Executive Summary

Q4 FY2025 revenue slightly beat Street while EPS missed: revenue $141.4M vs consensus $140.8M (beat), non-GAAP EPS $0.12 vs consensus $0.18 (miss); GAAP EPS was $(0.16) driven by non-operating FX on intercompany loans (~$10.3M drag) . Consensus values marked with an asterisk; see S&P Global disclaimer below.*
Subscription revenue grew 16% YoY to $125.0M; non-GAAP operating margin held at 17% despite integration costs, while GAAP operating loss widened on FX .
FY2026 guidance introduced below Street: revenue $574.5–$578.5M and non-GAAP EPS $0.66–$0.69 vs consensus $587.8M and $0.79; management flagged second-half growth headwinds (mortgage and one-time items) and modeled back-half bookings conservatively . Consensus values marked with an asterisk; see S&P Global disclaimer below.*
Announced $100M share repurchase authorization, signaling confidence and potential support for the stock, alongside a sharpened focus on AI banking, onboarding (DocFox/FullCircl), and integration via Sandbox Banking .

What Went Well and What Went Wrong

What Went Well

AI banking narrative and product momentum: CEO emphasized nCino’s evolution to “worldwide leader in AI banking” with Banking Advisor embedded across workflows; early customers report meaningful efficiency gains (e.g., mortgage document validation saves ~40 minutes per loan) .
Subscription revenue and international growth: Q4 subscription revenue +16% YoY to $125.0M; non‑U.S. revenue +34% YoY (38% cc) to $33.3M, supported by wins in Japan (Tokushima Taisho Bank), Nordics, and EMEA .
ACV and retention improved: Reported ACV reached $516.4M (+13% YoY; +14% cc) with ACV net retention rising to 106% (from 102%), reflecting stronger customer adoption and moderating churn .

What Went Wrong

EPS miss and negative free cash flow: Non-GAAP EPS of $0.12 missed consensus due to ~$10.3M non-operating FX losses; free cash flow was –$10.4M in Q4 driven by acquisition costs, higher interest, and working capital timing .
Second-half growth headwinds: Management guided FY2026 subscription growth to be ~6 points lower in H2 vs H1, citing one-time revenues in H2 FY2025 (mortgage catch-up, a customer contract buyout), conservative mortgage assumptions (no YoY growth), and currency impacts .
International and mortgage bookings below plan in FY2025: CFO highlighted slower EMEA execution and mortgage softness vs plan, though leadership changes and product hardening are in place to address execution gaps .

Financial Results

Consolidated Results vs Prior Periods and Estimates

Metric	Q4 FY2024	Q3 FY2025	Q4 FY2025	Consensus (Q4 FY2025)*
Total Revenue ($USD Millions)	123.693	138.797	141.370	140.812*
Subscription Revenue ($USD Millions)	107.483	119.894	124.957	—
Professional Services Revenue ($USD Millions)	16.210	18.903	16.413	—
Gross Margin % (GAAP)	60%	61%	60%	—
Loss from Operations (GAAP, $USD Millions)	(3.185)	(0.824)	(5.738)	—
Operating Income (Non-GAAP, $USD Millions)	19.273	28.042	24.380	—
Diluted EPS (GAAP, $)	0.01	(0.05)	(0.16)	—
Diluted EPS (Non-GAAP, $)	0.21	0.21	0.12	0.184*

Notes: Consensus values marked with an asterisk; see S&P Global disclaimer below.*

Segment Mix

Metric	Q4 FY2024	Q3 FY2025	Q4 FY2025
Subscription Revenues ($USD Millions)	107.483	119.894	124.957
Professional Services & Other ($USD Millions)	16.210	18.903	16.413

KPIs

KPI	FY2024	FY2025
Annual Contract Value (ACV, $USD Millions)	—	516.4 (+13% YoY; +14% cc)
ACV Net Retention Rate (%)	102%	106%
Subscription Revenue Net Retention (%)	116%	110%
Remaining Performance Obligation (RPO, $USD Billions)	1.0 (as of 1/31/2024)	1.2 (as of 1/31/2025); $0.797B <24 months
Customers ≥$100k Subs Revenue	—	549
Customers ≥$1M Subs Revenue	—	105
Customers ≥$5M Subs Revenue	—	14

KPI	Q3 FY2025	Q4 FY2025
Non-U.S. Revenue ($USD Millions)	29.6	33.3

Liquidity: Cash, cash equivalents, and restricted cash $121.3M; $166.0M outstanding on revolver at 1/31/2025 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenues ($M)	Q1 FY2026	—	138.75–140.75	New
Subscription Revenues ($M)	Q1 FY2026	—	121.75–123.75	New
Non-GAAP Operating Income ($M)	Q1 FY2026	—	22.5–24.5	New
Non-GAAP EPS ($)	Q1 FY2026	—	0.15–0.16	New
Total Revenues ($M)	FY2026	—	574.5–578.5	New; below Street*
Subscription Revenues ($M)	FY2026	—	503.0–507.0	New
Non-GAAP Operating Income ($M)	FY2026	—	107.0–111.0	New
Non-GAAP EPS ($)	FY2026	—	0.66–0.69	New; below Street*
ACV ($M)	FY2026	—	564–567	New
Assumptions	FY2026	—	Interest expense ~$14M; EPS excludes FX on intercompany	Framework

