Q2 Holdings (QTWO - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Q2 Holdings is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Q2 Holdings, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Q2 HoldingsFor the fiscal year ending December 2026, this provider of online banking software is expected to earn $2.70 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Q2 Holdings. Over the past three months, the Zacks Consensus Estimate for the company has increased 9.8%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Q2 Holdings to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Arrowstreet Capital Limited Partnership grew its holdings in shares of Q2 Holdings, Inc. (NYSE:QTWO – Free Report) by 139.1% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 516,246 shares of the technology company’s stock after buying an additional 300,375 shares during the period. Arrowstreet Capital Limited Partnership owned 0.82% of Q2 worth $24,418,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds and other institutional investors have also made changes to their positions in QTWO. Capital Research Global Investors lifted its position in shares of Q2 by 86.2% during the 4th quarter. Capital Research Global Investors now owns 3,141,044 shares of the technology company’s stock worth $226,658,000 after buying an additional 1,454,076 shares during the last quarter. UBS Group AG increased its position in shares of Q2 by 343.5% during the third quarter. UBS Group AG now owns 1,009,946 shares of the technology company’s stock worth $73,110,000 after purchasing an additional 782,220 shares in the last quarter. Assenagon Asset Management S.A. lifted its holdings in shares of Q2 by 119.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 1,210,419 shares of the technology company’s stock valued at $57,253,000 after purchasing an additional 657,707 shares during the last quarter. Norges Bank purchased a new stake in shares of Q2 in the 4th quarter valued at about $44,960,000. Finally, William Blair Investment Management LLC boosted its position in shares of Q2 by 25.9% in the 4th quarter. William Blair Investment Management LLC now owns 2,694,718 shares of the technology company’s stock valued at $194,451,000 after purchasing an additional 553,713 shares during the period.
Analyst Ratings Changes A number of research analysts recently issued reports on the company. DA Davidson restated a “buy” rating and set a $82.00 price target on shares of Q2 in a research note on Thursday, July 23rd. Robert W. Baird set a $74.00 price objective on Q2 in a research note on Thursday, April 30th. Weiss Ratings reissued a “hold (c-)” rating on shares of Q2 in a report on Friday, July 17th. Stifel Nicolaus set a $70.00 target price on shares of Q2 in a research report on Thursday, April 30th. Finally, UBS Group set a $77.00 target price on shares of Q2 in a report on Thursday, April 30th. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $73.45.
Get Our Latest Research Report on QTWO
Q2 Trading Up 1.7% Shares of QTWO stock opened at $60.22 on Thursday. The company has a market capitalization of $3.77 billion, a P/E ratio of 53.77 and a beta of 1.33. The business’s 50 day moving average is $49.01 and its two-hundred day moving average is $51.51. Q2 Holdings, Inc. has a twelve month low of $40.79 and a twelve month high of $92.04.
Q2 (NYSE:QTWO – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The technology company reported $0.70 EPS for the quarter, topping the consensus estimate of $0.68 by $0.02. Q2 had a return on equity of 14.68% and a net margin of 8.99%.The business had revenue of $219.77 million during the quarter, compared to analysts’ expectations of $216.86 million. During the same quarter in the prior year, the business earned $0.18 earnings per share. The company’s quarterly revenue was up 12.6% compared to the same quarter last year. As a group, equities analysts predict that Q2 Holdings, Inc. will post 1.64 earnings per share for the current fiscal year.
Q2 Company Profile (Free Report)
Q2 Holdings, Inc develops and delivers cloud-based digital banking solutions that enable banks and credit unions to enhance customer and member experiences. The company’s core offerings include the Q2 Platform, a comprehensive suite of online and mobile banking applications for retail and commercial customers, as well as digital onboarding, payments, and fraud prevention tools. Q2’s platform also provides analytics and reporting capabilities designed to help financial institutions tailor products, optimize workflows, and drive engagement.
Founded in 2004 and headquartered in Austin, Texas, Q2 serves hundreds of financial institutions across the United States and Canada.
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Bank of New York Mellon Corp cut its holdings in Q2 Holdings, Inc. (NYSE:QTWO – Free Report) by 3.0% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 430,562 shares of the technology company’s stock after selling 13,275 shares during the quarter. Bank of New York Mellon Corp owned about 0.69% of Q2 worth $20,366,000 at the end of the most recent quarter.
Other large investors also recently added to or reduced their stakes in the company. Root Financial Partners LLC bought a new position in shares of Q2 during the 1st quarter valued at $25,000. Headlands Technologies LLC acquired a new stake in shares of Q2 in the 2nd quarter valued at $26,000. Measured Wealth Private Client Group LLC bought a new stake in Q2 in the third quarter worth $26,000. Caitong International Asset Management Co. Ltd acquired a new position in Q2 during the fourth quarter worth $27,000. Finally, Quarry LP increased its position in Q2 by 92.5% during the third quarter. Quarry LP now owns 697 shares of the technology company’s stock worth $50,000 after buying an additional 335 shares during the last quarter.
Analysts Set New Price Targets Several equities analysts have weighed in on QTWO shares. Needham & Company LLC restated a “buy” rating and set a $70.00 target price on shares of Q2 in a report on Thursday, April 30th. Morgan Stanley set a $63.00 price target on Q2 in a research note on Thursday, April 30th. DA Davidson reissued a “buy” rating and set a $82.00 price objective on shares of Q2 in a report on Thursday, July 23rd. Weiss Ratings reissued a “hold (c-)” rating on shares of Q2 in a research note on Friday, July 17th. Finally, UBS Group set a $77.00 target price on Q2 in a report on Thursday, April 30th. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Q2 currently has an average rating of “Moderate Buy” and an average target price of $73.45.
View Our Latest Stock Analysis on Q2
Q2 Price Performance QTWO stock opened at $60.22 on Thursday. Q2 Holdings, Inc. has a 52-week low of $40.79 and a 52-week high of $92.04. The company has a 50-day moving average of $49.01 and a two-hundred day moving average of $51.51. The stock has a market capitalization of $3.77 billion, a price-to-earnings ratio of 53.77 and a beta of 1.33.
Q2 (NYSE:QTWO – Get Free Report) last released its earnings results on Wednesday, July 29th. The technology company reported $0.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.68 by $0.02. The firm had revenue of $219.77 million for the quarter, compared to analyst estimates of $216.86 million. Q2 had a return on equity of 14.68% and a net margin of 8.99%.The company’s revenue was up 12.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.18 EPS. Equities analysts expect that Q2 Holdings, Inc. will post 1.64 EPS for the current fiscal year.
Q2 Company Profile (Free Report)
Q2 Holdings, Inc develops and delivers cloud-based digital banking solutions that enable banks and credit unions to enhance customer and member experiences. The company’s core offerings include the Q2 Platform, a comprehensive suite of online and mobile banking applications for retail and commercial customers, as well as digital onboarding, payments, and fraud prevention tools. Q2’s platform also provides analytics and reporting capabilities designed to help financial institutions tailor products, optimize workflows, and drive engagement.
Founded in 2004 and headquartered in Austin, Texas, Q2 serves hundreds of financial institutions across the United States and Canada.
Read More Five stocks we like better than Q2 Why SK hynix Could Be the Best AI Chip Stock to Buy Now Seagate Technology Stock Surges as Earnings Beat Silences AI Doubters Alphabet Is Down 18% From Its High After a Stellar Quarter—Overdone, or More Downside Ahead? Why Bloom Energy May Be the Most Important AI Infrastructure Stock Want to see what other hedge funds are holding QTWO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Q2 Holdings, Inc. (NYSE:QTWO – Free Report).
