What guidance did Q2 Holdings's management provide for the next earnings period?

What does Q2 Holdings do and what are its main business segments?

What is Q2 Holdings's latest dividend and current dividend yield?

Did Q2 Holdings beat or miss consensus estimates last quarter?

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What were the key takeaways from Q2 Holdings's earnings call?

What is Q2 Holdings's gross profit margin?

What factors drove the changes in Q2 Holdings's revenue and profit?

- **Revenue Growth**: 14% full year, 16% Q4 subscription, ARR up 12% to $921M. 2026 guidance: 10% revenue growth, 26% EBITDA margin.
- **AI Integration**: Early internal efficiency wins, long-term growth driver in fraud and commercial banking.
- **Free Cash Flow**: 93% conversion in 2025, targeting 70%+ in 2026. 2030 targets: 65% gross margin, 35% EBITDA margin.
- **M&A Dominance**: 93% retention, Q2 as go-forward solution in 93% of M&A deals.

**CEO Summary Section**
- **Revenue Growth**: Q4 subscription revenue up 16% YoY, full year 14% growth, with 82% of total revenue from subscription. ARR reached $921 million (+12% YoY), driven by new customer wins and expansions.
- **Pipeline Momentum**: 26 Tier 1/deals in 2025, 93% retention in M&A, with Q2 as the go-forward solution. Q4 bookings included $200B bank deal and top 5 fraud deal.
- **AI Strategy**: Integrating AI into core operations for efficiency, with early wins in developer tools and customer support. Long-term vision for AI-driven growth in fraud, commercial banking, and back-office tasks.

**CFO Financial Commentary**
- **Financial Highlights**: Q4 revenue $208.2M (+14% YoY), adjusted EBITDA $51.2M (+36% YoY). Full year free cash flow $173M (93% conversion rate). 2026 guidance: revenue $871-878M (+10%), EBITDA $225-230M.
- **Margin Expansion**: Gross margin 58.6% (up 200bps YoY), operating expenses 37.9% of revenue (down 4.3pts YoY). 2030 targets: 65% gross margin, 35% EBITDA margin.
- **Cash Allocation**: $433M cash on hand, $5M share buybacks. Prioritize free cash flow generation over M&A.

**Q&A Key Highlights**
- **M&A Activity**: 93% retention in M&A, with Q2 as the go-forward solution. 2026 pipeline includes large Tier 1 deals skewed to H2.
- **AI Efficiency**: Early wins in internal processes (e.g., developer tools, support). Long-term AI-driven margin expansion expected post-2027.
- **Fraud Tech Growth**: Cross-sell opportunities in existing digital banking base (10% penetration of full Q2 suite). Fraud revenue growth outpacing digital banking.
- **Cloud Migration**: Completed data center exit, driving 2026 gross margin >60%. Elasticity optimizations in 2027+ for further cost savings.


Q2 Holdings, Inc. (QTWO) Q4 2025 Earnings Call Transcript

- **Revenue & Profit Growth**: Q3 revenue $202M (+15% YoY), EBITDA $49M (+50% YoY), with 2025 full-year guidance raised to $789-793M.
- **AI-Driven Innovation**: Showcased AI solutions for fraud, customer service, and developer tools, positioning Q2 as a trusted AI partner for banks.
- **Subscription Momentum**: Subscription ARR $745M (+14% YoY), with 13.5% 2026 growth target and 60%+ gross margin outlook.
- **Leadership Reorg**: COO and CBO roles created to accelerate AI adoption and product innovation, aligning teams for 2026+ growth.
- **Free Cash Flow**: Q3 free cash flow $37M, with 2026 conversion >90%, supporting buyback program and strategic investments.

**【CEO Summary Section】**
- **Record Q3 Financials**: Revenue of $202 million (+15% YoY), adjusted EBITDA of $49 million (24.2% margin), and free cash flow of $37 million.
- **Strong Bookings**: 7 Tier 1 and enterprise wins, including net new customers, driving the best third-quarter bookings in company history.
- **AI Innovation**: Showcased AI Copilot, AI-assisted coding, and a unified data ecosystem at Dev Days, positioning Q2 as a partner for banks adopting AI responsibly.
- **Leadership Changes**: Hima Mukkamala appointed COO, Kirk Coleman as CBO, aligning teams for AI-driven growth and product innovation.

