Business Description
Q2 Holdings, Inc. is a provider of secure, cloud-based digital banking solutions for regional and community financial institutions, credit unions, and fintechs. Headquartered in Austin, Texas, the company offers a comprehensive software platform that enables clients to deliver online and mobile banking, account opening, and lending services. Its single-codebase architecture allows financial institutions to unify retail, small business, and commercial banking experiences.
Financial Statements
In thousands, USD
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Total Revenues | 794,809 | 696,464 | 624,624 | 565,673 |
| Cost of Sales | 365,126 | 341,983 | 321,973 | 309,328 |
| Gross Profit | 429,683 | 354,481 | 302,651 | 256,345 |
| Sales and Marketing | 105,858 | 105,951 | 109,522 | 108,214 |
| Research and Development | 154,330 | 143,244 | 137,334 | 130,103 |
| General and Administrative | 125,513 | 122,942 | 110,186 | 90,163 |
| Transaction-Related Costs | 166 | — | 24 | 1,176 |
| Amortization of Acquired Intangibles | 93 | 16,979 | 20,667 | 18,248 |
| Lease and Other Restructuring Charges | 3,826 | 7,628 | 10,975 | 13,202 |
| Operating Profit | 39,897 | (42,263) | (86,057) | (104,761) |
| Interest and Other Income | 20,237 | 16,342 | 10,098 | 5,362 |
| Interest and Other Expense | (5,409) | (4,939) | (5,732) | (6,676) |
| Gain on Extinguishment of Debt | — | — | 19,869 | — |
| Income Before Provision for Income Taxes | 54,725 | (30,860) | (61,822) | (106,075) |
| Provision for Income Taxes | (2,717) | (7,676) | (3,562) | (2,908) |
| Consolidated Net Income | 52,008 | (38,536) | (65,384) | (108,983) |
| Basic EPS | 0.84 | (0.64) | (1.12) | (1.90) |
| Diluted EPS | 0.80 | (0.64) | (1.12) | (1.90) |
| Basic Weighted Average Shares Outstanding | 62,156 | 60,105 | 58,354 | 57,300 |
| Diluted Weighted Average Shares Outstanding | 65,118 | 60,105 | 58,354 | 57,300 |
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Cash and Cash Equivalents | 367,631 | 358,560 | 229,655 | 199,600 |
| Total Cash and Cash Equivalents | 367,631 | 358,560 | 229,655 | 199,600 |
| Accounts Receivable | 51,716 | 42,084 | 42,899 | 46,735 |
| Other Receivables | 8,596 | 7,888 | 9,193 | 8,909 |
| Total Trade Receivables | 60,312 | 49,972 | 52,092 | 55,644 |
| Other Current Assets | 128,109 | 150,128 | 146,217 | 275,832 |
| Total Current Assets | 556,052 | 558,660 | 427,964 | 531,076 |
| Net Property, Plant & Equipment | 54,971 | 61,930 | 76,631 | 96,532 |
| Net Intangible Assets | 78,377 | 94,633 | 121,572 | 145,681 |
| Goodwill | 512,869 | 512,869 | 512,869 | 512,869 |
| Other Long-Term Assets | 74,008 | 66,703 | 62,389 | 63,568 |
| Total Assets | 1,276,277 | 1,294,795 | 1,201,425 | 1,349,726 |
| Accounts Payable | 20,473 | 9,354 | 19,353 | 10,055 |
| Accrued Expenses | 56,326 | 51,188 | 43,051 | 44,208 |
| Current Portion of Long-Term Debt | 303,368 | — | — | 10,903 |
| Current Portion of Leases | 8,915 | 137,700 | 10,436 | 9,408 |
| Unearned Revenue | 155,003 | 190,331 | 118,723 | 117,468 |
| Total Current Liabilities | 544,085 | 10,327 | 191,563 | 192,042 |
| Long-Term Debt | — | 398,900 | 490,464 | 657,789 |
| Leases | 33,832 | 27,281 | 45,588 | 52,991 |
| Other Long-Term Liabilities | 36,549 | 340,461 | 25,331 | 27,880 |
| Total Long-Term Liabilities | 70,381 | 766,642 | 561,383 | 738,660 |
