nCino, Inc., the platform for agentic banking, today announced financial results for the second quarter of fiscal year 2027, ended July 31, 2026, and that…
nCino, Inc. (NCNO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 nCino Reports Second Quarter Fiscal Year 2027 Financial Results • Total Revenues of $161.0M, up 8% year-over-year • Subscription Revenues of $143.5M, up 10% year-over-year • GAAP Operating Margin of 8%, up 1,500 basis points year-over-year • Non-GAAP Operating Margin
How this was made
The 30-second read
Why it matters
Earnings beat and new buyback could drive short‑term price appreciation, but guidance is near prior levels.
Market read
First‑report earnings with guidance and buyback make this a notable trading catalyst for NCNO.
What to watch
Guidance remains modest; market may have already priced the beat.
Total Revenues of $161.0M, up 8% year-over-year; Subscription Revenues of $143.5M, up 10% year-over-year; GAAP Operating Margin of 8%, up 1,500 basis points year-over-year; Non-GAAP Operating Margin of 25%, up 500 basis points year-over-year.
Revenue and subscription revenue grew year over year, GAAP operations moved to income from a prior-year loss, non-GAAP operating income increased 36%, free cash flow increased 170%, and the company issued third-quarter and full-year fiscal 2027 guidance while authorizing an additional $100 million of repurchases.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $161M | – | 8% |
| Subscription revenuesGAAP | $143.5M | – | 10% |
| Professional services and other revenuesGAAP | $17.5M | – | – |
| Gross profitGAAP | $100.8M | – | – |
| Gross marginGAAP | 63% | – | – |
| Gross profitnon-GAAP | $109.9M | – | – |
| Gross marginnon-GAAP | 68% | – | – |
| Income from operationsGAAP | $13.6M | – | – |
| Operating marginGAAP | 8% | – | up 1,500 basis points year-over-year |
| Operating incomenon-GAAP | $40.8M | – | 36% |
| Operating marginnon-GAAP | 25% | – | up 500 basis points year-over-year |
| Net incomeGAAP | $6.4M | – | – |
| Net income attributable to nCino, Inc.GAAP | $5.1M | – | – |
| Basic net income per share attributable to nCino, Inc.GAAP | $0.05 | – | – |
| Diluted net income per share attributable to nCino, Inc.GAAP | $0.05 | – | – |
| Net cash provided by operating activitiesGAAP | $34.2M | – | – |
| Free cash flownon-GAAP | $34M | – | 170% |
| Free cash flow less principal payments on financing obligationsnon-GAAP | $33.7M | – | – |
| Cash, cash equivalents, and restricted cashGAAP | $83.6M | – | – |
| Debt outstanding under the Company's credit facilityGAAP | $275.4M | – | – |
| Total operating expensesGAAP | $87.2M | – | – |
| Sales and marketing expenseGAAP | $36.9M | – | – |
| Research and development expenseGAAP | $31M | – | – |
| General and administrative expenseGAAP | $19.2M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SubscriptionManagement cited customers consolidating critical operations on nCino and expanding commitments to include AI capabilities. | $143.5M | – | 10% |
| Professional services and otherNot separately disclosed. | $17.5M | – | – |
Third quarter ending October 31, 2026, and fiscal year 2027 ending January 31, 2027 outlook
- RevenueThird-quarter total revenues between $161.25 million and $163.25 million; fiscal year 2027 total revenues between $644.0 million and $647.0 million. Third-quarter subscription revenues between $143.25 million and $145.25 million; fiscal year 2027 subscription revenues between $573.5 million and $576.5 million.
- NoteThird-quarter non-GAAP operating income between $42.0 million and $44.0 million.
- NoteFiscal year 2027 non-GAAP operating income between $171.0 million and $174.0 million.
- NoteFiscal year 2027 free cash flow between $137.0 million and $142.0 million.
- NoteFiscal year 2027 Annual Contract Value (ACV) at period end between $662.5 million and $667.5 million.
Capital returns
- In the second quarter ended July 31, 2026, nCino repurchased approximately 4.2 million shares in open market purchases at an average price of $15.41 per share for total consideration of approximately $65 million.
