nCino, Inc.

and welcome to Encino's fourth quarter fiscal 2025 earnings call. With me on today's call are Sean Desmond, Encino's chief executive officer, and Greg Orenstein, Encino's chief financial officer. During the course of this conference call, we will make forward-looking statements regarding trends, strategies, and the anticipated performance of our business. These forward-looking statements are based on management's current views and expectations, entail certain assumptions made as of today's date, and are subject to various risks and uncertainties described in our SEC filings and other publicly available documents, the financial services industry, and global economic conditions. NCNO disclaims any obligation to update or revise any forward-looking statements. Further, on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website and is an exhibit to the form 8K furnished with the SEC just before this call, as well as the earnings presentation on our investor relations website at investor.ensino.com. With that, I will turn the call over to Sean.

Good afternoon, everyone, and thank you for joining us today to discuss Ensino's fourth quarter and fiscal 2025 financial results. As many of you know, this is my first time addressing you as CEO, and I want to start by saying how honored and excited I am to take on this responsibility. Encino is a remarkable company, one that pioneered and built a strong foundation in cloud banking software. Now, my focus is on taking this great company and making sure it is a great long-term business. one that executes with urgency and precision, delivers sustainable and profitable growth, and fully capitalizes on the sizable opportunities ahead to deliver strong returns to all of our stakeholders. As we delivered on the promise of being the worldwide leader in cloud banking in the company's first chapter, I am here to lead Encino's evolution to be the worldwide leader in AI banking. We are marshalling the energy of the company to capitalize on the vertical AI opportunity to drive efficiency into the financials of our customers, as well as into our own bottom line. For those of you who have been following the company, you are aware that we have been very focused on leveraging data, analytics, and AI for the past five years. In addition to our commercial pricing and profitability, auto-spreading, and portfolio monitoring solutions, we have been steadily developing Banking Advisor functionality and plan to launch numerous new capabilities at our Insight User Conference in May. For those of you joining us at Insight, you will hear directly from early Banking Advisor customers about the meaningful efficiency gains they are already realizing with this AI technology. Being the market catch up to our strategic vision is very exciting and reinforces the unique competitive position we have. I know firsthand just how significant this opportunity is. I have spent almost 30 years in the software industry and nearly 12 at Encino. Most recently as chief product officer and before that as chief customer success officer. During that tenure, I've had approximately two-thirds of the company's employees in my reporting chain and have worked closely with every function of our global business. I've also worked alongside our customers, including sponsorship of sales opportunities, ensuring successful project deliveries, compliance with our SLAs, adoption of our user experiences, and realization of our committed business outcomes. I understand exactly what our diverse customer base, which includes banks, credit unions, independent mortgage bankers, and non-bank lenders, needs to run their business more efficiently and effectively. I have also overseen the development of the very products that serve as the system of record for our customers' banking operations. Over the past two quarters, I've spent time in our offices in Wilmington, North Carolina, Lehigh, Utah, london england sydney and melbourne australia auckland new zealand and johannesburg and cape town south africa on each of these visits i've spent time not only with our employees but with our customers and partners in our ecosystem listening intently these experiences give me deep conviction in our strategy the strength of our platform and the product portfolio and the highly differentiated value we provide to financial institutions. I firmly believe that the next decade holds far more growth and opportunity for Encino to innovate and transform the financial services industry than the previous decade. There is no doubt that financial institutions across the globe continue to struggle with inefficiencies caused by legacy infrastructure. Too many of them still rely on fragmented tech stacks and siloed data, making critical processes far too slow and cumbersome. We are reimagining these processes and delivering world-class experiences. To name just a few, onboarding complex commercial clients, proactively and continuously monitoring small business and commercial loan portfolios, providing frictionless account opening experiences, and efficiently scaling mortgage lending with AI-powered document validation and processing. Encino is uniquely positioned to solve all of these problems. We are the only cloud-based SaaS provider that enables financial institutions around the world to seamlessly manage lending, onboarding, account opening, and portfolio