Summary
nCino opened fiscal 2026 with first quarter revenue of $144.14 million, up 12.5% from the prior-year quarter. Gross profit rose 12.4% to $86.44 million, and gross margin held flat at 60.0%. The operating loss narrowed to $1.51 million from a loss in the prior-year quarter, an improvement of $2.15 million. Operating margin was -1.0%, up 1.8 percentage points. Net income swung to a profit of $5.56 million, up $8.54 million, and diluted EPS was $0.05, up $0.08. The company still posted a GAAP operating loss, but the gap between revenue growth and expense growth is closing. Final results for the quarter will be reported on May 28, 2025.
Cash generation was steady. Operating cash flow was $54.32 million, flat versus the prior-year quarter. Capital expenditures were $1.72 million, up 402.3%. Deferred revenue, current portion only, reached $203.66 million, up 13.2%. Remaining performance obligations were $1.20 billion, up 12.1%. The company had $208.5 million outstanding under its credit facility, $41.5 million of borrowing availability, and an applicable interest rate of 6.32%. It repurchased 1.8 million shares for $40.6 million, leaving $59.4 million available under a $100.0 million authorization. The $62.9 million Sandbox Banking acquisition closed on February 7, 2025 and was funded largely with borrowings.
Guidance framed the quarter. The preliminary release said first quarter results exceeded the top end of previously disclosed ranges for total revenue, subscription revenue, and non-GAAP operating income. For the full fiscal year 2026, the company guided to non-GAAP operating income of $109.0 million and a non-GAAP operating margin of 19%. It also targets fiscal 2026 annual contract value of $564 million to $567 million and an annual contract value net retention rate of 106%. Management flagged a 3% headwind to fiscal 2026 subscription revenues from elevated churn in fiscal 2025.
Operationally, nCino keeps shifting customers to asset-based pricing and selling a wider platform of AI, data, and analytics products. International markets accounted for 21.9% of total revenues in the quarter. The company had 191 sales and sales support personnel in the U.S. and 123 outside the U.S. as of April 30, 2025. Management cited 14% more sales capacity and more available product as supports for its fiscal 2026 targets. The long-term target model points to expanding margins as the business scales.
Risks are the usual mix for a vertical software vendor selling to banks. Customer consolidation and bank failures could slow spending. Higher interest rates and inflation have weighed on mortgage demand, which hurts the U.S. Mortgage business. Acquisitions bring integration risk, and the company also faces security breaches, competition, pricing pressures, its pricing model migration, and its relationship with Salesforce. The filings list system unavailability, data loss, loss of large customers, and legal proceedings. Retention is normalizing. On May 27, 2025, the company announced a workforce reduction of about 7% and office space reductions in certain markets. Management believes current cash, credit facility availability, and expected cash flow will fund operations, capital requirements, and share repurchases for at least the next 12 months. Non-GAAP operating income is a supplemental measure that excludes stock-based compensation, intangible amortization, acquisition costs, litigation costs, and restructuring costs, so it looks better than the GAAP result.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $144.1M | $141.4M | +2.0% | $128.1M | +12.5% |
| Gross profit | $86.4M | $84.4M | +2.5% | $76.9M | +12.4% |
| Gross margin | 60.0% | 59.7% | +0.3 pp | 60.0% | -0.1 pp |
| Research & development | $33.3M | $32.1M | +3.8% | $30.0M | +11.2% |
| Sales & marketing | $33.0M | $33.7M | -2.3% | $28.0M | +17.6% |
| General & administrative | $21.6M | $24.2M | -10.6% | $22.5M | -4.0% |
| Total operating expenses | $88.0M | $90.1M | -2.4% | $80.6M | +9.2% |
| Operating income (loss) | -$1.5M | -$5.7M | +73.6% | -$3.7M | +58.7% |
| Operating margin | -1.1% | -4.1% | +3.0 pp | -2.9% | +1.8 pp |
| Net income (loss) | $6.0M | -$15.6M | +138.6% | -$2.3M | +362.0% |
| Net margin | 4.2% | -11.0% | +15.2 pp | -1.8% | +6.0 pp |
| Diluted EPS | $0.05 | -$0.14 | +$0.19 | -$0.03 | +$0.08 |
Risks
The MD&A states the company is operating in a fluctuating interest rate environment with inflationary pressures, which has negatively impacted the U.S. real estate market and demand for mortgages and mortgage-related products, and has had a negative impact on the U.S. Mortgage business.
Growth depends on expanding to new financial institution customers and increasing adoption, but sales cycles are lengthy, generally 6 to 9 months for smaller FIs and 12 to 18 months or more for larger FIs, and require convincing key decision makers to replace legacy systems.
The company's ability to successfully implement its new asset-based pricing model, which started in fiscal 2025 and moves away from seat-based pricing, is a key driver of future growth; failure to do so could adversely affect growth and profitability.
Growing the customer base will require increasing penetration in markets outside the U.S., which accounted for 21.9% of total revenues for the three months ended April 30, 2025, exposing the company to execution and geographic expansion risks.
Professional services and other revenues generated a gross margin of (16.3)% for the three months ended April 30, 2025 compared to (9.7)% for the prior-year period, driven by higher personnel costs from acquisitions and third-party costs, which can pressure overall margins as the revenue mix shifts.
The company funded the Sandbox Banking acquisition and share repurchases primarily through borrowings under its credit facility, with interest expense increasing $3.0 million for the three months ended April 30, 2025 compared to the prior-year period, and $208.5 million outstanding as of April 30, 2025.
On May 27, 2025, the company announced a workforce reduction of approximately 7% and office space reductions in certain markets, which may create execution and employee retention risks.
SaaS KPIs
All quarters →Total customers
Summary, forecast, risks and KPIs are extracted from nCino, Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.