nCino, Inc. (NASDAQ:NCNO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. The US$3.6b market-cap company’s loss lessened since it announced a US$42m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$18m, as it approaches breakeven. Many investors are wondering about the rate at which nCino will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for nCino

Consensus from 16 of the American Software analysts is that nCino is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$31m in 2027. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 125% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving nCino's growth isn’t the focus of this broad overview, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 15% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of nCino which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at nCino, take a look at nCino's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

1. Valuation: What is nCino worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether nCino is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on nCino’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.