Q2 Holdings Reports Strong 2025 Performance with Record Bookings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy QTWO?
Source: seekingalpha
- Strong Performance: Q2 Holdings reported total revenue of $794.8 million for 2025, reflecting a 14% year-over-year increase, with Q4 revenue reaching $208.2 million, also up 14% from the previous year, indicating robust execution across bookings and profitability.
- Subscription Revenue Growth: Subscription revenue grew by 17% in 2025, accounting for 82% of total revenue, with total annual recurring revenue (ARR) reaching $921 million, a 12% increase year-over-year, demonstrating significant progress in expanding the subscription base.
- Optimistic Outlook: Management raised the 2026 subscription revenue growth forecast from 13.5% to at least 14%, while setting long-term targets of achieving non-GAAP gross margins of 65% and adjusted EBITDA margins of 35% by 2030, reflecting confidence in future growth.
- AI as a Strategic Core: CEO Flake emphasized that AI will play a pivotal role in financial services, expected to drive innovation and operational efficiency at Q2, further solidifying the company's competitive position in a rapidly evolving market.
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Analyst Views on QTWO
Wall Street analysts forecast QTWO stock price to rise
13 Analyst Rating
8 Buy
5 Hold
0 Sell
Moderate Buy
Current: 52.450
Low
71.00
Averages
99.75
High
110.00
Current: 52.450
Low
71.00
Averages
99.75
High
110.00
About QTWO
Q2 Holdings, Inc. is a provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintech’s in the United States and internationally. The Company enables its financial institutions and fintech companies to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Its portfolio of digital solutions includes offerings, such as Digital Banking Platform, Q2 Innovation Studio, Lending and Relationship Pricing, and Helix. Its end-to-end digital banking platform supports its financial institution customers in their delivery of retail, SMB and commercial functionalities across digital channels through a single technology platform. Q2 Innovation Studio is its application program interface (API), and software development kit (SDK), based open technology platform. Helix is its cloud-native, real-time core processing platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Intensified Competition: The growth in liquidity has outpaced the recovery in loan demand, resulting in a supply-demand imbalance and increased competitive pressure, necessitating financial institutions to be more precise in pricing and managing commercial relationships to protect margins.
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