nCino, Inc.

Good day, everyone, and welcome to Encina's third quarter fiscal 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To participate, you will need to press star 1-1 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, simply press star 1-1 again. Please note this conference is being recorded. Now it's my pleasure to turn the call over to the Vice President, Investor Relations, Harrison Masters. You may begin.

Good afternoon, and welcome to Encino's third quarter fiscal 2026 earnings call. With me on today's call are Sean Desmond, Encino's Chief Executive Officer, and Greg Ornstein, 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. Encino 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 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, as well as the earnings presentation on our investor relations website at investor.encino.com. With that, I will turn the call over to Sean.

Good afternoon, and thank you for joining us to discuss Encino's third quarter fiscal 2026 results. Before reviewing our third quarter performance, I wanted to remind you of Encino's value proposition and the mission-critical role we play for our customers. Financial institutions continue to struggle with legacy fragmented systems that limit growth, hinder financial performance, and create poor user experiences. Encino solves this problem with AI-powered intelligent automation on a unified, scalable platform. We are the only platform for managing lending, onboarding, account opening, and portfolio management across all major business lines for financial institutions across the globe. This is why Encino serves as the system of record for the most critical operations of banks, credit unions, and IMBs of all sizes in over 20 countries. During my first earnings call as Encino's CEO in early April, I spoke about the tremendous confidence I had in our team, our technology, and our market position. I noted that the foundation was in place and that it was all about execution, that we needed to execute at a level that reflects the strength of our market position and the ambitions we have for this business. As you can see from our financial results, that is exactly what the company did in the third quarter. I'm extremely proud of the accomplishments of our team this past quarter. Sales and product development both picked up momentum in Q3, and I'm very pleased with the level of demand we are seeing from our customers and prospects across market segments, geographies, and products. The traction we are seeing in the business has further increased my conviction in not only achieving our sales and financial goals for fiscal 26, but also in the journey ahead for Encino. The successful outcomes our customers are seeing continue to reinforce that Encino's platform and strategy are resonating more than ever in an end market that is seeking significantly greater operational efficiency paired with providing exceptional user experiences and continuous product innovation. Encino customers routinely report improvements in standardization and consistency on the platform. including a $5 billion U.S. bank eliminating 86% of duplicate data entry and a $1.2 billion institution automating 100% of their policy exceptions. Encino customers also report compressing timelines dramatically, including $25 billion farm credit institution achieving 91% faster decisions. a $2 billion bank achieving 93% faster booking utilizing auto-decisioning, and a $5.2 billion institution reducing underwriting from 23 days to 2 days. The Encino Research Institute recently conducted a comprehensive analysis of 112 Encino customers and compared them to 378 peer institutions across the United States and determined that Encino's customers exhibit on average a 64% better return on average assets and a 75% superior return on average equity relative to their non-Encino peers. While it would be difficult to isolate Encino as the sole contributing factor to these impressive results, one thing is clear from this analysis. Financial institutions using Encino demonstrate significant market outperformance across critical profitability metrics as compared to their peers. Encino is a competitive differentiator and a difference maker for our customers. We believe this will be even further reinforced as we leverage the vast amount of data we have and inject more AI, automation, and intelligence into our products and platform. Our AI strategy is rapidly expanding the opportunity we have to partner with our customers. I spent quite a bit of time on the road meeting with customers this past quarter and heard time after time that financial institutions don't just need AI tools. They need an AI partner, a partner they trust, who deeply understands banking, has a proven ability to drive industry-wide change, possesses the data foundation necessary to build truly differentiated banking-specific AI capabilities, and can guide and support them on their AI journey at whatever pace they are comfortable with, while taking their credit policy and risk tolerance level at the highly regulated environment they operate in into account. Encino is that partner, and we are beginning to feel a bit of a halo effect as a leading AI innovator in the industry. We are seeing this in the form of new customer wins with financial institutions that are excited by the AI solutions we already have live in the market and by our AI strategy and roadmap. We are also seeing this halo effect in the form