Aug 25, 2026 earnings call — AI-led platform growth and renewals
nCino reported total revenues of $161 million and subscription revenues of $143.5 million in Q2, with strong AI adoption and platform renewals boosting ACV.
Revenue $0.2B (est $0.2B) · EPS $0.30 (est $0.27) · Next-quarter revenue outlook $0.2B–$0.2B
Key quotes
"We are the partner the market can count on to innovate and bring the right technology to solve banking-specific operational, risk management and regulatory compliance challenges."
"During the second quarter, we signed multiyear renewals with 4 of our 20 largest U.S. enterprise customers by ACV, representing over $900 billion in assets."
"This is offset in part by an adjustment to our U.S. mortgage outlook, which we believe is prudent to do at this time to account for additional IMB churn resulting from mortgage rates remaining higher for longer."
Analyst Q&A 13
mortgage business and market share
Q (Saket Kalia · Barclays): Analyst asked how competitive win rates look in mortgage and whether there are opportunities to gain share to offset market headwinds; also asked about growth in non-mortgage business and drivers of upside.
A: Management said mortgage is a headwind but they see opportunity to win in community banks, credit unions and core banking with more stability. They noted their diversified commercial, consumer and mortgage portfolio helps pipeline growth. They listed five growth initiatives: AI, international, credit unions, cross-selling mortgage, and onboarding.
"We think continued wins in the core banking sector where there's less volatility and more stability are ready for the taking, both down and potentially upmarket." — Sean Desmond (CEO)
AI product adoption and use cases
Q (Alexander Sklar · Raymond James): Analyst asked about usage of the new platform (banking adviser, agentics) over the last 3 months and repeatable skills or use cases; also asked about ACV outlook, seasonality, and international mix.
A: Management said customers moving into production have more than doubled year-to-date and 1/3 of named core customers on the new pricing are in production. They highlighted Continuous Credit Monitoring and Locate and File as repeatable use cases and noted a large international deal signed for Q3. They said pipelines and market demand look good entering the second half.
"In fact, year-to-date, more than -- we've more than doubled the customers going into production, which is exciting." — Sean Desmond (CEO)
long-term growth framework
Q (Ryan Tomasello · KBW): Analyst asked if the Rule of 50 framework and implied 15% subscription growth still apply, and whether intelligence units are necessary or additive; also asked mix of renewals/upsells vs new logos in ACV bookings.
A: Management said they are focused on achieving the Rule of 40 this year and expect growth to continue to accelerate over time. They believe the prior framework is intact and that growth initiatives are still early. On ACV mix, they said it's broadly comparable to last year, with more new logos likely outside the U.S.
"As we think long term, we expect to remain at that pace, and we expect growth to continue to accelerate and make up a larger portion of our overall delivery mechanism." — Sean Desmond (CEO)
product pace vs customer adoption
Q (Aaron Kimson · Citizens): Analyst asked whether the bottleneck is customer/implementation or product development, and whether more development should focus on commercial lending versus consumer.
A: Management said product development is running ahead of what customers can consume; they delivered an unprecedented amount of product in the first half and expect pent-up demand. They also said they maintain a balanced portfolio across commercial, consumer and mortgage and invest to support all lines of business.
"I expect the product development pace to run ahead of how our customers can actually consume that." — Sean Desmond (CEO)
intelligence unit revenue impact
Q (Cristopher Kennedy · William Blair): Analyst asked how to frame the opportunity from intelligence unit consumption and asked for churn guidance for fiscal 2027.
A: Management said they will not reframe guidance for fiscal '27 based on intelligence units alone and emphasized adoption is the key near-term driver. They reiterated churn forecast is unchanged at about $25 million for the year, with mortgage being about 1/3 of that amount.
"We don't expect to reframe anything for the back half of the year based on intelligence units alone." — Sean Desmond (CEO)
ACV increases and pricing approach
Q (Joseph Vruwink · Baird): Analyst asked how ACV increases at renewal compare across customer segments and whether nCino shares savings from AI outcomes with customers.
