nCino (NCNO) Q2 2025 earnings summary

Executive summary

• Total revenues for Q2 FY25 were $132.4M, up 13% year-over-year, with subscription revenues at $113.9M, up 14% year-over-year.

• Non-GAAP operating margin improved to 15%, up from 10% year-over-year; GAAP operating margin at (6)%, up ~650 basis points.

• Net loss attributable to nCino narrowed to $(11.0)M GAAP, while non-GAAP net income rose to $15.8M.

• U.S. demand was strong across enterprise and community segments, with growth in consumer lending, deposit account opening, and generative AI solutions.

• Acquisitions of DocFox and Integrated Lending Technologies were completed and integrated, expanding product offerings and market reach.

Financial highlights

• Subscription revenues comprised 86% of total revenue in Q2 FY25.

• Professional services revenues were $18.5M, up 7% year-over-year.

• Non-GAAP gross profit was $86.7M, with a non-GAAP gross margin of 66%.

• Non-GAAP operating income was $19.3M (15% margin), up from $11.2M (10% margin) a year ago.

• RPO was $1.04B, up 12% year-over-year, with $698.3M due in less than 24 months.

• Free cash flow for Q2 was $4.6M; cash and equivalents stood at $126.8M.

Outlook and guidance

• Q3 FY25 guidance: total revenues $136.0M–$138.0M, subscription revenues $117.0M–$119.0M.

• FY25 guidance: total revenues $538.5M–$544.5M, subscription revenues $463.0M–$469.0M.

• FY25 non-GAAP operating income outlook raised to $87.0M–$90.0M; non-GAAP net income per share expected at $0.66–$0.69.

• Mortgage revenue growth expected to re-accelerate in Q4 as interest rate cuts materialize.

• Banking Advisor contribution to revenue expected to be minimal in FY25, with greater impact next year.