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These 3 Fintech Stocks Offer High Risk/Reward Potential Q2 NYSE: QTWO reported second-quarter 2026 results above the high end of its guidance, citing subscription revenue growth, record adjusted EBITDA and continued demand for its digital banking, fraud, commercial banking and Relationship Pricing offerings.
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Revenue totaled $219.8 million, up 13% from a year earlier and 2% sequentially. Adjusted EBITDA reached a record $62.8 million, or 28.6% of revenue, while free cash flow was $51 million. The company raised its full-year outlook for revenue and adjusted EBITDA and increased its expected subscription revenue growth rate.
Subscription growth and margin expansion Why Q2 Holdings Stock Could Be Your Next Big BuyChief Financial Officer Jonathan Price said subscription-based revenue rose 15% year over year and represented 83% of total revenue at quarter-end. Revenue growth was driven primarily by new customer go-lives and expansions among existing customers.
Total annualized recurring revenue reached $971 million, up 13% from $861 million a year earlier and 3% from the first quarter. Subscription ARR increased 15% to $826 million. Ending backlog was $2.8 billion, increasing 17% year over year and 1% sequentially.
Non-subscription revenue was roughly flat from the prior-year period. Price said growth in transactional revenue was largely offset by continued pressure in discretionary professional-services offerings, a trend the company expects to persist.
Non-GAAP gross margin was 62.3%, up about 480 basis points year over year and 20 basis points sequentially. Price attributed the improvement in part to the completion of Q2’s cloud migration earlier this year and to a larger mix of higher-margin subscription revenue.
Operating expenses totaled $81.7 million, or 37.2% of revenue. The year-over-year increase was primarily related to higher research-and-development personnel costs supporting product and artificial-intelligence investments. Adjusted EBITDA grew 37% from the prior year, with margin expanding about 510 basis points.
Bookings, cross-selling and bank M&A Chief Executive Officer Matt Flake said the company recorded eight Tier 1 and enterprise wins across its portfolio during the quarter. He highlighted customer activity in digital banking, risk and fraud, and Relationship Pricing.
One top-25 U.S. bank expanded its relationship with Q2 by adopting its Relationship Pricing capabilities. The bank had initially selected Q2’s small-business and commercial digital banking products in 2023, then added risk and fraud products in 2025. Flake said the latest expansion demonstrated the company’s land-and-expand strategy and the potential to sell several product lines to large customers over time.
Flake also described a Tier 1 digital banking win tied to consolidation in the banking industry. A Q2 customer with approximately $2 billion in assets was acquired by a bank with approximately $9 billion in assets. Following a competitive review that included the acquiring bank’s incumbent provider, the combined institution chose Q2’s platform for the entire bank.
The company said banking-sector mergers and acquisitions can create opportunities whether a Q2 customer is the acquirer or the acquired institution, as the combined bank reassesses the technology it needs after a transaction.
AI products and fraud focus At its CONNECT 26 customer conference, Q2 introduced and demonstrated several AI-related offerings. Flake said customer conversations centered on practical applications that could improve banker productivity, speed the development of personalized digital experiences and strengthen fraud protection.
Q2 Assistant: An AI capability intended to help bankers use natural language to access information and navigate workflows within the digital banking platform. Q2 Code: An AI-assisted development capability that uses natural-language prompts and Q2’s software development kit to help customers, partners and Q2 teams build and customize digital experiences. Account Takeover: A fraud product that uses AI to monitor behavioral signals and user interactions, identify potential account compromise and intervene in real time. Flake said Q2 Assistant was the most frequently demonstrated item in the company’s exhibit hall at CONNECT. The Account Takeover product has already attracted a double-digit number of early-adopter customers, while Q2 Code and Q2 Assistant each had single-digit early-adopter participation at the time of the call.
The company expects the products to reach general availability in the fourth quarter. Price said revenue conversion from these products should be materially faster than a digital banking or Relationship Pricing implementation, though management said it was too early to provide specific revenue timing or financial contribution estimates.
Management also said the fraud portfolio is growing faster than the overall business and could continue to do so for years. Flake said Q2’s platform position across retail, small-business and commercial banking gives the company access to behavioral and transaction data that can help identify unusual activity.
Balance sheet, buybacks and outlook Q2 ended the quarter with $106 million in cash equivalents and investments, compared with $379 million at the end of the first quarter. The decline reflected repayment of $304 million in convertible notes at maturity and $23 million in share repurchases. With the June retirement of its final convertible notes tranche, Q2 ended the quarter debt-free.
The company repurchased approximately $125 million of stock under its existing $150 million authorization through the end of the quarter. Its board approved an additional $350 million repurchase authorization, bringing total available capacity to approximately $375 million.
For the third quarter, Q2 forecast revenue of $218.5 million to $222.5 million and adjusted EBITDA of $58.5 million to $61.5 million. For full-year 2026, the company projected revenue of $881 million to $886 million, representing approximately 11% growth, and adjusted EBITDA of $244 million to $248 million, or approximately 28% of revenue.
Q2 raised its full-year subscription revenue growth expectation to approximately 14.5% from a prior forecast of 14%. Price said the increase reflected year-to-date bookings strength and first-half subscription revenue performance.
About Q2 (NYSE:QTWO)Q2 Holdings, Inc develops and delivers cloud-based digital banking solutions that enable banks and credit unions to enhance customer and member experiences. The company's core offerings include the Q2 Platform, a comprehensive suite of online and mobile banking applications for retail and commercial customers, as well as digital onboarding, payments, and fraud prevention tools. Q2's platform also provides analytics and reporting capabilities designed to help financial institutions tailor products, optimize workflows, and drive engagement.
Founded in 2004 and headquartered in Austin, Texas, Q2 serves hundreds of financial institutions across the United States and Canada.
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Q2 Holdings (QTWO - Free Report) came out with quarterly earnings of $0.7 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.48%. A quarter ago, it was expected that this provider of online banking software would post earnings of $0.71 per share when it actually produced earnings of $0.63, delivering a surprise of -11.27%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Q2 Holdings, which belongs to the Zacks Internet - Software industry, posted revenues of $219.77 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $195.15 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Q2 Holdings shares have lost about 17.9% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Q2 Holdings?While Q2 Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Q2 Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.67 on $219.92 million in revenues for the coming quarter and $2.61 on $879.07 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Compass, Inc. (COMP - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.
This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +28.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Compass, Inc.'s revenues are expected to be $4.1 billion, up 99.3% from the year-ago quarter.
For the quarter ended June 2026, Q2 Holdings (QTWO - Free Report) reported revenue of $219.77 million, up 12.6% over the same period last year. EPS came in at $0.70, compared to $0.50 in the year-ago quarter.
The reported revenue represents a surprise of +1.26% over the Zacks Consensus Estimate of $217.02 million. With the consensus EPS estimate being $0.67, the EPS surprise was +4.48%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Q2 Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Subscription: $182.77 million versus the three-analyst average estimate of $182.12 million.Revenue- Services and other: $19.07 million versus the three-analyst average estimate of $18.62 million.Revenue- Transactional: $17.92 million versus the three-analyst average estimate of $16.23 million.View all Key Company Metrics for Q2 Holdings here>>>
Shares of Q2 Holdings have returned +23.2% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
AUSTIN, Texas--(BUSINESS WIRE)--Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services, today announced results for its second quarter ending June 30, 2026. GAAP Results for the Second Quarter 2026 Revenues of $219.8 million, up by 13 percent compared to the prior-year quarter and 2 percent from first quarter 2026. GAAP gross margin of 59.2 percent, up from 53.6 percent in the prior-year quarter and 59.1 percent in first quarter 2026. GAAP.
