Summary
nCino closed fiscal 2026 with fourth-quarter total revenues of $149.7 million, up 5.9% from $141.4 million in the prior-year quarter. Full-year total revenues reached $594.8 million, up 10.0% from $540.7 million. The company reported fourth-quarter GAAP operating income of $2.8 million, compared with a loss of $5.7 million a year earlier. Full-year GAAP operating income was $3.7 million, compared with a loss of $18.1 million. GAAP net income attributable to nCino was $8.3 million in the quarter, compared with a loss of $18.6 million. For the full year, GAAP net income attributable to nCino was $5.2 million, compared with a loss of $37.9 million. Diluted GAAP EPS for the full year was $0.05, compared with a loss of $0.33.
Profitability metrics improved. Fourth-quarter gross margin was 61.4%, up from 59.7%. Operating margin was 1.9%, up from negative 4.1%. Full-year gross margin was 60.6%, up from 60.1%, and full-year operating margin was 0.6%, up from negative 3.4%. Non-GAAP operating income was $34.7 million in the quarter, up 42% from $24.4 million. Non-GAAP net income attributable to nCino was $42.8 million, up 95% from $22.0 million. For the full year, non-GAAP operating income was $129.4 million, up 35% from $96.2 million, and non-GAAP net income was $122.7 million, up 45% from $84.5 million.
Cash generation and backlog strengthened. Fourth-quarter operating cash flow was $12.9 million, up 229.1% from negative $10.0 million. Full-year operating cash flow was $90.1 million, up 63.2% from $55.2 million. Capital expenditures were $0.5 million in the quarter, up 31.7% from $0.4 million, and $7.5 million for the full year, up 313.1% from $1.8 million. Free cash flow was $12.5 million in the quarter and $82.6 million for the full year. Deferred revenue was $210.6 million, up 10.1% from $191.2 million. Remaining performance obligations were $1.30 billion, up 8.3% from $1.20 billion. ACV was $602.4 million as of January 31, 2026, up 17% year over year, or up 13% on an organic constant currency basis. The fiscal 2026 ACV net retention rate was 112%, and the subscription revenue net retention rate was 110%.
Operational highlights included a global bank with over $2.0 trillion in assets selecting nCino for Commercial Lending in Japan. nCino expanded with its largest Consumer Lending customer, an over $200 billion AUM bank, and a top-40 U.S. bank selected nCino Mortgage, making it a top-10 nCino customer by ACV. A top-3 Austrian bank by assets selected nCino as its single origination platform for SME and Corporate Lending. The company announced a $100 million accelerated share repurchase program, leaving $75 million available under the December 2025 authorization. A $200 million term loan expansion will finance the ASR and reduce a portion of the revolving credit facility. nCino also completed the Sandbox Banking acquisition for $62.9 million and carried out a restructuring plan that reduced headcount by approximately 7%.
For the first quarter ending April 30, 2026, nCino guides non-GAAP operating income to $38.0 million to $40.0 million. For fiscal 2027 ending January 31, 2027, guidance is non-GAAP operating income of $165.0 million to $170.0 million, free cash flow of $132.0 million to $137.0 million, and ACV of $662.5 million to $667.5 million. Effective fiscal 2027, the company will provide annual free cash flow guidance instead of quarterly and annual non-GAAP net income per share guidance. Risks include a fluctuating interest rate environment with inflationary pressures that has hurt U.S. mortgage demand, customer consolidation or bank failures, competition and pricing pressures, the migration to asset-based pricing, reliance on Salesforce, security breaches, and the ability to attract and retain employees. Legal proceedings and acquisition integration also remain risk factors.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $149.7M | $152.2M | -1.6% | $141.4M | +5.9% |
| Gross profit | $91.9M | $93.7M | -1.9% | $84.4M | +9.0% |
| Gross margin | 61.4% | 61.6% | -0.2 pp | 59.7% | +1.7 pp |
| Research & development | $30.0M | $29.5M | +1.5% | $32.1M | -6.7% |
| Sales & marketing | $33.2M | $33.1M | +0.3% | $33.7M | -1.6% |
| General & administrative | $25.9M | $19.3M | +34.0% | $24.2M | +6.9% |
| Total operating expenses | $89.1M | $82.0M | +8.7% | $90.1M | -1.1% |
| Operating income (loss) | $2.8M | $11.7M | -75.9% | -$5.7M | +149.1% |
| Operating margin | 1.9% | 7.7% | -5.8 pp | -4.1% | +5.9 pp |
| Net income (loss) | $8.8M | $8.6M | +2.0% | -$15.6M | +156.4% |
| Net margin | 5.9% | 5.7% | +0.2 pp | -11.0% | +16.9 pp |
| Diluted EPS | $0.08 | $0.06 | +$0.02 | -$0.14 | +$0.22 |
| Customers | 2,700 | — | — | 2,789 | -3.2% |
| Net retention rate | 116.0% | — | — | 110.0% | +6.0 pp |
Risks
Growth strategy increasingly depends on customers adopting and effectively using nCino's AI capabilities; if adoption is slow, limited to pilots, or fails to show measurable value, sales cycles may lengthen, expansion opportunities may decrease, and AI-related revenue may be adversely affected. MD&A attributes the fiscal 2026 increase in ACV net retention rate to expanded adoption including nCino AI capabilities.
