Summary
nCino reported total revenues of $148.8 million for FY2026 Q2, up 12.4% from $132.4 million in FY2025 Q2. Gross profit was $88.1 million, up 12.3% from $78.5 million. Gross margin was flat at 59.2%, compared with 59.3%. GAAP operating loss widened to $9.3 million from $7.9 million. GAAP net loss attributable to nCino widened to $15.3 million from $11.0 million. Diluted EPS loss widened to $0.13 from $0.10. For the six months ended July 31, 2025, total revenues were $293.0 million, up 12.5% from $260.5 million. Gross profit was $174.6 million, up 12.3% from $155.4 million. Operating loss narrowed to $10.8 million from $11.6 million. Net loss attributable to nCino narrowed to $9.7 million from $14.0 million. Diluted EPS loss narrowed to $0.08 from $0.12.
Non-GAAP results were stronger. Non-GAAP operating income was $30.0 million, up 56% from $19.3 million. Non-GAAP net income attributable to nCino was $25.7 million, up 64% from $15.6 million. Non-GAAP diluted EPS was $0.22, compared with $0.13. These figures exclude stock-based compensation, amortization of purchased intangibles, acquisition-related expenses, litigation expenses, and restructuring costs. The company announced a restructuring plan on May 27, 2025 to improve operational efficiencies.
Cash generation improved. Operating cash flow was $17.7 million in the quarter, up 254.8% from $5.0 million. Year-to-date operating cash flow was $72.1 million, up 21.2% from $59.4 million. Capital expenditures were $5.1 million in the quarter, up 1059.5% from $0.4 million. Year-to-date capital expenditures were $6.9 million, up 773.5% from $0.8 million. Deferred revenue, current portion, was $194.9 million, up 13.3% from $172.0 million. Remaining performance obligations were $1.20 billion, up 15.4% from $1.04 billion. Operating margin was -6.2% in the quarter, down from -6.0%. Year-to-date operating margin was -3.7%, up from -4.4%.
Operational highlights included renewed and expanded relationships with two top-50 U.S. banks and a top-5 Canadian bank. A non-bank lender in Spain became nCino's first customer in that country. A British challenger bank expanded its relationship to include nCino Client Lifecycle Management. The lending division of a top-25 home builder signed for nCino Mortgage. nCino says it has over 2,700 customers worldwide. The company repurchased approximately 750,000 shares at an average price of $26.89 for total consideration of approximately $20.0 million in the quarter. It also acquired Sandbox Banking in February 2025.
Guidance for the third quarter ending October 31, 2025 includes non-GAAP operating income of $31.5 million to $33.5 million and non-GAAP diluted EPS of $0.20 to $0.21. Full fiscal year 2026 guidance includes non-GAAP operating income of $117.5 million to $121.5 million, non-GAAP diluted EPS of $0.77 to $0.80, and annual contract value of $564.0 million to $567.0 million. Risks include adverse changes in the financial services industry, customer consolidation, bank failures, higher interest rates, inflationary pressures, weak mortgage demand, lengthy sales cycles, regulatory changes, security breaches, dependence on Salesforce, acquisition integration, migration to asset-based pricing, competition, and legal proceedings.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $148.8M | $144.1M | +3.2% | $132.4M | +12.4% |
| Gross profit | $88.1M | $86.4M | +1.9% | $78.5M | +12.3% |
| Gross margin | 59.2% | 60.0% | -0.8 pp | 59.3% | -0.1 pp |
| Research & development | $34.7M | $33.3M | +4.0% | $34.3M | +1.2% |
| Sales & marketing | $37.3M | $33.0M | +13.0% | $31.7M | +17.5% |
| General & administrative | $25.5M | $21.6M | +17.8% | $20.4M | +25.0% |
| Total operating expenses | $97.4M | $88.0M | +10.8% | $86.4M | +12.8% |
| Operating income (loss) | -$9.3M | -$1.5M | -514.4% | -$7.9M | -17.6% |
| Operating margin | -6.3% | -1.1% | -5.2 pp | -6.0% | -0.3 pp |
| Net income (loss) | -$13.7M | $6.0M | -328.0% | -$11.0M | -24.5% |
| Net margin | -9.2% | 4.2% | -13.4 pp | -8.3% | -0.9 pp |
| Diluted EPS | -$0.13 | $0.05 | -$0.18 | -$0.10 | -$0.03 |
Risks
The company operates 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, hurting the U.S. Mortgage business.
Interest expense increased $2.6 million for the three months ended July 31, 2025 and $5.6 million for the six months ended July 31, 2025 compared to prior-year periods, primarily due to borrowings on the revolving credit facility, which had $203.5 million outstanding at a 6.33% applicable rate as of July 31, 2025.
New customer sales cycles are lengthy, generally 6 to 9 months for smaller FIs and 12 to 18 months or more for larger FIs, and growth depends on successfully taking existing customers live and delivering measurable ROI to create referenceable accounts.
The company's growth depends on successfully implementing its new asset-based pricing model, which began in fiscal 2025 and moves away from seat-based pricing, aligning revenue to FI assets, transaction or processing volumes.
Professional services and other gross margin decreased to (25.7)% for the three months ended July 31, 2025 from (11.2)% for the three months ended July 31, 2024, due to strategic investments in expanding professional service capabilities and lower effective billing and utilization rates.
The company announced a Restructuring Plan on May 27, 2025 and incurred $10.1 million in charges in the second quarter of fiscal 2026; the plan may not achieve intended operational efficiencies and has contributed to restructuring costs across cost of revenues and operating expenses.
Growing the customer base requires increasing penetration outside the U.S., which accounted for 22.5% of total revenues for the three months ended July 31, 2025 and 22.2% for the six months ended July 31, 2025, exposing the company to execution and market risks in North America, Europe, the Middle East, Japan and APAC.
The company completed the Sandbox Banking acquisition on February 7, 2025 for $62.9 million, inclusive of up to $10.0 million earn-out, and has made multiple acquisitions including DocFox, ILT, FullCircl, and others, creating integration and execution risk.
Effective February 1, 2025, founder Pierre Naude retired as CEO and Sean Desmond became President and CEO, a leadership transition that may affect strategy execution.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Non-GAAP Operating Income
Non-GAAP Gross Margin
Total customers
Summary, forecast, risks and KPIs are extracted from nCino, Inc.'s SEC filings for Q2 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 1, 2026.