Q2 Holdings Reports Strong 2025 Performance with Record Bookings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h 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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for QTWO is 99.75 USD with a low forecast of 71.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
8 Buy
5 Hold
0 Sell
Moderate Buy
Current: 57.330
Low
71.00
Averages
99.75
High
110.00
Current: 57.330
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.
Q2 Holdings Reports Strong 2025 Performance with Record Bookings
- 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.
See More
Q2 Holdings Q4 Earnings Beat Expectations, 2026 Outlook Positive
- Strong Earnings Report: Q2 Holdings reported a Q4 GAAP EPS of $0.31, beating expectations by $0.08, with revenue of $208.22 million reflecting a 13.8% year-over-year growth, surpassing market estimates by $3.38 million, indicating robust financial performance.
- Q1 2026 Guidance: The company projects total revenue for Q1 2026 to be between $212.5 million and $216.5 million, compared to consensus of $209.49 million, representing a year-over-year growth of 12% to 14%, highlighting ongoing business growth potential.
- Full-Year Outlook: Q2 Holdings anticipates total revenue for 2026 to range from $871.0 million to $878.0 million, against a consensus of $873.31 million, indicating a projected year-over-year growth of 10%, reflecting confidence in future performance.
- Adjusted EBITDA Forecast: The company expects adjusted EBITDA for 2026 to be between $225.0 million and $230.0 million, representing 26% of total revenue, demonstrating a solid performance in profitability.
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Q2 Holdings Set to Release Q4 Earnings on February 11th
- Earnings Announcement Schedule: Q2 Holdings (QTWO) is set to announce its Q4 earnings on February 11th after market close, with consensus EPS estimate at $0.61 and revenue expected to reach $204.84 million, reflecting an 11.9% year-over-year growth, which will provide critical insights into the company's financial health.
- Performance Expectation Analysis: Over the past year, QTWO has not missed EPS estimates, achieving a 0% miss rate, while revenue estimates have been surpassed 100% of the time, indicating strong revenue growth despite challenges in profitability that still need addressing.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and no downward adjustments, while revenue estimates experienced two upward revisions and one downward, suggesting increased analyst confidence in the company's future performance amid current banking sector concerns.
- Market Sentiment and Investment Opportunity: Although QTWO's valuation remains high, analysts believe this is a favorable time to invest, arguing that fears surrounding the banking sector are overblown, potentially offering a good entry point for investors.
See More
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- One-on-One Meeting Setup: Investors are encouraged to pre-register and run system checks to expedite participation and receive event updates, ensuring smooth scheduling of 1x1 meetings with management, thereby enhancing investor relations management efficiency.
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Q2 Holdings Reports Strong 2025 Performance with Record Bookings
- 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.
See More
Q2 Holdings Q4 Earnings Beat Expectations, 2026 Outlook Positive
- Strong Earnings Report: Q2 Holdings reported a Q4 GAAP EPS of $0.31, beating expectations by $0.08, with revenue of $208.22 million reflecting a 13.8% year-over-year growth, surpassing market estimates by $3.38 million, indicating robust financial performance.
- Q1 2026 Guidance: The company projects total revenue for Q1 2026 to be between $212.5 million and $216.5 million, compared to consensus of $209.49 million, representing a year-over-year growth of 12% to 14%, highlighting ongoing business growth potential.
- Full-Year Outlook: Q2 Holdings anticipates total revenue for 2026 to range from $871.0 million to $878.0 million, against a consensus of $873.31 million, indicating a projected year-over-year growth of 10%, reflecting confidence in future performance.
- Adjusted EBITDA Forecast: The company expects adjusted EBITDA for 2026 to be between $225.0 million and $230.0 million, representing 26% of total revenue, demonstrating a solid performance in profitability.
See More
Q2 Holdings Set to Release Q4 Earnings on February 11th
- Earnings Announcement Schedule: Q2 Holdings (QTWO) is set to announce its Q4 earnings on February 11th after market close, with consensus EPS estimate at $0.61 and revenue expected to reach $204.84 million, reflecting an 11.9% year-over-year growth, which will provide critical insights into the company's financial health.
- Performance Expectation Analysis: Over the past year, QTWO has not missed EPS estimates, achieving a 0% miss rate, while revenue estimates have been surpassed 100% of the time, indicating strong revenue growth despite challenges in profitability that still need addressing.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and no downward adjustments, while revenue estimates experienced two upward revisions and one downward, suggesting increased analyst confidence in the company's future performance amid current banking sector concerns.
- Market Sentiment and Investment Opportunity: Although QTWO's valuation remains high, analysts believe this is a favorable time to invest, arguing that fears surrounding the banking sector are overblown, potentially offering a good entry point for investors.
See More
Microsoft and 18 Other Software Firms Poised for Resilience
Market Impact: The software sector has experienced a $2 trillion loss due to concerns over potential disruptions from artificial intelligence technology.
Investment Perspective: Analysts at J.P. Morgan view this downturn as a buying opportunity and have identified several AI-resistant companies, including Microsoft and CrowdStrike.
See More
Microsoft and CrowdStrike Top List of 19 Stocks Resilient to AI Changes
Market Impact: The software sector has experienced a significant decline, losing approximately $2 trillion due to concerns over potential disruptions from artificial intelligence technology.
Investment Perspective: Analysts at J.P. Morgan view this downturn as a potential buying opportunity and have identified a list of companies that are resistant to AI-related disruptions.
See More
Precious Metals & Critical Minerals Virtual Investor Conference Announced
- Conference Agenda Released: The Precious Metals & Critical Minerals Virtual Investor Conference is scheduled for February 10-12, inviting individual and institutional investors to participate at no cost, aiming to broaden the investor base and facilitate company strategy communication.
- One-on-One Meeting Setup: Investors are encouraged to pre-register and run system checks to expedite participation and receive event updates, ensuring smooth scheduling of 1x1 meetings with management, thereby enhancing investor relations management efficiency.
- Diverse Industry Participants: The conference will feature multiple companies in the precious metals and critical minerals sector, including Valkea Resources and Cabral Gold, showcasing innovations and developments within the industry to attract investor interest and investment.
- Enhanced Investor Engagement: Virtual Investor Conferences provide a real-time interactive platform that helps companies connect with investors more efficiently, improving their presentation capabilities and communication effectiveness, thus driving higher investor participation and market awareness.
See More
