nCino (NCNO) Q1 2026 earnings summary

Executive summary

• Total revenues for Q1 FY26 reached $144.1 million, up 13% year-over-year, with subscription revenues of $125.6 million, up 14% (9% organic).

• Non-GAAP operating income was $24.8 million (17% margin), and non-GAAP net income was $18.4 million or $0.16 per diluted share; GAAP net income was $5.6 million, reversing a prior year loss.

• Q1 performance exceeded guidance, driven by strong subscription growth, AI and omnichannel solutions, and recent acquisitions.

• Announced a restructuring event affecting 7% of the global workforce to streamline operations and leverage AI for efficiency.

• New CEO Sean Desmond appointed effective February 1, 2025, with Pierre Naudé becoming Executive Chairman.

Financial highlights

• Subscription revenues comprised 87% of total revenues in Q1 FY26, maintaining a 17% CAGR; professional services revenues were $18.5 million (+5% YoY).

• Non-GAAP operating income was $24.8 million; non-GAAP net income was $18.4 million ($0.16 per diluted share); GAAP loss from operations improved to $(1.5) million.

• Gross margin held steady at 60% GAAP and 66% non-GAAP; subscription gross margin was 71.2%–76%.

• Free cash flow for Q1 FY26 was $52.6 million, with a free cash flow margin of 36%.

• Cash and cash equivalents at quarter-end were $133.2 million; $208.5 million was outstanding under the credit facility.

Outlook and guidance

• Q2 FY26 guidance: total revenues $142M–$144M; subscription revenues $124.5M–$126.5M; non-GAAP operating income $23.5M–$24.5M; non-GAAP EPS $0.13–$0.14.

• FY26 guidance: total revenues $578.5M–$582.5M; subscription revenues $507M–$511M; non-GAAP operating income $112M–$116M; non-GAAP EPS $0.69–$0.72; ACV $564M–$567M.

• ACV addition target: $48M–$51M (19% organic net ACV bookings growth at midpoint), including $4.5M from Sandbox Banking.

• Guidance assumes $15M interest expense for FY26 and 119M diluted shares outstanding.

• FY26 organic subscription revenue growth expected at 4–5%, with ~$17.5M inorganic contribution.