On July 22, 2026, Q2 Holdings Inc (QTWO) shares fell 4.1% to a current price of $52.86. This decline occurred against a backdrop of a 52-week range between $40.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
AUSTIN, Texas--(BUSINESS WIRE)--Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services, will release its financial results for the second quarter 2026 after market close on Wednesday, July 29, 2026. Q2 will host a corresponding conference call at 5:00 p.m. EDT on Wednesday, July 29, 2026. Conference Call Details Date: Wednesday, July 29, 2026 Time: 5:00 p.m. EDT Hosts: Matt Flake, Chairman, President & CEO / Jonathan Price, CFO We.
Q2 Holdings (QTWO) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
New solution addresses a critical industry gap by automating treasury implementation, enabling banks and credit unions to scale growth and accelerate time to revenue
AUSTIN, Texas--(BUSINESS WIRE)--Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for financial services, today announced Q2 Treasury Fulfillment, a solution designed to modernize and streamline how banks and credit unions onboard and implement treasury services for commercial clients.
As financial institutions face increasing pressure to grow deposits and deepen commercial relationships, the treasury onboarding experience has become a critical point of differentiation, yet many institutions still rely on fragmented, manual processes that slow implementation, introduce risk, and limit their ability to scale. Unlike traditional onboarding solutions that focus primarily on workflow management, Q2 Treasury Fulfillment automates the actual fulfillment of treasury services. By connecting front-office intake with back-office systems, the solution eliminates redundant data entry, reduces errors, and enables a seamless flow of information across systems.
“Q2 Treasury Fulfillment represents a meaningful step forward for institutions looking to compete more effectively in the commercial banking space,” said Encore Bank EVP and Chief Operations Officer Erin Simpson. “By streamlining implementation and reducing operational friction, it allows us to focus more on serving clients and growing relationships.”
“Financial institutions don’t just need better onboarding workflows, they need a better way to deliver treasury services end to end,” said Q2 VP of Product Management Anthony Ianniciello. “Q2 Treasury Fulfillment closes that gap by automating the most complex and time-consuming parts of the process, enabling banks and credit unions to move faster and operate more efficiently.”
Because the solution is embedded within the Q2 Digital Banking Platform, financial institutions benefit from a unified experience that connects onboarding, fulfillment, and ongoing servicing, reducing fragmentation and accelerating adoption.
Q2 Treasury Fulfillment is a key component of Q2 Catalyst, a suite of best-in-class commercial banking solutions designed to help banks and credit unions win more deals, onboard clients faster, serve them better, and grow profitable relationships.
For more information about Q2 Treasury Fulfillment, visit https://www.q2.com/products/digital-onboarding/treasury-fulfillment.
To learn more about Q2’s suite of commercial digital banking solutions, visit https://www.q2.com/solutions/commercial-banking.
About Q2 Holdings, Inc.
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.
Universal Technical Institute's shares moved higher as the company continued to demonstrate strong enrollment trends and execution against its growth strategy, despite near-term pressure on profitability from reinvestment. Despite solid execution, Q2 Holdings stock lagged as investors focused on a deceleration in growth and a more moderate outlook. Graham Corp. continues to benefit from improving demand within its defense end markets, supported by a growing backlog and increased program visibility.
AUSTIN, Texas--(BUSINESS WIRE)--Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services, today announced results for its first quarter ending March 31, 2026.
GAAP Results for the First Quarter 2026
Revenue of $216.5 million, up by 14 percent compared to the prior-year quarter and 4 percent from fourth quarter 2025. GAAP gross margin of 59.1 percent, up from 53.2 percent in the prior-year quarter and 55.4 percent in fourth quarter 2025. GAAP net income of $26.6 million, up from $4.8 million for the prior-year quarter and $20.4 million for fourth quarter 2025. Non-GAAP Results for the First Quarter 2026
Non-GAAP gross margin of 62.1 percent, up from 57.9 percent for the prior-year quarter and 58.6 percent in fourth quarter 2025. Adjusted EBITDA of $60.0 million, up from $40.7 million for the prior-year quarter and $51.2 million for fourth quarter 2025. For a reconciliation of our GAAP to non-GAAP results, please see the tables below.
“We delivered a strong start to 2026, with performance reflecting continued execution across our key priorities and the durability of our model,” said Matt Flake, Chairman, President and CEO, Q2. "We saw record bookings for a first quarter, highlighted by strength at the high end of the market and a balanced mix of net new and expansion activity. We also saw continued momentum across our digital banking platform and risk and fraud solutions, which remain critical areas of investment for our customers. With a strong pipeline and continued innovation across areas like AI, we remain confident in our ability to execute and deliver long-term value.”
First Quarter Highlights
Signed nine Enterprise and Tier 1 contracts in the quarter highlighted by: A significant expansion agreement through the merger of Synovus and Pinnacle Financial Partners with the combined entity utilizing our commercial digital banking and commercial fraud management solutions. The largest fraud deal signed in company history with an Enterprise bank. Net new and expansion agreements with two other Enterprise banks to utilize our fraud solutions. Subscription Annualized Recurring Revenue increased to $802.3 million, up 14 percent year-over-year. Remaining Performance Obligations total, or Backlog, increased by $46 million sequentially and $444 million year-over-year, resulting in a total committed Backlog of approximately $2.7 billion at quarter-end, representing 2 percent sequential growth and 19 percent year-over-year growth. In the first quarter ended March 31, 2026, Q2 repurchased approximately 1.8 million shares of the Company's outstanding common stock at an average share price of approximately $55.04 for total consideration of approximately $97.2 million. As of the end of the quarter, Q2 had $47.8 million remaining on its $150 million share repurchase authorization announced in November 2025. Q2 Delivers Record First Quarter Bookings and Advances AI Strategy to Start 2026
Q2 delivered a strong start to 2026, with performance reflecting continued execution across the business and meaningful progress in its AI strategy. The quarter was supported by broad-based demand across Q2’s platform, particularly within digital banking and risk and fraud solutions, as financial institutions continue to prioritize technology investment, operational efficiency, and real-time risk management.
Q2 also continues to advance its AI strategy as a natural extension of its platform. Positioned at the center of digital banking interactions, Q2 serves as a “System of Context,” providing real-time visibility into user behavior, transaction activity, and decision-making across retail, small business, and commercial banking.
At the same time, Q2 operates at the execution layer of banking, orchestrating workflows and enabling transactions and outcomes across the platform. This combination of context and execution allows Q2 to embed AI directly into the flow of banking activity—enabling real-time action in a secure and compliant manner.
Q2 is focused on applying AI across key areas including banker efficiency, fraud prevention, and personalization, where it is already delivering new capabilities. As financial institutions continue to adopt AI, Q2 believes its platform is well positioned to serve as a foundation for innovation.
“We delivered strong financial performance in the first quarter, with solid year-over-year revenue growth and meaningful expansion in profitability,” said Jonathan Price, CFO, Q2. “Adjusted EBITDA grew and margins expanded significantly, reflecting continued progress in scaling the business and driving operating efficiency. We believe these results reflect the strength of our business model and position us well to continue delivering balanced growth and profitability while prioritizing effective capital allocation in 2026.”
