Executive Summary

Q3 FY25 delivered accelerating growth and margin expansion: revenue up 14% YoY to $138.8M, non-GAAP operating margin 20% (+350bps YoY), and non-GAAP diluted EPS $0.21 .
Management raised FY25 guidance for non-GAAP operating income ($95–$96M) and non-GAAP EPS ($0.75–$0.76), while narrowing total revenue to $539–$541M; Q4 guidance introduced with total revenue $139.5–$141.5M and non-GAAP EPS $0.18–$0.19 .
Strategic momentum: >30 multi-solution deals, RPO up 19% YoY to $1.095B, international wins (Japan’s largest nCino customer; Nordic expansion), and Banking Advisor added 11 new customers in Q3 .
Mortgage mixed: Q3 mortgage subscription revenue $20.7M (16% YoY growth) with ~$3M churn; elevated IMB M&A drives prudence in Q4 guide; FullCircl acquisition to contribute ~$4M subscription revenue in Q4 .

What Went Well and What Went Wrong

What Went Well

“Once again exceeding expectations” on revenue and non-GAAP operating income; >30 multi-solution deals, and more gross bookings from net new customers than prior two quarters combined .
RPO strength to $1.095B (+19% YoY) with $730M under 24 months (+16% YoY), underscoring durable demand and multi-year visibility .
Banking Advisor traction: 11 new customers in Q3 and plan to include in every new deal/renewal under new pricing; customer feedback positive (simplified buying and value alignment) .

What Went Wrong

Mortgage headwinds: ~$3M churn in Q3 and ~$2M expected in Q4; IMB consolidation introduces unpredictability despite improving profitability in the sector .
Q4 organic subscription outlook tempered (ex-FullCircl) due to mortgage rates not falling with Fed funds cuts; management is prudent on volumes timing .
International growth remains lumpy; while pipelines are up, closures skew to larger, longer-cycle enterprise deals; management is focusing efforts by region (Nordics, Spain, Japan) .

Financial Results

Metric	Q1 FY25	Q2 FY25	Q3 FY25
Total Revenues ($M)	$128.1	$132.4	$138.8
Subscription Revenues ($M)	$110.4	$113.9	$119.9
GAAP Operating Margin %	(3)%	(6)%	(1)%
Non-GAAP Operating Margin %	19%	15%	20%
GAAP Gross Margin %	60%	59%	61%
Non-GAAP Gross Margin %	66%	66%	67%
GAAP EPS ($)	$(0.03)	$(0.10)	$(0.05)
Non-GAAP Diluted EPS ($)	$0.19	$0.14	$0.21
RPO ($B)	$1.069	$1.041	$1.095
RPO <24 Months ($M)	$701.8	$698.3	$730.0
Cash, Cash Eq. & Restricted Cash ($M)	$134.8	$126.8	$258.3
Non-U.S. Revenues ($M)	$25.8	$27.5	$29.6
Free Cash Flow ($M)	$54.1	$4.6	$5.1

Segment mix and mortgage metrics:

Metric	Q2 FY25	Q3 FY25
Professional Services & Other Revenues ($M)	$18.5	$18.9
Mortgage Subscription Revenues ($M)	$17.0	$20.7
Mortgage % of Subscription Revenues	15%	17%
Mortgage Churn ($M)	—	~$3

Notes: Q3 FY25 YoY growth: total revenues +14% ($138.8M vs. $121.9M in Q3 FY24); subscription +14% ($119.9M vs. $104.8M) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenues ($M)	Q4 FY25	n/a	$139.5–$141.5	New
Subscription Revenues ($M)	Q4 FY25	n/a	$122.5–$124.5	New
Non-GAAP Operating Income ($M)	Q4 FY25	n/a	$23.25–$24.25	New
Non-GAAP Diluted EPS ($)	Q4 FY25	n/a	$0.18–$0.19	New
Total Revenues ($M)	FY25	$538.5–$544.5	$539.0–$541.0	Maintained/Narrowed
Subscription Revenues ($M)	FY25	$463.0–$469.0	$467.0–$469.0	Raised lower bound
Non-GAAP Operating Income ($M)	FY25	$87.0–$90.0	$95.0–$96.0	Raised
Non-GAAP Diluted EPS ($)	FY25	$0.66–$0.69	$0.75–$0.76	Raised

Additional guidance color: FullCircl expected to contribute ~$4M subscription revenue in Q4; mortgage revenues assumed cautious given rates; ~118M diluted shares for Q4 EPS guide .

