nCino (6NCA) Q2 2027 Earnings Report

The call highlighted broad-based operational and financial strength: revenue and subscription growth, significant improvement in operating income and free cash flow, active share repurchases, international momentum, and tangible customer ROI from AI features. Management raised FY27 guidance and emphasized accelerating AI adoption and platform conversions (48% ACV on platform pricing). Principal negatives are concentrated in the U.S. mortgage/IMB segment (modest revenue decline, higher churn) and timing delays converting AI sandbox usage into production revenue. Overall, the positives — strong growth outside mortgage, margin expansion, cash generation, platform traction and AI monetization progress — substantially outweigh the mortgage-specific headwinds.

nCino guided third-quarter fiscal 2027 total revenues of $161.25M–$163.25M and subscription revenues of $143.25M–$145.25M (Q3 midpoint implying ~7–8% growth; excluding U.S. mortgage subscription growth of ~11% at the midpoint), with non‑GAAP operating income of ~$42M–$44M (~+8% YoY at midpoint). For fiscal 2027 the company now expects total revenues of $644M–$647M and subscription revenues of $573.5M–$576.5M (midpoint growth ~9–10%; excluding U.S. mortgage ~12% at midpoint), non‑GAAP operating income $171M–$174M (≈+33% YoY at midpoint, ~500 bps margin expansion), net ACV additions $60M–$65M (cumulative ACV $662.5M–$667.5M, +10% vs FY26 at midpoint) and free cash flow $137M–$142M (≈+69% YoY at midpoint). Management is extrapolating Q2’s ~$1.3M subscription overperformance into Q3/Q4, assumes U.S. mortgage subscription revenues of roughly $20M in Q3 and $18.5M in Q4 (repricing reduces prior Q3/Q4 mortgage forecasts by ~$700K and ~$1.2M, respectively), models ~ $200K FX headwinds in each of Q3/Q4, and reiterated aggregate annual churn of about $25M.