nCino, Inc.

What they do

nCino sells subscriptions to a unified platform that financial institutions use to replace legacy systems across commercial, small business, and consumer banking, including mortgage. Contracts are non-cancelable multi-year agreements, typically three to five years. For enterprise clients, implementation is generally delivered with system integrators such as Accenture, Deloitte, and PwC; for regional and community institutions nCino works with firms such as West Monroe Partners or performs configuration itself. As of July 31, 2026, it had 184 U.S. sales and sales support personnel and 132 outside the U.S.

Revenue drivers

• Subscription revenues — Core multi-year platform subscriptions were $143.5M in the second quarter of fiscal 2027, up 10% year-over-year from $130.8M, and represent the large majority of total revenues.
• Commercial and small business lending — The original platform business, which began with community and regional U.S. banks, later extended to U.S. enterprise banks (2014) and internationally (2017).
• Consumer, mortgage and specialty solutions — Built and acquired capabilities including SimpleNexus, DocFox, FullCircl, ILT, Visible Equity, FinSuite and Sandbox Banking, covering mortgage lending, onboarding, account opening, indirect auto lending, and analytics/AI.

Recent performance

Second quarter fiscal 2027 (ended July 31, 2026) total revenues were $161.0M, up 8% from $148.8M a year earlier, with subscription revenues of $143.5M, up 10%. GAAP operating income was $13.6M versus a $(9.3)M loss in the prior-year quarter, and non-GAAP operating income rose 36% to $40.8M. Free cash flow was $34.0M, up 170% from $12.6M. For the full fiscal year 2026, revenue was $594.8M, net income was $9.7M, and operating cash flow was $90.1M. The company repurchased about 4.2 million shares for roughly $65M in the quarter and completed a $100M accelerated share repurchase program.

Strategy

Management is positioning nCino as "the platform for agentic banking," embedding AI across its solutions on top of a data foundation built from financial institution workflows and outcomes. It aims to win larger enterprise accounts and consolidate more of their operations, pointing to four U.S. enterprise renewals representing over $900 billion in assets that were signed ahead of schedule with expanded AI commitments. Growth is also pursued geographically, with a new German development finance institution and Japan's Hachijuni Nagano Bank cited, plus an Indiana credit union becoming its largest mortgage credit union customer. Capital is being returned via buybacks: $300M repurchased since April 2025 plus a new $100M authorization, funded alongside a $200M incremental term loan issued in March 2026.

Risks

• AI adoption dependence — The 10-K states the growth strategy increasingly depends on customers adopting and effectively using nCino's AI capabilities, and customer adoption rates or usage falling short could hurt the business and competitive position.
• Competitive and pricing pressure — The 10-K describes nCino's markets as intensely competitive and highly fragmented, with pricing pressure and rapidly evolving technologies.
• Customer concentration in financial institutions — The 10-K flags the concentration of the customer base in the financial institution sector and those customers' spending on cloud-based technology as a key risk.
• Debt and leverage — nCino carries long-term debt of $265.6M as of July 31, 2026, including a $200M senior secured incremental term loan maturing October 28, 2029 that requires $2.5M quarterly principal payments, and the 10-K cites the ability to service debt obligations as a risk.

Outlook

Management said the second quarter exceeded all financial guidance and described continued confidence in AI innovation, product strategy, market position, operational execution, and free cash flow trajectory. The new $100M repurchase authorization is framed as flexibility to create stockholder value after $300M of repurchases since April 2025. The company expects enterprise financial institutions to make up a greater proportion of nCino Platform sales, and it continues to invest in embedding intelligence across its solutions.