Value Fund Cuts nCino Stake After $152 Million Quarter: What Long-Term Investors Should Know
Key Points
California-based Tensile Capital Management sold 449,165 shares of nCino in the third quarter, decreasing the position value by $13.3 million.
At quarter-end, the firm reported holding 901,539 nCino shares valued at $24.4 million.
The position now accounts for 3.1% of fund AUM, placing it outside the fund's top five holdings.
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California-based Tensile Capital Management reduced its stake in nCino (NASDAQ:NCNO) by 449,165 shares during the third quarter, cutting $13.3 million in position value, according to a November 14 SEC filing.
What Happened
Tensile Capital Management disclosed in a filing with the Securities and Exchange Commission dated November 14 that it sold 449,165 shares of nCino during the third quarter. The transaction reduced the fund’s position to 901,539 shares valued at $24.4 million as of September 30. The position was previously 4.6% of the fund's AUM as of the prior quarter.
What Else to Know
After the sale, nCino represented about 3.1% of Tensile Capital Management LP’s 13F reportable AUM.
Top holdings after the filing:
- NASDAQ: VERX: $94.3 million (11.8% of AUM)
- NYSE: DKS: $79.5 million (9.9% of AUM)
- NYSE: VVV: $74.7 million (9.3% of AUM)
- NYSE: LAD: $74.4 million (9.3% of AUM)
- NYSE: USFD: $58.5 million (7.3% of AUM)
As of November 14, 2025, shares were priced at $23.39—having declined 37% in the past year and well underperforming the S&P 500, which is up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $2.7 billion |
| Revenue (TTM) | $586.5 million |
| Net Income (TTM) | ($21.8 million) |
| Price (as of market close Friday) | $23.39 |
Company Snapshot
- nCino offers cloud-based software solutions, including the nCino Bank Operating System and SimpleNexus, focused on digitizing and automating banking operations for financial institutions.
- The company generates revenue through a software-as-a-service (SaaS) model by providing cloud-based software applications to financial institutions.
- It serves a diverse customer base comprising global and regional banks, credit unions, mortgage banks, and other financial services organizations.
nCino, Inc. is a leading provider of cloud-based banking software serving financial institutions worldwide. The company leverages advanced analytics and artificial intelligence to streamline complex banking workflows and compliance processes. Its scalable SaaS platform positions nCino as a strategic technology partner for banks seeking digital transformation and operational efficiency.
Foolish Take
For long-term investors, this move signals how funds are reassessing high-growth fintech names after a year marked by weakening share performance but strengthening fundamentals. nCino just delivered one of its strongest operating quarters to date—expanding margins, accelerating subscription revenue, and advancing its AI roadmap—yet the stock is still down sharply over the past year. That disconnect creates a very different risk–reward profile for holders, especially funds trimming exposure rather than exiting entirely.
Tensile’s disclosed reduction comes as nCino posted 10% revenue growth to $152.2 million and an 11% increase in subscription revenue in the latest quarter, alongside a swing to $11.7 million in GAAP operating income, up from a loss last year. Meanwhile, non-GAAP operating income climbed 43% to $39.9 million, reflecting disciplined cost management and improving unit economics. The company also repurchased 1.4 million shares during the quarter—an unusual show of confidence for a software firm navigating uneven macro demand.
The key question is whether nCino’s accelerating profitability and deepening AI capabilities can eventually overcome near-term multiple compression.
Glossary
Stake: The ownership interest or investment a fund or individual holds in a company.
13F reportable assets under management (AUM): The value of securities a fund must disclose quarterly to the SEC, reflecting its investment holdings.
Position value: The total market worth of a specific investment held by a fund or investor.
Top holdings: The largest investments in a fund's portfolio, typically by market value.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Compound annual growth rate (CAGR): The annualized rate of return for an investment over a specified time period, assuming profits are reinvested.
Software-as-a-service (SaaS): A business model where software is delivered online and accessed via subscription rather than purchased outright.
Cloud-based: Technology or services hosted on remote servers and accessed over the internet, rather than on local computers.
Fund AUM: The total market value of all assets managed by an investment fund.
Quarter: A three-month period used by companies and investors for financial reporting and analysis.
Artificial intelligence (AI): Computer systems designed to perform tasks that typically require human intelligence, such as data analysis or decision-making.
Digital transformation: The integration of digital technology into all areas of a business to improve operations and value delivery.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends nCino. The Motley Fool has a disclosure policy.
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