Summary
nCino reported total revenues of $152.2 million for the third quarter of fiscal 2026, up 9.6% year over year. Subscription revenues of $133.4 million rose 11% and made up 87.7% of the top line. Gross profit of $93.7 million was up 10.2%, and gross margin of 61.6% edged up 0.3 percentage points. Through nine months, total revenues of $445.1 million were up 11.5% and gross profit of $268.3 million was up 11.6%, while gross margin of 60.3% was flat.
The profit line changed sharply. GAAP operating income of $11.7 million for the quarter replaced a prior-year operating loss of $0.8 million, and operating margin of 7.7% was up 8.3 percentage points. Net income attributable to nCino was $6.5 million against a net loss of $5.3 million a year earlier, and GAAP diluted EPS was $0.06 versus -$0.05. Year to date, operating income of $0.9 million reversed a prior-year operating loss of $12.4 million, the net loss of $3.2 million narrowed from $19.3 million, and GAAP diluted EPS was -$0.03 against -$0.17. Operating margin of 0.2% was up 3.3 percentage points. Expense leverage came mostly from research and development, where quarterly spend fell to $29.5 million from $33.0 million, and general and administrative costs, which fell to $19.3 million from $23.1 million. Non-GAAP operating income of $39.9 million rose 42% from $28.0 million, non-GAAP net income of $35.8 million rose 49%, and non-GAAP diluted EPS of $0.31 compared with $0.20.
Cash generation was uneven. Operating cash flow of $5.1 million in the quarter was down 12.2% from the prior-year quarter, but operating cash flow of $77.1 million for the nine months was up 18.3%. Free cash flow, a non-GAAP measure, was $4.9 million for the quarter and $70.1 million for the nine months. Capital expenditures were $0.2 million in the quarter, down 74.4%, and $7.0 million for the nine months, up 380.2%, largely for an international office build-out. Deferred revenue, current portion, was $152.1 million, up 14.9%, and remaining performance obligations were $1.20 billion, up 9.1%. Cash, cash equivalents and restricted cash ended the quarter at $87.9 million, with $203.5 million drawn on the revolver and $46.5 million of borrowing availability.
Bookings leaned toward large institutions. A Japanese bank with over $80 billion in assets signed for mortgage lending, a $90 billion bank in the Czech Republic expanded through Integration Gateway, and two top-50 U.S. banks, each with more than $50 billion in assets, lifted commercial lending commitments by more than 30% and 60%. A top home builder selected nCino Mortgage, and the company launched Digital Partners, role-based AI agents trained on financial services data. The quarter also completed a $100 million repurchase program and added two independent board members. Guidance for the fourth quarter of fiscal 2026 covers subscription revenues of $130.75 million to $132.25 million, non-GAAP operating income of $32.5 million to $33.5 million, and non-GAAP net income of $0.21 to $0.22 per diluted share. For the full fiscal year 2026, guidance covers subscription revenues of $520.5 million to $522.0 million, non-GAAP operating income of $127.2 million to $128.2 million, non-GAAP net income of $0.90 to $0.91 per diluted share, and annual contract value of $564 million to $567 million.
