nCino, Inc. (NCNO) - Q3 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended October 31, 2025 (Q3 of Fiscal Year 2026). nCino, Inc. is a software-as-a-service (SaaS) provider offering intelligent solutions to financial institutions to streamline operations, risk management, and customer experiences. The company operates as a single reportable segment.
Key Financial Metrics
| Metric | Q3 2025 (3 Months) | Q3 2024 (3 Months) | YTD 2025 (9 Months) | YTD 2024 (9 Months) |
|---|---|---|---|---|
| Total Revenue | $152.2 million | $138.8 million | $445.1 million | $399.3 million |
| Subscription Revenue | $133.4 million | $119.9 million | $389.8 million | $344.2 million |
| Gross Profit | $93.7 million (61.6%) | $85.1 million (61.3%) | $268.3 million (60.3%) | $240.4 million (60.2%) |
| Net Income (Loss) Attributable to nCino | $6.5 million | $(5.3) million | $(3.2) million | $(19.3) million |
| Non-GAAP Operating Income | $39.9 million | $28.0 million | $94.7 million | $71.8 million |
| Cash and Cash Equivalents | $87.6 million (as of Oct 31, 2025) | |||
| Revolving Credit Facility Outstanding | $203.5 million (Capacity: $250.0 million) | |||
| Operating Cash Flow (YTD) | $77.1 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 9.6% year-over-year (YoY) for Q3 and 11.5% YoY for the nine-month period. Subscription revenue grew 11.3% in Q3 and 13.2% YTD, driven by new customer acquisitions and expansion within the existing base.
- Profitability: The company returned to GAAP net income in Q3 ($6.5 million) compared to a net loss in the prior year quarter. However, the YTD period remains at a net loss of $3.2 million, significantly improved from the $19.3 million loss in the prior year.
- Acquisitions: The period includes results from the acquisition of Sandbox Banking (Feb 2025), FullCircl (Nov 2024), DocFox (Mar 2024), and ILT (Apr 2024). Sandbox Banking contributed $5.2 million to subscription revenue in Q3.
- Restructuring: The company incurred $10.1 million in restructuring charges YTD related to a workforce reduction of approximately 7% and office space reductions to improve operational efficiency.
- Stock Repurchases: The company completed its $100 million stock repurchase program authorized in March 2025, purchasing 4.0 million shares YTD.
Guidance, Outlook, and Risks
- Management Commentary: Management highlighted the successful transition to an asset-based pricing model and the integration of recent acquisitions to enhance data connectivity and AI capabilities. The company expects subscription revenue to continue growing as a proportion of total revenue.
- Liquidity: As of October 31, 2025, the company had $87.6 million in cash and $46.5 million in available borrowing capacity under its $250 million credit facility. Management believes this is sufficient to fund operations for at least the next 12 months.
- Risks and Contingencies:
- Macroeconomic Environment: Fluctuating interest rates and inflationary pressures continue to impact the U.S. mortgage market, negatively affecting demand for mortgage-related products.
- Foreign Currency: The company recorded a significant foreign currency gain of $15.3 million in "Other income (expense), net" for the nine months ended October 31, 2025, primarily due to the remeasurement of intercompany loans. This is a non-operating item that can cause volatility in net income.
- Valuation Allowance: Changes in valuation allowances for deferred tax assets in the U.S. and U.K. impacted the effective tax rate, resulting in a high effective tax rate of 84.7% for the YTD period.
Key Facts for Investor Verification
- Non-GAAP Adjustments: Verify the composition of the $93.8 million in non-GAAP adjustments for the YTD period, which includes $27.6 million in amortization of intangibles, $52.7 million in stock-based compensation, and $10.1 million in restructuring charges.
- Foreign Currency Impact: Confirm the sustainability of the $15.3 million foreign currency gain included in YTD net income, as this is a non-recurring item driven by intercompany loan remeasurement.
- Acquisition Integration: Monitor the revenue contribution and integration costs of the Sandbox Banking and FullCircl acquisitions to ensure they meet projected synergies.
- Debt Utilization: Note that the company utilized a significant portion of its credit facility ($203.5 million outstanding) to fund acquisitions and the stock buyback program, leaving $46.5 million in remaining capacity.
- Professional Services Margin: Observe the negative gross margin for professional services (-18.0% YTD), which management attributes to strategic investments and lower utilization rates; verify if this trend improves as the business matures.