management across multiple lines of business connected on a scalable platform powered by AI. We are the enabler of our customers' most critical operations, and we have a broad, diverse, and sizable customer base across more than 20 countries. This global reach, combined with our broad and deep product capabilities, provides us with a competitive moat that nobody can match. Since our IPO in 2020, we have delivered strong revenue growth, significantly increased our operating margin, expanded our customer base, extended our geographic presence and built out the breadth and depth of our solutions but while our scale has increased i don't believe our execution has kept pace with the full extent of the market opportunity i think it's important not only to be a cheerleader for encino but also to be pragmatic and realistic importantly We need to consistently execute at a level that reflects the strength of our market position and the ambitions we have for this business. Of course, our ability to execute over the past couple of years was significantly impacted by macroeconomic headwinds beyond our control. The rapid rise in interest rates in 2022 caused banks to pull back on spending. And the liquidity crisis in early 2023 led to even greater caution around large-scale technology investments. These external factors certainly dampened our sales momentum and new bookings growth. But there were also challenges within our control. As we expanded beyond our commercial banking roots into consumer lending, we ultimately brought to market a product capable of leapfrogging our competitors, but not as quickly as we originally planned. We also saw customers pause their onboarding buying decisions this past year until we completed our highly anticipated platform integration of the intellectual property we acquired in our acquisition from DocFox. With the benefit of hindsight, we were also too optimistic in expecting a drop in interest rates to drive an increase in mortgage activity. Additionally, our sales execution and sense of urgency in certain international markets most notably Europe, was not as crisp as it needed to be. Some of these challenges created compounding headwinds that further impacted our new bookings momentum in fiscal 25 and our chief contributors to our fiscal 26 revenue outlook, which is below our expectations. The good news is that we have already taken decisive action to address these challenges that have impacted us. and I am confident they are squarely behind us. During my tenure as Chief Product Officer, we did bring to market a best-in-breed consumer lending product last year, which helped us outperform our internal expectations for sales of that solution in fiscal 25. Leveraging our best-in-breed digital mortgage technology, we are bringing to market full omni-channel capabilities across our consumer solutions at Insight. This consistent experience for bankers and their customers alike, whether digital or in branch, will help us further accelerate bookings of our products in fiscal 26 and beyond. In addition, we plan to release our fully integrated onboarding solution that leverages the technology acquired in the DocBox acquisition in the second quarter, unlocking numerous pent-up opportunities. On the personnel front, we have made key leadership changes in our European operations with the hiring of Joaquin de Valenzuela, a seasoned software sales executive with a great track record on the European continent as our EMEA general manager to sharpen our execution. Joaquin has been aggressively assembling his go-to-market team to capture the full potential of the EMEA SAM. beyond just the UKI, where we've had a strong presence to date. We have also added several other key leaders across our sales and marketing organizations, hardening our product marketing and credit union posture, and we just appointed an AI Catalyst Chief Technology Officer, Will Jung, to our product development and engineering organization. All of our new leaders and restructured teams are laser focused on increasing and accelerating our sales momentum and gross bookings. Operating with a keen sense of urgency and purpose, we are well positioned to re-accelerate new bookings growth, although we expect it will take a few quarters for consistent momentum to build. As Greg will discuss when he reviews the financials, we expect improved gross bookings growth as the year progresses. This will result in subscription revenue growth re-acceleration in fiscal 27 as we get back on track to achieving our double-digit long-term growth ambitions. Not surprisingly, one of the most exciting areas of opportunity ahead for Encino is our ability to help financial institutions better connect their data so they can meaningfully harness AI. Specifically, we continue to build generative and agentic AI-powered solutions and embed them throughout the Encino platform. Because Encino serves as a system of record for our customers' banking operations, we sit at the heart of their most critical financial processes. That means we are in a unique position to help them leverage their data to operationalize AI efficiently, automate and eliminate workflows and deliver better customer experiences. I touched upon Banking Advisor earlier in my comments, but it's worth reinforcing that the capabilities within our AI-driven Banking Advisor suite of skills have already reduced