**【CFO Financial Commentary】**
- **Revenue Growth**: Subscription revenue at 82% of total, up 18% YoY, with ARR reaching $888 million (+12% YoY).
- **Profitability**: Gross margin 57.9% (up 1.9ppts YoY), adjusted EBITDA of $48.8 million (+50% YoY), and free cash flow conversion >90%.
- **Guidance Update**: Full-year 2025 revenue $789-793 million (+13-14% YoY), EBITDA $182.5-185.5 million. 2026 outlook: 13.5% sub revenue growth, 60%+ gross margin, 250bps EBITDA margin expansion.
- **Capital Allocation**: $150M share buyback authorized, prioritizing debt repayment and strategic investments.

**【Q&A Highlights】**
- **AI Adoption**: Banks prioritize AI for fraud detection and customer experience, with Q2 leveraging its data scale and compliance expertise.
- **M&A Impact**: 2025 M&A activity supports services revenue, with Q2 winning post-merger tech stacks for combined banks.
- **Cross-Sell Opportunities**: 90% of Tier 1 customers use 1-2 products, with 10% using all three (retail, commercial, relationship pricing), driving long-term sub revenue growth.
- **Gross Margin Levers**: Cloud migration completion in early 2026 will reduce costs and improve elasticity in cloud operations.
- **Pricing Discipline**: No material change in pricing strategy; Q2 focuses on value-based selling to maintain margins.

Q2 Holdings, Inc. (QTWO) Q3 2025 Earnings Call Transcript

- **Record Financials**: Q2 revenue ($195M) and EBITDA ($46M) beat high end of guidance, with 13% YoY revenue growth. 
- **Gross Margin Expansion**: 57.5% gross margin (+180bps YoY), targeting +200bps full year expansion. 
- **Subscription Growth**: Subscription ARR up 13% YoY to $716M, with 16%+ YoY growth expected for 2025. 
- **Strategic Wins**: 6 Tier 1 customer wins, 2 M&A-related bookings, and ERP integration product launch. 
- **Fraud Innovation**: 85%+ customers using Innovation Studio for fraud solutions, with AI-driven Enhanced Payee Match. 
- **Free Cash Flow**: Raised conversion target to 90% for 2025 and 2026, with strong H2 cash flow outlook. 


**【CEO Summary Section】**
- **Revenue and Profit Growth**: Q2 revenue of $195 million (+13% YoY), adjusted EBITDA of $46 million (+53% YoY), and free cash flow of $42 million. 
- **Key Wins**: 6 Tier 1 customer wins (mix of net new and expansion), plus 2 M&A-related bookings equivalent to Tier 1 deals. 
- **Fraud Innovation**: Launched Enhanced Payee Match AI solution to detect check/ACH fraud, with 85%+ customers using Innovation Studio for fraud solutions. 
- **Commercial Expansion**: Announced ERP integration product to embed digital banking into corporate reconciliation workflows. 
- **Pipeline Strength**: Solid H2 pipeline with enterprise deals expected to dominate back half of 2025. 

**【CFO Financial Commentary】**
- **Revenue Mix**: Subscription revenue at 81% of total, growing 16% YoY. Services revenue down 3% YoY but expected to stabilize post-First Republic impact. 
- **Gross Margin**: 57.5% (up 180bps YoY), with 200+bps full year expansion driven by cloud migration completion by Q1 2026. 
- **Free Cash Flow**: $42M in Q2, raising full year conversion target to 90% (vs 85% prior). 
- **Updated Guidance**: 
  - Revenue: $783-788M (12-13% YoY growth) 
  - Subscription Revenue: ≥16% YoY growth 
  - Adjusted EBITDA: $177-181M (23% of revenue) 

**【Q&A Key Highlights】**
- **Demand Environment**: Pipeline remains strong, with enterprise deals expected to accelerate in H2. 
- **Fraud Penetration**: 100+ standalone Centrix clients, with native fraud solutions in all digital banking customers. 
- **Churn Management**: Q2 saw higher-than-normal churn but expect lower levels in H2. 
- **Cloud Migration**: Gross margin expansion to continue through 2025, with full year +200bps target. 
- **M&A Strategy**: Disciplined approach to high-quality targets, with 94% retention rate in M&A scenarios. 
- **Innovation Studio**: 85%+ adoption rate, driving high-margin revenue growth through partner integrations. 


