nCino stock plummeted 31.4% in premarket trading Wednesday after the banking technology platform issued weaker-than-expected Q1 and FY2026 guidance following disappointing Q4 2025 earnings.
The company expects Q1 non-GAAP EPS of $0.15-$0.16 vs. the consensus estimate of $0.21, and total revenue of $138.75M-$140.75M vs. the average analyst estimate of $145.5M.
For its fiscal year ending Jan. 31, 2026, nCino is guiding for non-GAAP EPS of $0.66-$0.69 vs. the $0.88 consensus and total revenue of $574.5M-$578.5M vs. the average analyst estimate of $613.4M.
Separately, the company said its board authorized a $100M stock buyback program, as a sign of its confidence in its strategy.
Q4 non-GAAP EPS of $0.12 vs. the average analyst estimate of $0.19, declined from $0.21 in the previous quarter and $0.21 in the year-ago period.
Total revenue for the quarter ended Jan. 31, 2025 was $141.4M, beating the $140.8M consensus and rising from $138.8M in Q3 and $123.7M in Q4 2024.
Total operating expenses of $90.1M, exceeding the Visible Alpha estimate of $88.0M, grew from $85.9M in Q3 and $77.7M in Q4 2024. General and administrative costs of $24.2M climbed from $23.1M in the prior quarter and $17.5M a year ago. Sales and marketing expenses rose to $33.7M from $29.7M in Q3 and $30.0M in Q4 2024.
"We ended the year strong, with meaningful year-over-year subscription revenues and ACV (annual contract value) growth, while continuing to realize efficiencies across our operations," said CEO Sean Desmond.
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