complex banking processes from days to seconds. And this is just the beginning. Take, for example, document validation in U.S. Mortgage, which with AI verifies that customers have uploaded the correct documentation avoiding an approval delay for the borrower and saving the loan officer about 40 minutes per loan. Our continuous credit monitoring functionality eliminates hours of manual work, gathering data to assess a client's borrowing position. And Tax Statements 3.0 uses a large language model trained in-house to process tax statements, avoiding 15 to 20 minutes of manual work per statement. As we lead this charge, our customers are validating that they ultimately prefer agentic capabilities embedded in a platform they already trust with their data. The data is fundamental to our strategy, and we are leaning into our acquisition of Sandbox Banking to complete a unified API layer that becomes the access point or gateway for financial institutions globally. Thus, our AI strategy is to deepen our moat by expanding banking advisor skills, mobilize agents, and manage the gateway. Clearly, we believe that AI, both generative and agentic, and the unique data set we have to fuel AI will be key drivers of growth for Encino. Powerful differentiators across our entire platform that will further enhance our market leadership position and accelerate platform adoption as we continue to evolve the company and lead the vertical AI movement in banks. Beyond AI, we have been hard at work strengthening our core business, and we believe these improvements will drive solid bookings trends in the quarters and years ahead. One of the most powerful aspects of our competitive moat is the reputation we have built through our success in commercial banking. We are recognized as the gold standard in this space. And that credibility is opening doors as we drive deeper into consumer, small business, and mortgage opportunities. As a reminder, over 70% of our global SAM is outside of commercial lending, and more than half of our bookings in fiscal 25 came from solutions other than commercial lending. We are leveraging our reputation and track record of success to demonstrate our solutions to new customers and to deepen our existing relationships with current customers as the Encino ecosystem adopts more of our products. Turning Encino from a great company into a great long-term business requires discipline, focus, and relentless execution. That means making sure our product roadmap aligns tightly with market needs driving strong top line growth while maintaining financial discipline and making thoughtful capital allocation decisions. It means being sharp in how we position ourselves in the market and ensuring that every experience we serve up to customers is truly best in class. I am maniacally focused on these execution tasks and firmly believe the team will exceed my expectations. To that end, we are seeing signs that the changes we have made are driving results. Our fiscal 25 ACV growth accelerated to 9% organically from 8% in fiscal 24 on a constant currency basis. On a reported basis, this ACV year-over-year growth was 8% organically or 13%, including ACV from acquisitions. Our expansion on the European continent is seeing signs of traction as well, with our largest new logo by ACV and Q4 coming from CSOB, a top three bank in the Czech Republic. And we also had another major win in Japan. And while it took longer than we originally expected, our consumer lending business is seeing momentum. The 200 billion asset bank we discussed winning in late fiscal 24 is now live on Encino Consumer Lending. And we added over 20 new consumer lending deals in Q4, including two large banks with 80 billion and 50 billion in assets, respectively. On the M&A front, we are very excited about the four acquisitions we closed over the past year, and expect each of them to be strong, positive contributors to our future financial performance. Our DocFox and Full Circle acquisitions expanded our SAM in the onboarding arena and provided our sales teams unique and highly desirable solutions to cross-sell to a very happy customer base. Allegro is an important addition to our consumer lending offerings. delivering on the need for indirect lending functionality, particularly as we expand more aggressively into credit unions. In fact, leveraging Encino's established market-leading portfolio analytics solution, which serves up approximately 40% of the United States credit union market, we have visibility into over $600 billion in assets across more than 800 credit union customers. We are leaning into this unique and powerful data set and our acquisition of Allegro and have launched a dedicated credit union go-to-market team and are developing new solutions to bring to this market, including financial product performance and pricing models and peer analysis products for competitor insights. Finally, on the M&A integration front, sandbox banking is a highly strategic acquisition that reaches far beyond core integration capabilities. Encino customers will quickly realize the benefit of customer data alignment and system operability with a unified API layer and integration hub for the platform. I am also energized by the AI-first culture and DNA of the talent that accompanies these acquisitions. That said, while we of course remain alert to potential future M&A where we see