nCino (NCNO) AI Stock Analysis

• Market Cap: $2.94B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: 13.24%
• EPS Growth: -12.97%
• Country: US
• Employees: 1,833
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.22
• Shares Outstanding: 115,814,720
• 10 Day Avg. Volume: 1,991,112
• 30 Day Avg. Volume: 1,934,076
• 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: 1.15
• Enterprise Value/Revenue: 5.89
• Enterprise Value/Gross Profit: 9.81
• Enterprise Value/Ebitda: 105.78
• 1Y Price Target: $36.04
• Price Target Upside: 43.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 0.79
• Revenue Forecast (FY): $587.81M

• Rating: 61 Neutral
• Price Target: $26.00 ▲(3.17% Upside)

nCino's overall stock score is driven by strong financial performance and positive earnings call highlights, including significant growth in subscription revenues and strategic expansions. However, technical analysis indicates bearish momentum, and valuation metrics are weak due to lack of profitability. The company's strategic focus on AI and international markets positions it well for future growth, but current profitability challenges and technical indicators suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand for nCino's solutions, enhancing its market position and supporting long-term business sustainability.

AI Innovation

AI-driven innovations enhance nCino's product offerings, improving efficiency and customer satisfaction, which can lead to increased adoption and competitive advantage.

International Expansion

Entering new international markets like Spain expands nCino's global footprint, offering significant growth opportunities and diversifying revenue streams.

Negative Factors

Profitability Challenges

Ongoing profitability challenges could hinder nCino's ability to reinvest in growth, affecting long-term financial health and shareholder returns.

Professional Services Revenue Decline

Declining professional services revenue may indicate challenges in service delivery or customer satisfaction, potentially impacting overall revenue growth.

Change Management Challenges

Change management issues with new AI solutions could slow adoption rates, impacting the speed of revenue realization and customer satisfaction.

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-based pricing models for its software solutions. The company charges its clients annual fees based on the number of users and the services selected, which allows banks and credit unions to access its comprehensive suite of tools for managing operations. Additionally, nCino may earn revenue from professional services such as implementation, training, and ongoing support. Key partnerships with major financial institutions and technology providers, along with the increasing demand for digital transformation in banking, significantly contribute to its revenue growth.

nCino Financial Statement Overview

Summary

nCino demonstrates strong revenue growth and a solid balance sheet with low debt levels. However, persistent losses and reliance on external financing indicate operational and profitability challenges.

Income Statement

nCino has shown impressive revenue growth with a CAGR of approximately 31% from 2020 to 2025. The gross profit margin remains strong, averaging above 60%, indicating efficient cost management. However, the company is still unprofitable with negative net income and EBIT margins, which reflects ongoing operational challenges.

Balance Sheet

The balance sheet is strong with a high equity ratio, showing a stable financial structure and low leverage, as evidenced by a decreasing debt-to-equity ratio. However, the company has yet to achieve positive return on equity due to its current loss-making position.

Cash Flow

Despite operating cash flow being positive and growing, the free cash flow growth is inconsistent, reflecting potential volatility in cash generation. The free cash flow to net income ratio is favorable, but the dependency on external financing is evident.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	573.12M	540.66M	476.54M	273.87M	273.87M	204.29M
Gross Profit	343.98M	324.79M	285.07M	162.45M	162.45M	116.16M
EBITDA	31.91M	9.55M	7.46M	-56.47M	-62.43M	-33.12M
Net Income	-33.56M	-37.88M	-42.35M	-50.12M	-49.45M	-40.54M
Balance Sheet
Total Assets	1.62B	1.61B	1.34B	1.30B	563.40M	563.40M
Cash, Cash Equivalents and Short-Term Investments	122.94M	120.93M	112.08M	88.01M	371.43M	371.43M
Total Debt	269.49M	236.82M	74.23M	48.84M	16.26M	16.26M
Total Liabilities	548.85M	512.78M	287.83M	230.51M	134.43M	134.43M
Stockholders Equity	1.06B	1.09B	1.05B	1.07B	425.18M	425.18M
Cash Flow
Free Cash Flow	60.22M	53.38M	53.41M	-24.69M	4.88M	4.88M
Operating Cash Flow	67.81M	55.20M	57.28M	-19.23M	9.22M	9.22M
Investing Cash Flow	-180.70M	-219.18M	-6.33M	-278.49M	-4.34M	-4.34M
Financing Cash Flow	107.14M	170.48M	-21.11M	15.92M	274.12M	274.12M

nCino Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.20
• 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 25.2 is below the 20-day moving average (MA) of 25.56, below the 50-day MA of 27.78, and below the 200-day MA of 27.92, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 28.33 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
GTM	78 Outperform	$3.64B	35.42	6.51%	―	1.47%	1077.70%
QTWO	70 Outperform	$3.78B	987.44	0.92%	―	13.93%	―
BL	67 Neutral	$3.49B	45.79	23.79%	―	7.99%	-28.47%
FRSH	64 Neutral	$3.18B	―	-5.23%	―	18.18%	70.94%
INTA	63 Neutral	$3.04B	―	-6.04%	―	17.11%	-19.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCNO	61 Neutral	$2.94B	―	-3.15%	―	13.24%	-12.97%

nCino Corporate Events

nCino’s Earnings Call: Strong Growth and Strategic Advances

nCino’s recent Q2 earnings call painted a picture of robust growth and strategic advancements, with the company reporting strong revenue and profitability performance. The sentiment was largely positive, with significant growth in North America and international markets, particularly in AI and mortgage initiatives. Despite some challenges in professional services revenue and change management, the overall highlights of the call significantly outweighed the lowlights.

nCino Reports Strong Q2 2026 Financial Results

nCino, Inc. is a leading provider of intelligent banking solutions, focusing on digitizing and enhancing business processes for financial institutions globally. The company recently reported its financial results for the second quarter of fiscal year 2026, showcasing a notable increase in both total and subscription revenues. nCino’s total revenues reached $148.8 million, marking a 12% increase from the previous year, while subscription revenues rose by 15% to $130.8 million. Despite a GAAP loss from operations, the company achieved a significant 56% increase in non-GAAP operating income, reflecting strong demand for its solutions and strategic growth initiatives. The company also expanded its market presence by renewing and expanding relationships with major banks in North America and signing new clients in Spain and the UK. Looking ahead, nCino remains optimistic about its growth prospects, with management providing positive guidance for the upcoming quarters, emphasizing continued innovation and market expansion.