Q2 Holdings Inc
NYSE:QTWO

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Q2 Holdings Inc
NYSE:QTWO
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Price: 73.52 USD 1.2% Market Closed
Market Cap: 4.6B USD

Q2 Holdings Inc
Investor Relations

In the rapidly evolving landscape of financial technology, Q2 Holdings Inc. emerged as a pivotal player, driving transformative solutions for the banking and financial services industry. Established with the mission to modernize the way financial institutions interact with their customers, Q2 offers cloud-based digital banking solutions that enhance customer engagement and operational efficiency. The company's comprehensive suite of products caters primarily to regional and community banks, as well as credit unions, providing them with the tools necessary to offer seamless and personalized digital experiences. By integrating capabilities such as online banking, mobile banking, and security solutions, Q2 empowers financial institutions to compete with larger, tech-savvy counterparts, ensuring they meet the growing demands of a digitally inclined customer base.

Revenue generation for Q2 Holdings is primarily subscription-based, capitalizing on the recurring nature of its software-as-a-service (SaaS) model. This approach not only provides a predictable income stream but also aligns with the company's commitment to continual innovation and long-term client relationships. As institutions integrate Q2's technologies, they gain access to a cloud-based infrastructure that supports crucial financial transactions and data security, all while reducing the burden of maintaining traditional IT systems. The company's growth is further bolstered by strategic partnerships and integrations with other fintech solutions, reinforcing its position as a nexus in the financial services digital transformation journey. By staying at the forefront of technological advancements, Q2 Holdings continues to redefine how financial services are delivered, playing a critical role in shaping the industry's future.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 5, 2025
AI Summary
Q3 2025

Revenue Beat: Q2 Holdings reported Q3 revenue of $201.7 million, up 15% year-on-year and above the top end of guidance.

Margin Expansion: Gross margin rose to 57.9%, up from 56% last year, and management expects further improvement in Q4 and 2026.

Record Bookings: The company achieved its best third quarter for bookings, driven by 7 Tier 1 and enterprise deals and strong cross-sell activity.

Raised Guidance: Management raised full-year 2025 revenue and adjusted EBITDA guidance, now expecting $789–$793 million in revenue and $182.5–$185.5 million in EBITDA.

Strong Free Cash Flow: Free cash flow reached $37 million in Q3, and Q4 is expected to be the strongest quarter for cash flow this year.

AI & Innovation: The company showcased new AI initiatives and expects significant long-term opportunity from AI-driven products and its Innovation Studio ecosystem.

Share Repurchase: Q2 announced a $150 million share repurchase program, reflecting confidence in its balance sheet and cash flow.

Positive Outlook: Management remains optimistic about continued strong demand, solid pipeline, and further margin expansion into 2026.

Key Financials
Revenue
$201.7 million
Gross Margin
57.9%
Adjusted EBITDA
$48.8 million
Free Cash Flow
$37 million
Cash, Cash Equivalents and Investments
$569 million
Total ARR
$888 million
Subscription ARR
$745 million
Backlog
$2.5 billion
Subscription Revenue as % of Total Revenue
82%
Operating Expenses
$76 million (37.7% of revenue)
Cash Flow from Operations
$46 million
Earnings Call Recording
Other Earnings Calls

Management

Mr. Matthew P. Flake
CEO & Chairman of the Board
No Bio Available
Mr. Kirk L. Coleman
President
No Bio Available
Mr. Robert H. Seale III
Chairman Emeritus
No Bio Available
Mr. John E. Breeden
Chief Operating Officer
No Bio Available
Mr. Michael A. Volanoski
Chief Revenue Officer
No Bio Available
Mr. Jonathan A. Price
CFO and Executive VP of Strategy & Emerging Businesses
No Bio Available
Mr. Adam D. Blue
Chief Technology Officer
No Bio Available
Mr. Josh Yankovich
Investor Contact
No Bio Available
Ms. Suzette Junier
Chief Compliance Officer & Chief Privacy Officer
No Bio Available
Mr. M. Scott Kerr
Senior VP, General Counsel & Corporate Secretary
No Bio Available

Contacts

Address
TEXAS
Austin
10355 Pecan Park Boulevard
Contacts
+18334443469.0
investors.q2.com