0001902733-26-000022
SEC filingnCino's FY26 revenue grew 10% to $594.8M, subscription mix expanded to 88%, and net income turned positive to $5.2M, driven by customer expansion and cost discipline.
nCino, Inc. is a global data and intelligence leader that provides a unified platform of best-in-class, intelligent solutions for financial institutions (FIs). The company was originally founded in a bank and spun out in 2011 to address the challenges of fragmented data, manual processes, and legacy systems. The nCino Platform embeds banking-specific intelligence directly into the tools FI employees already use, enabling them to operate more intelligently, improve efficiency, elevate employee and client experiences, and manage risk and compliance continuously.
The filing does not disclose formal reporting segments. Instead, nCino organizes its offerings into solution lines: Onboarding, Account Opening, Lending (Commercial, Consumer, Small Business, Mortgage), Credit Monitoring, and Integration & Intelligence. These are part of the single nCino Platform, and no revenue breakdown by segment is provided.
The core offering is the nCino Platform, built on Salesforce and leveraging AWS for cloud infrastructure. Key products include:
nCino uses a direct sales model supplemented by a partner ecosystem. Consulting partners (Accenture, Deloitte, PwC, West Monroe) assist in prospecting, implementation, and co-selling. Technology partners (Anthropic, AWS, Databricks, Salesforce, Alloy, Plaid, Docusign) expand platform capabilities. As of fiscal 2026, nCino has over 2,700 customers, including 1,500 depository institutions. No single customer accounts for more than 10% of total revenues. Named customers include global institutions like Wells Fargo, Bank of America, Barclays, Santander, and TD Bank, as well as community banks and credit unions.
Primary competition historically came from point solution vendors and internally developed systems. More recently, AI-focused fintech startups have emerged. nCino believes its competitive advantages include a unified platform, deep banking domain expertise, a strong implementation track record, customer success focus, and a rich data foundation that newer entrants cannot easily replicate. Competitive factors assessed by customers include breadth/depth of functionality, total cost of ownership, security, and ability to support regulatory compliance.
nCino's growth strategy centers on five pillars: (1) expanding within and across existing customers through asset-based pricing and AI capabilities; (2) expanding the customer base globally, particularly in EMEA and APAC; (3) strengthening product functionality with ongoing R&D investment (21.4% of revenues in fiscal 2026), focusing on AI, agentic workflows, and tailored intelligence; (4) fostering the partner ecosystem to drive innovation and reach; and (5) selectively pursuing strategic transactions to accelerate innovation and global reach.
As of January 31, 2026, nCino had 1,684 employees, with approximately 70% based in the U.S. and 30% internationally. The company emphasizes a culture of innovation and accountability, supported by six core values. Employee programs include Employee Resource Groups (ERGs) and philanthropic initiatives through nVolve. Total rewards include competitive compensation, equity ownership, and generous benefits.
nCino's fiscal 2026 (ended January 31, 2026) demonstrated a significant inflection in profitability. Total revenues increased 10% year-over-year to $594.8 million, driven by subscription revenue growth of 11.5% to $523.1 million. Subscription revenues represented 88.0% of total revenue, up from 86.8% in fiscal 2025, reflecting the strategic shift toward recurring revenue. Professional services revenues were essentially flat at $71.6 million.
Gross margin improved to 60.6% from 60.1%, with subscription gross margin rising to 71.4% (from 71.2%) due to scale benefits, while professional services gross margin deteriorated to (18.7)% from (13.2)% due to lower utilization and strategic investments. GAAP operating income turned positive to $3.7 million from a loss of $18.1 million, driven by revenue growth and tighter cost control. Net income attributable to nCino reached $5.2 million, a dramatic improvement from a net loss of $37.9 million in the prior year. Non-GAAP operating income grew 34.6% to $129.4 million, underscoring underlying operational momentum.
The MD&A does not provide explicit segment-level financials; however, revenue drivers are discussed. Growth was primarily fueled by existing customers expanding within and across lines of business (87.8% of subscription revenue growth), with the remainder from new customers. The subscription revenue net retention rate remained stable at 110%, supported by adoption of AI capabilities and the asset-based pricing model. The U.S. mortgage business faced headwinds from higher interest rates, but overall ACV net retention rate improved to 112% from 106% in fiscal 2025, driven by expansion. International revenue accounted for 22.1% of total revenue, indicating geographic diversification.
