nCino (NCNO) Q1 2027 earnings summary

Executive summary

• Q1 FY27 delivered total revenues of $159.4 million, up 11% year-over-year, with subscription revenues of $140.9 million, up 12% year-over-year, and non-GAAP operating margin improving to 28% as the company achieved the Rule of 40.

• Free cash flow increased 54% year-over-year to $80.8 million, with net income rising to $13.6 million and GAAP operating margin improving to 13%.

• International subscription revenues grew 21% year-over-year, now representing 22% of total subscription revenues, with strong demand in Europe and Japan.

• Major customer wins included a top-5 Canadian bank and the largest credit union logo to date, with record attendance at the nSight user conference.

• AI-powered solutions, including Banking Advisor and agentic operating system, drove measurable customer outcomes and operational efficiencies.

Financial highlights

• Subscription revenues accounted for 87–88.4% of total revenues in Q1 FY27, with professional services revenues stable and gross margin improving to 63%.

• Non-GAAP operating income was $44.5 million (28% margin), up 79% year-over-year; GAAP income from operations was $21.1 million, up from a loss of $(1.5) million.

• Free cash flow was $80.8 million, up 54% year-over-year; cash and equivalents at quarter-end were $102.8–$103.1 million.

• Repurchased 6.1 million shares for $93.1–$110.5 million in Q1; $65 million remains authorized for future repurchases.

• Net income per diluted share was $0.12, up from $0.05 year-over-year.

Outlook and guidance

• FY27 revenue guidance raised to $642M–$646M; subscription revenues $571.5M–$575.5M; non-GAAP operating income $166M–$171M; free cash flow $135M–$140M; ACV $662.5M–$667.5M.

• Q2 FY27 revenue guidance: $157.75M–$159.75M; subscription revenues $140.25M–$142.25M; non-GAAP operating income $35.5M–$37.5M.

• Organic subscription revenues excluding U.S. mortgage expected to grow 11–12% year-over-year; U.S. mortgage subscription revenues to grow 1%.

• Management expects continued growth in subscription revenues as the installed base expands and adoption increases.

• Ongoing investment in product development and sales to drive future growth, leveraging prior investments for improved operating leverage.