of early renewals of customers that want access to our AI features immediately instead of waiting until their standard renewal dates. We saw increasing adoption of our AI capabilities in the third quarter within the over 110 customers that have now purchased banking advisor intelligence units. This includes seeing an early cohort of customers advance through the stages of first deploying banking advisor skills in test environments and then making the tools more widely available to their employees. While we are of course looking forward to the incremental subscription revenues, we expect will come from broader consumption of intelligence units, including from the introduction and usage of Encino agents. For the time being, our primary focus continues to be on simply getting our customers familiar with and comfortable using our AI technology and driving adoption of our capabilities. We are advancing AI capabilities at a pace well ahead of customers' ability to adopt them. Given our customers, which operate in some of the most highly regulated environments, a clear and steady roadmap for adopting next generation technology as they are ready. As an example of that pace of innovation, we expect to have approximately 100 banking advisor capabilities available by the end of the fiscal year, up from the 18 we announced in late May at our Inside User Conference. AI is becoming so embedded across our platform that Banking Advisor is shifting from a set of standalone features to a pervasive experience. In that context, the number of discrete Banking Advisor capabilities is becoming a less useful measure than the outcomes and total value they deliver across the Encino platform. We also continue to receive great feedback on our new operational analytics functionality. For those of you who are not familiar with it, Encino Operations Analytics is the only banking specific analytics tool that transforms operational data into strategic intelligence with peer benchmarking from our data community of global financial institutions. Through this functionality, Encino customers are able to uncover bottlenecks, analyze their impact on key metrics, and drill down by role, employee, or stage. measure employee KPIs to identify opportunities for optimization and performance improvement, measure cycle times, volume, win rates, and other critical metrics to assess performance and drive improvements, compare performance against industry peers to identify strengths and drive competitive advantage with anonymized data, and evaluate the time and resources spent across processes to identify inefficiencies and streamline workflows. The actionable intelligence offered by Encino Operations Analytics not only provides our customers with a blueprint for continuously improving their operational efficiency, it also informs the development and flows of our AI agent strategy. As you may have seen shortly after the close of Q3, we announced the release of the first in a series of role-based AI agents we intend to bring to the market over the next year. These agents, which we refer to as digital partners, are trained on the usage data of over a majority of our lending customers from which we can correlate greater processing consistency and enhanced loan processing speed to superior financial results among peer institutions. AI has helped us further harness the data we've been intentionally accumulating for over a decade on how to optimize the processes behind financial services products, and we are making that the cornerstone of a ready-built agentic AI strategy specifically for financial institutions of all sizes on a global basis. Before I turn the call over to Greg to walk you through our financial results, I did want to mention at least a few sales highlights from the third quarter. In the U.S. community market, a $5.5 billion bank that started their relationship with Encino as a customer for mortgage and indirect lending added commercial, small business and consumer lending, which more than doubled their annual commitment to Encino and brought them over the seven-figure ACV mark. In the U.S. enterprise market, we saw healthy expansion opportunities across our existing customer base, including two top 15 banks increasing their commercial commitments intra-contract, two renewals with top 100 banks to expand adoption of Encino Mortgage, and another top 100 bank expanding their adoption of our consumer lending solution. Strong sales traction was also visible outside of the U.S. with our newest customer in Japan, one of the largest regional banks in the country, signing with Encino for mortgage lending. This new customer win, along with three expansion deals with existing Japanese customers in the third quarter, continues to reinforce our excitement about the opportunities we see ahead for Encino in this market. In EMEA, our integration gateway API infrastructure solution acquired with Sandbox Banking at the start of this fiscal year is demonstrating global applicability across our customer base and was included as part of a renewal with a $90 billion bank in the Czech Republic, the first integration gateway deal outside of the US. Our integration gateway solution was also included as part of a renewal with a $9 billion credit union. These two deals gave us ACB uplifts on existing contracts of 13% and 48% respectively, underscoring our confidence in how additive the integration gateway API infrastructure can be to our existing suite of solutions.