Earnings Call Themes & Trends

Topic	Q1 FY25 (Prev-2)	Q2 FY25 (Prev-1)	Q3 FY25 (Current)	Trend
AI/Banking Advisor	Productized gen AI; heavy interest at nSight; initial adoption path outlined	8 BA deals signed; first customer live; de minimis FY25 revenue expected	11 BA customers signed; embed in all new deals/renewals under new pricing	Accelerating adoption
Pricing/Monetization	Platform pricing evolution underway; consumer/mortgage first	Transition to platform pricing; billings comparability cautions; 606 impacts	Intelligent Solution Framework rolling out broadly; all new/renewals on framework from Feb 1	Structural uplift in pricing simplicity/ACV
Mortgage Trends	Churn moderating; FY25 churn plan $20.5M; mortgage dilutive to growth	Churn peaked Oct last year; IMB closures stabilizing; M&A the new churn driver	Q3 churn ~$3M; Q4 churn ~$2M; volumes remain rate-sensitive; framework supports upside with volumes	Stabilizing; watch M&A/volumes
International	Pipelines growing; lumpy enterprise closings	Pipes up ~30% YoY in Japan/EMEA/AUS/NZ	Largest customer in Japan signed; Nordic expansion; first deal in Luxembourg	Building momentum, still lumpy
Products/Onboarding	DocFox acquisition synergies; >100 leads at nSight; commercial onboarding efficiency	Continued cross-sell across non-commercial solutions	FullCircl acquisition closed; ~$4M Q4 revenue contribution, deepening onboarding data	Strengthening platform depth

Management Commentary

“We are very pleased with our third quarter financial results, once again exceeding expectations for both revenues and non-GAAP operating income.” — Pierre Naudé, CEO .
“Our non-GAAP operating margin for the third quarter was 20%… paired with improved gross margins, we have further expanded operating margins through thoughtful hiring and operating expense management.” — Greg Orenstein, CFO .
On new pricing: “We expect all new customer and contract renewal discussions beginning February 1 to be under this new framework… [and] immediately beneficial to the subscription revenues we recognize.” — Greg Orenstein .
On Banking Advisor: “We added 11 new Banking Advisor customers in the quarter… we plan for Banking Advisor to be part of every new deal and renewal.” — Pierre Naudé .

Q&A Highlights

Q4 guidance decomposition: organic softness tied to mortgage rates not falling in tandem with Fed cuts; FullCircl adds ~$4M to Q4 subscription revenue .
Pricing framework reception: customers welcome simplified, asset/volume-aligned model; expected ACV uplift on renewals and inclusion of Banking Advisor .
Mortgage churn outlook: mix shifting from closures to IMB M&A; management sees stabilization, but prudently forecasts churn (~$10M FY25, including ~$2M in Q4) .
International pipeline: key large deals signed (Japan, Nordics); Q4 focus more on “singles and doubles” after closing largest U.S. enterprise deal early in quarter .
KPI framework update: company will refresh reported KPIs beginning with Q4 to better aid modeling .

Estimates Context

Wall Street consensus (S&P Global) for Q3 FY25 EPS and revenue was unavailable to retrieve due to data access limits at time of analysis; as such, definitive beat/miss vs. consensus cannot be provided (management stated they exceeded expectations) .
If you need a formal beat/miss assessment, we can refresh when S&P Global access resumes.

Key Takeaways for Investors

Revenue and margin trajectory improving: three consecutive quarterly revenue steps ($128.1M → $132.4M → $138.8M) with non-GAAP operating margin expanding to 20%; raised FY25 EPS/OI guides signal confidence .
Pricing modernization is a catalyst: Intelligent Solution Framework should simplify selling, align value to assets/volumes, and embed Banking Advisor—expect ACV uplift through renewals/new logos beginning Feb 1 .
AI insertion point is real: Banking Advisor adoption (11 Q3 deals) and data consents from large banks position nCino to monetize workflow automation and intelligence over time .
Mortgage remains a watch item: churn tied to IMB M&A persists; rates not yet translating to lower mortgage rates; however, Q3 mortgage subs grew 16% YoY and framework supports volume-driven upside when thresholds are exceeded .
International diversification: Japan’s largest nCino customer signed; Nordic expansion; EMEA leadership strengthened—expect lumpy but supportive contributions and branding benefits .
RPO growth supports multi-year visibility: $1.095B total, $730M <24 months—underpins forward revenue stability amid pricing transition and product cross-sell .
Near-term trading lens: Q4 guide prudent (mortgage dynamics) but FullCircl adds ~$4M; any signs of mortgage rate declines or stronger international closings could drive upside vs. cautious expectations .

nCino, Inc. (NCNO)·Q3 2025 Earnings Summary