- The Company finalized the accelerated share repurchase program announced on March 31, 2026, repurchasing approximately 6.0 million shares at an average price of $16.57 per share for total consideration of $100 million.
- Following execution of $300 million in stock repurchases since April 2025, the Board authorized an additional $100 million share repurchase program.
- The new repurchase program has no time limit and does not obligate nCino to repurchase any specific amount of common stock.
- The Company currently expects to fund the repurchase program from existing cash and cash equivalents, credit facility capacity and/or future cash flows.
What drove it
- Four U.S. Enterprise customers collectively representing over $900 billion in assets renewed ahead of schedule and expanded commitments to use nCino AI tools and functionality.
- nCino signed a growth-focused development finance institution in Germany, extending stated momentum in the DACH region.
- A U.S. regional bank expanded its decade-long relationship with nCino to include Consumer Lending.
- A community bank in Iowa became a net-new customer for Commercial Onboarding and Account Opening.
- Hachijuni Nagano Bank selected the nCino Platform to consolidate consumer lending operations and integrate its proprietary AI credit-scoring engine.
- An Indiana-based credit union expanded its mortgage commitment and became nCino's largest credit union customer for mortgage.
Concerns
- Total revenue growth was 8% year over year, while professional services and other revenue was $17.5 million compared with $18.1 million in the prior-year quarter.
- Cash, cash equivalents, and restricted cash were $83.6 million while $275.4 million was outstanding under the Company's credit facility.
- The company identified risks related to customer consolidation, bank failures, customer losses or commitment reductions, competitive pricing pressures, AI adoption, third-party AI models and infrastructure, cybersecurity, Salesforce, indebtedness, and foreign currency exchange rates.
- The repurchase authorization may be funded with credit facility capacity as well as existing cash, cash equivalents, and future cash flows.
What to watch
- Third-quarter total revenue guidance of between $161.25 million and $163.25 million and subscription revenue guidance of between $143.25 million and $145.25 million.
- Third-quarter non-GAAP operating income guidance of between $42.0 million and $44.0 million.
- Fiscal year 2027 free cash flow guidance of between $137.0 million and $142.0 million.
- Fiscal year 2027 ACV at period-end guidance of between $662.5 million and $667.5 million.
- Execution of the additional $100 million stock repurchase authorization and its funding from cash, credit facility capacity and/or future cash flows.
- Whether expanded enterprise AI commitments, new international wins, Consumer Lending expansion, and Commercial Onboarding and Account Opening wins continue to support subscription revenue.
Balance sheet and cash flow
- Cash and cash equivalents were $83.3 million as of July 31, 2026, compared with $88.4 million as of January 31, 2026.
- Cash, cash equivalents, and restricted cash were $83.6 million as of July 31, 2026.
- $275.4 million was outstanding under the Company's credit facility.
- Debt, current portion, net was $9.8 million and debt, noncurrent, net was $265.6 million as of July 31, 2026.
- Total assets were $1.6 billion and total liabilities were $626.5 million as of July 31, 2026.
- Accounts receivable, net was $122.4 million as of July 31, 2026, compared with $166.5 million as of January 31, 2026.
- Deferred revenue, current portion was $218.8 million and deferred revenue, noncurrent was $3.1 million as of July 31, 2026.
- For the six months ended July 31, 2026, net cash provided by operating activities was $115.6 million, purchases of property and equipment were $0.8 million, and free cash flow was $114.8 million.
- For the six months ended July 31, 2026, repurchases of common stock were $175.7 million, proceeds from borrowings on the revolving credit facility were $15.0 million, and payments on the revolving credit facility were $150.0 million.
Analysis
nCino reported $161.0 million of second-quarter fiscal 2027 revenue, up 8% year over year, with subscription revenue of $143.5 million, up 10%. Subscription growth exceeded total revenue growth, while professional services and other revenue was $17.5 million compared with $18.1 million in the prior-year quarter. Management linked the subscription performance to larger customers consolidating critical operations on nCino and expanding commitments for AI capabilities, alongside enterprise renewals, product expansions and new customer wins in the United States, Germany and Japan.