Q2 Holdings, Inc. (QTWO) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: Q1 2025 revenue up 15% YoY to $189.7 million, driven by 18% YoY subscription growth.
- **Key Deals**: Signed Tier 1 relationship pricing deal and expanded fraud solutions with a top 50 U.S. bank.
- **Profitability**: Adjusted EBITDA of $40.7 million (61% YoY growth), gross margin 57.9% (up 300bps YoY).
- **Renewal Strength**: Renewed 3 top 10 customers, with similar 2025-2026 renewal opportunities as 2023-2024.
- **Fraud Focus**: Fraud solutions drive expansion, with 40% of top credit unions using Q2 products.
- **Guidance Update**: 2025 revenue $776-783 million (11-12% growth), subscription growth raised to 15.5%+ YoY.

**【CEO Summary Section】**
- Q1 2025 revenue reached $189.7 million, up 15% YoY, driven by subscription-based growth and enterprise/Tier 1 deals.
- Signed a Tier 1 relationship pricing deal with a bank to enhance commercial lending and deposit profitability.
- Renewed 3 of the top 10 customers across digital banking, Helix, and PrecisionLender, highlighting strong customer retention.
- Fraud solutions saw significant expansion, with a top 50 U.S. bank adding equivalent bookings of a Tier 1 digital banking deal.
- Emphasized durability of business due to mission-critical products and focus on deposit gathering in macroeconomic uncertainty.

**【CFO Financial Commentary】**
- Total revenue: $189.7 million (15% YoY growth), with subscription revenue at 81% of total, up 18% YoY.
- Adjusted EBITDA: $40.7 million (21.5% of revenue), up 61% YoY.
- Free cash flow: $37.8 million, exceeding seasonal patterns due to favorable customer invoicing timing.
- Gross margin: 57.9% (up 300bps YoY), driven by higher-margin subscription mix.
- Updated 2025 guidance: Revenue $776-783 million (11-12% YoY growth), adjusted EBITDA $170-175 million (22% of revenue).
- Subscription revenue growth raised to at least 15.5% YoY.

**【Q&A Key Highlights】**
- **Fraud Penetration**: Fraud solutions are key differentiators, with expansion opportunities across net new and existing customers. Credit unions (40% of top 100) prioritize commercial lending and fraud protection.
- **Renewal Momentum**: 2025-2026 renewal opportunities match 2023-2024 levels, with 3 largest renewals in Q1 (digital banking, Helix, PrecisionLender).
- **Gross Margin Outlook**: 60%+ achievable by 2026 via cloud migration, pricing, and cost efficiency.
- **Cash Flow Strength**: Q1 free cash flow exceeded seasonal trends; expect H2 2025 to exceed H1 conversion rates.
- **Innovation Studio**: Drives differentiation with partners like Alloy, enabling rapid feature deployment (e.g., 3x digital engagement at United Federal Credit Union).
- **Macroeconomic Resilience**: Customers maintain focus on deposits, fraud, and relationship pricing despite macro uncertainty; Q1 pipeline growth supports full-year outlook.

Q2 (QTWO)-7 May 25-2025 Q1 Earnings call transcript

- **Revenue & Profit Growth**: Q4 2024 non-GAAP revenue +13% YoY, adjusted EBITDA +62% YoY. Full year EBITDA margin expanded 570bps to 18.0%.
- **Subscription Momentum**: Subscription ARR +15% YoY to $682M, 79% of total revenue. 2025 sub rev growth guided at 15%+.
- **Customer Loyalty**: Renewal bookings +80% YoY, 10% of digital banking customers renewed in Q4. Gross margin 57.4% (Q4) vs 56% prior year.
- **Fraud & Innovation**: Fraud solutions fastest-growing product set. Q2 Innovation Studio bookings doubled YoY, cited in 90% of 2024 wins.
- **2026 Outlook**: Free cash flow >85% of EBITDA, sub rev growth 13%+, EBITDA margin expansion 360bps over 3 years.


