nCino, Inc. Q1 FY2026 earnings call

Sean Desmond noted nCino is solving inefficiencies in financial institutions' legacy infrastructure. Q1 was a strong start with total revenues ahead of guidance, subscription revenues strong. Showcased AI capabilities and omnichannel experiences at nSight. Bookings of new annual contract value progressing well. Highlighted mortgage cross-sell, credit union market opportunity, and international expansion. Also mentioned a restructuring event affecting ~7% of global workforce to streamline operations.

In Q1, total revenues were $144.1 million, up 13% year-over-year. Subscription revenues were $125.6 million, up 14% year-over-year on a reported basis and 9% organically. Professional services revenues were $18.5 million, up 5% year-over-year. Non-U.S. total revenues were $31.6 million, up 22% year-over-year or 23% in constant currency. Non-U.S. subscription revenues were $25.9 million, up 31% year-over-year or 32% in constant currency. Non-GAAP operating income was $24.8 million or 17% of total revenues.

For Q2 FY26, total revenues expected $142M - $144M, subscription revenues $124.5M - $126.5M. For FY26, total revenues expected $578.5M - $582.5M, subscription revenues $507M - $511M. Non-GAAP operating income FY26 expected $112M - $116M, non-GAAP net income per share FY26 expected $0.69 - $0.72. Q2 FY26 non-GAAP operating income expected $23.5M - $24.5M, non-GAAP net income per share Q2 expected $0.13 - $0.14. Mentioned share repurchase, cost savings from restructuring.

Risks related to financial services industry and global economic conditions. Restructuring costs will impact FY26 free cash flow.

Q: Saket Kalia asked about underlying demand and willingness to invest with bank clients.

A: Sean Desmond said demand was validated at nSight, steady interest across solutions, pipeline activity monitored.

Q: Bobby Dee asked about misunderstood aspects of the story and omnichannel sales strategy.

A: Sean Desmond said understanding of strategy was good, omnichannel upgrade for existing customers with no additional cost.

Q: Koji Ikeda asked about office space utilization and AI in workforce efficiency.

A: Sean Desmond talked about rightsizing office space, workforce reduction for long-term viability, AI for software build cycles.

Q: Ryan Tomasello asked about consumer lending momentum and expense savings.

A: Sean Desmond said consumer lending momentum not from credit union team activation yet, Greg Orenstein talked about expense savings flow-through.

Q: Nick Altmann asked about sales capacity growth signals.

A: Sean Desmond said pipeline activity and AI interest were signals.

Q: Alex Sklar asked about macro comments and mortgage outlook.

A: Sean Desmond said no material change in buying behavior, Greg Orenstein talked about mortgage over performance factors.

Q: Chris Kennedy asked about subscription revenue growth and ACV mix.

A: Greg Orenstein talked about second half comps, Sean Desmond talked about diversified platform.

Q: Aaron Kimson asked about AI competitive positioning and mortgage demo.

A: Sean Desmond talked about process-centric data and positive feedback on mortgage demo.

Q: Michael Infante asked about loan growth and ACV outlook.

A: Sean Desmond said loan growth catalyzes demand, Greg Orenstein said ACV outlook included Sandbox Banking.

Q: Charles Nabhan asked about international performance and acquisitions.

A: Greg Orenstein talked about international growth drivers, Sean Desmond talked about acquisition impacts.

Q: Adam Hotchkiss asked about deployment friction and revenue recognition.

A: Sean Desmond talked about deployment friction and solution evolution, Greg Orenstein talked about revenue recognition adjustments.

Q: JR asked about credit union competitive dynamics.

A: Sean Desmond talked about credit union market differences.

Q: Alex Markgraff asked about deployment hours and revenue recognition.

A: Sean Desmond talked about deployment time comparison, Greg Orenstein talked about impact on professional services margins