10-K: nCino Reports Fiscal Year 2025 Results, Focuses on AI and Platform Expansion

nCino's FY25 results highlight a strategic shift towards AI integration and platform expansion, with a focus on serving financial institutions globally.

Summary

• nCino's FY25 report details the company's performance and strategic direction, emphasizing AI integration and platform expansion.
• The company's platform enables financial institutions to consolidate vendors and optimize operations.
• nCino ended fiscal 2025 with 2,789 customers.
• 549 customers generated more than $100,000 in subscription revenues, 105 generated more than $1.0 million, and 14 generated more than $5.0 million.
• No single customer represented more than 10% of total revenues in fiscal 2025.
• The company is transitioning to an asset-based pricing strategy to align revenues with the value provided to customers.
• nCino is expanding its customer base globally, with a focus on EMEA and APAC regions.
• The company invested 23.9% of its revenues back into research and development in fiscal 2025.
• nCino is fostering its SI and partner technology ecosystem, including recent acquisition of Sandbox Banking.
• The company selectively pursues strategic transactions to strengthen and expand its solutions.
• nCino's agreement with Salesforce extends to January 31, 2031.
• The company had 1,833 employees as of January 31, 2025, with approximately 73% in the U.S. and 27% in other locations around the globe.
• Total revenues were $540.7 million for fiscal 2025, compared to $476.5 million for fiscal 2024.
• Subscription revenues were $469.2 million for fiscal 2025, compared to $409.5 million for fiscal 2024.
• The company recorded a net loss attributable to nCino of $37.9 million for fiscal 2025, compared to a net loss of $42.3 million for fiscal 2024.

Sentiment

Score: 7

Explanation: The document presents a balanced view, highlighting both positive growth in revenue and strategic initiatives, while also acknowledging ongoing net losses and potential risks. The focus on AI and platform expansion suggests a positive outlook, but the financial challenges temper the overall sentiment.

Positives

• nCino's platform enables financial institutions to consolidate vendors and optimize operations.
• The company is transitioning to an asset-based pricing strategy to align revenues with the value provided to customers.
• nCino is expanding its customer base globally, with a focus on EMEA and APAC regions.
• The company invested 23.9% of its revenues back into research and development in fiscal 2025.
• nCino is fostering its SI and partner technology ecosystem, including recent acquisition of Sandbox Banking.
• ACV net retention rate was 106% for fiscal 2025.

Negatives

• The company recorded a net loss attributable to nCino of $37.9 million for fiscal 2025.
• Subscription revenue net retention rate was 110% for fiscal 2025, a decrease from prior years.

Risks

• The company derives most of its revenues from customers in the financial services industry, and any downturn or consolidation or decrease in technology spend in the financial services industry could adversely affect our business.
• The markets in which we participate are intensely competitive and highly fragmented, and pricing pressure, new technologies or other competitive dynamics could adversely affect our business and results of operations.
• A breach of our security or privacy measures or those we rely on could result in unauthorized access to, or disclosure of, customer or their clients data, which may materially and adversely impact our reputation, business, and results of operations.
• Fundamental elements of the nCino Platform are built on the Salesforce Platform and we rely on our agreement with Salesforce to provide this solution to our customers.
• We may not be able to sustain our revenue growth rate in the future.
• Our increased focus on the development and use of AI/ML technologies in our solutions and our business, as well as our potential failure to effectively implement, use, and market these technologies, may result in reputational harm or liability, or could otherwise adversely affect our business.

Future Outlook

nCino intends to continue growing its business by expanding within existing customers, expanding its customer base globally, strengthening product functionality, fostering its SI and partner technology ecosystem, and selectively pursuing strategic transactions.

Management Comments

• nCino's trusted platform enables FIs to consolidate vendors while optimizing operations by integrating AI and actionable insights to cohesively bring together people and data and thereby enhance strategic decision-making, risk management, and customer satisfaction.

Industry Context

The report highlights the increasing importance of cloud-based banking technology and AI in the financial services industry, as financial institutions seek to modernize their operations and improve customer experiences.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards or comparable companies.
• However, it mentions competitors are point solution vendors and systems developed internally by FIs.
• The document does not provide specific details on how nCino's results compare to global benchmarks or specific comparable projects.

Management Changes

Legal Proceedings

• On September 26, 2022, a complaint was filed in the Delaware Court of Chancery in connection with the series of mergers in which the Company became the parent of nCino OpCo and SimpleNexus.
• On December 28, 2023, the Delaware Court of Chancery granted in full defendants' motions to dismiss the complaint.
• On January 25, 2024, the plaintiff filed a notice of appeal.
• On September 12, 2024, the Delaware Supreme Court summarily affirmed the dismissal of the complaint in its entirety.

Related Party Transactions

• On November 1, 2022, the Company's wholly-owned subsidiary, nCino OpCo, acquired preferred shares of ZestFinance, Inc. (d/b/a ZEST AI) for $2.5 million.
• In March 2025, we recorded a realized gain of $1.2 million from the sale of all our shares in Zest AI.

Stakeholder Impact

• Shareholders: Potential for long-term growth and value creation through strategic initiatives, but also face risks related to competition, economic conditions, and potential dilution.
• Employees: Opportunities for career growth and development within a growing company, but also potential for workforce reductions or changes in compensation structures.
• Customers: Access to innovative solutions and improved services, but also potential disruptions during implementation or integration of new technologies.
• Suppliers: Potential for increased business opportunities as nCino expands its operations, but also potential for changes in supplier relationships or contract terms.
• Creditors: Exposure to nCino's financial performance and ability to meet its debt obligations, but also potential for increased returns as the company grows and becomes more profitable.

Next Steps

• Continue to expand within existing customers.
• Expand customer base globally.
• Strengthen and extend product functionality.
• Foster and grow SI and partner technology ecosystem.
• Selectively pursue strategic transactions.

Key Dates

Keywords

nCino, financial institutions, AI, platform, subscription revenues, cloud banking, loan origination, Salesforce, EMEA, APAC, Sandbox Banking, ACV, retention rate