Financial Outlook
As of April 29, 2026, Q2 Holdings is providing guidance for its second quarter of 2026 and updated guidance for its full year 2026, which represents Q2 Holdings’ current estimates on Q2 Holdings’ operations and financial results. The financial information below includes adjusted EBITDA, which represents forward-looking, non-GAAP financial information. GAAP net income is the most comparable GAAP measure to adjusted EBITDA. Adjusted EBITDA differs from GAAP net income in that it excludes items such as depreciation and amortization, stock-based compensation, transaction-related costs, interest and other (income) expense, income taxes, lease and other restructuring charges, and non-recurring legal settlements not in our ordinary course of business. Q2 Holdings is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Q2 Holdings has not provided guidance for GAAP net income or a reconciliation of the foregoing forward-looking adjusted EBITDA guidance to GAAP net income. However, it is important to note that these excluded items could be material to Q2's results computed in accordance with GAAP in future periods.
Q2 Holdings is providing guidance for the second quarter of 2026 as follows:
Total revenue of $214.0 million to $218.0 million, which would represent year-over-year growth of 10 to 12 percent. Adjusted EBITDA of $57.5 million to $60.5 million, representing 27 to 28 percent of revenue for the quarter. Q2 Holdings is providing updated guidance for the full-year 2026 as follows:
Total revenue of $875.0 million to $882.0 million, which would represent year-over-year growth of 10 to 11 percent. Adjusted EBITDA of $237.0 million to $242.0 million, representing 27 percent of revenue for the year. Conference Call Details
Date:
Wednesday, April 29, 2026
Time:
5:00 p.m. EDT
Hosts:
Matt Flake, Chairman, President & CEO / Jonathan Price, CFO
Webcast Registration:
https://events.q4inc.com/attendee/991079750
All participants must register using the above link. The webcast of the conference call and financial results will be accessible from the investor relations section of the Q2 website at http://investors.Q2.com/. An archived replay of the webcast will be available on this website for a limited time after the call. Q2 has used, and intends to continue to use, its investor relations website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Q2 Holdings, Inc.
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE and NYSE Texas under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.
Use of Non-GAAP Measures
Q2 uses the following non-GAAP financial measures: adjusted EBITDA; adjusted EBITDA margin; non-GAAP gross margin; non-GAAP gross profit; non-GAAP sales and marketing expense; non-GAAP research and development expense; non-GAAP general and administrative expense; non-GAAP operating expense; non-GAAP operating income; non-GAAP net income; non-GAAP net income per common share, diluted; and free cash flow. Management believes that these non-GAAP financial measures are useful measures of operating performance because they exclude items that Q2 does not consider indicative of its core performance.
In the case of adjusted EBITDA, Q2 adjusts net income for such items as interest and other (income) expense, taxes, depreciation and amortization, stock-based compensation, transaction-related costs, lease and other restructuring charges, and non-recurring legal settlements not in our ordinary course of business. In the case of adjusted EBITDA margin, Q2 calculates adjusted EBITDA margin by dividing adjusted EBITDA by revenue. In the case of non-GAAP gross margin and non-GAAP gross profit, Q2 adjusts gross profit and gross margin for stock-based compensation, amortization of acquired technology, transaction-related costs and lease and other restructuring charges. In the case of non-GAAP sales and marketing expense and non-GAAP research and development expense, Q2 adjusts the corresponding GAAP expense to exclude stock-based compensation. Non-GAAP general and administrative expense excludes stock-based compensation and non-recurring legal settlements not in our ordinary course of business. Non-GAAP operating expense is calculated by taking the sum of non-GAAP sales and marketing expenses, non-GAAP research and development expense and non-GAAP general and administrative expense. In the case of non-GAAP operating income and non-GAAP net income, Q2 adjusts operating income, for stock-based compensation, transaction-related costs, amortization of acquired technology, amortization of acquired intangibles, lease and other restructuring charges and non-recurring legal settlements not in our ordinary course of business, and with respect to non-GAAP net income, Q2 additionally adjusts for amortization of debt issuance costs and the related tax effects of the adjustments above. The tax effect of non-GAAP adjustments is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment and considers the current and deferred tax impact of those adjustments. The Company is in a cumulative income position on a non-GAAP basis and has not recorded a valuation allowance against deferred tax assets in the non-GAAP tax provision. As a result, the non-GAAP tax expense may differ significantly from the GAAP tax expense. In the case of non-GAAP net income per common share, diluted Q2 divides non-GAAP net income by the diluted weighted average common shares outstanding. In the case of free cash flow, Q2 adjusts net cash provided by (used in) operating activities for purchases of property and equipment and capitalized software development costs. A reconciliation of prior quarter non-GAAP financial measures to the nearest comparable GAAP measures may be found in Exhibit 99.1 of Q2's Form 8-K filed on February 11, 2026.
There are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income. As a result, these non-GAAP financial measures have limitations and should be considered in addition to, not as a substitute for or superior to, the closest GAAP measures, or other financial measures prepared in accordance with GAAP. A reconciliation to the closest GAAP measures of these non-GAAP measures is contained in tabular form on the attached unaudited condensed consolidated financial statements.
Q2’s management uses these non-GAAP measures as measures of operating performance; to prepare Q2’s annual operating budget; to allocate resources to enhance the financial performance of Q2’s business; to evaluate the effectiveness of Q2’s business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of Q2’s results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communication with our board of directors concerning Q2’s financial performance.
Forward-looking Statements
This press release contains forward-looking statements and forward-looking information. These statements can be identified by expressions of belief, expectation or intention, as well as statements that are not historical fact, including statements about: continued execution across our key priorities; the durability of our model; continued momentum across our digital banking platform and risk and fraud solutions; critical areas of investment for our customers; our strong pipeline; continued innovation across areas like AI; our confidence and ability to execute and deliver long-term value; our momentum and advancement of our AI strategy; our AI strategy, capabilities and product offerings; the positioning of Q2’s platform to serve as a foundation for innovation; the strength of our business model and our ability to continue delivering balanced growth and profitability while prioritizing effective capital allocation in 2026; and our quarterly and annual financial guidance.
