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CI

Couchbase, Inc. (BASE)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY26 revenue was $57.6M, up 12% YoY and above both the company’s Q2 guidance ($54.4–$55.2M) and Wall Street consensus; EPS also beat consensus as non-GAAP net loss per share was $(0.02) versus an estimated $(0.064). Management stated “all metrics exceeded the high end of our outlook.” [functions.GetEstimates]*
  • ARR reached $260.5M (+22% YoY as reported; +21% constant currency) and dollar-based NRR returned to >115%, signaling healthy expansions and consumption trends.
  • Gross margin was 87.2% (non-GAAP 88.2%); non-GAAP operating loss improved to $(2.6)M from $(4.1)M a year ago, though GAAP operating loss increased due to business development charges and stock-based comp.
  • Couchbase did not host an earnings call or provide guidance with Q2 results due to the pending acquisition by Haveli Investments; the announced deal is for $24.50 per share in cash (~$1.5B). Potential stock reaction is anchored by the merger consideration and closing milestones.

What Went Well and What Went Wrong

What Went Well

  • Beat vs Street and guidance: Revenue and non-GAAP EPS exceeded the high end of company outlook and beat consensus; management highlighted “a great second quarter with all metrics exceeding the high end of our outlook.” [functions.GetEstimates]*
  • Strong subscription engine and durable KPIs: Subscription revenue grew 12% YoY to $55.4M; ARR rose to $260.5M (+22% YoY) and NRR returned to >115%.
  • Ecosystem/product momentum in AI: New analytics for self-managed customers, AWS Marketplace AI Agents category placement, Google MCP Toolbox support, K2view synthetic data, and the Confluent Cloud connector expand AI agent and event-driven application use cases.

Quote: “We had a great second quarter with all metrics exceeding the high end of our outlook.” – Matt Cain, Chair, President & CEO.

What Went Wrong

  • GAAP operating loss widened to $(25.4)M (vs $(21.0)M a year ago) driven by business development activities and stock-based compensation, despite improving non-GAAP operating loss to $(2.6)M.
  • Free cash flow remained negative at $(7.3)M (vs $(5.9)M last year) as capital expenditures increased to $3.8M.
  • Gross margin compressed sequentially to 87.2% (from 87.9% in Q1 and 88.6% in Q4), reflecting mix and cost dynamics.

Financial Results

MetricQ4 FY2025Q1 FY2026Q2 FY2026
Revenue ($USD Millions)$54.9 $56.5 $57.6
GAAP Gross Margin %88.6% 87.9% 87.2%
Non-GAAP Gross Margin %89.4% 88.7% 88.2%
GAAP Net Loss per Share ($)$(0.30) $(0.33) $(0.43)
Non-GAAP Net Income (Loss) per Share ($)$0.00 $(0.06) $(0.02)
Non-GAAP Operating Loss ($USD Millions)$0.144 $4.181 $2.646

Segment revenue mix:

Revenue Detail ($USD Millions)Q2 FY2025Q4 FY2025Q1 FY2026Q2 FY2026
License$5.24 $6.46 $9.01 $5.07
Support & Other$44.05 $46.32 $45.84 $50.30
Total Subscription$49.29 $52.78 $54.84 $55.37
Services$2.30 $2.14 $1.68 $2.20
Total Revenue$51.59 $54.92 $56.52 $57.57

KPIs:

KPIQ4 FY2025Q1 FY2026Q2 FY2026
ARR ($USD Millions)$237.9 $252.1 $260.5
RPO ($USD Millions)$251.1 $239.6 $270.7
Dollar-Based NRR (%)>114% >114% >115%

Results vs S&P Global consensus (Q2 FY2026):

MetricConsensusActual
Revenue ($USD)$55.15M*$57.57M
Primary EPS ($)$(0.064)*$(0.02)

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueQ2 FY2026$54.4–$55.2M Not provided due to pending Haveli transaction Withdrawn
ARRQ2 FY2026$255.8–$258.8M Not provided due to pending Haveli transaction Withdrawn
Non-GAAP Operating LossQ2 FY2026$(5.1)–$(4.1)M Not provided due to pending Haveli transaction Withdrawn
Total RevenueFY2026$228.3–$232.3M Not provided with Q2 due to pending Haveli transaction Withdrawn
ARRFY2026$279.3–$284.3M Not provided with Q2 due to pending Haveli transaction Withdrawn
Non-GAAP Operating LossFY2026$(15.5)–$(10.5)M Not provided with Q2 due to pending Haveli transaction Withdrawn

Earnings Call Themes & Trends

Note: Couchbase did not host an earnings call for Q2 due to the Haveli transaction.

