Guggenheim cuts Couchbase rating citing pending takeover

Published 05/09/2025, 15:06
© Reuters.

Investing.com -- Guggenheim downgraded Couchbase to Neutral from Buy, saying the pending $1.5 billion sale to Haveli Investments leaves little room for upside despite stronger-than-expected quarterly results.

Couchbase reported second-quarter fiscal 2026 revenue of $57.6 million, up 12% from a year earlier and above Wall Street estimates of $54.8 million.

Subscription revenue rose 12% to $55.4 million, also ahead of forecasts. The company posted a non-GAAP operating loss of $2.6 million, narrower than the $4.5 million loss analysts expected.

Annual recurring revenue grew 22% to $260.5 million, about $3 million above consensus. Dollar-based net retention improved to 115% from 114% in the prior quarter.

Guggenheim noted that new ARR growth was flat year-on-year after a strong first quarter, showing some deceleration on a two-year basis.

In June, Couchbase agreed to be acquired by Haveli Investments for $24.50 a share, or roughly $1.5 billion.

Guggenheim said it is lowering its rating as an administrative move given the deal’s near completion and has removed its prior $26 price target, which had been set just above the acquisition price.

The firm added that if the takeover does not close, Couchbase shares could face renewed volatility.

 

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