The forward-looking statements contained in this press release are based upon Q2’s historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include risks related to: (a) the risks associated with cyberattacks, financial transaction fraud, data and privacy breaches and breaches of security measures within our products, systems and infrastructure or the products, systems and infrastructure of third parties upon which we rely and the resultant disruption, costs and liabilities and harm to our business and reputation and our ability to sell our solutions; (b) the risks associated with recent advances in artificial intelligence, or AI, including the increasing availability of more capable AI models to the public that may further enhance the ability of threat actors to identify, develop and exploit vulnerabilities, automate certain aspects of cyberattacks and conduct more targeted or scalable social engineering or fraud schemes; (c) the impact of and our ability to respond to global economic uncertainties and challenges or changes in the financial services industry and credit markets, including as a result of mergers and acquisitions within the banking sector, inflationary pressures, fluctuating interest rates, instability in the financial services industry, any changes to, or new, financial regulations and their potential impacts on our prospects' and customers' operations, increased acceptance and use of emerging financial products, such as cryptocurrencies or stablecoin, including any impact on the timing of prospect and customer implementations and purchasing decisions, our business sales cycles and on account holder or end user, or End User, usage of our solutions; (d) the risks associated with continued market volatility, including in the financial services sector, potential inflationary pressures and the impact of any monetary policy changes that may be implemented as a result, the possibility and potential impact of any U.S. tariffs and global trade measures, including retaliatory tariffs and the impact on the valuation of marketable securities; (e) the risk of increased or new competition in our existing markets and as we enter new markets or new segments of existing markets, or as we offer new solutions; (f) the risks associated with the development of our solutions, including AI based solutions, our AI and data strategies and solutions, our use of AI tools and solutions and changes to regulation or the market for our solutions compared to our expectations; (g) quarterly fluctuations in our operating results relative to our expectations and guidance and the accuracy of our forecasts; (h) the risks and increased costs associated with managing growth and global operations, including hiring, training, retaining and motivating employees to support such growth; (i) the risks associated with our transactional business which are typically driven by End-User behavior and can be influenced by external drivers outside of our control; (j) the risks associated with effectively managing our business and cost structure in an uncertain economic environment, including as a result of challenges in the financial services industry and the effects of seasonality and unexpected trends; (k) the risks associated with geopolitical instability, including acts of war or military conflict, uncertainties or discord, including the continuing war in Ukraine, the war in Iran and other conflicts in the Middle East and other parts of the world, heightened risk of state-sponsored cyberattacks or cyber fraud on financial services and other critical infrastructure; (l) the risks associated with accurately forecasting and managing the impacts of any economic downturn or challenges in the financial services industry on our customers and their End Users, including in particular the impacts of any downturn on financial technology companies or alternative finance companies and our arrangements with them, which may include more complex revenue arrangements for us and which may be more vulnerable to an economic downturn than our financial institution customers; (m) the challenges and costs associated with selling, implementing and supporting our solutions, particularly for larger customers with more complex requirements and longer implementation processes, including risks related to the timing and predictability of sales of our solutions and the impact that the timing of bookings and go-lives may have on our revenue and financial performance in a period; (n) the risk that errors, interruptions or delays in our solutions or Web hosting negatively impacts our business and sales; (o) the risks associated with the migration of the computing, storage and processing of our digital banking platform solutions from our third-party data centers to third-party public cloud service providers; (p) the difficulties and risks associated with developing and selling complex new solutions and enhancements, including those using AI with the technical and regulatory specifications and functionality required by our customers and relevant governmental authorities; (q) the risks associated with operating within and selling into a regulated industry, including risks related to evolving regulation of, and litigation with respect to, AI and machine learning, the receipt, collection, storage, processing and transfer of data and increased regulatory scrutiny on financial technology and related services, including specifically on banking-as-a-service, or BaaS, services; (r) the risks associated with our sales and marketing capabilities, including partner relationships and the length, cost and unpredictability of our sales cycle; (s) the risks inherent in third-party technology and implementation partnerships, including defects, failures, interruptions or disruptions in third-party services or solutions, that could disrupt our services or otherwise cause harm to our business; (t) the risk that we will not be able to maintain historical contract terms such as pricing and duration; (u) the general risks associated with the complexity of our customer arrangements and our solutions; (v) the risks associated with integrating acquired companies and successfully selling and maintaining their solutions; (w) the risks and challenges around increased regulatory scrutiny and evolving requirements for money movement services and the resulting potential higher costs, increased complexity and limitations on offerings on our business and financial results; (x) litigation related to intellectual property and other matters and any related claims, negotiations and settlements; (y) the risks associated with further consolidation in the financial services industry; (z) the risks associated with selling our solutions internationally and with the continued expansion of our international operations; and (aa) the risk that our debt repayment obligations may adversely affect our financial condition and that we may not be able to obtain capital when desired or needed on favorable terms.
Additional information relating to the uncertainty affecting the Q2 business is contained in Q2’s filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Q2’s website at http://investors.Q2.com/. These forward-looking statements represent Q2’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and except as required by law, Q2 disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.
Q2 Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
March 31, 2026
December 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
342,332
$
367,631
Restricted cash
2,057
1,672
Investments
36,559
65,064
Accounts receivable, net
74,196
51,716
Contract assets, current portion, net
7,356
8,596
Prepaid expenses and other current assets
21,963
28,234
Deferred solution and other costs, current portion
29,535
22,631
Deferred implementation costs, current portion
10,575
10,508
Total current assets
524,573
556,052
Property and equipment, net
27,933
27,783
Right of use assets
25,768
27,188
Deferred solution and other costs, net of current portion
29,961
27,827
Deferred implementation costs, net of current portion
31,235
28,929
Intangible assets, net
75,781
78,377
Goodwill
512,869
512,869
Contract assets, net of current portion and allowance
15,138
14,103
Other long-term assets
3,089
3,149
Total assets
$
1,246,347
$
1,276,277
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities
$
53,416
$
76,799
Convertible notes, current portion
303,682
303,368
Deferred revenues, current portion
196,762
155,003
Lease liabilities, current portion
8,628
8,915
Total current liabilities
562,488
544,085
Deferred revenues, net of current portion
30,557
26,826
Lease liabilities, net of current portion
31,592
33,832
Other long-term liabilities
10,034
9,723
Total liabilities
634,671
614,466
Stockholders' equity:
Common stock
6
6
Additional paid-in capital
1,199,888
1,275,980
Accumulated other comprehensive loss
(2,635
)
(1,953
)
Accumulated deficit
(585,583
)
(612,222
)
Total stockholders' equity
611,676
661,811
Total liabilities and stockholders' equity
$
1,246,347
$
1,276,277
Q2 Holdings, Inc.
Condensed Consolidated Statements Of Comprehensive Income
(in thousands, except per share data)
(unaudited)
Three Months Ended March 31,
2026
2025
Revenues (1)
$
216,506
$
189,735
Cost of revenues (2)
88,592
88,745
Gross profit
127,914
100,990
Operating expenses:
Sales and marketing
25,720
26,527
Research and development
41,880
37,853
General and administrative
32,187
32,322
Transaction-related costs
250
—
Amortization of acquired intangibles
—
93
Lease and other restructuring charges
188
2,006
Total operating expenses
100,225
98,801
Income from operations
27,689
2,189
Total other income, net
2,064
3,051
Income before income taxes
29,753
5,240
Provision for income taxes
(3,114
)
(487
)
Net income
$
26,639
$
4,753
Other comprehensive income (loss):
Unrealized loss on available-for-sale investments
(60
)
(24
)
Foreign currency translation adjustment
(622
)
177
Comprehensive income
$
25,957
$
4,906
Net income per common share
Basic
$
0.43
$
0.08
Diluted
$
0.40
$
0.07
Weighted average common shares outstanding
Basic
62,338
61,222
Diluted
67,647
64,820
(1) The following table disaggregates the Company's revenue by major source:
Three Months Ended March 31,
2026
2025