Profitability improved materially. GAAP gross margin was 63%, compared with 59% a year earlier, and non-GAAP gross margin was 68%, compared with 66%. GAAP income from operations was $13.6 million versus a $(9.3) million operating loss, producing an 8% GAAP operating margin compared with (6)%. Non-GAAP operating income increased 36% to $40.8 million and non-GAAP operating margin reached 25%, compared with 20% in the prior-year quarter. GAAP net income attributable to nCino was $5.1 million, or $0.05 per basic and diluted share, compared with a $(15.3) million loss, or $(0.13) per share.
Cash generation strengthened. Second-quarter operating cash flow was $34.2 million and free cash flow was $34.0 million, compared with $17.7 million and $12.6 million, respectively, in the prior-year quarter. For the first six months of fiscal 2027, operating cash flow was $115.6 million and free cash flow was $114.8 million. Cash, cash equivalents and restricted cash were $83.6 million at July 31, 2026, while $275.4 million was outstanding under the credit facility.
Capital allocation was a major feature of the release. nCino repurchased approximately 4.2 million shares for approximately $65 million in open-market purchases during the quarter and finalized a $100 million accelerated share repurchase that bought approximately 6.0 million shares. The Board then authorized an additional $100 million repurchase program. The company stated that it expects to fund repurchases from cash and cash equivalents, credit facility capacity and/or future cash flows, making cash generation, debt outstanding and the pace of future buybacks key areas of attention.
The forward outlook calls for third-quarter total revenue of between $161.25 million and $163.25 million, subscription revenue of between $143.25 million and $145.25 million, and non-GAAP operating income of between $42.0 million and $44.0 million. Fiscal year 2027 guidance calls for total revenue of between $644.0 million and $647.0 million, subscription revenue of between $573.5 million and $576.5 million, non-GAAP operating income of between $171.0 million and $174.0 million, free cash flow of between $137.0 million and $142.0 million, and period-end ACV of between $662.5 million and $667.5 million. No prior-quarter outlook was supplied, so comparisons of actual results with prior guidance and reported sequential changes are not available.
Management, verbatim
We delivered an exceptional second quarter of fiscal 2027, once again exceeding all financial guidance. We are seeing many of our largest customers consolidating more of their most critical operations on nCino and expanding their commitments to include our market leading AI capabilities. The confidence behind those commitments reflects a simple reality: deploying AI in financial services demands deep domain context and expertise, and nCino is uniquely positioned to deliver it at scale globally.
Sean Desmond, CEO at nCino
Following our execution of $300 million in stock repurchases since April 2025, nCino’s Board of Directors has authorized an additional $100 million stock repurchase program to provide continued flexibility to create stockholder value through repurchases of our common stock. This new authorization reflects continued confidence in our AI innovation and product strategy, market position, operational execution, and trajectory of free cash flow.
Greg Orenstein, CFO at nCino
Not in the filing
stated, not guessed- Prior-quarter revenue, subscription revenue, professional services and other revenue, gross margin, operating income, net income and EPS figures.
- Previous-quarter outlook for comparing actual second-quarter results with prior guidance.
- GAAP or non-GAAP EPS guidance.
- Gross margin, operating-expense and tax-rate guidance.
- A reported dividend or dividend policy.
- A separately reported quarterly ACV actual result.
- A reported total debt figure outside the stated $275.4 million outstanding under the credit facility.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
nCino provides a cloud platform for banks; its AI‑driven solutions are gaining traction.
Ticker impact
SEC Form 8‑K reports nCino's Q2 FY2027 results and new $100 M share repurchase authorization.
Potential modest upside as investors price higher earnings and buyback capacity.
Quarterly earnings beat prior loss, operating margins improve dramatically, and a fresh $100 M buyback adds support.
Market effects
Positive signal for fintech and banking‑software sector.
U.S. fintech stocks may see modest lift.
Limited to investors tracking cloud‑based banking platforms.
Counterpoint
Buyback may signal limited organic growth; watch cash burn.
Key entities
- ExecutiveSean Desmond
CEO of nCino who commented on results.
- ExecutiveGreg Orenstein
CFO of nCino who discussed the share repurchase program.
