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QTWO

Q2 Holdings, Inc.

QTWO

Q2 Holdings, Inc. • NYSE
$72.13 ▲ 0.56% (+0.40)
Market Cap $4.51 B
52w High $112.82
52w Low $58.57
Dividend Yield 0%
P/E 144.26
Volume 266.95K
Outstanding Shares 62.53M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $201.704M ▲ $97.841M ▲ $15.048M ▲ 7.46% ▲ $0.24 ▲ $24.601M ▼
Q2-2025 $195.148M ▲ $94.724M ▼ $11.764M ▲ 6.028% ▲ $0.19 ▲ $28.398M ▲
Q1-2025 $189.735M ▲ $98.801M ▲ $4.753M ▲ 2.505% ▲ $0.08 ▲ $20.495M ▲
Q4-2024 $183.045M ▲ $97.918M ▼ $164K ▲ 0.09% ▲ $0.061 ▲ $19.099M ▲
Q3-2024 $175.021M $101.859M $-11.797M -6.74% $-0.2 $9.468M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $568.734M ▲ $1.427B ▲ $803.816M ▲ $622.885M ▲
Q2-2025 $532.072M ▲ $1.385B ▲ $801.078M ▼ $584.335M ▲
Q1-2025 $486.049M ▲ $1.35B ▲ $804.398M ▲ $545.458M ▲
Q4-2024 $446.626M ▲ $1.295B ▲ $776.999M ▼ $517.796M ▲
Q3-2024 $407.852M $1.273B $777.698M $495.117M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $15.048M ▲ $45.593M ▼ $13.277M ▲ $0 ▼ $58.515M ▲ $37.25M ▼
Q2-2025 $11.764M ▲ $48.641M ▲ $-22.113M ▼ $3.671M ▲ $30.54M ▲ $52.245M ▲
Q1-2025 $4.753M ▲ $43.531M ▲ $-19.504M ▼ $547K ▼ $24.684M ▼ $37.832M ▲
Q4-2024 $164K ▲ $43.035M ▼ $-6.446M ▲ $2.811M ▲ $38.645M ▲ $36.846M ▲
Q3-2024 $-11.797M $43.25M $-26.688M $-942K $15.808M $35.099M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Product and Service Other
Product and Service Other
 $20.00M ▲$20.00M ▲$20.00M ▲$20.00M ▲
Subscriptions
Subscriptions
 $150.00M ▲$150.00M ▲$160.00M ▲$170.00M ▲
Transactional Services
Transactional Services
 $20.00M ▲$20.00M ▲$20.00M ▲$20.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown steadily over the past several years, and gross profit has risen along with it, showing that the core business is scaling and becoming more efficient. However, the company is still unprofitable on a net basis, even though losses have narrowed. Operating margins remain negative but have clearly improved, and profitability measures that strip out some non‑cash and one‑time items have turned positive. Overall, the trend is toward healthier economics, but the business is still in the transition phase from “growth with losses” to “growth with consistent profits.”

Balance Sheet

Balance Sheet The balance sheet shows a business with meaningful cash on hand, a solid base of assets, and positive equity, which together provide a reasonable financial cushion. Debt levels are significant and have stayed relatively high over time, so leverage is an ongoing consideration. Asset and equity levels have been fairly stable rather than rapidly expanding, which suggests a shift from heavy build‑out toward optimizing what is already in place. The company appears financially sound but not without balance‑sheet risk due to its debt load and history of losses.

Cash Flow

Cash Flow Cash generation has improved notably. Operating cash flow has moved from roughly breakeven to clearly positive, indicating that the underlying business model is now funding itself instead of relying entirely on outside capital. Free cash flow has followed the same path, turning sustainably positive while the company continues to spend modestly on capital investments. This is an encouraging sign that growth is becoming more self‑financing, though the business still needs to show that this positive cash performance is durable through different market conditions.

Competitive Edge

Competitive Edge Q2 occupies a strong niche as a specialist in digital banking for regional and community financial institutions. Its unified cloud platform, deep integration into clients’ core systems, and broad feature set create high switching costs, making customers sticky once they are onboarded. The Innovation Studio and open ecosystem create a network effect between banks and fintech partners, further reinforcing its position. At the same time, the digital banking and fintech infrastructure market is crowded, with large core processors and newer cloud‑native rivals vying for similar budgets, so Q2’s ability to keep differentiating on depth, flexibility, and time‑to‑market is critical.

Innovation and R&D

Innovation and R&D Innovation is a clear centerpiece of Q2’s strategy. The company has built an open, extensible platform with tools that let clients and partners develop and deploy new banking experiences quickly. Its Helix banking‑as‑a‑service offering, the Innovation Studio, and the Andi AI Copilot all point to a long‑term push into embedded finance and AI‑driven tools. Recent moves, such as integrating directly into customers’ ERP systems and building AI copilots for both bankers and developers, show a focus on solving specific, high‑value pain points. The main execution risk is turning this ambitious roadmap into widely adopted, revenue‑generating products while managing complexity and cost.

Summary

Q2 Holdings is evolving from a high‑growth, loss‑making fintech platform into a more mature, cash‑generative software business focused on digital banking. Revenue and gross profit have grown consistently, losses have narrowed, and cash flow has improved, even though the company still reports accounting losses and carries notable debt. Its competitive edge rests on a unified, deeply integrated platform and an open ecosystem that encourages innovation from banks and fintech partners, creating stickiness and network effects. The forward strategy leans heavily on AI, embedded finance, and deeper commercial banking capabilities, offering meaningful upside if adoption is strong but also raising execution and competitive risks. Overall, the story is one of improving financial health, a defensible niche, and a sizable opportunity, balanced by the need to fully achieve durable profitability and deliver on an ambitious innovation agenda.

NEWS

November 17, 2025 · 3:00 PM UTC

Q2 Recognized as a Top Workplace by Austin American-Statesman for 2025

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November 17, 2025 · 10:00 AM UTC

Q2 Named a Leader in IDC MarketScape: North America Retail Digital Banking Solutions 2025-2026 Vendor Assessment

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November 12, 2025 · 10:00 AM UTC

Helix Partners with Bangor Savings Bank to Expand its Banking as a Service Capabilities

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November 5, 2025 · 4:20 PM UTC

Q2 Holdings, Inc. Announces Third Quarter 2025 Financial Results; Announces $150 Million Share Repurchase Authorization

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October 22, 2025 · 4:30 PM UTC

Q2 Holdings, Inc. Announces Investor Conference Call to Review Third Quarter 2025 Financial Results

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