Subscription
$
179,886
$
154,289
Transactional
17,808
18,617
Services and Other
18,812
16,829
Total Revenues
$
216,506
$
189,735
Q2 Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended March 31,
2026
2025
Cash flows from operating activities:
Net income
$
26,639
$
4,753
Adjustments to reconcile net income to net cash from operating activities:
Amortization of deferred implementation, solution and other costs
7,748
6,961
Depreciation and amortization
11,743
13,720
Amortization of debt issuance costs
360
543
Amortization of premiums and discounts on investments
(42
)
(301
)
Stock-based compensation expense
20,265
21,010
Deferred income taxes
343
(2,042
)
Other non-cash items
261
465
Changes in operating assets and liabilities:
(10,996
)
(1,578
)
Net cash provided by operating activities
56,321
43,531
Cash flows from investing activities:
Net maturities (purchases) of investments
28,487
(13,805
)
Purchases of property and equipment
(6,597
)
(785
)
Capitalized software development costs
(5,514
)
(4,914
)
Net cash provided by (used in) investing activities
16,376
(19,504
)
Cash flows from financing activities:
Repurchases of common shares
(97,153
)
—
Proceeds from exercise of stock options and ESPP
—
547
Net cash provided by (used in) financing activities
(97,153
)
547
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(458
)
110
Net increase (decrease) in cash, cash equivalents and restricted cash
(24,914
)
24,684
Cash, cash equivalents and restricted cash, beginning of period
369,303
360,793
Cash, cash equivalents and restricted cash, end of period
$
344,389
$
385,477
Q2 Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(in thousands)
(unaudited)
Three Months Ended March 31,
2026
2025
GAAP gross profit
$
127,914
$
100,990
Stock-based compensation
2,187
3,218
Amortization of acquired technology
4,349
5,505
Lease and other restructuring charges
—
144
Non-GAAP gross profit
$
134,450
$
109,857
Revenues
$
216,506
$
189,735
GAAP gross margin
59.1
%
53.2
%
Non-GAAP gross margin
62.1
%
57.9
%
GAAP sales and marketing expense
$
25,720
$
26,527
Stock-based compensation
(2,544
)
(3,452
)
Non-GAAP sales and marketing expense
$
23,176
$
23,075
GAAP research and development expense
$
41,880
$
37,853
Stock-based compensation
(4,146
)
(4,042
)
Non-GAAP research and development expense
$
37,734
$
33,811
GAAP general and administrative expense
$
32,187
$
32,322
Stock-based compensation
(11,388
)
(10,298
)
Non-recurring legal settlements
—
(1,750
)
Non-GAAP general and administrative expense
$
20,799
$
20,274
GAAP operating income
$
27,689
$
2,189
Stock-based compensation
20,265
21,010
Transaction-related costs
250
—
Amortization of acquired technology
4,349
5,505
Amortization of acquired intangibles
—
93
Lease and other restructuring charges
188
2,150
Non-recurring legal settlements
—
1,750
Non-GAAP operating income
$
52,741
$
32,697
GAAP net income
$
26,639
$
4,753
Stock-based compensation
20,265
21,010
Transaction-related costs
250
—
Amortization of acquired technology
4,349
5,505
Amortization of acquired intangibles
—
93
Lease and other restructuring charges
188
2,150
Non-recurring legal settlements
—
1,750
Amortization of debt issuance costs
360
683
Tax adjustment
(10,384
)
(8,481
)
Non-GAAP net income
$
41,667
$
27,463
Weighted average common shares outstanding, diluted
67,647
64,820
GAAP net income per common share, diluted
$
0.40
$
0.07
Non-GAAP, net income per common share, diluted
$
0.63
$
0.42
Reconciliation of GAAP net income to adjusted EBITDA:
Q2 Holdings (QTWO - Free Report) came out with quarterly earnings of $0.63 per share, missing the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -10.85%. A quarter ago, it was expected that this provider of online banking software would post earnings of $0.59 per share when it actually produced earnings of $0.61, delivering a surprise of +3.39%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Q2 Holdings, which belongs to the Zacks Internet - Software industry, posted revenues of $216.51 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.23%. This compares to year-ago revenues of $189.74 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Q2 Holdings shares have lost about 30.5% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Q2 Holdings?While Q2 Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Q2 Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.72 on $216.05 million in revenues for the coming quarter and $2.90 on $875.64 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Lightspeed Commerce Inc. (LSPD - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 21.
This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -10%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Lightspeed Commerce Inc.'s revenues are expected to be $281.62 million, up 11.1% from the year-ago quarter.
For the quarter ended March 2026, Q2 Holdings (QTWO - Free Report) reported revenue of $216.51 million, up 14.1% over the same period last year. EPS came in at $0.63, compared to $0.54 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $213.88 million, representing a surprise of +1.23%. The company delivered an EPS surprise of -10.85%, with the consensus EPS estimate being $0.71.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Q2 Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Subscription: $179.89 million versus the three-analyst average estimate of $177.87 million.Revenue- Services and other: $18.81 million compared to the $17.5 million average estimate based on three analysts.Revenue- Transactional: $17.81 million versus $17.77 million estimated by three analysts on average.View all Key Company Metrics for Q2 Holdings here>>>
Shares of Q2 Holdings have returned +6.1% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Q2 Holdings demonstrates solid fundamentals, margin expansion, and intelligent capital allocation, but valuation limits near-term upside. QTWO's Q1'26 saw 16% subscription revenue growth, 420 bps gross margin expansion to 62.1%, and record EBITDA margins, driven by cloud migration completion. The fraud solutions cross-sell is gaining traction, with a major deal closed and a real-time data advantage underpinning future monetization.
Q2 Holdings (QTWO - Free Report) closed the last trading session at $50.75, gaining 6.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $75.38 indicates a 48.5% upside potential.
The mean estimate comprises 13 short-term price targets with a standard deviation of $5.71. While the lowest estimate of $67.00 indicates a 32% increase from the current price level, the most optimistic analyst expects the stock to surge 69.5% to reach $86.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for QTWO, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in QTWOThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.1%.
Moreover, QTWO currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much QTWO could gain, the direction of price movement it implies does appear to be a good guide.
Q2 Holdings (QTWO - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Q2 Holdings basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Q2 Holdings imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Q2 HoldingsThis provider of online banking software is expected to earn $2.90 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Q2 Holdings. Over the past three months, the Zacks Consensus Estimate for the company has increased 10.1%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Q2 Holdings to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Q2 Holdings is insulated from AI-driven risks due to its banking vertical focus. Despite sector-wide SaaS selloffs, QTWO's valuation no longer appears compelling versus peers with similar growth. I downgrade QTWO to "Sell" after Q1 earnings revealed growth deceleration in key metrics.
Pembroke Management, LTD disclosed in a May 13, 2026, SEC filing that it sold 251,249 shares of Q2 Holdings (QTWO +1.26%), an estimated $14.16 million trade based on the quarterly average price.
What happenedAccording to a SEC filing dated May 13, 2026, Pembroke Management, LTD reduced its position in Q2 Holdings by 251,249 shares during the first quarter. The estimated value of these sales is $14.16 million, calculated using the average closing price for the quarter. The fund’s remaining stake was valued at $4.35 million as of March 31, 2026. The net position change for the quarter, including both the reduction in shares and price movement, was a decrease of $20.41 million.
What else to knowThis was a reduction in holdings; Q2 Holdings now represents 0.63% of Pembroke Management, LTD’s 13F reportable AUM.
Top holdings after the filing:
NASDAQ: MPWR: $37.61 million (5.4% of AUM)NYSE: REZI: $37.59 million (5.4% of AUM)NYSE: MOD: $35.95 million (5.2% of AUM)NASDAQ: AAON: $35.59 million (5.1% of AUM)NYSE: GMED: $35.20 million (5.1% of AUM)As of May 13, 2026, shares of Q2 Holdings were priced at $44.70, down 51.8% over the past year and underperforming the S&P 500 by 78.26 percentage points.
Company overviewMetricValueRevenue (TTM)$821.58 millionNet income (TTM)$73.89 millionMarket capitalization$2.80 billionPrice (as of market close May 13, 2026)$44.70Company snapshotOffers a suite of cloud-based digital banking solutions, including consumer and commercial banking platforms, security analytics, remote deposit capture, bill payment, and digital account opening tools.Serves regional and community financial institutions across the United States, targeting banks and credit unions seeking advanced digital banking capabilities.Operates a software-as-a-service (SaaS) business model, generating recurring revenue from its institutional client base.Q2 Holdings is a technology provider specializing in digital banking solutions for regional and community financial institutions. By leveraging a comprehensive SaaS platform, clients can deliver secure, feature-rich digital experiences to their end users.
What this transaction means for investorsPembroke Management, a Montreal-based investment firm, recently disclosed the sale of about 251,000 shares of Q2 Holdings, valued at approximately $14.2 million, during the first quarter (the three months ending on March 31, 2026). Here are some key takeaways for investors.
