nCino (NCNO) AI Stock Analysis

• Market Cap: $2.82B
• Dividend Yield: N/A
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 12.14%
• EPS Growth: -19.29%
• Country: US
• Employees: 1,833
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.31
• Shares Outstanding: 114,684,970
• 10 Day Avg. Volume: 3,047,532
• 30 Day Avg. Volume: 2,044,076
• PEG Ratio: 7.86
• Price to Book (P/B): 3.60
• Price to Sales (P/S): 7.24
• P/FCF Ratio: 73.37
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 5.60
• Enterprise Value/Gross Profit: 9.31
• Enterprise Value/Ebitda: 94.87
• 1Y Price Target: $34.50
• Price Target Upside: 40.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): $592.99M

• Rating: 61 Neutral
• Price Target: $26.00 ▲(5.56% Upside)

nCino's overall stock score reflects a mix of strong revenue growth and strategic initiatives in AI and international markets, balanced by ongoing profitability challenges and weak technical indicators. The positive earnings call sentiment and corporate governance changes are encouraging, but the valuation remains a concern due to negative earnings.

Positive Factors

AI Integration and Adoption

The strong adoption of AI capabilities enhances nCino's product offerings, providing a competitive edge and potentially driving long-term revenue growth through innovative solutions.

International Market Expansion

Expanding into international markets diversifies nCino's revenue base and reduces dependency on the U.S. market, supporting sustainable long-term growth.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial flexibility, allowing nCino to invest in growth opportunities and weather economic downturns.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder nCino's ability to reinvest in the business and limit its capacity to generate shareholder value in the long term.

Decline in Professional Services Revenue

A decline in professional services revenue suggests challenges in maintaining service-related income, potentially impacting overall revenue diversification and growth.

Negative Return on Equity

Negative return on equity indicates inefficiencies in generating profit from shareholders' equity, which could affect investor confidence and long-term financial health.

nCino Business Overview & Revenue Model

Company Description

nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System, a tenant cloud platform, which digitizes, automates, and streamlines complex processes and workflow; and utilizes data analytics and artificial intelligence and machine learning (AI/ML) to enable banks and credit unions to onboard new clients, make loans and manage the entire loan life cycle, open deposit and other accounts, and manage regulatory compliance. The company's nCino IQ, an application suite that utilizes data analytics and AI/ML to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a suite of products that enables loan officers, borrowers, real estate agents, settlement agents, and others to engage in the homeownership process from internet-enabled device. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through sales team comprising business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.

How the Company Makes Money

nCino generates revenue primarily through subscription fees for its cloud-based solutions. The company utilizes a Software as a Service (SaaS) model, where clients pay a recurring fee based on the number of users or the volume of transactions processed through its platform. Key revenue streams include implementation services, ongoing customer support, and training. Additionally, nCino has established strategic partnerships with major financial institutions and technology companies, which contribute to its market reach and credibility, further enhancing its revenue potential. The company also benefits from upselling opportunities as clients expand their use of nCino's services and as it introduces new features and products.

nCino Financial Statement Overview

Summary

nCino demonstrates strong revenue growth and effective cost management, with stable gross profit margins. However, the company faces profitability challenges, with negative net income and low EBIT margins. The balance sheet is robust with low leverage, but the negative return on equity highlights ongoing losses. Cash flow generation is improving, though the decrease in free cash flow growth is a concern.

Income Statement

nCino's revenue has shown consistent growth, with a TTM revenue growth rate of 2.33%. Gross profit margins are stable around 60%, indicating strong cost management. However, the company is still operating at a net loss, with a negative net profit margin of -3.71% in the TTM. The EBIT and EBITDA margins have improved but remain low, reflecting ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet is relatively strong, with a low debt-to-equity ratio of 0.0137 in the TTM, indicating low leverage. However, the return on equity is negative, reflecting the company's ongoing net losses. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

Operating cash flow has improved significantly, with a positive operating cash flow to net income ratio of 0.322 in the TTM. Free cash flow is also positive, although it has decreased compared to the previous period. The free cash flow to net income ratio is strong at 0.89, indicating efficient cash generation relative to net losses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	540.66M	476.54M	273.87M	273.87M	204.29M
Gross Profit	324.79M	285.07M	162.45M	162.45M	116.16M
EBITDA	9.55M	7.46M	-56.47M	-62.43M	-33.12M
Net Income	-37.88M	-42.35M	-50.12M	-49.45M	-40.54M
Balance Sheet
Total Assets	1.61B	1.34B	1.33B	1.30B	563.40M
Cash, Cash Equivalents and Short-Term Investments	120.93M	112.08M	82.04M	88.01M	371.43M
Total Debt	236.82M	74.23M	96.54M	48.84M	16.26M
Total Liabilities	512.78M	287.83M	299.60M	230.51M	134.43M
Stockholders Equity	1.09B	1.05B	1.02B	1.07B	425.18M
Cash Flow
Free Cash Flow	53.38M	53.41M	-24.69M	4.88M	4.88M
Operating Cash Flow	55.20M	57.28M	-19.23M	9.22M	9.22M
Investing Cash Flow	-219.18M	-6.33M	-278.49M	-4.34M	-4.34M
Financing Cash Flow	170.48M	-21.11M	15.92M	274.12M	274.12M

nCino Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCNO, the sentiment is Negative. The current price of 24.63 is below the 20-day moving average (MA) of 24.68, below the 50-day MA of 25.25, and below the 200-day MA of 26.83, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 39.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NCNO.

nCino Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTWO	75 Outperform	$4.56B	150.43	5.68%	―	13.93%	―
FRSH	72 Outperform	$3.52B	-125.53	-2.98%	―	18.18%	70.94%
BL	71 Outperform	$3.42B	52.55	21.85%	―	7.36%	-40.62%
GTM	71 Outperform	$3.10B	31.79	6.51%	―	1.47%	1077.70%
INTA	63 Neutral	$3.67B	-131.27	-6.04%	―	17.11%	-19.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCNO	61 Neutral	$2.82B	―	-2.04%	―	12.14%	-19.29%

nCino Corporate Events

nCino Expands Board and Reports Strong Q3 Results

On December 1, 2025, nCino‘s Board of Directors expanded from eight to nine members, appointing Andy Yasutake and Diego Dugatkin following Jeff Horing’s resignation. This change is not due to any disagreement with the company. Additionally, Pierre Naudé will transition from Executive Chairman to a non-employee director and Chairman on February 1, 2026. nCino also reported strong financial results for the third quarter of fiscal year 2026, with total revenues of $152.2 million, marking a 10% increase year-over-year. The company continues to expand its AI capabilities and has secured significant expansion agreements with major banks, reinforcing its market position.