Q2 Holdings (QTWO)
🔔 Watch stock
symbol.quality_heading
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
The business clearly works: recurring revenue, $2.74 billion of remaining performance obligations, more than 1,200 institutions as customers, no single client above 10 percent of revenues, and a balance sheet that looked comfortable as of March 31, 2026, with $378.9 million of liquidity, an undrawn $125.0 million revolver and a 49 percent equity ratio. No substance risk is documented anywhere. What remains open is the operating core question: profitability is exactly one year old, part of the first-quarter margin jump came from expired amortization and higher capitalized implementation costs, churn rose to 5.2 percent in 2025, and most of the recent free cash went into offsetting the company's own employee stock plans. Hence yellow: a documented turn, an unproven durability. The decision is yours.
symbol.quality_note
Q2 Holdings sells regional banks their online banking, and in 2025 it posted its first annual profit in years: $52.0 million of net income on $794.8 million of revenue, plus $201.5 million of operating cash flow. That is why our in-house stock scanner lists the shares on the Piotroski screen at 7 of 9 points. The quarterly report filed April 29, 2026, also shows what $97.2 million of buybacks actually achieved in the first quarter: the share count fell from 62.741 million to 62.665 million — a net 76,000 shares. Not investment advice, just the arithmetic of what a buyback really leaves behind.
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Stock Watch
This analysis is as of July 26, 2026. Stock Watch will tell you what's changed at QTWO since then.
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Appears in These Scanners
This stock currently matches 6 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 60.90 $ — 45% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
AI Rating
Sells AIQ2 Holdings verkauft KI- und Machine-Learning-Funktionen als Bestandteil eigener Produkte: Die Risiko- und Betrugslösungen arbeiten laut Geschäftsbericht 10-K für 2025 (Item 1) mit fortgeschrittener Analytik und maschinellem Lernen und werden auch eigenständig an Finanzinstitute, FinTechs und alternative Finanzierer verkauft; ein gesonderter KI-Umsatz wird nicht beziffert.
View the full file — quotes, sources, reviewed filings
„These solutions leverage advanced analytics and machine learning techniques and are embedded within the Q2 digital banking platform and may also be offered on a standalone basis to financial institutions, FinTechs and Alt-FIs, allowing our customers to adopt these capabilities independently or as part of broader platform relationships."
Diese Lösungen nutzen fortgeschrittene Analytik und Verfahren des maschinellen Lernens, sind in die digitale Bankplattform von Q2 eingebettet und können Finanzinstituten, FinTechs und alternativen Finanzierern auch eigenständig angeboten werden, sodass unsere Kunden diese Fähigkeiten unabhängig oder als Teil einer breiteren Plattformbeziehung übernehmen können.
„We leverage AI both in our products and in our internal operations to deliver better customer experience."
Wir setzen künstliche Intelligenz sowohl in unseren Produkten als auch in unseren internen Abläufen ein, um ein besseres Kundenerlebnis zu liefern.
„We currently incorporate AI capabilities into select solutions, and we are making investments and anticipate further utilization of AI in our solutions in the future."
Wir binden derzeit KI-Fähigkeiten in ausgewählte Lösungen ein, investieren weiter und rechnen künftig mit einem breiteren Einsatz von KI in unseren Lösungen.
„Additionally, AI, including generative AI and autonomous decisioning technologies, is evolving rapidly and may significantly alter how financial technology products and services are developed, distributed and consumed. AI-enabled offerings may reduce demand for our products and services, compress pricing, weaken customer relationships or shift value creation away from regulated financial institutions toward technology providers."
Darüber hinaus entwickelt sich künstliche Intelligenz, einschließlich generativer KI und autonom entscheidender Technologien, rasch weiter und könnte erheblich verändern, wie Finanztechnologie-Produkte und -Dienste entwickelt, vertrieben und genutzt werden. KI-gestützte Angebote könnten die Nachfrage nach unseren Produkten und Diensten verringern, die Preise unter Druck setzen, Kundenbeziehungen schwächen oder die Wertschöpfung von regulierten Finanzinstituten hin zu Technologieanbietern verlagern.
Filings Reviewed: 10-Q 2026-04-29 · 10-K 2026-02-11 · 10-Q 2025-11-05 · 10-Q 2025-07-30 · 10-Q 2025-05-07 · 10-K 2025-02-12
Rated on July 26, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Analysts & Price Target
The price target sits 22.1% above the current price.
- Consensus
- Sell
- Analyst Ratings
- 17
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 2.83 | 2.55 – 3.24 | 885 | 14.8% | 9 |
| 12/31/2027 | 3.28 | 2.89 – 3.89 | 975 | 15.8% | 9 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.00 | – | 183 | 12.90 | 0.10 | 43 | 37 |
| 2025: Q1 | 0.07 | – | 190 | 14.60 | 2.50 | 44 | 38 |
| 2025: Q2 | 0.17 | – | 195 | 12.90 | 6.00 | 49 | 52 |
| 2025: Q3 | 0.22 | – | 202 | 15.20 | 7.50 | 46 | 37 |
| 2025: Q4 | 0.30 | 11,683.60 | 208 | 13.80 | 9.80 | 64 | 57 |
| 2026: Q1 | 0.39 | 437.00 | 217 | 14.10 | 12.30 | 56 | 50 |
| 2026: Q2 | 0.46 | 170.60 | 220 | 12.70 | 13.60 | 61 | 59 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Annual Figures
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 150 | -36 | -36 | -0.92 | 3 | 100 | 201 |
| 2017 | 194 | -27 | -26 | -0.63 | 9 | 107 | 213 |
| 2018 | 241 | -32 | -35 | -0.83 | 5 | 159 | 464 |
| 2019 | 315 | -51 | -71 | -1.53 | 1 | 379 | 1,009 |
| 2020 | 403 | -100 | -138 | -2.65 | -3 | 643 | 1,417 |
| 2021 | 499 | -78 | -113 | -2.00 | 31 | 570 | 1,385 |
| 2022 | 566 | -105 | -109 | -1.90 | 37 | 419 | 1,350 |
| 2023 | 625 | -86 | -65 | -1.12 | 70 | 448 | 1,201 |
| 2024 | 696 | -42 | -39 | -0.64 | 136 | 518 | 1,295 |
| 2025 | 795 | 46 | 52 | 0.80 | 201 | 662 | 1,276 |
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Assessment: Opportunities & Risks
More than 1,200 financial institutions used at least one Q2 solution as of December 31, 2025, including over half of the 100 largest U.S. banks and the 100 largest U.S. credit unions. Remaining performance obligations stood at roughly $2.74 billion as of March 31, 2026, more than three times a year of revenue. No individual customer accounted for 10 percent or more of revenues in the first quarter of 2026.
