Summary
nCino reported first quarter fiscal 2027 total revenues of $159.4 million, up 10.6% from $144.1 million in the prior-year quarter. Gross profit rose 16.8% to $100.9 million from $86.4 million. Gross margin expanded to 63.3% from 60.0%, an increase of 3.3 percentage points. Operating income was $21.1 million, compared with an operating loss of $1.5 million in the prior-year quarter, a swing to profit. Operating margin was 13.2%, up 14.3 percentage points from negative 1.0%. Net income was $13.6 million, up 145.3% from $5.6 million. Diluted EPS was $0.12, up from $0.05. The top line grew and the bottom line turned positive on a GAAP basis.
Cash generation improved. Operating cash flow was $81.4 million, up 49.9% from $54.3 million. Capital expenditures were $0.6 million, down 64.3% from $1.7 million. Deferred revenue was $225.0 million, up 10.5% from $203.7 million. Remaining performance obligations were $1.30 billion, up 8.3% from $1.20 billion. On a non-GAAP basis, operating income was $44.5 million, up 79% from $24.8 million. Non-GAAP operating margin was 28%, up 1,100 basis points. Free cash flow was $80.8 million, up 54% from $52.6 million. The company bills annually in advance, and billings are seasonally higher in the first and fourth quarters. That seasonality affects the deferred revenue balance.
Expense discipline helped profitability. Research and development headcount fell by 92 from April 30, 2025 to April 30, 2026. General and administrative headcount fell by 19, and sales and marketing headcount fell by 18. The company attributed those reductions primarily to a workforce reduction in the second quarter of fiscal 2026. Lower headcount supported the operating margin expansion. The company also continued to invest in AI technology, which added to allocated overhead in research and development.
The quarter included several customer wins. nCino renewed a top-5 Canadian bank by assets for five years, expanding Commercial Lending use cases and adding nCino AI capabilities. A top-25 independent mortgage bank more than doubled its committed loan volume with a five-year renewal. The Credit Union team signed its largest new logo deal to date with a $6.5 billion credit union selecting nCino for Commercial Lending, Small Business Lending, Commercial Pricing Profitability, and Portfolio Analytics. nCino hosted nSight 2026 with over 1,600 attendees. The company serves over 2,700 customers worldwide. As of April 30, 2026, it had 182 sales and sales support personnel in the U.S. and 125 outside the U.S. International markets accounted for 22.8% of total revenues for the three months ended April 30, 2026.
Guidance points to continued growth. For the second quarter ending July 31, 2026, nCino guided total revenues and subscription revenues to ranges and non-GAAP operating income between $35.5 million and $37.5 million. For the full fiscal year 2027 ending January 31, 2027, the company guided total revenues and subscription revenues to ranges, non-GAAP operating income between $166.0 million and $171.0 million, free cash flow between $135.0 million and $140.0 million, and annual contract value between $662.5 million and $667.5 million.
Risks remain. The company operates in a fluctuating interest rate environment with inflationary pressures. Those conditions have hurt demand for mortgages and mortgage-related products in the U.S., which has negatively affected the U.S. mortgage business. Other risks include customer consolidation or bank failures, adverse changes in financial services industry conditions, regulatory changes, the ability to develop AI-driven solutions and drive customer acceptance, security breaches, competition and pricing pressures, the migration to an asset-based pricing model, reliance on Salesforce, the loss of one or more large customers, system unavailability, and the ability to attract and retain skilled employees. nCino also has a history of losses and maintains a valuation allowance against deferred tax assets in several jurisdictions, including the U.S. and the U.K. Sales cycles are lengthy, ranging from six to nine months for smaller FIs to 12 to 18 months or more for larger FIs.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2027 | Q4 FY2026 | QoQ | Q1 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $159.4M | $149.7M | +6.5% | $144.1M | +10.6% |
| Gross profit | $100.9M | $91.9M | +9.8% | $86.4M | +16.8% |
| Gross margin | 63.3% | 61.4% | +1.9 pp | 60.0% | +3.4 pp |
| Research & development | $28.9M | $30.0M | -3.7% | $33.3M | -13.4% |
| Sales & marketing | $33.7M | $33.2M | +1.5% | $33.0M | +2.3% |
| General & administrative | $17.2M | $25.9M | -33.5% | $21.6M | -20.4% |
| Total operating expenses | $79.8M | $89.1M | -10.4% | $88.0M | -9.3% |
| Operating income (loss) | $21.1M | $2.8M | +648.9% | -$1.5M | +1495.8% |
| Operating margin | 13.3% | 1.9% | +11.4 pp | -1.1% | +14.3 pp |
| Net income (loss) | $15.0M | $8.8M | +70.5% | $6.0M | +149.1% |
| Net margin | 9.4% | 5.9% | +3.5 pp | 4.2% | +5.2 pp |
| Diluted EPS | $0.12 | $0.08 | +$0.04 | $0.05 | +$0.07 |
Risks
The company states it 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, weighing on its U.S. mortgage business.
New customer sales cycles are lengthy, generally six to nine months for smaller financial institutions and 12 to 18 months or more for larger FIs, and growth depends on convincing decision makers to replace legacy third-party point solutions or internally developed software.
Future growth depends on successfully implementing AI capabilities in ways customers perceive as adding value and on executing the asset-based pricing model begun in fiscal 2025; failure to do so would adversely affect growth and the ability to sustain profitability.
Growing the customer base requires increasing penetration of markets outside the U.S., which accounted for 22.8% of total revenues for the three months ended April 30, 2026, exposing results to execution and geographic concentration risk.
The company has a history of losses and an accumulated deficit of $361.4 million as of April 30, 2026, and may need to raise additional capital that could be dilutive or carry restrictive debt covenants.
In March 2026 the company added a $200.0 million senior secured incremental term loan maturing October 28, 2029 with quarterly principal payments of $2.5 million, and had $63.5 million of borrowing capacity used under its $250.0 million revolving credit facility as of April 30, 2026.
Beginning in 2027 the company may redeem, or be required by holders to redeem, the non-controlling interest in nCino K.K. based on a prescribed revenue formula; the redeemable non-controlling interest balance rose to $14.1 million as of April 30, 2026 from $12.7 million as of January 31, 2026.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Non-GAAP Operating Income
Total customers
Summary, forecast, risks and KPIs are extracted from nCino, Inc.'s SEC filings for Q1 FY2027 (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 1, 2026.