nCino, Inc. (NCNO) - 10-K Summary
Business Context and Reporting Period
Company: nCino, Inc.
Filing Type: Form 10-K (Annual Report)
Fiscal Year Ended: January 31, 2026
Business Overview: nCino provides a cloud-based banking platform for financial institutions (FIs) to streamline operations, manage risk, and enhance customer experiences. The platform leverages AI and data intelligence to automate workflows across lending, onboarding, and account opening. The company operates as a single reporting segment and relies on a subscription-based revenue model, transitioning from seat-based to asset-based pricing.
Key Financial Metrics (Fiscal 2026)
| Metric | Fiscal 2026 | Fiscal 2025 | Change |
|---|---|---|---|
| Total Revenues | $594.8 million | $540.7 million | +10.0% |
| Subscription Revenues | $523.1 million | $469.2 million | +11.5% |
| Gross Profit | $360.2 million | $324.8 million | +11.0% |
| Gross Margin | 60.6% | 60.1% | +50 bps |
| Net Income (Loss) Attributable to nCino | $5.2 million | $(37.9) million | Turned Profitable |
| GAAP Operating Income | $3.7 million | $(18.1) million | Turned Profitable |
| Non-GAAP Operating Income | $129.4 million | $96.2 million | +34.5% |
| Operating Cash Flow | $90.1 million | $55.2 million | +63.2% |
| Cash and Cash Equivalents | $88.4 million | $120.9 million | -$32.5 million |
| Debt Outstanding (Credit Facility) | $213.5 million | $166.0 million | +$47.5 million |
Material Changes vs. Prior Period
- Profitability Milestone: The company achieved GAAP net income of $5.2 million in fiscal 2026, reversing a net loss of $37.9 million in fiscal 2025. This was driven by revenue growth, improved operating leverage, and a significant non-cash foreign currency gain of $19.0 million in "Other income (expense), net."
- Revenue Growth: Total revenue grew 10.0% year-over-year. Subscription revenue grew 11.5%, representing 88.0% of total revenue. Growth was driven by existing customer expansion (87.8% of subscription growth) and acquisitions.
- Acquisitions: Fiscal 2026 results include the acquisition of Sandbox Banking (Feb 2025) and full-year contributions from DocFox, ILT, and FullCircl (acquired in fiscal 2025). Inorganic revenue from acquisitions totaled $17.3 million in fiscal 2026.
- Restructuring: The company incurred $10.1 million in restructuring charges in fiscal 2026 related to a 7% workforce reduction and office space optimization to improve operational efficiency.
- Stock Repurchases: The company repurchased 5.0 million shares for $125.0 million in fiscal 2026 under two authorized programs.
Guidance, Outlook, and Risks
Management Commentary & Strategy:
- AI Integration: Management emphasizes embedding AI (generative, predictive, and agentic) into the platform to drive efficiency and risk management for customers. Growth strategy relies heavily on customer adoption of these AI capabilities.
- Pricing Model: Continued transition to asset-based pricing, aligning subscription fees with the asset size of the customer's portfolio, is expected to drive recurring revenue growth.
- International Expansion: International revenue accounted for 22.1% of total revenue in fiscal 2026. The company plans to continue investing in EMEA and APAC markets.
Key Risks & Contingencies:
- Salesforce Dependency: Fundamental elements of the nCino Platform are built on the Salesforce Platform. The agreement expires in 2031, but termination or non-renewal would materially impact the business model.
- AI Adoption: Future growth depends on customers adopting and effectively using nCino's AI capabilities. Failure to demonstrate value could slow growth.
- Regulatory Environment: The company faces evolving regulations regarding data privacy (GDPR, CCPA), cybersecurity (NIS2, DORA), and AI (EU AI Act), which could increase compliance costs.
- Debt Covenants: The company has a $250 million revolving credit facility with $213.5 million outstanding. It must maintain specific leverage and interest coverage ratios.
Investor Verification Checklist
- Quality of Earnings: Verify the sustainability of GAAP profitability by analyzing the impact of the $19.0 million foreign currency gain and the $10.1 million restructuring charge on future periods.
- Asset-Based Pricing Adoption: Monitor the rate at which existing customers transition to the asset-based pricing model and the resulting impact on Annual Contract Value (ACV) net retention rates (reported at 112% for fiscal 2026).
- AI Monetization: Assess whether AI-driven features are translating into measurable revenue growth or if they remain a cost center (R&D was 21.4% of revenue).
- Debt Utilization: Review the utilization of the $250 million credit facility ($213.5 million used) and the subsequent $200 million term loan entered into in March 2026 to fund share repurchases.
- Customer Concentration: Confirm that no single customer represents more than 10% of revenue, as stated in the filing, to assess concentration risk.