| Total Liabilities | 614,466 | 10,357 | 752,946 | 930,702 |
| Common Stock | 6 | 6 | 6 | 6 |
| Additional Paid-in Capital | 1,275,980 | 1,183,893 | 1,075,278 | 982,300 |
| Accumulated Other Comprehensive Income | (1,953) | (1,873) | (1,111) | (2,972) |
| Retained Earnings | (612,222) | (664,230) | (625,694) | (560,310) |
| Total Common Shareholders' Equity | 661,811 | 517,796 | 448,479 | 419,024 |
| Total Shareholders' Equity | 661,811 | 517,796 | 448,479 | 419,024 |
| Total Liabilities and Shareholders' Equity | 1,276,277 | 1,294,795 | 1,201,425 | 1,349,726 |
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Net Income | 52,008 | (38,536) | (65,384) | (108,983) |
| Depreciation & Amortization | 57,124 | 94,657 | 125,131 | 84,929 |
| Share-Based Compensation Expense | 86,949 | 89,215 | 79,188 | 65,157 |
| Other Adjustments | 2,988 | 4,071 | (15,378) | 15,947 |
| Changes in Trade Receivables | (9,936) | 906 | 4,090 | 286 |
| Changes in Accounts Payable | 8,581 | (9,788) | 9,353 | (548) |
| Changes in Accrued Expenses | 1,851 | 5,968 | (492) | (9,845) |
| Changes in Unearned Revenue | 16,840 | 28,918 | (3,092) | 10,212 |
| Changes in Other Operating Activities | (41,244) | (40,850) | (35,548) | (20,599) |
| Cash from Operating Activities | 201,461 | 135,751 | 70,292 | 36,556 |
| Capital Expenditure | (6,810) | (6,692) | (5,673) | (11,142) |
| Purchases of Intangible Assets | (21,283) | (22,339) | (24,970) | (18,910) |
| Purchases of Investments | (94,103) | (95,788) | (76,865) | (292,984) |
| Proceeds from Sale of Investments | 118,168 | 103,739 | 220,776 | 162,521 |
| Payments for Business Acquisitions | — | — | — | (5,040) |
| Cash from Investing Activities | (4,028) | (21,080) | 113,268 | (165,555) |
| Repayments of Long-Term Debt | (191,000) | (10,908) | (149,640) | — |
| Net Issuance / (Repayments) of Long-Term Debt | (191,000) | (10,908) | (149,640) | — |
| Issuance of Common Shares | 7,028 | 14,259 | 8,397 | 5,882 |
| Repurchases of Common Shares | (5,000) | — | — | — |
| Net Issuance / (Repurchases) of Common Shares | 2,028 | 14,259 | 8,397 | 5,882 |
| Other Financing Activities | (803) | — | — | — |
| Cash from Financing Activities | (188,972) | 13,317 | (152,012) | 5,882 |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | 49 | (827) | 182 | (802) |
| Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash | 8,510 | 127,161 | 31,730 | (123,919) |
Key Metrics & Ratios
| Metric | Value |
|---|---|
| Market Cap | $4.53B |
| P/E | 90.20x |
| P/S | 5.70x |
| EV/EBITDA | 46.44x |
| Return on Equity | 8.8% |
| Return on Invested Capital | 4.4% |
| Current Ratio | 1.02x |
| Free Cash Flow Margin | 24.5% |
Margins
Gross margin
54.1%
Operating margin
5.0%
Net margin
6.5%
Quarterly Trend
| Quarter | Revenue | YoY growth | Operating margin | Operating income |
|---|---|---|---|---|
| Q2 2026 | $220M | +12.6% | 13.4% | $29M |
| Q1 2026 | $217M | +14.1% | 12.8% | $28M |
| Q4 2025 | $208M | +13.8% | 8.1% | $17M |
| Q3 2025 | $202M | +15.2% | 5.5% | $11M |
| Q2 2025 | $195M | — | 5.0% | $10M |
| Q1 2025 | $190M | — | 1.2% | $2M |
| Q4 2024 | $183M | — | -0.9% | $-2M |
| Q3 2024 | $175M | — | -7.3% | $-13M |
More on Q2 Holdings, Inc.
Figures compiled from public company filings.
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