Execution risk stays visible. Restructuring charges under the plan announced on May 27, 2025 reached $10.1 million for the nine months, with research and development headcount down 46 and general and administrative headcount down 15, partly offset by 18 more sales and marketing staff, mostly from acquisitions. The cost of professional services and other revenues ran at 112.3% of those revenues, compared with 105.7% a year earlier. Interest expense of $4.3 million in the quarter was up from $1.7 million on heavier revolver borrowings. Management also flags a fluctuating interest rate environment that has weighed on U.S. mortgage demand, customer consolidation, the migration to asset-based pricing, dependence on Salesforce, and the risk that large customers cut users or leave.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2026 | Q2 FY2026 | QoQ | Q3 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $152.2M | $148.8M | +2.2% | $138.8M | +9.6% |
| Gross profit | $93.7M | $88.1M | +6.3% | $85.1M | +10.2% |
| Gross margin | 61.6% | 59.2% | +2.4 pp | 61.3% | +0.3 pp |
| Research & development | $29.5M | $34.7M | -14.8% | $33.0M | -10.6% |
| Sales & marketing | $33.1M | $37.3M | -11.2% | $29.7M | +11.4% |
| General & administrative | $19.3M | $25.5M | -24.2% | $23.1M | -16.4% |
| Total operating expenses | $82.0M | $97.4M | -15.9% | $85.9M | -4.5% |
| Operating income (loss) | $11.7M | -$9.3M | +226.0% | -$824.0K | +1521.8% |
| Operating margin | 7.7% | -6.3% | +13.9 pp | -0.6% | +8.3 pp |
| Net income (loss) | $8.6M | -$13.7M | +162.8% | -$4.2M | +307.5% |
| Net margin | 5.7% | -9.2% | +14.9 pp | -3.0% | +8.7 pp |
| Diluted EPS | $0.06 | -$0.13 | +$0.19 | -$0.05 | +$0.11 |
Risks
The company states it is operating in a fluctuating interest rate environment with inflationary pressures, which has hurt the U.S. real estate market and specifically demand for mortgages and mortgage-related products, negatively impacting the U.S. Mortgage business. Management says it will continue to monitor the macroeconomic environment's impact on the business.
Growth depends on convincing FI decision makers to replace legacy point solutions, and sales cycles are typically lengthy, generally six to nine months for smaller FIs and 12 to 18 months or more for larger FIs. Landing new customers also depends on successfully taking existing customers live and generating referenceable returns on investment.
The company is transitioning from seat-based pricing to an Intelligent Solution Framework tied to FI assets, transaction or processing volumes, a change that formally started in fiscal 2025. Management identifies successful implementation of the new asset-based pricing model as a key driver of future growth.
Professional services and other gross margin fell to (12.3)% for the three months ended October 31, 2025 from (5.7)% in the prior-year quarter, and to (18.0)% for the nine months ended October 31, 2025 from (8.8)% a year earlier, driven by strategic investments in professional service capabilities and lower effective billing and utilization rates. Cost of professional services and other revenues rose $1.1 million for the quarter and $5.4 million year to date.
Growing the customer base requires increasing penetration of markets outside the U.S., which accounted for 22.1% of total revenues for the three months ended October 31, 2025 and 22.2% for the nine months ended October 31, 2025. The company also expects sales and marketing expenses to increase as a percentage of revenues as it expands into credit unions in the U.S. and on the European continent.
Interest expense increased $2.7 million for the three months ended October 31, 2025 and $8.3 million for the nine months ended October 31, 2025 versus the prior-year periods, primarily attributable to borrowings on the revolving credit facility. As of October 31, 2025 the company had $203.5 million outstanding under the credit facility with borrowing availability of $46.5 million and an applicable interest rate of 6.16%.
The company acquired Sandbox Banking on February 7, 2025 for an aggregate purchase price of $62.9 million, inclusive of an earn-out opportunity of up to $10.0 million, and funded the purchase and share repurchases primarily through credit facility borrowings. Fiscal 2026 results also include the fiscal 2025 acquisitions of DocFox, ILT and FullCircl, adding integration and purchase accounting complexity.
The company announced a Restructuring Plan on May 27, 2025 and incurred charges of $10.1 million for the nine months ended October 31, 2025. Research and development headcount decreased by 46 and general and administrative headcount decreased by 15 from October 31, 2024 to October 31, 2025, primarily attributable to the Restructuring Plan.
Effective February 1, 2025, Pierre Naude retired as Chairman and Chief Executive Officer and Sean Desmond was appointed President and Chief Executive Officer, with Mr. Naude appointed Executive Chairman. The CEO transition occurred alongside the Sandbox Banking acquisition and the Restructuring Plan.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Non-GAAP Gross Margin
Total customers
Summary, forecast, risks and KPIs are extracted from nCino, Inc.'s SEC filings for Q3 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.