nCino’s second quarter results received a strong positive reaction from the market, reflecting the company's ability to outperform Wall Street’s expectations. Management attributed this performance to robust deal activity, particularly in North America, and meaningful momentum in the mortgage and credit union segments. CEO Sean Desmond highlighted the significance of successful expansion agreements with large banks and the early adoption of nCino’s AI-powered Banking Adviser by more than 80 customers as key contributors to the growth observed during the quarter.
Is now the time to buy NCNO? Find out in our full research report (it’s free).
nCino (NCNO) Q2 CY2025 Highlights:
- Revenue: $148.8 million vs analyst estimates of $143.2 million (12.4% year-on-year growth, 3.9% beat)
- Adjusted EPS: $0.22 vs analyst estimates of $0.14 (58.1% beat)
- Adjusted Operating Income: $30.01 million vs analyst estimates of $24.12 million (20.2% margin, 24.4% beat)
- The company lifted its revenue guidance for the full year to $587 million at the midpoint from $580.5 million, a 1.1% increase
- Management raised its full-year Adjusted EPS guidance to $0.79 at the midpoint, a 11.3% increase
- Operating Margin: -6.2%, in line with the same quarter last year
- Billings: $139.9 million at quarter end, up 12.4% year on year
- Market Capitalization: $3.72 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From nCino’s Q2 Earnings Call
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Brent Bracelin (Piper Sandler) asked about the sustainability of organic growth drivers. CFO Greg Orenstein noted improved macro conditions and a “level of deal activity in quite some time,” suggesting ongoing momentum rather than one-time factors.
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Terry Tillman (Truist) inquired about the impact and trajectory of platform pricing adoption. Orenstein stated price uplifts align with expectations and confirmed a larger base of renewals is anticipated in the fourth quarter.
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Ryan Tomasello (KBW) questioned the pace and competitive nature of credit union wins. CEO Sean Desmond explained these wins validated the company’s dedicated go-to-market strategy and ongoing cross-sell opportunities.
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Adam Hotchkiss (Goldman Sachs) asked about the integration and pipeline development for Full Circle and DocVox products. Desmond responded that technical progress is on track and expects sales cycles to pick up in the back half of the year and into the next.
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Alex Sklar (Raymond James) sought clarity on international pipeline strength and leadership impact. Desmond highlighted strong pipeline activity in EMEA, attributed to new regional leadership and strategic focus beyond the UK and Ireland.
Catalysts in Upcoming Quarters
Looking forward, our analyst team will be monitoring (1) the rate of AI-driven Banking Adviser adoption and its impact on customer renewals, (2) new customer acquisitions and deal activity in Continental Europe and broader EMEA regions, and (3) the pace and profitability of the ongoing platform pricing transition, especially during the fourth quarter renewal cycle. Continued integration of acquired products and traction in cross-selling to existing clients will also be important metrics to track.
nCino currently trades at $32, up from $28.67 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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