8-K/A: nCino Announces Preliminary Q1 Fiscal Year 2026 Results Exceeding Guidance

nCino's preliminary financial results for the first quarter ended April 30, 2025, exceeded the top end of previously disclosed financial guidance ranges for Total Revenues, Subscription Revenues, and non-GAAP Operating Income.

Summary

• nCino announced preliminary financial results for its first quarter of fiscal year 2026, which ended on April 30, 2025.
• The company's preliminary results exceeded the top end of its previously disclosed financial guidance for total revenues, subscription revenues, and non-GAAP operating income.
• nCino will report its official Q1 fiscal 2026 results after market close on May 28, 2025.
• The company is hosting an Investor Day on May 20, 2025, at 1:00 p.m. ET.
• nCino's FY2025 total revenues were up 13% year-over-year, and subscription revenues were up 15% year-over-year.
• Non-GAAP operating income was up 56% year-over-year in FY2025.
• The company has over 2,700 customers worldwide in 20 countries.
• nCino is focused on expanding its serviceable addressable market (SAM) in the Americas, EMEA, and APAC regions.
• The company is pursuing incremental growth initiatives, including expanding its focus in EMEA, realizing the onboarding opportunity, activating the credit union market, cross-selling mortgage products, and embedding data, AI, and analytics across its platform.
• nCino is developing Banking Advisor, an AI-powered tool, and a Unified API strategy to enhance its platform.
• The company's FY26 ACV targets are $564 to $567 million, with an ACV year-over-year growth of 8% to 9% organically.
• nCino is experiencing normalizing retention metrics and aims to expand its platform of market-leading solutions.
• The company is transitioning to platform pricing, aligning monetization with business outcomes achieved.
• nCino has long-term margin and expense targets, including a subscription gross margin of 78-80% and an operating margin of 35%.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with preliminary results exceeding guidance, strong growth metrics, and strategic initiatives for future expansion. However, it also acknowledges risks and uncertainties, preventing a higher score.

Positives

• Preliminary Q1 FY26 results exceeded the top end of guidance.
• Strong growth in FY25 total and subscription revenues.
• Significant increase in non-GAAP operating income in FY25.
• Expanding serviceable addressable market (SAM) in various regions.
• Strategic initiatives to drive further growth, including EMEA expansion and credit union market activation.
• Development of AI-powered tools and a Unified API strategy.
• Normalizing retention metrics.
• Transition to platform pricing to align monetization with business outcomes.

Negatives

• The preliminary financial results are unaudited and subject to change.
• The company faces risks associated with adverse changes in the financial services industry and economic conditions.
• nCino is exposed to competitive factors, including pricing pressures and new market entrants.
• The company's results of operations may fluctuate, making period-to-period comparisons less meaningful.
• nCino faces challenges in managing its growth effectively, including expanding outside of the United States.
• The company is exposed to risks associated with system unavailability and security breaches.

Risks

• Adverse changes in the financial services industry, including customer consolidation or bank failures.
• Adverse changes in economic, regulatory, or market conditions, including higher interest rates.
• Risks associated with acquisitions.
• Breaches in security measures or unauthorized access to customer data.
• Inaccurate management assumptions and estimates.
• Inability to attract new customers or expand use of solutions by current customers.
• Competitive factors, including pricing pressures and new market entrants.
• Fluctuations in results of operations.
• Inability to manage growth effectively, including international expansion.
• Adverse changes in relationship with Salesforce.
• Inability to successfully acquire and integrate new companies.
• Loss of one or more customers, particularly larger customers.
• System unavailability or performance problems.
• Inability to maintain corporate culture and retain employees.
• Outcome and impact of legal proceedings.

Future Outlook

nCino expects to continue its growth trajectory by expanding its product offerings, targeting new markets, and leveraging its platform to drive business outcomes for financial institutions. The company is focused on achieving its FY26 ACV targets and long-term margin and expense goals.

Industry Context

nCino operates in the financial technology (fintech) industry, providing cloud-based software solutions to financial institutions. The company's performance is influenced by trends such as digital transformation, the adoption of AI and automation, and the increasing demand for personalized banking experiences. nCino competes with other fintech companies and traditional software vendors in the banking sector.

Comparison to Industry Standards

• nCino's growth in subscription revenues and ACV is a key indicator of its performance compared to industry peers.
• Companies like Fiserv, Jack Henry & Associates, and Temenos also provide banking software solutions, but nCino differentiates itself with its cloud-native platform and focus on customer experience.
• nCino's ACV Net Retention Rate of 106% indicates strong customer loyalty and expansion, which is a positive sign compared to industry benchmarks.
• The company's expansion into EMEA and focus on the credit union market are strategic moves to capture additional market share.

Stakeholder Impact

• Shareholders: Positive impact due to exceeding financial guidance and growth prospects.
• Employees: Potential for career growth and development due to company expansion.
• Customers: Enhanced banking solutions and improved customer experiences.
• Suppliers: Potential for increased business opportunities due to company growth.
• Creditors: Increased confidence in the company's financial stability.

Next Steps

• nCino will report its first quarter fiscal 2026 results on May 28, 2025.
• The company will host an Investor Day on May 20, 2025.
• nCino will continue to execute its strategic initiatives, including expanding in EMEA and activating the credit union market.

Key Dates

Keywords

nCino, financial results, preliminary, guidance, revenues, subscription, non-GAAP, operating income, ACV, EMEA, credit union, mortgage, AI, API, platform, banking, financial institutions