Research Alert: Mixed Results In The Fourth Quarter; Fy 26 Guidance Disappoints

12:10 AM EDT, 04/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

NCNO reported revenue of $141.4M in the fourth quarter, narrowly beating Street estimates by $0.56M, while non-GAAP EPS of $0.12 missed by $0.07, primarily due to the negative impact of FX. Subscription revenues ($125M) accelerated to 16.3% Y/Y (vs. 14.4% in Q3). Non-GAAP operating income rose 26% Y/Y to $24.4M, a margin of 17.3%, expanding 170 bps from the same quarter of the prior year. Shares are down 29% as the firm's FY 26 revenue guidance of $574.5M-$578.5M came in significantly below consensus projection of $613M, with subscription revenue growth expected to decelerate to 7.5% Y/Y from 14.6% in FY 24. During the quarter, NCNO acquired Sandbox Banking for $52.5M, which we believe will enhance solution deployment efficiency and streamline operations through its iPaaS technology. The company also announced a leadership transition, with Sean Desmond, a long-time executive, succeeding Pierre Naude as president and CEO.

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