nCino Inc (NCNO) Q1 2026 Earnings Report

Revenue performance and mix:
- Total revenue: $144.1 million, up 13% YoY; YoY growth per metrics: 12.53% YoY, QoQ 1.96% (see quarterly metrics table).
- Subscription revenue: $125.6 million, up 14% YoY; organic growth 9%. Contribution from mortgage revenue was approximately $0.8 million ahead of plan.
- Non-GAAP operating income: $24.8 million, 17% of total revenue, driven by subscription growth offset by ~ $0.5 million severance expense.
- Non-GAAP net income: $18.4 million or $0.16 per diluted share.
- Gross margin: 59.97% (Gross profit $86.44 million on revenue of $144.14 million).
- Operating performance: Operating income of $(1.51) million; operating margin of about (1.05)%. EBITDA: $25.71 million; EBITDA margin 17.0%.
- Net income and earnings per share: Net income $5.56 million; net income margin 3.86%; diluted EPS $0.05; weighted-average diluted shares 116.58–114.78 million.
- Non-U.S. revenue: $31.6 million (YoY +22%), subscription revenue outside the U.S. $25.9 million (+31% YoY).
- Cash flow and liquidity: Operating cash flow $54.32 million; free cash flow $52.60 million; cash at end of period $133.58 million; cash at beginning of period $121.27 million.
- Balance sheet: Total assets $1.651 billion; total liabilities $0.570 billion; total stockholders’ equity $1.072 billion; cash and cash equivalents $133.23 million; total debt $278.35 million; net debt $145.12 million; goodwill $1.0807 billion; intangible assets $161.3 million.
- ACV and guidance: FY26 ACV addition guidance revised to $48–$51 million (including $4.5 million from Sandbox Banking); organic net ACV bookings growth target around 19% at midpoint; total FY26 revenue guidance $578.5–$582.5 million; FY26 non-GAAP operating income guidance $112–$116 million; non-GAAP EPS guidance $0.69–$0.72. For Q2’26, revenue $142–$144 million; subscription revenue $124.5–$126.5 million; non-GAAP opex guidance $23.5–$24.5 million; non-GAAP EPS $0.13–$0.14.

Key themes from management commentary and Q&A:
- Strategy and AI differentiation: Sean Desmond emphasized AI as central to nCino’s long-term differentiation and the value of a process-centric data set in fintech, stating, AI is central to our long-term differentiation and our approach, which we believe leverages the largest process-centric data set in fintech is uniquely powerful.
- ACV trajectory and demand signals: Sean highlighted that bookings of new annual contract value are progressing well and that the company remains confident in the full-year ACV plan, noting the market reception at nSight to AI capabilities and omnichannel experiences.
- Omnichannel and product upgrades at no incremental cost: Sean noted that upgrading customers to omnichannel experiences is part of the platform at no incremental cost, emphasizing that omnichannel is a core differentiator and that commercial engagements may still generate incremental ACV when new solutions are adopted.
- Restructuring and efficiency gains: Sean cited a restructuring event affecting ~7% of the global workforce aimed at streamlining processes and accelerating product delivery, signaling a focus on reducing bureaucracy and leveraging AI to improve velocity.
- Share repurchase and capital allocation: Greg Orenstein disclosed the repurchase of ~1.8 million shares in Q1 for $40.6 million, reflecting a near-term emphasis on returning capital and realizing synergies from prior acquisitions.
- Mortgage and international momentum: Management detailed mortgage cross-sell opportunities and notable international wins (Canadian bank add-on, new logo in Japan), underscoring a diversified growth trajectory beyond U.S. on-boarding and portfolio management.

nCino's Q1 FY2026 results reflect disciplined execution of a high-growth, AI-enabled SaaS model in financial services. The company benefits from a diversified, cross-product platform and a sizeable set of strategic initiatives (mortgage cross-sell, credit unions, international expansion, and Sandbox Banking) that collectively support a multi-year ACV expansion and subscription revenue growth. The near-term profitability is constrained by restructuring costs and higher PSO-related investments; however, management has signaled meaningful expense savings (gross annualized savings of ~$24M with $7.5–$9M onetime costs) and a path to improved margins through product modernization and AI-driven efficiency. The FY26 target of $112–$116M non-GAAP OI and $0.69–$0.72 non-GAAP EPS, supported by $48–$51M in net ACV additions (including $4.5M from Sandbox Banking), provides a solid framework for profitability expansion into FY27, assuming continued improvement in onboarding velocity and pipeline conversion. Key factors for investors to monitor include: ACV trajectory, gross margin progression (especially PSO), realization of restructuring benefits, execution of international and credit union initiatives, and the degree to which AI-enabled products translate into higher upsell and deployment speed. Given the balance sheet strength, strong cash generation, and an accretive M&A strategy, NCNO presents a compelling, albeit higher-visibility, long-duration growth story within the fintech software ecosystem.