nCino (NCNO) Q2 2027 earnings summary

Executive summary

• Achieved total revenues of $161.0 million for Q2 FY27, up 8% year-over-year, with subscription revenues of $143.5 million, up 10% year-over-year.

• Non-GAAP operating income reached $40.8 million (25% margin), up 36% year-over-year; GAAP operating income was $13.6 million, a turnaround from a loss a year ago.

• Free cash flow surged 170% year-over-year to $34.0 million in Q2 FY27.

• International expansion continued with notable wins in Japan and Germany, and international subscription revenues grew 13% year-over-year.

• Announced a new $100 million stock repurchase authorization, following $300 million in repurchases since April 2025.

Financial highlights

• Q2 FY27 total revenues: $161.0 million (+8% YoY); subscription revenues: $143.5 million (+10% YoY); professional services revenues: $17.5 million.

• Non-GAAP operating income: $40.8 million (25% margin), up 36% year-over-year; GAAP operating income: $13.6 million.

• Gross margin improved to 63% from 59% year-over-year; non-GAAP gross margin was 68%.

• Free cash flow: $34.0 million in Q2 FY27, up 170% year-over-year; cash and equivalents at $83.6 million.

• Share repurchases: 15.8 million shares since April 2025 for $300 million; new $100 million authorization approved.

Outlook and guidance

• Q3 FY27 revenue guidance: $161.25M–$163.25M; subscription revenues $143.25M–$145.25M.

• FY27 revenue guidance: $644M–$647M; subscription revenues $573.5M–$576.5M.

• Non-GAAP operating income for FY27: $171M–$174M; free cash flow: $137M–$142M.

• Subscription revenue growth guidance: 12% excluding U.S. mortgage, (1%) for U.S. mortgage for FY27.

• Free cash flow guidance raised to $137M–$142M, up 69% year-over-year.