nCino(NCNO) - 2026 Q2 - Quarterly Results

Executive Summary nCino achieved strong Q2 FY26 financial results, exceeding guidance with significant profitability growth, driven by strengthening customer demand and strategic innovation in AI-banking Q2 FY26 Performance Overview nCino reported strong financial results for the second quarter of fiscal year 2026, exceeding quarterly guidance for total and subscription revenues, as well as non-GAAP operating income, with significant year-over-year growth in key non-GAAP profitability metrics Q2 FY26 Financial Highlights | Metric | Q2 FY26 (Millions) | Q2 FY25 (Millions) | YoY Change | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Total Revenues | $148.8 | $132.4 | +12% | | Subscription Revenues | $130.8 | $113.9 | +15% | | GAAP Loss from Operations | $(9.3) | $(7.9) | -18% | | Non-GAAP Operating Income | $30.0 | $19.3 | +56% | | GAAP Net Loss Attributable to nCino | $(15.3) | $(11.0) | -39% | | Non-GAAP Net Income Attributable to nCino | $25.7 | $15.6 | +64% | | GAAP Net Loss per Share (Basic & Diluted) | $(0.13) | $(0.10) | -30% | | Non-GAAP Net Income per Diluted Share | $0.22 | $0.13 | +69% | | Cash, Cash Equivalents, and Restricted Cash (as of July 31, 2025) | $123.2 | N/A | N/A | | Revolving Credit Facility Outstanding (as of July 31, 2025) | $203.5 | N/A | N/A | | Shares Repurchased (Q2 FY26) | 750,000 | N/A | N/A | | Average Share Price for Repurchase | $26.89 | N/A | N/A | | Total Consideration for Repurchase | $20.0 | N/A | N/A | CEO Commentary CEO Sean Desmond expressed satisfaction with the financial results, highlighting that they exceeded quarterly guidance, noting strengthening customer demand and reinforcing confidence in the company's strategy and improved financial outlook, while emphasizing nCino's rapid progress towards becoming a leader in AI-banking through continuous innovation - Customer demand continued to strengthen in Q2, including for newer solutions and across target markets, reinforcing confidence in strategy and improved financial outlook[2] - nCino's vision of being the leader in AI-banking is rapidly coming into focus through continuous innovation and pursuit of substantial opportunities[2] Business Highlights nCino expanded its global market presence and deepened customer relationships through key renewals and new client acquisitions across diverse financial sectors Recent Customer Engagements nCino expanded its market presence and deepened existing relationships, securing renewals and expansions with major North American financial institutions, entering the Spanish market with a new customer, and broadening its engagement with a British challenger bank, while also signing a significant client in the mortgage sector - Renewed and expanded relationships with two top-50 banks in the U.S. and a top-5 Canadian bank, growing wallet share among North America's largest financial institutions[9] - Signed the first Spanish customer, a non-bank lender, to leverage nCino for scaling their lending business[9] - Expanded relationship with an existing British challenger bank to include nCino Client Lifecycle Management for efficient onboarding and continuous compliance monitoring[9] - Signed the lending division of a top-25 home builder for nCino Mortgage to enable nationwide growth[9] Financial Outlook nCino provided optimistic financial guidance for Q3 and the full fiscal year 2026, projecting continued revenue growth and enhanced non-GAAP profitability Q3 FY26 Guidance nCino provided specific financial guidance for the third quarter ending October 31, 2025, projecting continued growth in revenues and non-GAAP profitability Q3 FY26 Guidance Range | Metric | Q3 FY26 Guidance Range (Millions) | | :-------------------------------- | :-------------------------------- | | Total Revenues | $146.0 - $148.0 | | Subscription Revenues | $127.5 - $129.5 | | Non-GAAP Operating Income | $31.5 - $33.5 | | Non-GAAP Net Income Attributable to nCino per Diluted Share | $0.20 - $0.21 | Full Fiscal Year 2026 Guidance The company also issued guidance for the full fiscal year 2026, ending January 31, 2026, anticipating robust performance across key financial indicators, including