Increased AI/ML development and use exposes nCino to evolving legal and regulatory obligations, including the EU AI Act enforceable gradually between 2025 and 2027, UK principles-based rules, and state laws such as Colorado, Utah, and California. Generative AI risks such as inaccuracy, bias, privacy, and data provenance could bring reputational harm, legal liability, and higher compliance and computing costs.
The cloud-based financial services market is intensely competitive and highly fragmented. Competitors, including larger established fintech providers, may devote greater resources to AI/ML or incorporate AI more efficiently, and new entrants may bundle cloud banking solutions at little or no additional cost, potentially reducing demand and pressuring pricing for nCino.
Most revenues derive from customers in the cloud-based financial services industry, which faces economic uncertainty, fluctuating interest rates, liquidity concerns, and increased regulation. Consolidation, distress, or reduced technology spend among FIs could cause lost business, delayed implementations, or greater pricing leverage for larger customers.
nCino's future growth depends on attracting new FIs, broadening existing customer use, international penetration, and adoption of its asset-based pricing model. MD&A states the revenue growth rate has declined year over year, even though current YTD revenue is up 10.0% to $594.78M versus prior-year YTD.
Failure to attract and retain qualified personnel, especially AI/ML expertise, could prevent execution of the business strategy. Competition for AI talent is intense, compensation levels have increased, and principal operations in Wilmington, North Carolina, have a more limited talent pool. The 2026 Restructuring Plan reduced headcount by approximately 7%, which may heighten retention risk.
Fundamental elements of the nCino Platform are built on the Salesforce Platform. The agreement expires January 31, 2031, and if not renewed, a wind-down period would limit nCino's ability to serve new customers or add users, while customers might need a separate Salesforce subscription. Salesforce can terminate for cause without a wind-down period.
nCino faces diverse and evolving cybersecurity threats, including increased threats from AI/ML. A breach of its security or privacy measures or those of third-party providers could expose customer or client data, cause operational disruption, trigger customer termination rights, and lead to reputational harm, litigation, and regulatory liability.
Rapidly evolving privacy and data protection rules, including CCPA/CPRA with new 2025 regulations effective in 2026, GDPR, NISD2, DORA, and state AI-specific laws, may limit use and adoption of nCino's solutions and increase compliance costs, fines, and enforcement risk.
Higher interest rates and inflationary pressures have negatively impacted the U.S. mortgage business and demand for mortgage-related products. MD&A says this may continue if the higher rate environment persists, and tariffs, trade issues, and geopolitical uncertainty could reduce technology spending, delay purchases, and affect renewals.
The 2024 Credit Facility contains restrictive covenants, including total leverage and interest coverage ratios, and is secured by substantially all personal property. Borrowings to fund acquisitions and stock repurchases, plus a subsequent incremental term loan and accelerated share repurchase, increase leverage and could limit operating flexibility or liquidity if covenants are breached.
nCino has acquired Sandbox Banking in fiscal 2026 and DocFox, ILT, and FullCircl in fiscal 2025. Integrating acquired businesses and technologies may divert management attention, result in dilution, or fail to achieve expected benefits; fiscal 2026 subscription revenues included inorganic revenues not present in comparative prior periods.
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 Q4 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.