Street consensus for FY2026: revenue $587.8M*, EPS $0.7857* (midpoints below Street). Consensus values marked with an asterisk; see S&P Global disclaimer below.*

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 FY2025)	Previous Mentions (Q3 FY2025)	Current Period (Q4 FY2025)	Trend
AI/Banking Advisor	Early momentum; 8 deals signed; de minimis FY25 revenue; data consent strategy	11 new customers; Banking Advisor in every new deal under new pricing	Embedded across platform; efficiency examples (document validation, tax statements); Big 4 bank heavy usage; launch more skills at nSight	Strengthening
Pricing Framework (Platform/Asset-Based)	Transition underway; platform pricing initial focus mortgage/consumer; renewals targeted uplift	“Intelligent Solution Framework” launched; enterprise/top-40 bank deals under new pricing	~15% ACV on platform pricing; ~1% subscription uplift modeled in FY26; positive customer feedback	Scaling
International (EMEA/Japan/Nordics)	Pipes up ~30% YoY in JP/EMEA/ANZ; longer cycles	Wins in Norway, Luxembourg, largest customer in Japan; EMEA leadership hire	EMEA underperformed FY25; new GM (Madrid) to sharpen execution; expect improvement H2 FY26	Repairing
Mortgage	Volumes depressed; FY25 mortgage dilutive; move to platform pricing and upmarket	Outperformance in Q3 (homebuilder rollout); churn ~$3M; modeled 20% vol => ~10% revenue uplift	FY26 guide assumes no YoY U.S. mortgage subs revenue growth; IMB churn moderating; moving upmarket	Stabilizing; cautious
Onboarding (DocFox/FullCircl)	DocFox integration underway; strong market response	FullCircl acquired; onboarding SAM +~$800M; vendor consolidation tailwinds (DORA)	Sandbox Banking acquired; unified API layer; expect H2 FY26 bookings rebound post-integration	Integration → growth
Bookings/Retention	Net bookings up; target +50% for FY25; churn forecast $20.5M	ACV net retention rose; RPO up; subscription net retention moderated (lagging indicator)	ACV +13% reported; H2 FY26 growth ~6pts lower; derisked guidance; conservative linearity	Mixed
Margins/Rule of 40	Op margin expansion; Insight costs; credit facility paydown plan	Non-GAAP op margin 20%; updated KPIs; will simplify disclosures	FY26 non-GAAP OI +13% YoY midpoint; H2 margin expansion ~200bps; targeting Rule of 40 around 4Q FY26	Improving
Capital Allocation	Revolver refinanced; FullCircl closed	—	$100M buyback authorization; funding via cash/credit/future cash flows	Shareholder-friendly

Management Commentary

Strategic focus: “I am here to lead nCino’s evolution to be the worldwide leader in AI banking… capitalize on the vertical AI opportunity to drive efficiency into the financials of our customers as well as into our own bottom line.” — Sean Desmond, CEO .
Execution reset: “We have already taken decisive action to address these challenges… consumer lending product hardening, fully integrated onboarding in Q2, leadership changes in Europe, and appointing a CTO to accelerate AI.” — Sean Desmond .
Pricing uplift: “We expect a 1% subscription revenue growth benefit this year from the new platform pricing… larger in subsequent years as more of our customer base is converted.” — Greg Orenstein, CFO .
Retention and churn: “ACV net retention increased to 106%… total churn $26M subs revenue in FY25, down from $31M in FY24; mortgage churn $9M vs $13M.” — Greg Orenstein .
Capital return and targets: “Confidence is supported by the $100M stock repurchase program… metrics I am laser focused on are growth in gross bookings, achieving our Rule of 40 targets and, over time, free cash flow.” — Sean Desmond .

Q&A Highlights

ACV vs revenue and guidance philosophy: Management emphasized revenue as lagging indicator and adopted more conservative guidance with back-half bookings linearity to derisk FY2026; headwinds include FX (~1%), mortgage dilutive impact, and one-time H2 FY2025 items (~2%) .
Go-to-market investments and leverage: ~+$10M FY2026 S&M investments (credit unions, EMEA, Japan, digital marketing) with productivity ramp ~6 months; expect H2 margin expansion via efficiencies and AI in R&D .
Pricing change reception: Customers favor asset-based/platform pricing; modeled ~1% uplift in FY2026, increasing as migration proceeds; Banking Advisor to be bundled in new and renewal deals .
Mortgage competitive positioning: Continuing share gains (24 new IMB customers in FY25), moving upmarket into banks; FY2026 assumes no YoY growth in U.S. mortgage subs revenue; upside if volumes exceed minimums .
International outlook: EMEA leadership change (Madrid-based GM) to expand beyond UK/Ireland; focus markets include Spain and Nordics; expect bookings to improve through FY2026 .