To begin, Q2 stock has endured a difficult period over the last 18 months. Shares are down about 35% over this period, significantly underperforming the S&P 500. The stock is now trading close to its 52-week low of $44.70. Bearish concerns regarding SaaS stocks in general appear to be behind the stock’s recent troubles.
As for fundamentals, they’re solid. Q2 is still generating robust growth, with quarterly revenue of around 14%. Granted, that is down significantly from three years ago, when the company’s revenue growth stood at nearly 25%, but double-digit revenue growth remains very desirable.
Similarly, the company’s profitability is on the upswing. Q2’s trailing 12-month net income has increased to nearly $74 million, up from $5 million one year ago.
In summary, growth-oriented investors who believe the sell-off in SaaS stocks is overdone may want to take a closer look at Q2.
Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aaon, Globus Medical, Modine Manufacturing, and Q2. The Motley Fool recommends Monolithic Power Systems. The Motley Fool has a disclosure policy.
Austin-based Brazilian-inspired snack company dedicated to creating clean, simple ingredient snacks to receive $100,000 in funding to accelerate its business and mission
AUSTIN, Texas--(BUSINESS WIRE)--Today, OCA Foods was announced as the winner of the 2026 Austin FC Dream Starter Competition presented by Q2 Holdings, Inc. (NYSE: QTWO). OCA will receive $100,000 in funding to accelerate its business and mission as part of the Austin FC Dream Starter business initiative, which supports Austin entrepreneurs.
OCA is a Brazilian-inspired snack company bringing a cleaner, preservative-free take on Paçoca—a beloved peanut bite traditionally enjoyed across Brazil—to consumers in the U.S. Founded in Austin, Texas, OCA was created to honor heritage, family traditions, and the power of simple ingredients people know and trust. Through thoughtfully crafted snacks, OCA aims to create meaningful moments of connection and community with every bite.
“Alongside our partners at Q2, we’re excited to announce OCA as this year’s Dream Starter winner,” said Austin FC President Andy Loughnane. “Their work creates a unique connection between the cultures of Texas and Brazil and exemplifies the strength in diversity of Austin’s entrepreneurial community.”
“Our mission is to build strong and diverse communities by strengthening their financial institutions, and we see that same spirit in OCA,” said Q2 President, Chairman & CEO Matt Flake. “We're proud to support their mission alongside Austin FC and excited to see how this recognition will help them grow their business in Central Texas.”
“I have no words to express what winning the 2026 Dream Starter Competition means to me. It is an honor and an incredible opportunity to bring our products to more people and better serve our communities,” said OCA Founder Renato Raposo. “As an immigrant founder building a business from the ground up, I deeply connect with the Dream Starter mission of empowering entrepreneurs and strengthening local communities. OCA is more than a snack brand; it is a platform to create opportunities, inspire healthier choices, and bring people together.”
The Austin FC Dream Starter Competition combines Q2’s mission with Austin FC’s inclusivity through equity community pillar. The aim is to connect entrepreneurs with the resources needed to build profitable, high-growth companies. The “Dream Starter” funds will aid OCA in overcoming financial barriers to achieve success.
In addition to OCA, the 2026 Dream Starter finalists included Hem Support Wear, HealthQuest, GrantAppli, and PachaMama Bees.
The five finalists participated in a pitch contest on May 27 at Q2 Stadium. A diverse group of representatives from Austin FC, Q2 Holdings, Inc., and the Austin entrepreneurial community evaluated each finalist’s presentation and ultimately selected the winner. OCA will be honored with a check presentation during halftime at the Austin FC vs. Seattle Sounders match on July 22.
Previous Dream Starter winners include: Good Grief, 29Eleven the Salon, SocialNote, CDL Changing Lanes Driving School and At Ease Rentals Corporation.
About Austin FC
Austin FC joined Major League Soccer (MLS) as the League’s 27th club in January 2019. Austin FC officially began competing in MLS in April 2021, and in the 2025 season qualified for the MLS Cup Playoffs while also reaching and hosting the final of the U.S. Open Cup. Austin FC plays its home matches at Q2 Stadium, a 100% privately financed, state-of-the-art stadium which earned certification as a zero-waste venue in 2024. Austin FC sold out all 88 MLS home matches it played at Q2 Stadium during its first five seasons in the league, including three home MLS Cup Playoff matches.
Austin FC also operates Austin FC II, a professional-level development team competing in MLS NEXT Pro which won the league title during its inaugural season in 2023. In addition, Austin FC operates the Austin FC Academy which is the fully funded developmental academy representing the highest level of competition for elite youth soccer players in Central Texas, while serving as the exclusive developmental pathway to MLS for the region’s most talented young players. Combined, Austin FC II and Austin FC Academy teams complete the pro player pathway between elite youth soccer (MLS NEXT) all the way to MLS, and allow for players to develop, improve, and move up to Austin FC or Austin FC II.
About Q2 Holdings, Inc.
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE and NYSE Texas under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.
Today, OCA Foods was announced as the winner of the 2026 Austin FC Dream Starter Competition presented by Q2 Holdings, Inc. (NYSE: QTWO). OCA will receive $100,000 in funding to accelerate its business and mission as part of the Austin FC Dream Starter business initiative, which supports Austin entrepreneurs.
OCA is a Brazilian-inspired snack company bringing a cleaner, preservative-free take on Paçoca—a beloved peanut bite traditionally enjoyed across Brazil—to consumers in the U.S. Founded in Austin, Texas, OCA was created to honor heritage, family traditions, and the power of simple ingredients people know and trust. Through thoughtfully crafted snacks, OCA aims to create meaningful moments of connection and community with every bite.
“Alongside our partners at Q2, we’re excited to announce OCA as this year’s Dream Starter winner,” said Austin FC President Andy Loughnane. “Their work creates a unique connection between the cultures of Texas and Brazil and exemplifies the strength in diversity of Austin’s entrepreneurial community.”
“Our mission is to build strong and diverse communities by strengthening their financial institutions, and we see that same spirit in OCA,” said Q2 President, Chairman & CEO Matt Flake. “We're proud to support their mission alongside Austin FC and excited to see how this recognition will help them grow their business in Central Texas.”
“I have no words to express what winning the 2026 Dream Starter Competition means to me. It is an honor and an incredible opportunity to bring our products to more people and better serve our communities,” said OCA Founder Renato Raposo. “As an immigrant founder building a business from the ground up, I deeply connect with the Dream Starter mission of empowering entrepreneurs and strengthening local communities. OCA is more than a snack brand; it is a platform to create opportunities, inspire healthier choices, and bring people together.”
The Austin FC Dream Starter Competition combines Q2’s mission with Austin FC’s inclusivity through equity community pillar. The aim is to connect entrepreneurs with the resources needed to build profitable, high-growth companies. The “Dream Starter” funds will aid OCA in overcoming financial barriers to achieve success.
In addition to OCA, the 2026 Dream Starter finalists included Hem Support Wear, HealthQuest, GrantAppli, and PachaMama Bees.
The five finalists participated in a pitch contest on May 27 at Q2 Stadium. A diverse group of representatives from Austin FC, Q2 Holdings, Inc., and the Austin entrepreneurial community evaluated each finalist’s presentation and ultimately selected the winner. OCA will be honored with a check presentation during halftime at the Austin FC vs. Seattle Sounders match on July 22.
Previous Dream Starter winners include: Good Grief, 29Eleven the Salon, SocialNote, CDL Changing Lanes Driving School and At Ease Rentals Corporation.
