nCino Slumps On Downbeat Q4 Earnings And Soft Guidance, But Retail Traders Turn Contrarian
Subscription revenue jumped 16% YoY to $125 million, exceeding the guidance of $122.5 million to $124.5 million.
nCino, Inc. (NCNO) shares fell sharply in Tuesday's after-hours session after the Wilmington, North Carolina-based company announced sub-par quarterly earnings and downbeat forward guidance.
The company reported adjusted earnings per share (EPS) of $0.12 for the fourth quarter of 2025, sharply lower than the year ago's $0.21 and the Koyfin-compiled consensus estimate of $0.19.
Latest Videos
nCino clarified that the adjusted EPS included a loss of $0.09 due to non-operating, predominantly non-cash foreign currency fluctuations on intercompany loans.
The company, which provides a platform for the banking industry, reported revenue of $141.4 million, up 14% year over year (YoY) and exceeding the consensus estimate of $140.81 million.
The guidance issued in December called for an adjusted EPS of $0.18-$0.19 and revenue of $139.5 million to $141.5 million.
Subscription revenue jumped 16% YoY to $125 million, exceeding the guidance of $122.5 million to $124.5 million.
CEO Sean Desmond said, "We ended the year strong, with meaningful year-over-year subscription revenues and ACV growth, while continuing to realize efficiencies across our operations."
The executive touted the artificial intelligence (AI) opportunity as the company embeds the technology across onboarding, account opening, lending, and portfolio management offerings that span commercial, consumer, small business, and mortgage lines of business globally.
The company announced a stock repurchase authorization for buying shares worth up to $100 million.
nCino guided first-quarter adjusted EPS of $0.15 to $0.16 and revenue of $138.75 million to $140.75 million, trailing the consensus estimates of $0.21 and $145.51 million, respectively.
The company expects fiscal year 2026 adjusted EPS and revenue of $0.66 to $0.69 and $574.5 million to $578.5 million, respectively. The full-year guidance was also below the average analysts' estimates of $0.88 and $613.41 million, respectively.
Annual contract value (ACV) and subscription revenue for the year are expected to be $564 million to $567 million and $503 million to $507 million, respectively.
On Stocktwits, retail sentiment toward nCino stock remained 'extremely bullish' (88/100), and the message volume was 'extremely high.'
A bullish watcher suggested they would buy the dip because the company is a good fintech play.
nCino shares fell 29.27% to $19.89 in Tuesday's after-hours session, marking the lowest level in two years. The stock will witness its biggest single-day drop if the losses extend into Wednesday's session.
nCino stock is down 16.3% so far this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.