Banking software provider nCino (NASDAQ: NCNO) announced better-than-expected revenue in Q4 CY2025, with sales up 5.9% year on year to $149.7 million. Guidance for next quarter’s revenue was better than expected at $155.5 million at the midpoint, 1.6% above analysts’ estimates. Its non-GAAP profit of $0.37 per share was 72.2% above analysts’ consensus estimates.

Is now the time to buy NCNO? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

nCino’s Q4 results drew a positive market response, reflecting outperformance across revenue and profitability metrics versus Wall Street expectations. Management attributed this to robust adoption of its AI-powered platform, citing a 17% annual increase in annual contract value (ACV) and notable momentum in both U.S. and international markets. CEO Sean Desmond credited expanded commitments from existing customers—particularly those embracing nCino’s new AI capabilities and platform pricing model—as a core growth driver, emphasizing the company’s unique position as a system of record for financial institutions.

Looking forward, nCino’s guidance rests on expectations for continued AI adoption, international expansion, and a focus on platform-based pricing. Management highlighted a growing sales pipeline, with Desmond stating, “Our AI agents make nCino even more valuable and sticky to our customers because we connect the user, the process and the data in a trusted, controlled, regulatory compliant environment.” CFO Gregory Orenstein signaled that free cash flow and non-GAAP operating income are expected to rise, with ongoing investments in go-to-market execution and product development, especially in AI-driven services and analytics.

Key Insights from Management’s Remarks

Management credited Q4 performance to strong AI adoption, successful platform pricing transitions, and renewed sales execution focus, while also announcing organizational changes to support future growth.

• AI product momentum: Widespread adoption of nCino’s AI-powered features drove ACV growth, with over 170 customers purchasing AI intelligence units and usage up 25x in credit review functions since October. Management noted that practical, outcome-focused AI applications—such as agentic credit reviews—are being used in production, not just in pilot phases.
• Sales and pipeline discipline: Enhanced execution in demand generation and pipeline management led to nCino’s strongest U.S. enterprise sales quarter in over four years. The company also recorded its largest international deal of the year in Austria and significant expansion in Japan, where annual ACV tripled.
• Platform pricing transition: Approximately 38% of ACV has shifted from seat-based to platform-based pricing, which management says drives better value alignment and supports early renewals. Larger customers, including the company’s largest by ACV, have signed multiyear contracts under this new model.
• Customer data aggregation: Nearly 500 financial institutions have authorized nCino to process their data into proprietary, anonymized datasets, creating a differentiated foundation for benchmarking and future AI-driven products. Management believes this data “moat” is a strategic asset for ongoing innovation.
• Leadership and organizational updates: nCino appointed Keith Kettell as Chief Revenue Officer to consolidate global sales operations and accelerate subscription revenue growth. This move follows strong execution by outgoing North America sales head Paul Clarkson, who stepped down for personal reasons.

Drivers of Future Performance

Management’s outlook focuses on sustained AI adoption, international expansion, and continued migration to platform pricing as key revenue and margin drivers.

• AI adoption and usage: Management expects continued growth in consumption of AI intelligence units, with increasing integration of digital partner agents across lending, onboarding, and risk management functions. The company believes customer demand for outcome-driven AI applications will further boost retention and expansion rates.
• International and segment expansion: nCino anticipates international subscription revenue growth to be accretive, supported by recent wins in EMEA and Japan, as well as growing momentum in credit unions and mortgage segments. Management sees these markets as underpenetrated and key sources of future bookings.
• Platform pricing and margin efficiency: The transition to platform-based pricing is expected to drive higher renewal rates and gross margin improvement, as customers move away from legacy seat-based models. Management also signaled that increased automation and AI-driven implementations will support both revenue growth and professional services profit margins.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace of AI agent adoption and usage among nCino’s customer base, (2) continued growth and renewal activity tied to the platform pricing model, and (3) execution in international markets, especially EMEA and Japan. Additional attention will be paid to the impact of new leadership on global sales execution and the rollout of integrated onboarding products.

nCino currently trades at $18.35, up from $14.98 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

Now Could Be The Perfect Time To Invest In These Stocks

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.