Wilmington-based financial technology company nCino shares fell more than 29% in after-hours trading after it issued weaker-than-expected guidance and fourth quarter revenue that missed Wall Street estimates.
The company sees fiscal year 2026 EPS of $0.66-$0.69 versus the consensus of $0.88; nCino projects revenue of $574.5-$578.5 million versus the consensus of $613.4 million.
Quarterly earnings of 12 cents per share missed the analyst consensus estimate of 19 cents. Quarterly revenue for nCino comes in at $141.3 million, beating the analyst consensus estimate of $140.8 million.
Total revenues for the fiscal year 2025, which ended Jan. 31, were $540.7 million, a 13% increase from $476.5 million in 2024. Subscription revenues for the year 2025 were $469.2 million, up from $409.5 million in the year before, an increase of 15%.
Shares for nCino have dropped 16.2% since the beginning of the year, compared to 4.2% for the S&P 500.
The company also announced a plan to repurchase up to $100 million of its outstanding stock, in an SEC filing after markets had closed.
“Our stock repurchase authorization reflects the board’s confidence in our long-term strategy and belief that repurchasing shares of nCino common stock at present valuations is a very attractive use of the company’s capital,” says nCino CEO Sean Desmond in a statement. “We are confident in our ability to generate increasing amounts of free cash flow and are committed to continue to strategically deploy capital where we believe it can generate stockholder value.”
The repurchase program may be modified, suspended, or discontinued at any time at the discretion of nCino’s board of directors. The company expects to fund the repurchase program from existing cash and cash equivalents, credit facility capacity and/or future cash flows.
A company might buy back its shares to boost the value of its stock and improve its financial statements. Companies tend to repurchase shares when they have cash on hand and the stock market is on an upswing. The stock’s price often rises as a result of a buyback, but there’s a risk that it will fall, according to Investopedia.com.
In February, Desmond succeeded nCino co-founder Pierre Naudé, who had been CEO since the company started in 2012.
Live Oak Bancshares, which operates a national online bank of the same name, started nCino as a subsidiary to help banks make loans more efficiently. With a market capitalization of $3.25 billion, nCino has more than twice the value of its former parent company.
On Tuesday, nCino closed at $28.12, up 65 cents or 2.3%. In the three hours after markets closed, nCino shares fell by 29% and were trading below $20.