Management's outlook emphasizes continued investment in product development (particularly AI) and sales, while optimizing operating plans for revenue growth and profitability. The company expects subscription revenues to continue growing as a percentage of total revenues. No specific numerical guidance was provided in this MD&A. The restructuring plan executed in fiscal 2026 (7% workforce reduction) is expected to improve operational efficiencies. The balance sheet remains healthy with $88.4 million cash and $213.5 million drawn on a $250 million credit facility, and an additional $200 million term loan was secured post-period to fund an accelerated share repurchase. Management expressed confidence that current liquidity and credit availability will fund operations for at least the next 12 months.
As of January 31, 2026, nCino held $88.4M in cash and cash equivalents, down from $120.9M a year earlier, driven by acquisitions and share repurchases. Total debt stood at $264.7M, comprising $213.5M drawn under the 2024 Credit Facility (up from $166.0M) and $51.2M in financing obligations related to its headquarters lease. The company had $36.5M of remaining borrowing capacity under the $250M revolver. Post-year-end, on March 30, 2026, nCino added a $200M term loan, further increasing leverage. Shareholders' equity was $1.056B, including $125.6M in treasury stock from repurchases.
nCino disclosed $165.8M in purchase commitments as of January 31, 2026, primarily for licenses and hosting services. Of this, $86.5M is due within fiscal 2027 and $79.3M in the following two years. Additionally, remaining performance obligations (RPO) totaled $1.3B, of which 66% is expected to be recognized within 24 months. The company also has operating lease obligations of $17.6M (undiscounted) and financing obligations of $12.8M (minimum lease payments) for its headquarters.
nCino actively returned capital to shareholders during FY2026, repurchasing 4.96M shares for $125.0M under two board-authorized programs (March and December 2025). As of year-end, $75.0M remained available under the December program. Days after the fiscal year close, on March 31, 2026, the company entered into a $100M accelerated share repurchase agreement. No dividends were declared. Capital expenditures were modest at $7.5M (1.3% of revenue), reflecting the asset-light software model.
nCino operates as a single reporting segment. The Notes provide disaggregated revenue by geography and by subscription type. For FY2026, U.S. revenue was $463.3M (78% of total), with international contributing $131.5M (22%). Within the U.S., non-mortgage subscriptions grew to $334.0M, mortgage subscriptions to $79.6M, and professional services to $49.6M. International subscriptions rose to $109.5M, while international professional services were $22.0M. The U.K. was the largest international market at $72.8M.
nCino's growth strategy depends on customer adoption of AI capabilities. If customers are slow to adopt or fail to realize measurable benefits, revenue and competitive positioning could suffer. Additionally, the rapid evolution of AI/ML regulations (EU AI Act, US state laws) and ethical concerns (bias, accuracy) pose compliance costs and reputational risks. Competitors may integrate AI more effectively, eroding nCino's differentiation.
Fundamental elements of the nCino Platform are built on Salesforce, with an agreement expiring January 31, 2031. Non-renewal or termination would severely limit operations. Dependence on data centers operated by Salesforce, AWS, and others introduces operational disruption risk. AWS also powers AI/ML capabilities, amplifying infrastructure concentration.
The cloud-based financial services market is intensely competitive, with established vendors and internal IT systems. AI/ML competition is intensifying, and pricing pressure from new entrants (including large tech firms) could reduce margins. A downturn in the financial services industry (e.g., rising interest rates, consolidation) could decrease tech spending and customer retention.
nCino has a history of losses, though it achieved GAAP profitability in fiscal 2026. Sustainability is uncertain given ongoing investment in AI, international expansion, and public company costs. Quarterly results are volatile due to long sales cycles, seasonal patterns, and customer concentration. The company's limited operating history at current scale makes forecasting difficult.
Evolving privacy laws (CCPA, GDPR, state AI regulations) impose compliance burdens and potential fines. Cybersecurity threats, including AI-driven attacks, could lead to data breaches, operational disruptions, and liability. nCino's customers are highly regulated; failure to maintain compliant solutions could result in contract terminations or regulatory penalties.
No cash flow statement figures were provided in the document excerpt. The excerpt contains auditor reports and an index referencing the consolidated financial statements, but the actual numerical data from the Consolidated Statements of Cash Flows (page 64) is missing. Therefore, no analysis of CFO, capex, FCF, or capital returns can be performed. To proceed, the full cash flow statement must be supplied.