compelling value in accelerating our technology, profitable growth, or addressable market, we expect our focus for fiscal 26 will be on realizing the planned synergies and expected investment returns from these completed transactions as opposed to pursuing any additional M&A. In summary, this is an extraordinary time for Encino, and with the vertical AI opportunity, there has never been more excitement in this intersection of technology and banking. The secular growth in front of us, which is helping financial institutions truly modernize their operations, is massive. The ability to accelerate this transformation through our scalable, tested and trusted platform with intelligence embedded throughout our solutions makes it even more exciting. And the improvements we have made in our product functionality and international operations sets us up for success. Additionally, While there is currently volatility in the financial markets, the macro headwinds that specifically challenged us and our customer base over the past couple of years have eased quite a bit. Our customers, by and large, have healthy balance sheets and are forecasting growth in their loan portfolios, deposit positions, and earnings per share. Our US customers are also telling us that the potential for deregulation could free up capital, streamline decision-making, and enable them to further adopt best-in-class technology solutions. Our sales teams are aggressively pursuing bookings in fiscal 26 that we expect will drive re-acceleration and subscription revenue growth in fiscal 27, and we are investing accordingly with a plan to drive sustainable long-term revenue growth and further margin expansion. While Greg will walk you through our financial guidance in more detail, Just a reminder that our revenue growth is a lagging indicator of our bookings growth. While we are forecasting lower year-over-year revenue growth in the second half of the year, we believe this is temporary and due to trailing factors that have now been addressed, as well as to difficult year-over-year second half comparisons that Greg will elaborate on. I have tremendous confidence in our team, our technology, and our market position. This confidence is supported by the $100 million stock repurchase program our board of directors authorized that we announced this afternoon. The foundation is in place, and now it's all about execution. Pierre was the visionary who built this company, and I deeply respect the impact he had. My role is to take that vision and turn it into durable, scalable, and long-term profitable growth. We are not selling a dream in Encino. We are committing to execution. To that end, the metrics I am laser focused on are growth in gross bookings, achieving our rule of targets, and over time, free cash flow. On behalf of the entire Encino team, I want to thank you for your continued support. I am incredibly energized by what lies ahead and look forward to delivering results and building credibility with our shareholders. With that, I'll turn it over to Greg to walk through the details of our quarter and output.

Thanks, Sean, and thank you all for joining us today. Please note that all numbers referenced in my remarks are on a non-GAAP basis unless otherwise stated. A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8K, furnished with the SEC just before this call. Turning to our fourth quarter results, total revenues were $141.4 million in the fourth quarter, an increase of 14% year over year, and $540.7 million for fiscal 25, an increase of 13% over fiscal 24. Subscription revenues were $125 million in the fourth quarter, an increase of 16% year-over-year, and $469.2 million for the full year, an increase of 15% year-over-year. Organic subscription revenues were $118.3 million in the fourth quarter, an increase of 10%, and $456.9 million for fiscal 25, an increase of 12% year-over-year. Professional services revenue were $16.4 million in the fourth quarter, an increase of 1% year-over-year. Full-year professional services revenues were $71.5 million, an increase of 7% year-over-year. Non-U.S. total revenues were $33.3 million in the fourth quarter, up 34% year-over-year, or 38% in constant currency. Non-U.S. total revenues were $116.2 million in fiscal 25, up 30% year over year, and also up 30% in constant currency. Full circle contributed approximately $4.3 million to both the fourth quarter and full year non-U.S. total revenues. Non-GAAP operating income was $24.4 million, or 17% of total revenues, compared with $19.3 million or 16% of total revenues in the fourth quarter of fiscal 24. Year-over-year non-GAAP operating margin expansion was muted in the fourth quarter by $3.2 million of incremental operating expenses contributed by Full Circle as integration activities began. Our non-GAAP operating income for fiscal 25 was $96.2 million or 18% of total revenues compared with $61.8 million or 13% of total revenues in fiscal 24. Non-GAAP net income attributable to Encino for the fourth quarter of fiscal 25 was $13.9 million or 12 cents per diluted share compared to $23.8 million or 21 cents per diluted share in the fourth quarter of fiscal 24. Non-GAAP net income attributable to Encino for fiscal 25 was $76.1 million or 66 cents per diluted share compared to $58 million or 51 cents per diluted share in fiscal 24. Fiscal 25 non-GAAP net income attributable to Encino