Q2 Holdings Exceeds Q2 Revenue Expectations, Raises Guidance

Q2 Holdings reported Q2 CY2025 results with sales up 12.9% YoY to $195.1 million, beating market expectations. The company provided encouraging quarterly revenue guidance of $198 million, a 1.6% increase above analysts' estimates. Q2 Holdings' GAAP profit of $0.18 per share was 77.5% above analysts' consensus estimates.

Q2 Holdings, a digital transformation solutions provider for financial services, reported its Q2 CY2025 results, showing significant growth in revenue and profitability. The company's sales increased by 12.9% year-over-year (YoY) to $195.1 million, surpassing market expectations. This growth was driven by multiple factors, including contract expansions, increased demand for risk and fraud solutions, and a substantial increase in backlog.

The company's adjusted EBITDA for Q2 CY2025 was $45.80 million, beating consensus estimates by $3.10 million. However, the adjusted EPS for the quarter missed analyst expectations, with the actual EPS of $0.18 per share falling short of the consensus estimate of $0.52 per share by $0.34 per share.

Looking ahead, Q2 Holdings provided encouraging quarterly revenue guidance, expecting sales of $198 million in Q3 CY2025, a 1.6% increase above analysts' estimates. The company also expects its adjusted EBITDA for Q3 CY2025 to be between $44 million and $47 million, and its full-year revenue to be between $783 million and $788 million.

The company's stock recently traded at 38 times the next 12-month earnings, slightly higher than its P/E of 37 three months ago. The current average analyst rating on the shares is "buy," with a breakdown of 11 "strong buy" or "buy" recommendations, 5 "hold" recommendations, and no "sell" or "strong sell" recommendations.

Reference List:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXE9396E:0-q2-holdings-q2-adjusted-eps-misses-estimates/
[2] https://finance.yahoo.com/news/meta-nasdaq-meta-beats-expectations-201815915.html