Summary
nCino reported total revenues of $138.8 million for the third quarter of fiscal 2025, up 13.8% from $121.9 million in the prior-year quarter. Subscription revenues reached $119.9 million, up 14% from $104.8 million, and made up 86.4% of the total, up from 85.9% a year earlier. Through the first nine months of fiscal 2025, total revenues were $399.3 million, up 13.2% from $352.9 million.
Profitability improved sharply. Gross profit was $85.1 million, up 15.1%, and gross margin rose to 61.3% from 60.6%. The GAAP operating loss narrowed to $0.8 million from $12.9 million, lifting operating margin to -0.6% from -10.6%. Net loss attributable to nCino narrowed to $5.3 million from $16.4 million, and GAAP diluted loss per share was $0.05 compared with $0.15. On a non-GAAP basis, operating income was $28.0 million, up 38% from $20.4 million, and non-GAAP net income was $24.4 million, up 51% from $16.2 million. Non-GAAP diluted earnings per share came in at $0.21 versus $0.14. Much of the GAAP swing came from sales and marketing expense, which fell $8.7 million because the SimpleNexus trade name intangible is no longer being amortized. Research and development expense rose $4.0 million and general and administrative expense rose $3.8 million, partly on acquisition-related costs for DocFox, ILT and FullCircl.
Cash generation was mixed. Operating cash flow was $5.8 million for the quarter, down 1.6% from $5.9 million a year earlier, while the nine-month total rose 32.7% to $65.2 million. Capital expenditures were $0.7 million in the quarter, up 9.9%, and $1.5 million year to date, down 52.4%. Remaining performance obligations were $1.10 billion as of October 31, 2024, up 19.9% from $917.1 million. Deferred revenue, current portion, was $132.4 million, up 1.6%. Cash, cash equivalents and restricted cash totaled $258.3 million, of which $129.7 million was subsequently used for the FullCircl acquisition on November 5, 2024. The company carried $166.0 million outstanding under its 2024 credit facility at a 6.72% rate, and its accumulated deficit stood at $369.8 million. The nine-month operating cash flow benefited from a $50.2 million decrease in accounts receivable, partly offset by a $41.6 million decrease in deferred revenue.
Operationally, the quarter produced more than 30 multi-solution deals and more gross bookings from net new customers than the previous two quarters combined. nCino closed the FullCircl acquisition, expanded with a top-40 U.S. bank, signed its first Banking Advisor deal in Australia with a top-5 bank, landed its largest customer in Japan, and expanded with the largest bank in Norway. Guidance for the fourth quarter of fiscal 2025 calls for non-GAAP operating income of $23.25 million to $24.25 million and non-GAAP diluted earnings per share of $0.18 to $0.19. For the full fiscal year 2025, the company guides to non-GAAP operating income of $95.0 million to $96.0 million and non-GAAP diluted earnings per share of $0.75 to $0.76.
Risks cluster around the end market. Higher interest rates have hurt U.S. mortgage demand and the nCino Mortgage business. Customer consolidation or bank failures could shrink the addressable base. Sales cycles run six to nine months for smaller institutions and 12 to 18 months or more for larger ones, so bookings convert slowly. International markets produced 21.3% of total revenues in the quarter, which adds currency and execution risk. The company also flags its Salesforce relationship, security breaches, competitive pricing pressure, and the integration of DocFox, ILT and FullCircl. Planned office build-outs are expected to cost about $2.0 million in fiscal 2025 and $6.0 million in fiscal 2026.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $138.8M | $132.4M | +4.8% | $121.9M | +13.8% |
| Gross profit | $85.1M | $78.5M | +8.4% | $73.9M | +15.1% |
| Gross margin | 61.3% | 59.3% | +2.0 pp | 60.6% | +0.7 pp |
| Research & development | $33.0M | $34.3M | -3.6% | $29.0M | +13.8% |
| Sales & marketing | $29.7M | $31.7M | -6.3% | $38.4M | -22.7% |
| General & administrative | $23.1M | $20.4M | +13.3% | $19.3M | +19.5% |
| Total operating expenses | $85.9M | $86.4M | -0.6% | $86.8M | -1.1% |
| Operating income (loss) | -$824.0K | -$7.9M | +89.6% | -$12.9M | +93.6% |
| Operating margin | -0.6% | -6.0% | +5.4 pp | -10.6% | +10.0 pp |
| Net income (loss) | -$4.2M | -$11.0M | +62.3% | -$17.2M | +75.8% |
| Net margin | -3.0% | -8.3% | +5.3 pp | -14.1% | +11.1 pp |
| Diluted EPS | -$0.05 | -$0.10 | +$0.05 | -$0.15 | +$0.10 |
Risks
The company completed the DocFox, ILT, and FullCircl acquisitions, with FullCircl acquired in November 2024 for $129.7 million, creating integration and execution risk as it folds new products and teams into its platform.
The MD&A states the company is operating in a higher interest rate environment, which has had a negative impact on the real estate market and demand for mortgages and mortgage-related products, specifically affecting the nCino Mortgage business.
To fund acquisitions, the company borrowed $166.0 million under the 2024 Credit Facility; interest expense increased $0.8 million for the three months ended October 31, 2024 compared to the prior-year period, and the applicable interest rate was 6.72% as of October 31, 2024.
Professional services and other gross margin was (5.7)% for the three months ended October 31, 2024 compared to (1.4)% for the prior-year period, and (8.8)% for the nine months ended October 31, 2024 compared to (3.8)% for the prior-year period, as personnel costs and headcount increased.
The company notes lengthy sales cycles, generally six to nine months for smaller financial institutions and 12 to 18 months or more for larger financial institutions, and expects enterprise FIs to make up a greater proportion of nCino Bank Operating System sales.
Growth depends on penetrating markets outside the U.S., which accounted for 21.3% of total revenues for the three months ended October 31, 2024 and 20.8% for the nine months ended October 31, 2024, requiring expanded international sales and support.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Non-GAAP Operating Income
Total customers
Total Remaining Performance Obligation (RPO)
Summary, forecast, risks and KPIs are extracted from nCino, Inc.'s SEC filings for Q3 FY2025 (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.