Estimates Context

Q4 FY2025 vs Street: Revenue $141.370M vs $140.812M consensus (beat by ~$0.56M); Primary EPS $0.12 (non-GAAP EPS proxy) vs $0.184 consensus (miss). Consensus values marked with an asterisk; see S&P Global disclaimer below.* .
FY2026 guide vs Street: Revenue midpoint $576.5M vs $587.8M consensus (~2% below); non-GAAP EPS midpoint $0.675 vs $0.7857 consensus (below). Management cited currency headwinds (~1%), conservative mortgage assumptions, and H2 comparisons with prior one-time items .

S&P Global disclaimer: Values marked with an asterisk were retrieved from S&P Global.

Key Takeaways for Investors

Near-term trade: Expect debate on quality of beat/miss mix; revenue beat but EPS miss tied to non-operating FX. The $100M buyback is a supportive catalyst; watch post-authorization repurchase pace .
Guide reset lowers bar: FY2026 revenue/EPS set below Street with explicit H2 headwinds; potential beat-and-raise setup if mortgage volumes or onboarding bookings rebound earlier than modeled .
AI monetization and pricing migration are the medium-term drivers: Banking Advisor attach and platform/asset pricing should lift ACV and subscription revenue over time; look for KPI updates at nSight and conversion progress .
Onboarding suite poised for cross-sell: DocFox + FullCircl + Sandbox create a unified front/back onboarding value proposition; expect H2 FY2026 bookings acceleration; monitor EMEA execution under new leadership .
Mortgage stabilization with upmarket motion: FY2026 assumes no YoY growth; upside optionality if volumes exceed minimums under platform agreements and bank penetration expands .
Margin path intact: H2 FY2026 non-GAAP operating margin expansion (~200bps) and Rule of 40 targeted around 4Q FY2026; leverage from AI-enabled R&D efficiencies and sales investments .
Watchlist metrics: ACV net retention (target >106%), H2 bookings linearity, international bookings trajectory, Banking Advisor adoption rates, and FX impacts on reported EPS .

Source Citations:
- Q4 FY2025 press release and financials: **[1902733_0498764ae8c94d879a50c82ac79e2095_0]** **[1902733_0498764ae8c94d879a50c82ac79e2095_1]** **[1902733_0498764ae8c94d879a50c82ac79e2095_2]** **[1902733_0498764ae8c94d879a50c82ac79e2095_3]** **[1902733_0498764ae8c94d879a50c82ac79e2095_8]** **[1902733_0498764ae8c94d879a50c82ac79e2095_9]** **[1902733_0498764ae8c94d879a50c82ac79e2095_11]** **[1902733_0498764ae8c94d879a50c82ac79e2095_15]** **[1902733_0498764ae8c94d879a50c82ac79e2095_16]** **[1902733_0498764ae8c94d879a50c82ac79e2095_17]**
- Stock repurchase press release: **[1902733_06040f7bbded4461a6c110644529a45d_0]**
- Q4 FY2025 earnings call: **[1902733_NCNO_3421905_1]** **[1902733_NCNO_3421905_3]** **[1902733_NCNO_3421905_6]** **[1902733_NCNO_3421905_7]** **[1902733_NCNO_3421905_8]** **[1902733_NCNO_3421905_9]** **[1902733_NCNO_3421905_10]** **[1902733_NCNO_3421905_12]** **[1902733_NCNO_3421905_13]** **[1902733_NCNO_3421905_14]** **[1902733_NCNO_3421905_19]** **[1902733_NCNO_3421905_20]** **[1902733_NCNO_3421905_22]** **[1902733_NCNO_3421905_29]** **[1902733_NCNO_3421905_31]**
- Q3 FY2025 8-K and call (trend analysis): **[1902733_0001902733-24-000187_thirdquarterfy25earningspr.htm:0]** **[1902733_0001902733-24-000187_thirdquarterfy25earningspr.htm:4]** **[1902733_0001902733-24-000187_thirdquarterfy25earningspr.htm:9]** **[1902733_NCNO_3410723_1]** **[1902733_NCNO_3410723_2]** **[1902733_NCNO_3410723_4]** **[1902733_NCNO_3410723_5]** **[1902733_NCNO_3410723_10]**
- Q2 FY2025 call (trend analysis): **[1902733_NCNO_3399961_1]** **[1902733_NCNO_3399961_2]** **[1902733_NCNO_3399961_3]** **[1902733_NCNO_3399961_5]** **[1902733_NCNO_3399961_13]**
- Other Q4 press releases: CSOB selection **[1902733_0ff6e3fdfe7f4ae7879729e75d256781_0]**; San ju San Bank **[1902733_1be0fb443c044f67b4a7ead17cd5fa15_0]**; Sandbox partnering **[1902733_326a638119e14485b3d6533c34b335c4_0]**; Credit Union 1 **[1902733_1dba63d4fad74a2b9ed03f3c5866bf9a_0]**

S&P Global Estimates (values marked with * above):
- Q2/Q3/Q4 FY2025 consensus revenue and EPS; FY2026 revenue and EPS consensus; # of estimates; target price and recommendation. Values retrieved from S&P Global.

nCino, Inc. (NCNO)·Q4 2025 Earnings Summary