Q2 Holdings
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
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.
Why this colour
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.
What the thesis turns on
Assessment: Opportunities & Risks
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.
Business model and retention
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.
The turn in the income statement
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.
What reaches the shareholder
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.
Balance sheet and maturity
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.
Quality of the margin jump
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.
Self-declared AI risk
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.
Worth Noting
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.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at QTWO since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 42.10 $ to 84.20 $ · Last price: 58.00 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
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.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Software - Application
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Q2 Holdings QTWO | 3.6 | 55.2 | 24.2 | 57.0 | 12.9 | 14.1 | -30.2 |
| Salesforce.com Inc CRM | 194.7 | 24.2 | 14.3 | 77.3 | 21.8 | 9.6 | 1.1 |
| Uber Technologies Inc UBER | 144.3 | 18.9 | 19.7 | 40.8 | 14.6 | 18.3 | -23.8 |
| ServiceNow Inc NOW | 138.5 | 82.3 | 40.2 | 74.8 | 13.3 | 20.9 | -27.2 |
| Snowflake Inc. SNOW | 115.4 | – | -76.6 | 67.0 | -22.2 | 29.2 | 55.3 |
| Automatic Data Processing Inc ADP | 108.8 | 25.1 | 16.4 | 48.7 | 30.2 | 7.1 | -3.0 |
| Adobe Systems Incorporated ADBE | 99.2 | 14.3 | 9.8 | 89.3 | 35.3 | 10.5 | -30.2 |
| Intuit Inc INTU | 86.0 | 20.0 | 12.2 | 81.0 | 47.0 | 15.6 | -52.2 |
| Datadog Inc DDOG | 84.3 | 631.8 | 268.8 | 79.5 | 0.8 | 27.7 | 75.8 |
| Median of companies shown | 108.8 | 24.6 | 16.4 | 74.8 | 14.6 | 15.6 | -23.8 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
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.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($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 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| 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 |
What Do These Terms Mean?
- 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.
Screening
Appears in These Scanners
This stock currently matches 5 of our scanner strategies — each hit links to the scanner.
Quality & Balance Sheet
Momentum & Trend
Research
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
Outlook
Analysts & Price Target
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.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 2.87 | 2.55 – 3.26 | 885 | 16.2% | 11 |
| 12/31/2027 | 3.37 | 2.89 – 3.94 | 975 | 17.4% | 11 |
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.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 6.2% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $202.5M |
|---|---|
| Market cap | $3.64B |
| Free cash flow in year ten | $370.9M |
| Terminal value as a share of market value | 53.8% |
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Q2 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.
10-K · 2026-02-11 · View SEC filing
„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.
10-K · 2026-02-11 · View SEC filing
„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.
10-K · 2026-02-11 · View SEC filing
„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.
10-K · 2026-02-11 · View SEC filing
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
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 12.0%
- More than 10% revenue growth is expected for the coming year 10.2%
- Share count grows by less than 3% a year 4.4%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 38.6%
- Gross margin at 40% or higher and without meaningful erosion 54.1%
- Goodwill from acquisitions does not grow faster than revenue 40.2%
- Net debt below twice EBITDA 21 m net cash
- Operating cash flow covers the profits of the last three years 459 m
- Return on capital at 15% or higher, or up versus two years ago 6.2%
- Insiders hold at least 10% or are net buyers 0.9%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
7/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 20.3%
- Exp. sales growth 3Y > 5% 10.8%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 105.4%
- Net debt < 4x EBIT -0.5x
- EBIT positive, 10Y straight 1
- Max. EBIT decline < 50% 0.0%
- Return on equity > 15% 73.7%
- ROCE > 15% 6.2%
- Expected return > 10% 116.4%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 11, 2026 | Kerr Michael S | General Counsel | Sell | 636 | 60.96 | 38,771 |
| Aug 13, 2026 | Price Jonathan | Chief Financial Officer | Sell | 77,180 | 65.71 | 5,071,498 |
| Aug 10, 2026 | Rutledge Kimberly Anne | Chief People Officer | Sell | 10,000 | 63.07 | 630,700 |
The company
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
- 03/20/2014
- 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.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 07/29/2026 Q2 Holdings, Inc. (QTWO): Results of Operations and Financial Condition; Other Events; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 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.