Couchbase delivered a strong start to fiscal 2026 (QQ1 2026) with material ARR growth and a disciplined path toward longer-term profitability. Total ARR reached $252.1 million, up 21% year over year and 6% sequentially, with net new ARR of $14.2 million, a 306% year-over-year increase. Capella continues to scale, now representing 17.4% of total ARR and delivering $44.0 million of ARR, up 14% quarter over quarter and 84% year over year, underscoring a shift toward usage-based revenue and platform consolidation among large strategic accounts. Revenue was $56.5 million, up 10% year over year and 3% quarter over quarter, while gross margin stood at 88.7%. The company reported a non-GAAP operating loss of $4.2 million (GAAP operating loss substantially larger due to migration-related timing and cost structure), and a GAAP net loss of approximately $3.0 million for the quarter. Management highlighted ongoing Capella-driven migrations, the expansion of Capella free tier and starter packs to accelerate developer adoption, and the Edge Server and AI capabilities as key levers for sustainable growth. Looking forward, Couchbase reiterated its full-year guidance, adjusting to a higher ARR base and modestly higher revenue with a focus on operating leverage and free cash flow expansion toward 2027 profitability. While macro uncertainty remains a factor in enterprise IT spending, the near-term trajectory is supported by a growing pipeline of large strategic opportunities, strong renewal/expansion dynamics, and the strategic importance of Capella as migrations continue. Investors should monitor Capella adoption, the run-rate of net new ARR, ARR per customer, churn within starter packs, FX headwinds/tailwinds, and the progression of migrations into production usage as the revenue base shifts toward consumption-based models.