Company: NCNO
Filing Date: 2025-12-03
Form Type: 10-Q
Source: 0001902733-25-000131
Chunk: 165

Company: nCino, Inc.
Filing Date: 2025-12-03
Form: 10-Q
Item: Part I, Item 8
Chunk 165
---
 increases. The increase also included a $0.3 million increase in allocated overhead primarily attributable to internal investments in AI technology. The decrease in our professional services and other gross margin for the three months ended October 31, 2025 was primarily attributable to strategic investments in expanding our professional service capabilities, coupled with lower effective billing and utilization rates.

Cost of professional services and other revenues increased $5.4 million for the nine months ended October 31, 2025 compared to the nine months ended October 31, 2024, generating a gross margin for professional services and other revenues of (18.0)% compared to a gross margin of (8.8)% for the nine months ended October 31, 2024. For the nine months ended October 31, 2025, personnel costs, including stock-based compensation expense, increased $4.4 million compared to the nine months ended October 31, 2024, mainly from an increase in headcount primarily due to acquisitions and restructuring costs incurred in connection with the Restructuring Plan. The increase also included a $1.0 million increase in allocated overhead primarily attributable to internal investments in AI technology. The decrease in our professional services and other gross margin for the nine months ended October 31, 2025 was primarily attributable to strategic investments in expanding our professional service capabilities, coupled with lower effective billing and utilization rates.

Operating Expenses

Three Months Ended October 31,Nine Months Ended October 31,($ in thousands)2024202520242025Operating expenses:Sales and marketing$29,729 21.4 %$33,107 21.8 %$89,487 22.4 %$103,343 23.2 %Research and development33,039 23.8 29,541 19.4 97,291 24.4 97,549 21.9 General and administrative23,108 16.6 19,322 12.7 66,046 16.5 66,454 14.9 Total operating expenses85,876 61.8 81,970 53.9 252,824 63.3 267,346 60.0 Income (loss) from operations$(824)(0.5)%$11,716 7.7 %$(12,393)(3.1)%$907 0.3 %

Sales and Marketing

Sales and marketing expenses increased $3.4