**【CEO Summary Section】**
- **Revenue Growth**: Q4 2024 non-GAAP revenue of $183 million, up 13% YoY and 5% sequentially. Full year revenue reached $696.5 million, +11% YoY.
- **Booking Success**: Q4 bookings were the strongest in company history, with 7 Tier 1 enterprise deals and record cross-sell/renewal activity. Full year Tier 1 enterprise deals reached 25, a record high.
- **Customer Retention**: Renewal bookings grew 80% YoY, with Q4 representing 10% of total digital banking customers renewed. Gross margin improved to 57.4% (Q4) and 56% (full year), up 150bps YoY.
- **Product Momentum**: Fraud solutions saw fastest growth, driven by heightened regulatory focus. Relationship pricing (PrecisionLender) expanded beyond loans to treasury services, with 90% of 2024 wins citing Q2 Innovation Studio as a key factor.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA of $37.6 million (Q4) and $125.3 million (full year), up 62% and 63% YoY. EBITDA margin expanded 570bps to 18.0%.
- **Subscription Growth**: Subscription ARR reached $682 million (+15% YoY), driving 79% of total revenue. Full year subscription NRR was 114%, up from 112% in 2023.
- **Cash Flow**: Free cash flow of $107 million (full year), 85% of adjusted EBITDA, driven by operational efficiency and working capital management.
- **2025 Guidance**: Revenue $772-779 million (+11-12% YoY). Adjusted EBITDA $165-170 million (21-22% of revenue). Updated 3-year framework: avg. sub rev growth 15%, EBITDA margin expansion 360bps, 2026 free cash flow >85% conversion.

**【Q&A Key Highlights】**
- **Wells Fargo Deal**: Live within 1 year, part of 9/15 largest banks using PrecisionLender. No direct commercial/digital banking synergy, but shared customer trust.
- **Pipeline Dynamics**: 2025 pipeline balanced between Tier 1 enterprise and Tier 2/3 volume. 50% of $5B+ digital banking customers use only one product (commercial or retail), presenting $200M+ cross-sell opportunity.
- **Fraud Growth**: 2024 fraud bookings growth fastest in company history, driven by digital adoption and $4 in costs per $1 fraud. Single-platform analytics provide competitive advantage.
- **M&A Strategy**: CapEx-light business; M&A remains optionality, but focused on strategic fit and valuation discipline.
- **Regulatory Impact**: Deregulation may reduce bank operational burden, indirectly benefiting Q2 through increased focus on digital transformation.


Actual											-0.09	0.07	0.07	0.02	0.1	0.09	0.03	0.1	0.03	0.07	0.1	0.06	0.1878	0.1835	0.2113	0.2697	0.3128	0.3813	0.2617	0.4819	0.5407	0.5018	0.6552	0.6266
Forecast											-0.12	-0.0205	0.0561	0.0445	0.0831	0.0732	0.038	0.047	0.0594	0.0524	0.0406	0.1173	0.0785	0.1327	0.1841	0.2412	0.2715	0.3125	0.3566	0.4758	0.4685	0.5288	0.5553	0.6054
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+25.00%	+441.46%	+24.78%	-55.06%	+20.34%	+22.95%	-21.05%	+112.77%	-49.49%	+33.59%	+146.31%	-48.85%	+139.24%	+38.28%	+14.77%	+11.82%	+15.21%	+22.02%	-26.61%	+1.28%	+15.41%	-5.11%	+17.99%	+3.50%

QTWO

QTWO fundamentals

QTWO Q4 2025 Earnings

Earnings Call

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QTWO

QTWO fundamentals

QTWO Q4 2025 Earnings

Earnings Call

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You can ask Aime