TopicPrevious Mentions (Q4 FY2025, Q1 FY2026)Current Period (Q2 FY2026)Trend
AI/technology initiativesCapella AI Services in private preview; NVIDIA NIM integration; JSON analytics on GCP; vector and agentic AI roadmap reiterated Product highlights include Enterprise Analytics for self-managed, AWS Marketplace AI Agents, Google MCP Toolbox, K2view synthetic data, Confluent Cloud connector Sustained expansion of AI ecosystem and features
Capella adoption & migrationsStrong Capella consumption; Capella ARR +76% YoY (Q4), +84% YoY (Q1); migrations create ARR–revenue recognition lag Adoption implied via ARR/RPO strength; no Q2 call detail; subscription revenue growth supportive Continuing growth; narrative maintained
Macro/sales cycles & pipelineLonger cycles and scrutiny; pipeline health and strategic accounts offset macro headwinds No call; press points to execution and outlook beat Neutral to improving execution
Competitive landscape (Postgres vs NoSQL)Management differentiates on memory-first architecture, embedded vector, JSON-native services vs generic support No call commentaryStable differentiation narrative
R&D execution/leverageOperating leverage and cost discipline improving; targets to be operating income positive in FY2027 Non-GAAP operating loss improved YoY; GAAP loss higher from BD and SBC Mixed: non-GAAP improvement, GAAP pressured
Regulatory/legal–Transaction to be acquired by Haveli Investments for $24.50 per share in cash (~$1.5B); no Q2 guidance/call Deal-driven communications and timeline dominate

Management Commentary

  • “We had a great second quarter with all metrics exceeding the high end of our outlook.” – Matt Cain, Chair, President & CEO.
  • “Given the announced transaction, we will not be hosting an earnings conference call nor providing financial guidance in conjunction with this press release.”
  • Q1 context: “Capella now represents 17.4% of our total ARR… momentum continued… Capella ARR… +84% year-to-year.” – Interim CFO Bill Carey.
  • Q1 context: “We delivered first-quarter ARR… exceeded the high end of our guidance ranges… continued Capella adoption… pipeline of large strategic opportunities continues to grow.” – Matt Cain.

Q&A Highlights

From Q1 FY26 call:

  • ARR vs revenue dynamics: Migrations to Capella shift recognition patterns, creating near-term revenue lag versus ARR, with convergence expected next year; services revenue decline also noted.
  • Go-to-market and developer funnel: Free Capella tier and starter packs driving trials and top-of-funnel demand; leadership emphasized better TCO versus rivals.
  • Competitive positioning: Differentiation versus Postgres alternatives via architecture (memory-first, JSON-native, embedded vector) for critical applications.
  • Capella consumption and strategic accounts: Strong consumption growth; strategic expansions across large enterprises underpin ARR durability.
  • Guidance clarifications: Raised FY26 revenue/ARR outlook and lowered operating loss in Q1; noted FX tailwinds/headwinds in outlook components.

Estimates Context

  • Revenue beat: Actual $57.57M vs Street $55.15M (beat by ~$2.4M). [functions.GetEstimates]*
  • EPS beat: Actual non-GAAP $(0.02) vs Street $(0.064) (beat by ~$0.044). [functions.GetEstimates]*
  • Implications: Consensus models likely need upward revisions to subscription revenue trajectory and modestly improved non-GAAP operating loss path; GAAP margins remain sensitive to SBC and deal-related items (business development activities).

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Couchbase delivered a clean revenue and EPS beat vs guidance and Street; subscription growth, ARR momentum, and NRR >115% underscore durable demand and consumption-led expansion. [functions.GetEstimates]*
  • Non-GAAP profitability improved YoY, but GAAP loss widened due to business development charges and stock-based comp; watch ongoing mix effects on GAAP margins.
  • Capella adoption, AI ecosystem integrations (AWS AI Agents, Google MCP Toolbox), and data movement (Confluent Cloud connector) are strategic levers for multi-year expansion.
  • Near-term trading is primarily driven by Haveli deal mechanics ($24.50 cash consideration), closing timeline, and regulatory/shareholder milestones rather than quarterly guidance (withdrawn).
  • Model updates: Raise Q2 actuals and consider higher subscription run-rate; maintain caution on sequential gross margin and free cash flow given capex and migration dynamics.
  • Narrative: Platform differentiation in critical applications and AI agents remains intact; ARR–revenue timing gap persists with migrations but is expected to converge over the next year per prior commentary.
  • Watch governance/leadership transitions (CEO/CFO appointments post-quarter) and integration steps under Haveli to assess continuity in product roadmap and go-to-market execution.