nCino — Second Quarter Fiscal Year 2027 Earnings Summary

Financial Performance

• Total revenues reached $161.0 million for the quarter, an 8% increase year-over-year from $148.8 million in Q2 FY2026.
• Subscription revenues were $143.5 million, a 10% year-over-year increase from $130.8 million.
• GAAP income from operations was $13.6 million, compared to a loss of $9.3 million in the prior year period.
• Non-GAAP operating income was $40.8 million, a 36% increase from $30.0 million in Q2 FY2026.
• GAAP operating margin was 8%, an improvement of 1,500 basis points year-over-year.
• Non-GAAP operating margin was 25%, an improvement of 500 basis points year-over-year.
• Free cash flow was $34.0 million, a 170% increase from $12.6 million in Q2 FY2026.
• Cash, cash equivalents, and restricted cash totaled $83.6 million as of July 31, 2026.
• Outstanding debt under the credit facility was $275.4 million as of July 31, 2026.
• Deferred revenue increased to $221.9 million ($218.8 million current, $3.1 million noncurrent) from $210.7 million ($210.6 million current, $0.1 million noncurrent) as of January 31, 2026.

Guidance and Future Outlook

• Q3 FY2027 total revenue guidance is $161.25 million to $163.25 million.
• Q3 FY2027 subscription revenue guidance is $143.25 million to $145.25 million.
• Q3 FY2027 non-GAAP operating income guidance is $42.0 million to $44.0 million.
• Full-year FY2027 total revenue guidance is $644.0 million to $647.0 million.
• Full-year FY2027 subscription revenue guidance is $573.5 million to $576.5 million.
• Full-year FY2027 non-GAAP operating income guidance is $171.0 million to $174.0 million.
• Full-year FY2027 free cash flow guidance is $137.0 million to $142.0 million.
• Full-year FY2027 Annual Contract Value (ACV) at period end guidance is $662.5 million to $667.5 million.

Business Segments and Product Lines

• Renewed and expanded with four U.S. Enterprise accounts collectively representing over $900 billion in assets, with all renewals occurring ahead of schedule and including expanded commitments to AI tools.
• Signed a growth-focused development finance institution in Germany, expanding momentum in the DACH region.
• Expanded a decade-long relationship with a U.S. regional bank to include Consumer Lending.
• Signed a net-new community bank customer in Iowa for the Commercial Onboarding and Account Opening solution.
• Signed Hachijuni Nagano Bank, a leading Japanese regional bank, to consolidate consumer lending operations and integrate a proprietary AI credit-scoring engine.
• Expanded with an Indiana-based credit union, its largest credit union customer for mortgage, to continue scaling its mortgage business.

Market and Competitive Landscape

• Management noted that large customers are consolidating critical operations on the nCino platform and expanding commitments to market-leading AI capabilities.
• The company highlighted its unique positioning to deliver AI at scale globally due to deep domain context and expertise in financial services.
• The platform serves over 2,700 customers worldwide, including community banks, credit unions, independent mortgage banks, and the largest financial entities globally.

Risks and Challenges

• Risks include variations between actual operating results and prior guidance or analyst expectations.
• Potential adverse changes in the financial services industry, including customer consolidation or bank failures.
• Risks associated with the ability to successfully develop, offer, and drive customer acceptance of AI-driven solutions.
• Risks related to security breaches, unauthorized data access, and system unavailability or performance problems.
• Risks involving the migration to an asset-based pricing model and the ability to attract new customers or expand current customer usage.
• Risks related to the rate of adoption of newer solutions versus established solutions.
• Risks concerning the relationship with Salesforce, repurchase program decisions, and indebtedness levels.
• Risks associated with evolving laws and regulations applicable to artificial intelligence and dependence on third-party AI models and data.

Management Commentary and Tone

• CEO Sean Desmond described the quarter as "exceptional," noting the company exceeded all financial guidance and observed customers expanding commitments to AI capabilities.
• CFO Greg Orenstein stated the new stock repurchase authorization reflects confidence in AI innovation, product strategy, market position, operational execution, and free cash flow trajectory.
• Management emphasized that deploying AI in financial services requires deep domain context, which nCino is positioned to deliver at scale.

Other Key Points

• The Board of Directors authorized a new $100 million stock repurchase program.
• In Q2 FY2027, the company repurchased approximately 4.2 million shares in open market purchases at an average price of $15.41 per share ($65 million total).
• The company finalized an accelerated share repurchase program announced in March 2026, repurchasing approximately 6.0 million shares at an average price of $16.57 per share ($100 million total).
• Since April 2025, nCino has executed $300 million in stock repurchases.
• The new repurchase program has no time limit, may be modified or discontinued at any time, and is expected to be funded from existing cash, credit facility capacity, and/or future cash flows.
• A conference call to discuss results and outlook was held on August 25, 2026, at 4:30 p.m. ET.