarter, flat against $40.93M and 25.31% of revenue [1]. Intapp is holding engineering cost steady while revenue grows 15.99%.
General and administrative fell to $28.06M from $28.57M [1]. The operating loss narrowed by $13.39M, and most of the improvement came from gross profit rising faster than costs.
Gross profit was $125.61M against $103.83M, up 20.97% [1]. That is faster than revenue because subscription, the high-margin line, grows fastest.
ARR of $607.1M is just above trailing revenue of $600.04M [1]. Revenue will keep catching up to ARR as cloud contracts start.
Why license decline is good news
License revenue of $23.03M fell from $29.19M [1]. Each on-premises client that moves to cloud turns a one-time license into a multi-year subscription.
The cost is a revenue gap in the year of conversion. A client paying an up-front license recognizes less in the first cloud year, which hides growth in reported revenue.
Cloud ARR's share of total ARR rose 5 points to 85% in a year [1]. When the remaining 15% converts, license decline stops weighing on growth.
Gross margin by line
Subscription cost of revenue was $19.60M on $125.49M of subscription revenue, an 84.38% gross margin [1]. A year earlier it was 81.69%.
Professional services cost $14.89M against revenue of $12.74M, a $2.15M loss in the quarter [1]. Intapp uses implementation work to win and expand subscriptions, not to earn a margin.
License cost was only $1.16M [1]. The license line is nearly all gross profit, which is why its decline slows gross profit growth even as subscription accelerates.
Quarterly operating cash flow was $28.42M, up 106.01% from $13.80M [1]. Investing used only $2.32M, including $0.33M of equipment [1].
How Intapp measures adoption
Intapp tracks enterprise clients with more than $50,000 and more than $100,000 of ARR [1]. The filing calls these important metrics of progress toward full adoption of the platform.
It also discloses Cloud net revenue retention, which measures how much a cohort of cloud clients spends a year later [1]. The filing warns that retention could suffer if clients stop seeing a return on the platform.
For a firm selling to law, accounting and advisory firms, both measures matter more than new logos. Growth comes from selling more modules into the same partnerships.
Gross capitalized internal-use software reached $43.99M at Sep 30, 2026, from $41.25M at Jun 30 [1]. Intapp capitalizes a small slice of its engineering, so R&D expense is close to cash R&D.
Superintelligence risk and opportunity
The filing names competition in agent and superintelligence products as a risk [1]. Law firms are early adopters of agents for research and drafting.
Intapp's opportunity is that agents need the firm's client and matter data, which Intapp holds. An agent that drafts must first check conflicts.
The risk is that large platform vendors build intake and compliance into broader suites, and that law firms shrink headcount, cutting seats.
Management and capital allocation
Capital goes to growth and buybacks. Intapp repurchased $25.0M of stock in the quarter [1].
The test for management is stock pay. Until it falls well below 20% of revenue, owner cash stays thin.
Peers on the same basis
Peer figures come from each company's latest periodic filing [2][3][4]. Figures are derived from filed statements, and nothing here is a price view.
GAAP EBITDA is negative, so the peer comparison uses EV to operating cash flow. On that basis Intapp sits near peers; after stock pay it does not.
Bull, base and bear cases
| Case | What it needs | What it looks like |
|---|---|---|
| Bull | Cloud migration completes and stock pay falls | Cloud ARR growth above 25%; stock pay below 15% of revenue; GAAP operating profit |
| Base | Cloud growth slows into the low 20s | License declines continue; owner cash rises slowly |
| Bear | Firms cut seats as agents do junior work | Cloud ARR growth below 20%; services losses widen; stock pay stays high |
Catalysts and what to watch
Fiscal Q2 2027 results come in early February 2027. Intapp has not announced the date.
Watch Cloud ARR growth against 28%, cloud share of ARR against 85% and stock pay as a share of revenue.
Watch services margin, since losses there are the cost of each cloud conversion.
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