NCNO Q2 2026: 21% ACV Adoption, Strong Pipeline Boosts Outlook
- Robust Pipeline and Deal Momentum: Management emphasized a strong current pipeline across multiple segments and regions—from North American credit unions and commercial lending to international (EMEA) expansion—with renewed deal activity and a supportive macro environment driving organic growth [Speaker 2][Speaker 11].
- Favorable Platform Pricing Transition: The new pricing model is gaining traction with 21% of ACV already switched, notably driven by mortgage renewals. Early renewals being pulled forward due to the integration of Banking Advisor and related pricing tailwinds support a stronger revenue profile [Speaker 7][Speaker 13].
- Differentiation Through AI and Technology Integration: The call highlighted the growing adoption of Banking Advisor and AI-driven capabilities, which not only improve customer outcomes but also accelerate operational efficiencies and foster early adoption—key factors that can drive long-term revenue growth [Speaker 2][Speaker 7].
- Mortgage volume sustainability risk: Executives noted that the strong mortgage performance in Q2 might be a pull‐forward effect and they are not extrapolating this overperformance to later quarters, raising concerns about whether Q2 gains can be sustained going forward.
- Dependence on execution and pipeline performance: Several Q&A responses stressed that future success hinges on flawless execution in capturing renewals and converting pipeline opportunities. Any slowdown or execution misstep may negatively impact future revenue outcomes.
- Uncertainty around the platform pricing transition: Although initial results from the transition to a new pricing model are promising, management acknowledged that customer education and change management are needed. Delays or customer resistance in adopting the new pricing structure could hinder the anticipated revenue uplift.
| Topic | Previous Mentions | Current Period | Trend |
|---|---|---|---|
Robust Sales Pipeline, Deal, and Booking Momentum | Discussed across Q1 2026, Q4 2025, and Q3 2025 with strong pipeline coverage, robust deal activity, and incremental booking momentum noted in various regions ( ) | Q2 2026 emphasizes record‐high deal activity, a broad-based and intensifying sales pipeline, and notable regional focus driving bookings ( ) | Consistent strength with improved execution and enhanced macro support |
AI Integration and Banking Advisor Adoption | Q1 2026 and earlier periods (Q3 and Q4 2025) highlighted the rollout of new Banking Advisor capabilities, rapid deployment benefits, and early regulatory compliance with cautious customer adoption ( ) | Q2 2026 underlines deep integration of AI within workflows, with over 80 customers now on Banking Advisor and further agentic capability rollouts imminent ( ) | Enhanced integration and market penetration with sustained positive sentiment |
Platform Pricing Transition and Evolving Customer Reception | Q4 2025 described initial implementation of platform pricing with positive customer reactions, while Q1 2026 had indirect references to customer upgrades ( ) | Q2 2026 shows accelerated conversion with approximately 21% of ACV on the new model, and customers are engaging in more outcome-focused pricing conversations ( ) | Maturing rollout with growing customer acceptance and clearer benefits |
Expansion into Credit Unions, Consumer Lending, and International Markets | Q1 2026, Q3 2025, and Q4 2025 featured significant wins in credit unions and consumer lending along with strategic international deals in Europe and Asia ( ) | Q2 2026 continues to secure major deals in credit unions, advances consumer lending initiatives, and marks new international milestones (e.g. first customer in Spain) ( ) | Steady, robust expansion globally with focused market penetration |
Mortgage Performance Risks and Churn Concerns | Q1, Q3, and Q4 2025 discussed cautious mortgage forecasts, seasonality impacts, and gradual churn improvements despite external uncertainties ( ) | Q2 2026 remains cautious about mortgage performance—acknowledging seasonality—but notes churn has stabilized near historic lows ( ) | Cautious optimism with stable churn yet continued vigilance on market risks |
Execution Challenges Across Renewals, Pipeline Conversion, and Acquisition Integrations | Q1, Q3, and Q4 2025 reported mixed challenges in deployment timelines, conversion of robust pipelines, and initial integration hiccups with acquisitions ( ) | Q2 2026 stresses focused execution in renewals through the new pricing transition, effective pipeline conversion, and smooth progress in integrating Full Circle, Sandbox Banking, and DocFox ( ) | Continuous focus on operational execution with incremental improvements |
