#United States #Inc. #San Jose #Couchbase #ARR Growth #Fiscal 2026

Couchbase Reports Impressive First Quarter Financial Results for Fiscal 2026

Couchbase, Inc. (NASDAQ: BASE), a leading developer data platform for critical applications in the age of AI, recently announced strong financial outcomes for the first quarter of fiscal year 2026, which concluded on April 30, 2025. The company recorded its highest-ever first quarter net new Annual Recurring Revenue (ARR), demonstrating a robust start to the fiscal year. Matt Cain, the Chair, President, and CEO of Couchbase, characterized this quarter's performance as promising, stating, "We continue to see positive momentum with our major strategic accounts while we also witness impressive growth in the usage of our Capella services. I remain positive about our overall outlook and our capacity to achieve full-year objectives."

Financial Highlights

• - Total Revenue: Couchbase reported total revenue of $56.5 million in the first quarter, marking a 10% increase compared to the same period the previous year. Subscription revenue constituted $54.8 million, reflecting a 12% increase year-over-year.

• - Annual Recurring Revenue (ARR): The company noted an ARR of $252.1 million as of April 30, 2025, which is a remarkable 21% leap compared to the prior year—20% when adjusted for constant currency.

• - Gross Margin: The gross margin for the quarter was reported at 87.9%, a small decline from the 88.9% seen in the same period last year. On a non-GAAP basis, the gross margin was 88.7%, compared to 89.9% in Q1 of the last fiscal year.

• - Operating Loss: Couchbase experienced an operational loss of $18.8 million, reduced from a $22.5 million loss reported in Q1 of fiscal 2025. When adjusted for non-GAAP measures, the operational loss was $4.2 million down from $6.7 million year-on-year.

• - Cash Flow: The cash flow from operating activities was negative at $6.8 million, a decline from the previous year's positive cash flow of $1.6 million in the same quarter. Capital expenditures of $1.9 million led to a negative free cash flow of $8.6 million, contrasting with the positive $0.6 million free cash flow recorded in Q1 2025.

• - Remaining Performance Obligations (RPO): RPO increased by 9% year-over-year, reaching $239.6 million at the end of April 2025.

Recent Business Developments

Couchbase has continued to innovate and expand its product offerings:

• - The launch of the Couchbase Edge Server: This offline-first database server is designed for low latency data access, simplifying operations in resource-limited environments.
• - Ongoing investment in AI capabilities: The company has integrated high-performance vector database solutions, enabling smoother performance in AI workflows. Features like the Model Context Protocol Server allow AI agents to automate data interactions.
• - Recognition in the industry: Couchbase has been featured in prominent lists such as CRN's 15 Hottest AI Data and Analytics Companies of 2025 and has been awarded Data Management Platform of the Year by the Data Breakthrough Awards.
• - Corporate relocation: Couchbase has moved to a new global headquarters in San Jose, California, aimed at fostering collaboration and driving the company's strategy forward.

Financial Outlook

Looking ahead to Q2 and the entire fiscal year 2026, Couchbase has established revenue forecasts:

• - Q2 FY2026 Outlook: Projected total revenue ranges between $54.4 and $55.2 million, with expected ARR from $255.8 to $258.8 million. Expected non-GAAP operating loss is projected to be between $5.1 and $4.1 million.
• - FY2026 Outlook: Anticipated total revenue ranges from $228.3 to $232.3 million, with total ARR expected to lie between $279.3 and $284.3 million. The full-year non-GAAP operating loss is expected to be between $15.5 and $10.5 million.

Couchbase emphasizes that these projections rely on various assumptions that may evolve. The company cannot currently provide GAAP targets for the operating loss due to the unpredictable nature of certain expenses related to stock-based compensation.

Conclusion

Couchbase's first-quarter performance clearly illustrates its strong position in the developer data platform market amid a rapidly advancing AI landscape. As the company continues to innovate and expand its services, it remains well-poised to meet its strategic objectives for fiscal 2026. The upcoming conference call is scheduled for June 3, 2025, where Couchbase will delve deeper into these results and future projections, providing invaluable insights for investors and stakeholders alike.