nCino (NCNO) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenues reached $138.8M, up 14% year-over-year, with subscription revenues at $119.9M, also up 14% year-over-year, driven by strong sales momentum and multi-solution deals.

• Non-GAAP operating margin improved to 20%, up 350 basis points year-over-year; non-GAAP net income was $24.4M, or $0.21 per diluted share, up 51% year-over-year, while GAAP net loss narrowed to $5.3M.

• Over 30 multi-solution deals were signed, with more gross bookings from net new customers than the previous two quarters combined.

• International momentum increased, with new deals in Japan, Norway, Luxembourg, and EMEA expansion, and international revenues accounting for 21.3% of total revenues.

• Acquisitions of FullCircl, DocFox, and ILT were completed or announced, expanding onboarding, compliance, and international presence.

Financial highlights

• Q3 FY25 total revenues: $138.8M (+14% YoY); subscription revenues: $119.9M (+14% YoY), representing 86% of total revenue.

• Non-GAAP gross profit was $93.2M (gross margin 67.2%); GAAP gross profit was $85.1M (gross margin 61.3%).

• Non-GAAP operating income was $28.0M, up 38% year-over-year, with a 20% margin.

• Non-GAAP net income was $24.4M, or $0.21 per diluted share, compared to $16.2M, or $0.14 per share, a year ago.

• Free cash flow for Q3 FY25 was $5.1M; for nine months ended October 31, 2024, free cash flow was $63.8M.

Outlook and guidance

• Q4 FY25 revenue expected at $139.5M–$141.5M; subscription revenue at $122.5M–$124.5M.

• FY25 revenue guidance raised to $539M–$541M; subscription revenue $467M–$469M.

• FY25 non-GAAP operating income expected at $95M–$96M; non-GAAP net income per diluted share $0.75–$0.76.

• FullCircl expected to contribute $4M to Q4 revenue.

• Management expects continued revenue growth from customer expansion and new wins, with subscription revenues comprising a growing share.