Sprouts Farmers Market closes $600 million revolving credit facility
On Wednesday, DA Davidson reaffirmed their positive stance on Couchbase Inc (NASDAQ:BASE), maintaining a Buy rating and a price target of $25.00. According to InvestingPro data, the stock currently trades at $18.26, with analyst targets ranging from $16 to $26. Nine analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s prospects. The endorsement follows Couchbase’s report of their fourth fiscal quarter Annual Recurring Revenue (ARR) which exceeded consensus estimates. The ARR reached $237.9 million, or $239.8 million when adjusted for foreign exchange rates consistent with those used in the fourth fiscal quarter guidance, surpassing the anticipated $237.7 million and marking a 17% year-over-year increase at constant currency. The company also reported a record New Net ARR (NNARR) of $19.5 million, indicating a 26% year-over-year growth at constant currency.
Couchbase’s guidance for the first fiscal quarter ARR was higher than expected, while the guidance for fiscal year 2026 ARR was approximately $1.5 million below the mid-point. However, DA Davidson views the FY26 ARR guidance as conservatively set. The company demonstrates strong fundamentals with an impressive gross profit margin of 88.35% and maintains more cash than debt on its balance sheet. Want deeper insights? InvestingPro offers comprehensive analysis with additional metrics and ProTips. Revenue guidance came in lower as conversions to Capella, Couchbase’s fully managed Database-as-a-Service, may lead to greater variance between ARR and revenue growth. Nonetheless, this was seen as a non-issue by the firm.
The operating loss guidance provided by Couchbase was better than anticipated. DA Davidson’s analyst commented on the financial outlook stating, "Rev guidance was below as Capella conversions create a bit wider variance between ARR & Rev growth, a non-issue in our view, while Op Loss guidance was a better than expected. We remain BUY rated; $25 PT."
Couchbase’s financial performance and forward-looking guidance have led DA Davidson to maintain confidence in the company’s stock. Their analysis suggests that the growth in ARR and NNARR, coupled with conservative ARR projections for the upcoming fiscal year, positions Couchbase favorably in the market. The stock has shown resilience with a 17.13% year-to-date return, despite broader market volatility. For a complete analysis of Couchbase’s potential, including exclusive ProTips and detailed financial metrics, check out the full research report available on InvestingPro. The firm’s reiteration of the Buy rating and price target reflects their continued optimism about Couchbase’s prospects.
In other recent news, Couchbase Inc. reported a fourth-quarter revenue of $54.9 million, which exceeded analyst expectations of $53.25 million, marking a 10% year-over-year increase. The company’s annual recurring revenue (ARR) reached $237.9 million by the end of fiscal year 2025, showing a 17% increase from the previous year. Despite these positive results, Couchbase reported a wider-than-expected adjusted loss per share of -$0.30, missing the consensus forecast of -$0.08. Looking forward, Couchbase provided fiscal 2026 revenue guidance of $228-232 million, which is below the analyst consensus of $236.7 million.
Additionally, Couchbase achieved a record net new ARR of $19.5 million, representing a 26% year-over-year increase. The company also reported its highest quarterly free cash flow of $4 million, a significant improvement from a negative $7.7 million in the same quarter last year. Analyst Howard Ma from Guggenheim maintained a Buy rating on Couchbase but lowered the stock price target to $26 from $30. In contrast, Goldman Sachs analyst Kash Rangan maintained a Sell rating, adjusting the price target to $16 from $18, citing concerns about the company’s growth rate relative to its peers.
Couchbase’s strategic developments include the private preview of Capella AI Services and new integrations with NVIDIA (NASDAQ:NVDA) AI, aimed at leveraging the increasing demand for AI-powered database applications. Furthermore, the company announced that CFO Greg Henry will be leaving after over eight years, with Chief Accounting Officer Bill Carey stepping in as interim CFO. These developments reflect the company’s ongoing efforts to navigate a competitive landscape while focusing on strategic growth initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.