William Blair Upgrades nCino (NCNO) to Outperform

Core Insights - nCino, Inc. (NASDAQ:NCNO) has been upgraded from Market Perform to Outperform by William Blair, citing an attractive entry point following a recent sell-off in bank technology stocks [1][2] Financial Performance - nCino generated $53 million in free cash flow in fiscal 2025 and aims to achieve the Rule of 40 by the end of fiscal 2027, which requires the sum of annual revenue growth rate and profit margin to exceed 40% for a healthy SaaS company [2][4] Growth Projections - In April, nCino lowered its fiscal 2026 subscription revenue growth guidance to 10%, or approximately 6% on an organic basis, down from 12% in 2025 [3] - William Blair anticipates high-single-digit subscription growth in the long term, driven by international expansion, stronger penetration in credit unions, and cross-selling in mortgages [3][4] Strategic Positioning - nCino provides a cloud-based platform for financial institutions, assisting community banks, credit unions, independent mortgage banks, and large financial entities in digitizing and automating business processes such as client onboarding and loan origination [4]