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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on NCNO

nCino's recent performance faced challenges due to increasing competition in the banking solutions market. Despite beating Q2 earnings and revenue estimates with $0.22 per share, concerns about the company's growth rate and market penetration persist. With only 3% penetration into its $19.5 billion addressable market, nCino must demonstrate sustained growth. Additionally, while introducing new products like "Digital Partners," a role-based AI agent, the company must balance innovation with execution risks. According to Zacks, nCino has a strong buy rating.

1.c. Company Highlights

2. nCino's Q2 FY2026 Earnings: A Strong Performance

nCino's financial performance in Q2 FY2026 was impressive, with total revenues reaching $148.8 million, up 12% year over year. Subscription revenues were $130.8 million, up 15% year over year on a reported basis and 10% organically. The company's non-GAAP operating income was $30 million, or 20% of total revenues. Earnings per share (EPS) came in at $0.22, beating analyst estimates of $0.14. The company's cash position was $123.2 million, including restricted cash, with $203.5 million outstanding on its line of credit.

Publication Date: Aug -29

📋 Highlights

Revenue Growth and Guidance

nCino's revenue growth was driven by strong activity in the North American enterprise market, particularly with its flagship commercial loan origination solution. The company also saw positive traction with its growth initiatives for fiscal 2026. For the third quarter, nCino expects total revenues of $146 million to $148 million and subscription revenues of $127.5 million to $129.5 million. For fiscal 2026, the company has raised its guidance for subscription revenues to $513.5 million to $517.5 million, representing 10% growth at the midpoint of the range.

Valuation and Growth Prospects

Analysts estimate nCino's revenue growth at 8.7% for the next year. The company's current valuation metrics include a P/S Ratio of 6.55 and an EV/EBITDA of 122.32. The stock's P/B Ratio is 3.53, indicating a premium valuation. Given the company's strong performance and growth prospects, the valuation appears to be justified. As Sean Desmond, CEO, noted, "AI is resonating with customers and contributing to wins this year." This momentum is expected to continue, driving revenue growth and profitability.

Operational Highlights

nCino's operational performance was also notable, with the company achieving a 10% uplift in platform pricing on an apples-to-apples basis. The company's mortgage business is strong, with 5% growth versus flat previously. nCino is winning in a tough market, and its focus is on executing and having the best technology. The company's Banking Adviser usage data is promising, and it is focused on adoption and driving revenue growth.

Outlook and Conclusion

3. NewsRoom

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nCino: Growth Slowdown Offsets Cheap Valuation (Downgrade)

Dec -04

Source: seekingalpha.com

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These Analysts Revise Their Forecasts On nCino After Q3 Results

Dec -04

Source: benzinga.com

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nCino, Inc. (NCNO) Q3 2026 Earnings Call Transcript

Dec -04

Source: seekingalpha.com

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nCino (NCNO) Q3 Earnings and Revenues Top Estimates

Dec -03

Source: zacks.com

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nCino Reports Third Quarter Fiscal Year 2026 Financial Results

Dec -03

Source: globenewswire.com

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nCino Appoints Two New Independent Board Members

Dec -03

Source: globenewswire.com

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nCino to Participate in Upcoming Investor Events

Nov -25

Source: globenewswire.com

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nCino Expands Offering with Eastern Bank to Deliver Connected Lending Experience Across Product Lines

Nov -06

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.82%)

6. Segments

Subscription

Expected Growth: 11.47%

nCino's subscription growth of 11.47% is driven by increasing adoption of cloud-based banking solutions, growing demand for digital transformation in the financial sector, and the company's expanding partner ecosystem. Additionally, nCino's platform's ability to streamline loan processing, improve customer experience, and provide data-driven insights are key factors contributing to its subscription growth.

Professional Services and Other

Expected Growth: 13.93%

nCino's Professional Services and Other segment growth of 13.93% is driven by increasing adoption of its cloud-based banking solutions, expansion of existing customer relationships, and growing demand for digital transformation in the financial services industry. Additionally, the company's strategic partnerships and investments in innovation are contributing to its rapid growth.

7. Detailed Products

nCino Bank Operating System

A cloud-based banking platform that provides a single, unified platform for all banking functions, including customer onboarding, account opening, loan origination, deposit and loan servicing, and reporting.

Customer Onboarding

A digital onboarding solution that enables banks to quickly and efficiently onboard new customers, reducing abandonment rates and improving the overall customer experience.

Account Opening

A digital account opening solution that enables banks to quickly and efficiently open new accounts, reducing manual errors and improving the customer experience.

Loan Origination

A digital loan origination solution that enables banks to quickly and efficiently originate loans, reducing manual errors and improving the customer experience.

Deposit and Loan Servicing

A digital deposit and loan servicing solution that enables banks to efficiently manage deposit and loan accounts, reducing manual errors and improving the customer experience.

Reporting and Analytics

A reporting and analytics solution that provides banks with real-time insights and analytics to inform business decisions and improve operational efficiency.

8. nCino, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

nCino, Inc. operates in a niche market, providing cloud-based banking solutions. While there are substitutes available, they are not as comprehensive as nCino's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

nCino's customers are primarily large financial institutions, which have limited bargaining power due to the complexity and customization required for their banking solutions.

Bargaining Power Of Suppliers

nCino's suppliers are primarily technology and infrastructure providers, which are abundant and interchangeable, reducing their bargaining power.

Threat Of New Entrants

The cloud-based banking solutions market is attractive, and new entrants may be drawn to the market, increasing the threat of new entrants.

Intensity Of Rivalry

The cloud-based banking solutions market is moderately competitive, with a few established players, including nCino, FIS, and Fiserv, leading to a moderate intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.61%
Debt Cost 5.37%
Equity Weight 93.39%
Equity Cost 6.81%
WACC 6.71%
Leverage 7.07%

11. Quality Control: nCino, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Sprinklr

A-Score: 5.1/10

Value: 3.5

Growth: 8.8

Quality: 8.0

Yield: 0.0

Momentum: 6.0

Volatility: 4.7

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JFrog

A-Score: 5.0/10

Value: 4.5

Growth: 7.0

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

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Procore

A-Score: 4.6/10

Value: 4.4

Growth: 7.9

Quality: 3.8

Yield: 0.0

Momentum: 7.0

Volatility: 4.7

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Envestnet

A-Score: 3.7/10

Value: 3.7

Growth: 3.6

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

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nCino

A-Score: 3.4/10

Value: 3.0

Growth: 7.4

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

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GitLab

A-Score: 3.2/10

Value: 4.4

Growth: 6.7

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.35$

Current Price

24.35$

Potential

-0.00%

Expected Cash-Flows