included $3 million of interest expense on our credit facility in the fourth quarter and $5.7 million for the full year. Fiscal 25 non-GAAP net income attributable to Encino also included other non-operating predominantly non-cash expenses from fluctuations in foreign currency on intercompany loans of approximately $10.3 million in the fourth quarter and $10.5 million for the full year. Free cash flow is negative $10.4 million in the fourth quarter of fiscal 25, down from $7.7 million in the fourth quarter of fiscal 24 due to acquisition-related costs of $2.8 million, $3 million of additional interest expense, and timing-related fluctuations in net working capital. Free cash flow for fiscal 25 was $53.4 million compared to $53.8 million in fiscal 24, with growth in this metric temporarily impacted by acquisition-related costs of $12.2 million and $4.8 million of additional interest expense as we drew on our line of credit to complete the acquisition of Full Circle. Subsequent to the end of the quarter, we closed the acquisition of Sandbox Banking for a purchase price of $52.5 million in cash, subject to customary adjustments, and an additional earn-out opportunity of up to $10 million. The transaction was financed with our revolving credit facility. Sandbox provides middleware that has become critical to our integration strategy for connecting Encino with our customers' core processing and other third-party systems. This transaction immediately yields costs of goods sold savings of approximately $1 million annually that we would otherwise have incurred under our former partnership agreement with Sandbox, and is expected to deliver accretive subscription revenue growth and reduce implementation timelines, thereby helping to improve professional services gross margins. We ended fiscal 25 with 549 customers that contributed greater than $100,000 to fiscal 25 subscription revenues, an increase of 10% from fiscal 24. Of these, 105 contributed more than $1 million to fiscal 25 subscription revenues, an increase of 22% from fiscal 24. And 14 contributed more than $5 million to fiscal 25 subscription revenues, an increase of 27% from fiscal 24. Our remaining performance obligation, or RPO, was $1.2 billion as of January 31, 2025, up 15% over $1 billion as of January 31, 2024, with $797 million expected to be recognized in the next 24 months, up 18% from $675 million as of January 31, 2024. Acquisitions completed in fiscal 25 contributed approximately $24 million to total RPO and $22 million in less than 24 months RPO. Before turning to our fiscal 26 guidance, I wanted to provide an update on our new pricing framework, as well as on the new KPIs we are providing to assist you in better understanding our business and measuring our progress. On our new pricing framework, recall that in fiscal 24, we began implementing platform pricing for our mortgage customers and for consumer lending customers. And this year, we began implementing platform pricing for all of our other solutions. As of January 31, 2025, approximately 15% of our ACV is on platform pricing, and we expect to complete the transition of remaining ACV over the next four years. Due specifically to the pricing transition, we are modeling an approximately 1% subscription revenue growth benefit from the pro rata contribution of deals signed in fiscal 26 relative to how we would have recognized subscription revenues on our legacy seat-based model. This benefit, along with that of renewals where we are targeting an appropriate price uplift to reflect the meaningful innovation we have added to our product portfolio, including from Banking Advisor, will be larger in subsequent years as more of our customer base is converted to new pricing. Please reference slide 18 in the appendix of our earnings presentation for an illustrative example of subscription revenue recognition for both new and renewal agreements under platform pricing. We look forward to discussing the new pricing model in more detail at our upcoming Investor Day at our Insight User Conference in May, including the benefits we expect to realize from the shift and the anticipated impact to our reported metrics. Turning to the new KPIs, please refer to slide four in our earnings presentation to reference these updated disclosures. Going forward, we will be guiding to and reporting ACV annually as of the end of our fiscal years. We define ACV as the highest annualized subscription fee obligation under customer contracts in effect at the end of a reporting period. Note that ACV does not include any fees generated from consumption above contracted minimums for our mortgage or banking advisor solutions. ACV is management's preferred KPI for sales achievement, including for determining variable compensation for employees on sales commission plans. Our customers sign large multi-year agreements some of which ramp over time, and we expect high retention rates. So optimizing the fees at the end of a contract term is what we emphasize and incent for our sales force. On a reported basis, ACV as of January 31, 2025 was $516.4 million, an increase of 13% year over year, or 8% on an organic basis, reflecting an improving gross bookings trend versus the prior fiscal year, most notably in the U.S. community and regional and enterprise markets, both of which exceeded their gross bookings targets in fiscal 25, while international