Subscription Revenue Growth Deceleration and Margin Pressure Concerns | Q1 and Q4 2025 noted deceleration in subscription revenue growth (in part due to difficult comps) and margin pressure arising from professional services costs, while Q3 2025 reported solid subscription numbers with implicit headwinds ( ) | Q2 2026 details moderate headwinds from one-off subscription items while emphasizing margin improvements driven by efficiency initiatives and better professional services performance ( ) | Persistent headwinds in growth metrics offset by targeted efficiency and margin improvement strategies |
M&A Activity and the Impact of Acquisition Integration | Q1, Q3, and Q4 2025 covered multiple acquisitions (DocFox, Full Circle, Allegro, Sandbox Banking) and their evolving impact on pipeline momentum and revenue, with early integration challenges being addressed ( ) | Q2 2026 confirms that acquisition integrations are on track, with Full Circle and Sandbox Banking expected to be more accretive moving forward and reinforcing the AI strategy ( ) | Solid integration performance with steady, positive contributions from M&A activities |
Leadership Transition and Management Succession Uncertainty | Q4 2025 featured the new CEO’s inaugural remarks while Q3 2025 addressed succession planning, indicating ongoing governance considerations ( ) | Q2 2026 does not mention any leadership transition or succession issues ([N/A]) | Topic no longer mentioned, suggesting stabilization and reduced uncertainty |
New Product Development Initiatives (e.g., Integrated Onboarding Solutions) | Q1, Q3, and Q4 2025 showcased significant product innovations in integrated onboarding, omni‐channel experiences, and AI-powered enhancements via acquisitions like DocFox and FullCircl ( ) | Q2 2026 reiterates focus on launching integrated onboarding solutions through the continued integration of Full Circle and DocFox, coupled with expanded AI integration driving customer expansion ( ) | Consistent investment in innovation with sustained positive market impact and product evolution |
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Organic Growth
Q: What drove sustained organic growth?
A: Management credited solid execution and a supportive macro environment with robust deal activity, driving the organic reacceleration seen this quarter. -
Pricing Model
Q: How does new pricing affect renewals?
A: They explained that the new outcome-focused pricing, targeting a 10% uplift, is already attracting early renewals and reshaping customer discussions to emphasize efficiency. -
Platform Uplift
Q: What uplift results from platform pricing?
A: Executives noted a roughly 10% uplift on renewals—especially in mortgage—which underscores strong customer adoption and validates the pricing transition strategy. -
Credit Union Wins
Q: What drove strong credit union results?
A: The focused activation of a dedicated credit union team delivered six new logos and numerous cross-sell opportunities, confirming the strategy’s effectiveness. -
Early Renewals
Q: Is Banking Advisor driving early renewals?
A: Management observed that interest in Banking Advisor is pulling forward renewal conversations despite its current exclusion from revenue, hinting at a favorable pricing tailwind. -
ACV & Pipeline
Q: How clear is the ACV and pipeline?
A: Confidence remains high with robust deal activity and a strong pipeline supporting ACV guidance, even factoring in seasonality and solid first-half bookings. -
Fiscal 2027 Outlook
Q: What growth rate is expected for 2027?
A: While specific figures weren’t provided, the strong current pipeline and deal discussions suggest continued momentum, with efforts concentrated on executing 2026. -
International Pipeline
Q: How is the international pipeline developing?
A: New leadership in Continental Europe is yielding encouraging signs, with growing deal sizes and a steadily expanding pipeline in EMEA markets. -
Future Growth Drivers
Q: What will drive growth in coming years?
A: The combination of a strong platform and an evolving AI strategy is seen as key to future growth, even as external factors like interest rates remain uncontrollable. -
Inorganic Growth
Q: How will Full Circle and Sandbox contribute?
A: Both businesses are on track and expected to be more accretive next year as deeper integration and expanded use cases enhance nCino’s diversified revenue streams.
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