A $42.3 million operating loss in 2024 became $39.9 million of operating income and $52.0 million of net income in 2025 — after losses in many periods since inception in 2005. Operating cash flow rose to $201.5 million (2022: $36.6 million). In the first quarter of 2026 operating income jumped from $2.2 million to $27.7 million.
The $97.2 million of buybacks in the first quarter of 2026 cut the share count only from 62.741 million to 62.665 million — 76,000 shares, or 0.12 percent — because 1.689 million shares vested from employee plans at the same time. Stock-based compensation came to $86.9 million in 2025, 1.7 times the annual profit.
As of March 31, 2026, $378.9 million of liquidity and an undrawn $125.0 million revolver faced $304.0 million of convertible notes due June 1, 2026; with a conversion price of $88.61 far above the share price, cash repayment was the only route. Q2 had already retired the $191.0 million predecessor issue in cash in November 2025. The equity ratio stood at 49 percent and interest expense at $1.0 million for the quarter.
Gross margin rose from 53.2 percent to 59.1 percent in the first quarter of 2026 because cost of revenues fell 0.2 percent to $88.6 million while revenue grew 14.1 percent. The filing cites, among other items, $1.2 million of expired amortization on acquired technology and $1.6 million of higher capitalized implementation costs — part of the jump is calendar, not only scale.
The 2025 annual report explicitly names AI-enabled offerings as potential demand and pricing pressure that could weaken customer relationships and shift value creation from regulated financial institutions toward technology providers. Meanwhile churn rose to 5.2 percent in 2025 from 4.4 percent in 2024.
Q2 Holdings is no longer a turnaround story; it is a company that has already delivered its turnaround: $794.8 million of revenue in 2025 (up 14.1 percent), a first annual profit of $52.0 million, $201.5 million of operating cash flow, $2.74 billion of remaining performance obligations and a balance sheet with a 49 percent equity ratio. The open question sits one level down: $97.2 million of buybacks in the first quarter of 2026 removed a net 76,000 shares because 1.689 million new shares vested from employee plans, and $86.9 million of stock-based compensation in 2025 faced $52.0 million of net income. Add rising churn of 5.2 percent and an AI risk the company wrote down itself. Not investment advice.
- Q2 Holdings reached our research list through our in-house stock scanner: the shares sit in the U.S. section of the Piotroski screen (F-Score 7 of 9; 16 U.S. hits as of July 26, 2026) and also among the turnaround candidates, the fallen angels, Pros 80% and the Oliver Kell: Strength on Down Day screen. These lists are recalculated daily, and where scores tie the ordering is not stable.
- Name confusion: "Q2" here is the company name of the software provider from Austin, Texas, not shorthand for a second quarter. Through March 19, 2013, the company was named CBG Holdings, Inc.; the SEC file number CIK 0001410384 is authoritative. The stock is listed on the New York Stock Exchange and additionally on NYSE Texas.
- Valuation figures are dated and evergreen: the market value of roughly $2.8 billion (data as of July 24, 2026) was cross-checked against the share count from the quarterly report (62,600,423 shares as of April 29, 2026) and the price of roughly $43.48 per share documented in a Form 144 sale notice dated June 10, 2026; the deviation is about one percent. Analyses are evergreen; daily prices are not a buy argument.
About the Company
Q2 Holdings, Inc. bietet digitale Lösungen für Finanzinstitute, Finanztechnologieunternehmen, FinTechs und alternative Finanzierungsunternehmen (Alt-FIs) in den USA an.
| CEO Insider Trades (12 Mo.) | selling own stock |
|---|---|
| Employees | 2,548 |
| Headquarters | Austin, TX |
| Address | 10355 Pecan Park Boulevard, 78729 Austin, United States |
| Phone | 833 444 3469 |
| Website | q2.com |
| IPO Date | 20. Mar 2014 |
| ISIN | US74736L1098 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Matthew P. Flake | President, CEO & Chairman of the Board | 1972 |
| Jonathan A. Price | CFO and Executive VP of Strategy & Emerging Businesses | 1984 |
| Himagiri Mukkamala | Chief Operating Officer | 1974 |
| John E. Breeden | Chief Delivery Officer | 1973 |
| Kirk L. Coleman | Chief Business Officer | 1972 |
| Robert H. Seale III | Chairman Emeritus & Founder | 1962 |
| Adam D. Blue | Chief Technology Officer | 1972 |
| Josh Yankovich | Investor Contact | – |
| Suzette Junier | Chief Compliance Officer & Chief Privacy Officer | – |
| M. Scott Kerr | Senior VP, General Counsel & Corporate Secretary | 1975 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.