and mortgage gross bookings were below plan. On a constant currency basis, ACV grew 14% in total and 9% on an organic basis in fiscal 25. We are also introducing another new disclosure, ACV net retention rate, which increased to 106% in fiscal 25 versus 102% in the prior year. We define ACV net retention rate as total ACV at the end of a fiscal year from customers with ACV as of the end of the prior fiscal year, expressed as a percentage of AC as of the end of the prior fiscal year, converted to U.S. dollars with foreign exchange rates in effect as of the end of the applicable period. We believe this improvement is indicative of growing demand from our existing customers to more broadly adopt our platform and of churn beginning to normalize as market-driven headwinds subside. I note that we are aligning the definition of our subscription revenue net retention rate with the details disclosed in our quarterly SEC filings regarding changes in subscription revenues from new versus existing customers based upon when a customer first contributes to subscription revenues. A comparison to the prior reported metric is available in our Form 10-K. Subscription revenue net retention rate moderated to 110%, down from 116% in fiscal 24. Like subscription revenues, we believe this is a lagging indicator, and its decline was primarily an output of the elevated churn in fiscal 24 that impacted subscription revenues in fiscal 25. Total churn in fiscal 25 ended up at $26 million of annualized subscription revenues, down from $31 million in fiscal 24. Of this amount, mortgage churn was $9 million in fiscal 25, down from $13 million in fiscal 24. As we expect churn to continue moderating towards our historic norms, going forward, we will quantify and discuss retention on a net basis with our new disclosure framework. As Sean noted, we are very excited about the future and we are absolutely leaning in on the growth opportunities we see ahead of us so that we can leverage our leading position in this market. This involves making certain investments, particularly in international sales and in marketing, to capitalize on this opportunity. Despite these investments, we expect steady operating margin expansion beginning in the second half of this year, And while we are not ready to provide specific guidance beyond fiscal 26, we are focused on achieving the rule of 40 milestone and are confident in our trajectory to accomplish this somewhere around the fourth quarter of next year. We believe the returns on our investments in sales and marketing and the product innovation we are bringing to market this year, coupled with the cost efficiencies we expect to achieve in our R&D organization by leveraging AI and through other organizational efficiency initiatives, will be instrumental in achieving this. While the exact timing may vary by a quarter or two based on market conditions and investment opportunities, you should be confident that we are laser focused on ensuring that we achieve the rule of 40 in a sustainable and disciplined manner. Turning to fiscal 26 guidance, we take our commitments to the street very seriously and recognize that our prior revenue guidance philosophy could have been more conservative to leave us greater flexibility in operating the business. Recognizing this, we have adjusted our guidance framework and have attempted to de-risk our guidance as much as possible. With that in mind, I'd like to provide some additional details to help you contextualize the fiscal 26 guidance, and in particular, the year-over-year growth trajectory throughout the year. Note that we are giving these additional data points to help you more clearly understand how we built our model and developed our guidance for fiscal 26. While we will, of course, address general trends in our guidance on each earnings call, we do not plan on going through and updating each of these assumptions on a quarterly basis. First, we expect the approximately 1% currency headwind to ACC growth in fiscal 25 to have a commensurate negative impact on fiscal 26 subscription revenues. Second, We expect to have DocFox integration complete by Insight, and our expectation is that bookings for this product will increase meaningfully in the second half of the year. We continue to believe that the onboarding opportunity for Encino on a global basis is significant. With that said, as Sean mentioned, bookings for this solution were below plan in fiscal 25 as product integration activities were prioritized, and as a result, there is a lagging effect that impacts our subscription revenue growth in fiscal 26. We expect the anticipated bookings rebound for onboarding in the second half of fiscal 26 will contribute to accelerating subscription revenue growth in fiscal 27. Third, our US mortgage business grew 8% in fiscal 25 in what remained a difficult market. Despite this growth and the many opportunities we see for our mortgage solution in the market, including taking it more upmarket to regional and enterprise banks, as well as to more and more credit unions. In light of the uncertainty around the path of mortgage rates in the U.S., our guidance for fiscal 26 assumes no year-over-year increase in U.S. mortgage subscription revenues. Any growth in this business, including growth in loan volume overages, would be upside to our numbers. Finally, our second half year-over-year subscription