Ncino Inc Reports 12% YoY Revenue Growth, 15% Increase in Subscription Revenues, and 56% Rise in Non-GAAP Operating Income in Q2 Fiscal 2026

Ncino Inc reported Q2 fiscal 2026 financial results with total revenues of $148.8 million, a 12% YoY increase, and subscription revenues rising 15% to $130.8 million. Non-GAAP operating income rose 56% to $30.0 million. The company expanded relationships with major banks in North America and Europe and signed its first customer in Spain. However, GAAP loss from operations increased to $(9.3) million, and GAAP net loss widened to $(15.3) million. Cash reserves decreased, with $203.5 million outstanding under the revolving credit facility.

nCino Inc. (NASDAQ: NCNO), a leading provider of intelligent banking solutions, has reported its financial results for the second quarter of fiscal year 2026, ended July 31, 2025. The company announced total revenues of $148.8 million, a 12% year-over-year (YoY) increase from $132.4 million in the second quarter of fiscal 2025. Subscription revenues, which make up the majority of total revenues, rose by 15% to $130.8 million [1].

Despite the increase in revenues, the company reported a GAAP loss from operations of $(9.3) million compared to $(7.9) million in the same quarter of fiscal 2025. However, non-GAAP operating income increased by 56% to $30.0 million. This significant improvement in non-GAAP operating income reflects the company's ability to manage expenses and generate additional revenue from its subscription services [1].

nCino's net income (loss) attributable to the company also improved, with GAAP net loss widening to $(15.3) million from $(11.0) million in the same quarter of fiscal 2025. However, non-GAAP net income attributable to the company increased by 64% to $25.7 million from $15.6 million. This improvement in non-GAAP net income indicates the company's strong performance in generating cash flow from operations [1].

The company's cash reserves decreased, with $203.5 million outstanding under its revolving credit facility. Despite the decrease in cash reserves, nCino has continued to expand its customer base and strengthen its relationships with major banks in North America and Europe. Notably, the company signed its first customer in Spain and expanded its relationship with a British challenger bank [1].

Looking ahead, nCino has provided guidance for its third quarter ending October 31, 2025, and fiscal year 2026 ending January 31, 2026. The company expects total revenues between $146.0 million and $148.0 million for the third quarter and between $585.0 million and $589.0 million for fiscal year 2026. Non-GAAP operating income is expected to be between $31.5 million and $33.5 million for the third quarter and between $117.5 million and $121.5 million for fiscal year 2026 [1].

In conclusion, nCino Inc. reported strong Q2 fiscal 2026 financial results, driven by increased revenues and improved non-GAAP operating income. The company's expansion into new markets and strengthened relationships with major banks position it well for future growth. However, the widening GAAP net loss and decrease in cash reserves highlight the challenges the company faces in managing its expenses and cash flow.

References:
[1] https://finance.yahoo.com/news/ncino-reports-second-quarter-fiscal-200500830.html