nCino reported second-quarter results that fell short of analyst expectations, sending shares lower in after-hours trading. The cloud banking software provider posted adjusted earnings per share of $0.05, missing the $0.2658 consensus by $0.2158, or 81.2%. Total revenue rose 8% year-over-year to $161 million, slightly exceeding the $159.14 million forecast.
Subscription revenue, the company’s primary growth driver, increased 10% to $143.5 million, with a 10% rise in constant currency terms. Excluding U.S. mortgage, subscription revenue grew 12% year-over-year. U.S. mortgage subscription revenue, however, declined 1% to $20.6 million. Professional services revenue fell 3% to $17.5 million, though gross margin in this segment improved by 600 basis points to 3%. Non-U.S. revenue totaled $36.4 million, up 9% year-over-year, with subscription revenue in international markets rising 13% despite a $200,000 foreign exchange headwind.
Non-GAAP operating income grew 36% to $40.8 million, representing 25% of total revenue. Free cash flow surged 170% to $34 million, while the company maintained a gross profit margin of 61.61% over the last twelve months. The current ratio stood at 0.89.
nCino’s share repurchase program continued, with approximately 4.2 million shares acquired in the open market at an average price of $15.41 per share for $65 million. An accelerated share repurchase program finalized in March repurchased 6 million shares at an average price of $16.57 per share for $100 million. Since April 2025, the company has repurchased 15.8 million shares at an average price of $18.99 for a total of $300 million. The board authorized an additional $100 million for future buybacks.
Shares of nCino closed the regular session at $20.81, down 0.67% from the prior close of $20.95. In after-hours trading, the stock fell to $20.10, a 3.41% decline of $0.71. The 52-week high remains $33.92, while the 52-week low is $13.80, leaving the stock trading roughly 40.8% below its peak and 45.7% above its trough.
For the third quarter, nCino guided total revenue between $161.25 million and $163.25 million, with subscription revenue projected at $143.25 million to $145.25 million. Non-GAAP operating income is expected to range from $42 million to $44 million. The full fiscal year guidance was raised, with total revenue now forecast at $644 million to $647 million, subscription revenue at $573.5 million to $576.5 million, and non-GAAP operating income at $171 million to $174 million. Free cash flow is projected at $137 million to $142 million, while net additions to annual contract value are expected to reach $60 million to $65 million.
Management highlighted strong enterprise renewals, with 20 of the largest U.S. enterprise customers by asset value—representing over $900 billion in assets—signing multi-year renewals ahead of schedule and securing average ACV increases exceeding 10%. Over 230 customers have purchased AI Intelligence Units, and the company’s continuous credit monitoring system assesses more than 40 credit and operational indicators daily using deterministic models and large language models.