revenue comparisons will be negatively impacted by approximately 3% in both the third and fourth quarters of fiscal 26 as a result of one-time subscription revenues that occurred in the second half of fiscal 25, affecting our U.S. mortgage and international businesses as a result of one-time revenues that occurred in the second half of fiscal 25. These revenues primarily related to one-time catch-up mortgage revenues, as noted on our Q3 earnings call, and a contract buyout by a customer that, following management changes at the bank and internal restructuring in the business that had sponsored our program, decided that now was not the right time to move forward with their implementation. For the first quarter of fiscal 26, we expect total revenues of $138.75 million to $140.75 million, with subscription revenues of $121.75 million to $123.75 million, an increase of 9% and 11%, respectively, at the midpoint of the ranges. Beginning this quarter, our guidance for and reported non-GAAP net income attributable to Infino per share will exclude any impact from currency exchange on intercompany transactions. Non-GAAP operating income in the first quarter is expected to be $22.5 million to $24.5 million, and non-GAAP net income attributable to Encino per share to be 15 cents to 16 cents. This guidance assumes interest expense incurred under our credit facility of approximately $3.5 million. This is based upon a weighted average of approximately 119 million diluted shares outstanding before any share repurchases. For fiscal 26, we expect to add $48 million to $51 million to ACV on a constant currency basis, including approximately 4.5 million from the acquisition of Sandbox. This represents 19% organic net ACV bookings growth at the midpoint of the range, which should accelerate subscription revenue growth in fiscal 27. For fiscal 26, we expect total revenues of $574.5 million to $578.5 million, with subscription revenues of $503 to $507 million, representing growth rates of 7% and 8%, respectively, at the midpoints of the ranges. Excluding the impact of the one-time items noted above and currency fluctuations, our organic subscription revenue growth rate in fiscal 26 is expected to be approximately 7% at the midpoint of the range. In light of the specific headwinds I highlighted earlier, we expect subscription revenue growth to be approximately six points lower in the second half of the year versus the first half before re-accelerating in fiscal 27. We expect full circle will contribute approximately $13.3 million to subscription revenues through the first nine months of fiscal 26, including approximately $4.3 million in the first quarter. And that sandbox banking will contribute approximately $4.2 million to subscription revenues for the full year, including approximately 750,000 in the first quarter. For fiscal 26, We will refer to the nine-month contribution of full circle and the 12-month contribution of sandbox as inorganic as these periods compared to the prior year periods which preceded each acquisition. We expect non-GAAP operating income for fiscal 26 to be $107 million to $111 million, a 13% increase over fiscal 25 at the midpoint. After playing defense for the better part of the past two-plus years in light of the macro difficulties impacting financial institutions around the world, we are going on the offensive and investing in areas of high growth. To that end, our guidance assumes an increase in sales and marketing expense related to additional quota-carrying sales representatives to cover the U.S. credit union market, emerging geographies in EMEA and Japan, and investments in digital marketing initiatives amounting to approximately $10 million for the full year. These investments reflect the sizable opportunity we see in front of us. Our guidance assumes approximately 100 basis points of operating margin expansion at the midpoint of the range for the full year, with the first half of the year flat to that of last year. We expect the second half of the year will yield approximately 200 basis points of expansion as we leverage the sales and marketing investments made at the start of the year, get beyond our annual user conference in May, and realize additional operating efficiencies in our R&D organization. We expect additional margin expansion in fiscal 27 and beyond as we generate scale and efficiency from these investments and efficiency gains. Non-GAAP net income attributable to Encino per share is expected to be 66 cents to 69 cents excluding the impact of currency fluctuations and is based upon a weighted average of approximately 120 million diluted shares outstanding before any share repurchases. This guidance also assumes interest expense incurred under our credit facility of approximately 14 million dollars. In closing, I appreciate that we have provided you with a lot of information today and we will do our best to make ourselves available over the coming days to answer your questions and provide clarity about the disclosures made. I also look forward to seeing many of you at Insight next month in Charlotte, North Carolina, where you will be able to see firsthand the unique and exciting product innovation we are bringing to market and where we will go into more detail about the business, our financials, and the opportunities we have in front of us. With that, I will open the line for questions.