A: Management said ACV increases are balanced across community, regional and enterprise customers and reflect the platform's breadth. On pricing, they evaluate a business case with each customer and do not expect AI outcomes to fundamentally change pricing dynamics after last year's pricing transformation.
"What we look at is a business case, right, with every customer, always have." — Sean Desmond (CEO)
enterprise renewal terms and services
Q (Andrew Schmidt · KeyBanc): Analyst asked if contract terms are changing and how much of ACV uplift comes from additional modules; also asked about professional services (PS) trajectory and efficiency impact.
A: Management said enterprise contract terms are generally steady with no material change. They said the 10% ACV uplift assumes no new product beyond initial intelligence units and there is additional upside from expanding products. On PS, they are making implementations more efficient, driving margin while redeploying capacity to Forward Deployed Engineering to support demand.
"The 10% is really -- think about it apples for apples in terms of them buying no new product but getting the first bundle or the initial bundle of intelligence units." — Gregory D. Orenstein (CFO)
accelerated renewals and international growth
Q (Terrell Tillman · Truist): Analyst asked if some renewals planned for FY'28 could move into H2 this year; also asked if international leadership changes are done and whether international can keep outpacing overall growth.
A: Management said accelerated renewals are possible and the sales team is motivated, but they anchor to conservative estimates. On international, they said the platform resonates globally, momentum in EMEA and Asia Pac is real, and they are not dependent on any single person in the field.
"We're anchoring to our core actual conservative estimates for this year, always looking to accelerate." — Sean Desmond (CEO)
new pricing adoption percentage
Q (Nicholas Altmann · U.S. Bancorp): Analyst asked where percent of customers on new pricing might land by year-end and how expectations differ from the start of the year.
A: Management said adoption will continue at the current pace and will be north of 48% by year-end, but they do not depend on a specific percentage to meet fiscal commitments. They noted the adoption is ahead of schedule and sales are working renewals effectively.
"Certainly, it will be north of 48%." — Sean Desmond (CEO)
churn drivers and AI savings scale
Q (Kenneth Suchoski · Autonomous): Analyst asked what is driving improvement in non-mortgage churn and whether multimillion-dollar per-feature savings are typical for banking adviser use cases.
A: Management said higher churn is tied to IMBs due to rates, while the rest of the business shows slightly lower churn and no aggregate change from earlier guidance. They said the $5.5 million example is a floor case for a single skill and workflow and extrapolating across workflows and regions is upside.
"This is a particular example of a single skill within a workflow and a line of business, right?" — Sean Desmond (CEO)
microphone check
Q (Michael Infante): Analyst said 'Can you hear me now?' after a connectivity issue.
A: Management did not provide substantive content in this exchange; it was a microphone check.
organic subscription growth outlook
Q (Michael Infante · Morgan Stanley): Analyst said his math shows organic subscription revenue (ex-mortgage and onetimers) accelerated ~13-14% and asked why underlying growth wouldn't accelerate in H2 given easier comps and more banking adviser contribution.
A: Management did not dispute the analyst's assessment and said they are proud of the team's execution. They highlighted they broke out mortgage to show its impact and feel good about the trajectory of the rest of the business, stressing focus on closing deals as planned.
"As you look at the rest of the business, we're feeling good about the trajectory." — Gregory D. Orenstein (CFO)
intelligence unit adoption path and platform integrations
Q (William Fitzsimmons · Piper Sandler): Analyst asked how initial AI adoption progresses to production and broader budget expansion, and how intelligence unit sales bridge to subscription revenue; also asked about opening platform and integrations for mortgage MCP.
A: Management said movement into production from sandbox lets them read back outcomes, which drives customers to expand skills and consumption; they noted 1/3 of customers and twice as many customers in production versus year start. On MCP, they said enabling partners to build on the platform is a force multiplier and will proliferate growth via the SI ecosystem.
"When we think about giving access to our solution to these partners, to go ahead and develop on top of the platform, that becomes a force multiplier for nCino." — Sean Desmond (CEO)