Ncino Inc Q2 FY2026 Earnings: Revenue Surges 12% YoY, Subscription Revenues Rise 15%

Ncino Inc (NCNO) reported Q2 FY2026 revenues of $148.8M, beating the estimated $143.15M and marking a 12% YoY increase. Subscription revenues rose 15% to $130.8M. Despite a GAAP loss from operations of $(9.3)M, the company reported a non-GAAP operating income of $30.0M, a 56% increase from the previous year. However, the GAAP net loss attributable to Ncino widened to $(15.3)M, or $(0.13) per share.

nCino Inc. (NASDAQ: NCNO), a leading provider of cloud banking software, released its second quarter fiscal year 2026 results, showcasing robust performance across key metrics. The company reported total revenues of $148.8 million, exceeding analyst expectations of $143.15 million and marking a 12% year-over-year (YoY) increase. Subscription revenues, the core of nCino's business model, rose 15% to $130.8 million, further solidifying the company's growth trajectory [1].

Despite a GAAP loss from operations of $9.3 million, nCino demonstrated significant improvement in its non-GAAP operating income, which reached $30.0 million, a 56% increase year-over-year. This represents a non-GAAP operating margin of 20%, up from 15% in the same quarter last year [1]. The company's subscription revenue now accounts for 88% of total revenue, up from 86% in Q2 FY25, reflecting its successful strategy of prioritizing recurring revenue streams [1].

nCino's growth was driven by international expansion and a recovery in the U.S. mortgage business. International subscription revenues grew 30% YoY to $27.4 million, while U.S. mortgage subscription revenues showed strong recovery, growing 22% YoY to $20.9 million [1]. The company's Annual Contract Value (ACV) reached $516.4 million in FY25, representing 13% YoY growth, and its ACV Net Retention Rate improved to 106% in FY25, indicating stronger customer retention and expansion [1].

A standout aspect of nCino's Q2 results was the significant improvement in profitability metrics. Non-GAAP operating margin expanded to 20% in Q2 FY26, up from 15% in the same period last year. Free cash flow more than doubled to $12.6 million, representing 8% of total revenue compared to 3% in Q2 FY25 [1]. The company has maintained stable gross margins while reducing operating expenses as a percentage of revenue, contributing to the improved operating margin.

nCino continues to expand its customer base, particularly among higher-value clients. As of FY25, the company had 105 customers with subscription revenues exceeding $1 million, up from 86 in FY24. The number of customers with subscription revenues over $5 million increased to 14, up from 11 the previous year [1].

Looking ahead, nCino has raised its full-year guidance. For fiscal year 2026, the company now expects total revenues between $585.0 and $589.0 million, representing approximately 9% YoY growth. The company anticipates total revenues between $146.0 and $148.0 million and subscription revenues between $127.5 and $129.5 million for the third quarter ending October 31, 2025 [1].

While the outlook is generally positive, nCino noted that the fourth quarter is expected to represent the lowest year-over-year subscription revenues growth, consistent with cautionary notes from previous earnings reports. This suggests potential headwinds in the latter part of the fiscal year, though the company’s overall trajectory remains strong [1].

References:
[1] https://www.investing.com/news/company-news/ncino-q2-fy26-slides-subscription-revenue-jumps-15-margins-expand-93CH-4211532
[2] https://www.tradingview.com/news/reuters.com,2025-08-26:newsml_PLXB143B8:0-brief-ncino-q2-revenue-usd-148-815-million-vs-ibes-estimate-usd-143-2-million/
[3] https://www.quiverquant.com/news/nCino%2C+Inc.+Reports+Q2+Fiscal+2026+Financial+Results%3A+Total+Revenues+Rise+12%25+to+%24148.8+Million