nCino Expands Buyback as AI Demand Supports Growth
nCino reported higher revenue and profitability for its fiscal second quarter while authorizing another $100 million for share repurchases, as the banking software provider pointed to growing customer commitments to its artificial intelligence capabilities. According to FinTech Global, nCino’s total revenue for the three months ended July 31 rose 8% from a year earlier to […] The post nCino…
nCino, a banking software provider, reported better financial results for its fiscal second quarter while granting approval for an additional $100 million in share repurchases. The company's total revenue increased by 8% to $161 million for the three months ending July 31, with subscription revenue growing by 10% to $143.5 million. nCino's GAAP operating margin rose to 8%, a 15 percentage point increase from the previous year, while its non-GAAP operating margin improved by 5 percentage points to 25%.
CEO Sean Desmond cited the growing consolidation of operations and expansion of commitments to AI capabilities among nCino's largest customers as key drivers of the company's success. He emphasized that deploying AI in financial services necessitates industry-specific knowledge and expertise, which nCino is uniquely positioned to provide at scale.
The financial software company's GAAP operating income reached $13.6 million, up from a $9.3 million loss the previous year. Non-GAAP operating income surged 36% to $40.8 million, while free cash flow expanded by 170% to $34 million. nCino also secured multiyear renewals with four U.S. enterprise customers holding over $900 billion in assets, with commitments to the company's AI capabilities. The company added financial institutions in Germany, Japan, and the U.S. during the quarter.
In the quarter, nCino repurchased approximately 4.2 million shares, amounting to around $65 million. It completed a previously announced $100 million accelerated repurchase program, bringing the total repurchases since April 2025 to $300 million. The company's board approved another $100 million repurchase program, totalling $300 million in buybacks since April 2025.
For fiscal 2027, nCino anticipates revenue between $644 million and $647 million, non-GAAP operating income of $171 million and $174 million, and free cash flow ranging from $137 million to $142 million. The additional buyback can be funded using existing cash, available credit capacity, or future cash flows.
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