nCino’s Disappointing Quarterly Results Lead to Significant Stock Decline
In a surprising turn of events, shares of financial software maker nCino saw a significant decline in premarket trading on Wednesday, following the release of the company’s quarterly results. The company’s fourth-quarter financial performance fell short of analysts’ expectations, leading to a steep drop in stock price.
Q4 Financial Performance
nCino reported revenue of $141.4 million for the fourth quarter of fiscal 2025, representing a 14% increase from the same period the previous year and in line with estimates from Visible Alpha. However, the company reported a loss per share of $0.16, significantly higher than the $0.04 loss per share that analysts had anticipated. Adjusted earnings per share (EPS) came in at $0.12, which was one-third below the consensus forecast of $0.18.
Q1 and FY 2026 Outlook
The disappointing financial results extended to the company’s outlook for the current quarter and fiscal year 2026. nCino projected revenue of $138.75 million to $140.75 million for Q1 2026 and adjusted EPS of $0.15 to $0.16. For fiscal 2026, the company forecasted revenue of $574.5 million to $578.5 million and adjusted EPS of $0.66 to $0.69. All of these projections fell below consensus estimates.
Impact on Shareholders
The disappointing financial results and outlook led to a significant decline in nCino’s stock price. Shares of the cloud-based financial software maker were down 33% in premarket trading to $18.74, representing a new all-time low.
Impact on the Financial Industry
The decline in nCino’s stock price is likely to have broader implications for the financial industry. As a leading provider of cloud-based financial software, nCino’s performance is closely watched by investors and industry observers. The disappointing results could signal broader challenges in the financial technology sector, particularly as companies face increasing competition and regulatory pressures.
Conclusion
nCino’s disappointing quarterly results and outlook for the current quarter and fiscal 2026 led to a significant decline in the company’s stock price, with shares down 33% in premarket trading on Wednesday. The financial software maker reported revenue in line with estimates but a larger-than-expected loss per share and lower-than-anticipated adjusted EPS. The disappointing financial performance and outlook are likely to have broader implications for the financial technology sector, particularly as companies face increasing competition and regulatory pressures.
- nCino reported revenue of $141.4 million for Q4 2025, in line with estimates
- Reported a larger-than-expected loss per share of $0.16
- Adjusted EPS came in at $0.12, below consensus forecast of $0.18
- Q1 2026 revenue forecast of $138.75 million to $140.75 million and adjusted EPS of $0.15 to $0.16
- Fiscal 2026 revenue forecast of $574.5 million to $578.5 million and adjusted EPS of $0.66 to $0.69
- All projections fell below consensus estimates
- Shares down 33% in premarket trading to $18.74, a new all-time low
- Disappointing results could signal broader challenges in the financial technology sector