Annual Contract Value (ACV) FY26 Guidance Range | Metric | FY26 Guidance Range (Millions) | | :-------------------------------- | :----------------------------- | | Total Revenues | $585.0 - $589.0 | | Subscription Revenues | $513.5 - $517.5 | | Non-GAAP Operating Income | $117.5 - $121.5 | | Non-GAAP Net Income Attributable to nCino per Diluted Share | $0.77 - $0.80 | | Annual Contract Value (ACV) | $564.0 - $567.0 | Company Overview nCino delivers intelligent banking solutions to over 2,700 global customers, leveraging AI to digitize processes and enhance financial institution performance About nCino nCino is a leading provider of intelligent, best-in-class banking solutions, founded to help financial institutions digitize and reengineer business processes, serving over 2,700 customers globally with a platform that integrates artificial intelligence and actionable insights to consolidate legacy systems, enhance strategic decision-making, improve risk management, and elevate customer satisfaction - nCino provides intelligent, best-in-class banking solutions to help financial institutions digitize and reengineer business processes[8] - Serves over 2,700 customers worldwide, including community banks, credit unions, independent mortgage banks, and large financial entities[8] - Integrates artificial intelligence and actionable insights to enhance strategic decision-making, improve risk management, and elevate customer satisfaction[8] Forward-Looking Statements & Risks This section outlines forward-looking statements and potential risks that could materially impact nCino's future financial performance and operational results Disclaimer and Risk Factors This press release contains forward-looking statements regarding nCino's future performance, outlook, and strategies, which are based on current plans and expectations and are subject to various known and unknown risks and uncertainties that could cause actual results to differ materially from projections - Forward-looking statements are based on historical performance, current plans, estimates, and expectations, and are not guarantees of future achievement[10] - Key risks include adverse changes in the financial services industry, economic/regulatory conditions, acquisition-related risks, security breaches, competition, ability to attract and retain customers, fluctuations in operating results, growth management, relationship with Salesforce, and legal proceedings[10] - nCino does not undertake any obligation to update or revise these forward-looking statements, except as required by law[10] Financial Statements (GAAP) This section presents nCino's GAAP-compliant condensed consolidated balance sheets, statements of operations, and cash flows for the specified periods Condensed Consolidated Balance Sheets The condensed consolidated balance sheets provide a snapshot of nCino's financial position at July 31, 2025, compared to January 31, 2025, detailing changes in assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | July 31, 2025 | January 31, 2025 | Change | | :------------------------------------ | :-------------- | :--------------- | :----- | | Total Assets | $1,616,017 | $1,610,381 | +$5,636 | | Current Assets | $255,085 | $302,249 | -$47,164 | | Cash and cash equivalents | $122,935 | $120,928 | +$2,007 | | Accounts receivable, net | $98,468 | $146,787 | -$48,319 | | Total Liabilities | $548,854 | $512,783 | +$36,071 | | Current Liabilities | $248,637 | $251,512 | -$2,875 | | Revolving credit facility, noncurrent | $203,500 | $166,000 | +$37,500 | | Total Stockholders' Equity | $1,056,818 | $1,089,312 | -$32,494 | | Treasury stock, at cost | $(60,598) | — | -$60,598 | | Additional paid-in capital | $1,510,517 | $1,474,413 | +$36,104 | Condensed Consolidated Statements of Operations The condensed consolidated statements of operations detail nCino's financial performance for the three and six months ended July 31, 2025, and 2024, showing revenue generation, cost of revenues, operating expenses, and net loss Condensed Consolidated Statements of Operations (in thousands, except per share) | Metric (in thousands, except per share) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $148,815 | $132,403 | $292,952 | $260,490 | | Subscription Revenues | $130,752 | $113,911 | $256,340 | $224,317 | | Professional services and other | $18,063 | $18,492 | $36,612 | $36,173 | | Gross Profit | $88,125 | $78,472 | $174,567 | $155,379 | | Gross Margin % | 59% | 59% | 60% | 60% | | Total Operating Expenses | $97,421 | $86,378 | $185,376 | $166,948 | | Sales and marketing | $37,265 | $31,713 | $70,236 | $59,758 | | Research and development | $34,667 | $34,271 | $68,008 | $64,252 | | General and administrative | $25,489 | $20,394 | $47,132 | $42,938 | | Loss from Operations | $(9,296) | $(7,906) | $(10,809) | $(11,569) | | Net Loss Attributable to nCino, Inc. | $(15,257) | $(11,040) | $(9,695) | $(14,016) | | Net Loss per Share (Basic and Diluted) | $(0.13) | $(0.10) | $(0.08) | $(0.12) | Condensed Consolidated Statements of Cash Flows The condensed consolidated statements of cash flows present the cash generated from or used in operating, investing, and financing activities for the six months ended July 31, 2025, and 2024, illustrating the overall change in cash and cash equivalents Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $72,056 | $59,441 | | Net cash used in investing activities | $(53,445) | $(91,925) | | Acquisition of business, net of cash acquired | $(50,263) | $(90,839) | | Purchases of property and equipment | $(6,866) | $(786) | | Net cash provided by (used in) financing activities | $(20,184) | $43,159 | | Repurchases of common stock | $(60,598) | — | | Proceeds from borrowings on revolving credit facility | $102,500 | $75,000 | | Payments on revolving credit facility | $(65,000) | $(35,000) | | Net increase in cash, cash equivalents, and restricted cash | $1,956 | $9,321 | | Cash, cash equivalents, and restricted cash, end of period | $123,223 | $126,765 | Non-GAAP Financial Measures & Reconciliation This section explains nCino's non-GAAP financial measures and provides detailed reconciliations to their GAAP equivalents for enhanced operational clarity Explanation of Non-GAAP Measures nCino utilizes non-GAAP financial measures to provide a clearer understanding of its core operating results, budgeting, and comparisons with peers, excluding specific non-cash or non-recurring items that management believes are not indicative of ongoing business performance - Non-GAAP measures exclude amortization of purchased intangibles, stock-based compensation expenses, acquisition-related expenses, litigation expenses, and restructuring costs to provide a clearer view of operating results[23] - Beginning with Q1 FY26, nCino also adjusts for intercompany foreign currency exchange gains/losses, tax provisions related to acquisitions, income tax effects on non-GAAP adjustments, and adjustments to redeemable non-controlling interest for comparability[25] - These non-GAAP measures have limitations as they are not prepared in accordance with GAAP and should be reviewed in conjunction with GAAP financial information[24] Reconciliation of GAAP to Non-GAAP Measures Detailed tables are provided to reconcile GAAP financial measures to their non-GAAP equivalents across various income statement line items, operating income, net income, and earnings per share for the three and six months ended July 31, 2025, and 2024, along with free cash flow Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share) | Metric (in thousands, except per share) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Non-GAAP Gross Profit | $98,686 | $86,732 | $193,703 | $171,180 | | Non-GAAP Gross Margin % | 66% | 66% | 66% | 66% | | Non-GAAP Operating Income | $30,010 | $19,298 | $54,840 | $43,743 | | Non-GAAP Operating Margin % | 20% | 15% | 19% | 17% | | Non-GAAP Net Income Attributable to nCino, Inc. | $25,674 | $15,648 | $44,081 | $38,409 | | Diluted Non-GAAP Net Income Attributable to nCino, Inc. per share | $0.22 | $0.13 | $0.38 | $0.33 | | Weighted-average shares used for diluted non-GAAP EPS | 116,561,782 | 116,849,057 | 116,208,579 | 116,706,457 | | Free Cash Flow | $12,588 | $4,555 | $65,190 | $58,655 | | Free cash flow less principal payments on financing obligations | $12,174 | $4,192 | $64,366 | $57,933 |