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Q2 Holdings, Inc.
NYSE: QTWO Technology IT 🔎 Screen
$3.7B
Market Cap
90.2
P/E
1.75
PEG
6.7%
ROCE
8.8%
ROE
0.52
D/E
5.3%
OPM
-27.7%
% from 52W High
65
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for QTWO including FX impact
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📈 Price History
Ratio Health
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About

Q2 Holdings, Inc. provides digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs) in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform that supports its financial institution customers in their delivery of retail, SMB, and commercial functionalities across digital channels; and risk and fraud solutions that are designed to support financial institutions' efforts to protect end users, comply with regulatory requirements and manage fraud risk efficiently. It also provides Q2 Innovation Studio, an application program interface and software development kit based open technology platform that allows financial institution customers, FinTechs, and other partners to deploy customized experiences and financial services to end users; and Helix, a cloud-native, real-time core processing platform that combines the services and functionality for companies and financial institutions. In addition, the company offers digital lending and relationship pricing solutions that support financial institutions, FinTechs and Alt-FIs in managing lending workflows, pricing strategies and customer relationships across commercial and consumer use cases, as well as offers loans, deposits and fee-based products. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.

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📈 Growth Pattern
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⭐ Superinvestors Holding QTWO
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 213.9K $10.1M 0.02% Mar 2026
Steve Cohen Point72 Asset Management 130.2K $6.2M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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📊 MIXED Q2 Holdings: Q1 2026 revenue $216.5M (+14% YoY), adjusted EBITDA $60M (27.7% margin), record bookings.
Revenue & Profitability
Revenue was $216.5 million (14% YoY growth). Adjusted EBITDA was $60 million (27.7% margin). Free cash flow was $44.2 million. Subscription ARR grew to $802 million (+14% YoY), total ARR to $945 million (+12% YoY). Backlog was $2.7 billion (+19% YoY).
Outlook
Management views the demand environment as healthy, with a strong pipeline and increased top-of-funnel activity. Bank sector M&A is seen as an opportunity. Customers are investing in technology to win commercial accounts, and the urgency around fraud is driving larger deals.
Growth Drivers
Key growth levers include: strong bookings (record Q1) across digital banking and fraud, expansion with existing customers, and cross-selling of fraud products (30-35% penetration of digital banking base). AI-driven products (Q2 Code, fraud capabilities) are expected to drive further growth.
Balance Sheet & CapEx
Cloud migration was completed in January 2026, contributing to gross margin improvement. No specific CapEx guidance or future investment numbers were discussed. Management noted potential future margin expansion from cloud optimization in 2027-2028.
Margins
Gross margin improved to 62.1% from 57.9% YoY, driven by cloud migration completion and higher subscription mix. Operating expenses were 37.7% of revenue. Adjusted EBITDA margin expanded 630 bps YoY to 27.7%. Full year 2026 guidance implies ~27% adjusted EBITDA margin.
Key Risks
Churn was noted as manageable, with no outsized activity in Q1. Implementation timelines for large fraud deals can exceed six months, limiting near-term revenue impact. Discretionary professional services remain under pressure. AI pricing models are still being developed, with potential cost risks from token usage.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Q2 delivered strong Q2 results with 13% revenue growth, record margins, and robust free cash flow. AI-driven products in fraud and digital banking are gaining traction, and full-year guidance for revenue and EBITDA was raised. Demand remains strong, especially among Tier 1 and enterprise clients.
Q1 2026 Q1 2026 2026-04-29
Q1 2026 delivered 14% revenue growth, record bookings, and margin expansion driven by cloud migration and subscription mix. AI innovation and strong demand in digital banking and fraud solutions support raised full-year guidance for both revenue and adjusted EBITDA.
Q4 2025 Q4 2025 2026-02-11
Q4 and full year 2025 results exceeded guidance, with strong revenue, bookings, and profitability. Subscription revenue and ARR grew double digits, margins expanded, and free cash flow conversion was robust. 2026 guidance was raised, and long-term targets reflect continued operating leverage.
Q3 2025 Q3 2025 2025-11-05
Q3 2025 delivered record bookings, 15% revenue growth, and 50% higher Adjusted EBITDA, with strong performance across all product lines and robust demand for AI and fraud solutions. Full-year guidance was raised, and a $150M share repurchase was authorized.
Q2 2025 Q2 2025 2025-07-30
Q2 2025 saw 13% revenue growth, record adjusted EBITDA, and strong free cash flow, with robust bookings across all segments and increased adoption of Innovation Studio. Guidance for revenue, subscription growth, and margins was raised, while cloud migration and M&A activity continue to shape performance.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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