Couchbase, Inc.

Q1 revenue was $56.5 million, up 10% year over year and 3% sequentially. Total ARR was $252.1 million, up 21% year over year, 20% in constant currency, and 6% sequentially; net new ARR was $14.2 million, up 306% year over year; Capella ARR was $44 million, up 84% year over year. Non-GAAP gross margin was 88.7% versus 89.9% a year ago and 89.4% last quarter; non-GAAP operating loss was $4.2 million, compared with a $6.7 million loss a year ago. For Q2, Couchbase guided to revenue of $54.4 million to $55.2 million, ARR of $255.8 million to $258.8 million, and non-GAAP operating loss of negative $5.1 million to negative $4.1 million. For fiscal 2026, it raised guidance to revenue of $228.3 million to $232.3 million, ARR of $279.3 million to $284.3 million, and non-GAAP operating loss of negative $15.5 million to negative $10.5 million; the ARR outlook includes a $3.6 million FX tailwind, and the operating loss outlook includes a $3.5 million FX headwind. Cash, cash equivalents, and short-term investments were $141.8 million; RPO was $239.6 million, with $158.7 million expected to be recognized over the next 12 months.

Matt Cain said the quarter showed strong execution against a tough macro backdrop, with strategic platform wins, larger account expansion, and Capella adoption driving results. He emphasized that Couchbase is positioning itself as a database for critical applications and as an AI-era platform, including support for agentic use cases, vector capabilities, and edge deployments. His tone was confident and constructive, with repeated comments that pipeline is growing and that the company remains on track for its full-year objectives.

Bill Carey focused on the financial outperformance and the drivers behind it: ARR, Capella, and operating leverage. He highlighted Capella ARR of $44 million, ARR per customer of $269,000, gross margin of 88.7%, operating cash flow of negative $6.8 million, and free cash flow of negative $8.6 million. He also explained that revenue recognition lags because of enterprise-to-Capella migrations and usage-based consumption, and said the company is committed to continued profitability improvement and to becoming operating income positive in fiscal 2027.

Analysts focused on why ARR was strong while revenue lagged, and management said the gap is mainly due to Capella’s usage-based revenue model, migration timing, and the revenue ramp that follows conversions from enterprise to Capella. Questions also probed macro trends, with Matt Cain saying sales cycles remain longer and scrutiny is higher, but pipeline strength and platform differentiation have offset the pressure. Other questions covered Postgres competition, AI agents, and starter-pack churn; management said Couchbase’s differentiated architecture for critical applications, free-tier enhancements, and growing trial volume are improving top-of-funnel demand.