nCino, Inc. has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations. The company, founded in 2011 and headquartered in Wilmington, North Carolina, operates as a software-as-a-service provider, offering cloud-based software applications to financial institutions globally. Its flagship product, the nCino Bank Operating System, serves as a unified platform connecting financial institution employees, clients, and third parties, offering functionalities such as client onboarding, deposit account opening, loan origination, mortgage suite, and ecosystem management.
The 10-K report delves into the company's financial condition and results of operations for fiscal 2025 and 2024, highlighting key figures and growth metrics. In fiscal 2025, nCino reported total revenues of $540.7 million, representing a 15.1% compound annual growth rate from fiscal 2023. The company's subscription revenues saw a compound annual growth rate of 16.7%, reaching $469.2 million in fiscal 2025. Notably, nCino achieved a subscription revenue net retention rate of 110% for fiscal 2025, indicating its ability to retain and grow subscription revenues from existing customers.
nCino's strategic approach to market expansion includes both product development and acquisitions. In fiscal 2025, the company made significant acquisitions, such as DocFox, ILT, and FullCircl, which contributed an aggregate of $12.3 million to the total subscription revenues. Additionally, in February 2025, nCino acquired Sandbox Banking for an aggregate purchase price of $52.5 million, further strengthening its position in the industry.
The report also emphasizes nCino's focus on market adoption of its solutions, particularly in penetrating markets outside the U.S., which accounted for 21.5% of its total revenues in fiscal 2025. The company's sales efforts are organized based on the size of financial institutions in the U.S. and by geography internationally. Moreover, nCino's shift from a seat-based pricing model to an asset-based pricing model in fiscal 2025 aligns its revenues with the value the nCino Platform provides, reflecting the company's commitment to creating efficiencies for its customers.
Following these announcements, the company's shares moved -19.8%, and are now trading at a price of $22.55. For more information, read the company's full 10-K submission here.
