0001902733-25-000106
SEC filingRevenue grew 12% YoY to $148.8M, driven by subscription growth of 14.8%, but net loss widened to $15.3M due to restructuring costs.
In the second quarter of fiscal 2026, nCino reported total revenues of $148.8 million, a 12.4% increase compared to $132.4 million in the same period last year. Subscription revenues, which constitute the majority of revenue, grew 14.8% to $130.8 million, driven by expansion within existing customers (contributing 51.7% of the increase) and new customer additions (48.3%). Professional services and other revenues declined 2.3% to $18.1 million, reflecting a shift in implementation mix and lower effective billing rates.
Gross profit increased 12.3% to $88.1 million, but gross margin slightly contracted to 59.2% from 59.3% a year ago. Subscription gross margin improved to 70.9% (from 70.7%), while professional services gross margin worsened to -25.7% from -11.2%, driven by strategic investments in professional services capabilities and lower utilization.
Operating expenses rose 12.8% to $97.4 million, with sales and marketing up 17.5% due to increased headcount and marketing costs, research and development relatively flat, and general and administrative up 25.0% due to restructuring costs. As a result, loss from operations widened to $9.3 million from $7.9 million. Net loss attributable to nCino increased to $15.3 million from $11.0 million, impacted by higher interest expense and a $10.1 million restructuring charge.
The subscription segment remains the primary growth driver, with its share of total revenue rising to 87.9% from 86.0% a year ago. The company attributed subscription growth to both existing customer expansion (51.7% of the increase) and new customers (48.3%). Professional services revenue declined, and its negative gross margin deepened, reflecting strategic investments and lower utilization. International revenue accounted for 22.5% of total revenue, slightly up from the prior six-month period.
Management expects to continue investing in product development and sales and marketing to drive growth, particularly in credit unions and European markets. The company expects research and development and general and administrative expenses to decrease as a percentage of revenue over time. The restructuring plan announced in May 2025 is intended to improve operational efficiencies, with $10.1 million in charges already incurred. No specific quantitative guidance was provided. The company believes its current cash and credit facility are sufficient to fund operations for at least the next 12 months.
As of July 31, 2025, nCino held $122.9 million in cash and cash equivalents, flat versus $120.9 million at fiscal year-end January 31, 2025. Total debt stood at $255.5 million, comprising $203.5 million drawn on the revolving credit facility (2024 Credit Agreement) and $52.0 million in financing obligations primarily for headquarters and parking deck leases. Shareholders’ equity declined to $1,056.8 million from $1,089.3 million at January 31, 2025, driven by share repurchases and net losses, partially offset by stock issuance and stock-based compensation.
Total purchase commitments (non-cancellable agreements for goods and services, primarily licenses and hosting) amounted to $202.1 million as of July 31, 2025. Of this, $42.8 million is due within the next 12 months, $82.7 million in years 1-3, and $76.6 million beyond three years. Additionally, financing obligations for leased facilities total $6.3 million, with $2.3 million due in the remainder of fiscal 2026 and the balance in fiscal 2027. Remaining performance obligations (RPO) were $1.2 billion, with approximately 69% expected to be recognized within 24 months.
Capital allocation in the first half of fiscal 2026 included significant share repurchases: $60.6 million used to buy back 2.57 million shares at an average price of $23.53, under a $100.0 million program authorized in March 2025. As of July 31, 2025, $39.5 million remained available. The company also drew net $37.5 million on its revolving credit facility (proceeds $102.5M, repayments $65.0M). Capital expenditures were $6.9 million, primarily for property and equipment. No dividends were declared.
nCino operates as a single reportable segment. In Q2 FY2026, total revenues were $148.8 million, up 12.4% year-over-year. Geographically, the United States contributed $115.3 million (77.5%), the United Kingdom $19.0 million (12.7%), and other countries $14.6 million (9.8%). The company’s Chief Executive Officer, as the CODM, uses consolidated net loss to evaluate performance and allocate resources.
Net cash from operations of $72.1M significantly exceeded the net loss of $(7.7M), driven by large non-cash charges: depreciation/amortization ($21.4M), stock-based compensation ($34.4M), and amortization of debt issuance costs ($0.1M). Deferred income taxes added $4.0M. Working capital was a net source: accounts receivable decreased $51.8M, partially offset by increases in accrued expenses and deferred revenue. Non-operating items included a $14.0M foreign currency gain and a $1.7M gain on investments.
Capex of $6.9M represented 9.6% of CFO, moderate intensity. The company also spent $50.3M on business acquisitions and $3.7M from sale of investments, making total investing outflows $53.4M.
Financing activities used $20.2M, primarily for share repurchases of $60.6M, partially funded by net borrowings of $37.5M ($102.5M borrowings less $65.0M repayments) and stock issuances of $3.7M. Debt issuance costs were minimal. Principal payments on financing obligations were $0.8M.
Foreign currency gains of $14.0M (non-cash) inflated CFO adjustments. The gain on investments of $1.7M was also non-operating. No dividend payments. Free cash flow is not explicitly stated.