About Austin FC
Austin FC joined Major League Soccer (MLS) as the League’s 27th club in January 2019. Austin FC officially began competing in MLS in April 2021, and in the 2025 season qualified for the MLS Cup Playoffs while also reaching and hosting the final of the U.S. Open Cup. Austin FC plays its home matches at Q2 Stadium, a 100% privately financed, state-of-the-art stadium which earned certification as a zero-waste venue in 2024. Austin FC sold out all 88 MLS home matches it played at Q2 Stadium during its first five seasons in the league, including three home MLS Cup Playoff matches.
Austin FC also operates Austin FC II, a professional-level development team competing in MLS NEXT Pro which won the league title during its inaugural season in 2023. In addition, Austin FC operates the Austin FC Academy which is the fully funded developmental academy representing the highest level of competition for elite youth soccer players in Central Texas, while serving as the exclusive developmental pathway to MLS for the region’s most talented young players. Combined, Austin FC II and Austin FC Academy teams complete the pro player pathway between elite youth soccer (MLS NEXT) all the way to MLS, and allow for players to develop, improve, and move up to Austin FC or Austin FC II.
About Q2 Holdings, Inc.
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE and NYSE Texas under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260528362554/en/
On May 29, 2026, Q2 Holdings Inc QTWO shares rose by 4.9%, bringing the current price to $47.35. This performance reflects a 52-week trading range of $44.46 to $96.68, with the stock still showing significant volatility over the past year.
GF Value™ verdict: Current price of $47.35 is 32.8% below GF Value™ estimate of $70.51.GF Score™ of 68/100 indicates an above-average rating, suggesting potential for higher long-term returns.Notable signal: Insider activity has seen insiders sell $22.3 million in the last three months without any buying activity. Is QTWO Overvalued or Undervalued? Currently, Q2 Holdings Inc QTWO is trading at $47.35, which is significantly below its GF Value™ estimate of $70.51, indicating that the stock is 32.8% undervalued. This presents a margin of safety for potential investors, as the shares are trading well below their intrinsic value. The GF Valuation label categorizes QTWO as significantly undervalued, which suggests an opportunity for investors looking for stocks with growth potential at lower entry points.
However, caution is warranted. The stock has experienced a decline of 34.4% year-to-date and 45.4% over the past year, which raises questions about its growth prospects and overall market perception. While the undervaluation presents a potential opportunity, investors should consider the underlying reasons for the stock's price decline before making any decisions.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does QTWO's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 42.3x 129.2x (5-Year Median) Forward P/E 18.5x N/A Q2 Holdings Inc QTWO currently has a P/E (TTM) of 42.3x, which is significantly below its 5-year median P/E of 129.2x, highlighting that the stock is trading at a much lower valuation compared to its historical levels. The forward P/E of 18.5x further indicates that analysts expect earnings growth, aligning with the GF Value™ estimate of undervaluation. This P/E analysis supports the conclusion that QTWO is undervalued, as the current trading multiples suggest that the company is priced attractively compared to its historical metrics.
What Does QTWO's GF Score™ Tell Us? Metric Rating GF Score™ 68/100 Financial Strength 7/10 Profitability 3/10 Growth 7/10 Valuation 4/10 Momentum 4/10 The GF Score™ of 68/100 indicates that Q2 Holdings Inc QTWO is positioned above average compared to other stocks, suggesting a potential for higher long-term returns. The strongest area is Financial Strength, rated at 7/10, indicating a solid balance sheet and stability in financial metrics. Conversely, the weakest area is Profitability, rated at only 3/10, which suggests challenges in generating profit margins compared to peers. The growth rank of 7/10 reflects a positive outlook for future revenue increases, aligning with the undervaluation identified in GF Value™.
What Are Insiders Doing with QTWO Stock? In recent months, insider activity at Q2 Holdings Inc QTWO has shown a selling trend, with insiders selling $22.3 million worth of shares without a corresponding buying activity. This pattern raises some concerns regarding potential insider sentiment about the company's future performance. The absence of insider buying could suggest a lack of confidence among those closest to the company, making it crucial for potential investors to weigh this information against the company’s current valuation and growth prospects.
What This Means for Investors Based on the GF Value™ assessment, Q2 Holdings Inc QTWO is currently undervalued at a price of $47.35 compared to its estimated fair value of $70.51. While this presents a potential opportunity for investors seeking undervalued stocks, it is essential to consider the broader market context, recent performance trends, and insider activity before making any investment decisions.
For the complete analysis, visit the Q2 Holdings Inc QTWO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is QTWO's GF Score™?
QTWO's GF Score™ is 68/100, indicating an above-average rating that suggests potential for higher long-term returns based on key financial metrics.
Is QTWO overvalued or undervalued?
QTWO is currently undervalued, trading at $47.35, which is 32.8% below its GF Value™ estimate of $70.51.
What is QTWO's P/E ratio?
QTWO's P/E (TTM) ratio is 42.3x, which is significantly below its 5-year median P/E of 129.2x, supporting the view that the stock is undervalued based on historical valuation metrics.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Unified AI experience gives financial institution teams the intelligence to work faster, make better decisions, and scale operations without adding tools or disrupting existing workflows
AUSTIN, Texas--(BUSINESS WIRE)--Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services, today announced the launch of Q2 Assistant, a unified AI experience layer embedded directly within Q2’s product portfolio. Q2 Assistant delivers a context-aware conversational interface inside Q2 platforms where banks and credit union teams operate daily, connecting to product-specific specialized agents that execute tasks and support operations, governed by the same data isolation, audit logging, and compliance controls that regulated financial institutions require. Q2 Assistant serves as the unified experience layer across Q2’s product portfolio, while product-specific agents, starting with the Customer Care Agent within Digital Banking, deliver task-level capabilities within each Q2 solution.
Financial institutions face compounding operational pressure as digital banking interactions become more complex and support volumes continue to rise. These fragmented workflows slow resolution times, create operational friction, and limit a financial institution's capacity to scale efficiently.
Q2 Assistant addresses these challenges by providing a single point of entry for financial institution employees to interact with AI across Q2's product portfolio. Through one interface, staff can ask questions, surface information, and execute tasks through product-specific agents, without switching systems, retraining, or disrupting existing processes.
Built for regulated institutions from the start, Q2 Assistant operates within controlled governance and compliance boundaries. Data remains isolated, encrypted, and is never used to train shared models across customers. All interactions are logged, and humans remain in control of consequential actions.
“Banks and credit unions don’t need more disconnected AI tools. They need intelligence embedded where work already happens,” said Q2 CTO Adam Blue. “Q2 Assistant builds on more than two decades of financial institution workflow expertise to help teams move faster, resolve issues more efficiently, and deliver stronger customer experiences within their trusted Q2 platform environment.”
The initial deployment introduces the Customer Care Agent, the first agent available through Q2 Assistant within Digital Banking and designed specifically for customer experience and support teams working within Q2 Console. Available to financial institution customers today, the Customer Care Agent helps banks and credit unions diagnose and resolve common digital banking issues such as login failures, password resets, transaction inquiries, and user activity investigations, reducing friction for both employees and account holders. Early adopter institutions, including Stanford Federal Credit Union and VeraBank, have been piloting Q2 Assistant ahead of launch and validating measurable improvements in support operations.
“Using Q2 Assistant, tasks that previously required hours of research and escalation across teams can now be completed in seconds,” said Stanford Federal Credit Union VP of Digital Strategy Brian Xie. “In one case, a request that took over two hours to resolve was answered in under a minute without escalation.”
"At scale, minutes matter. Every time a support specialist has to stop and search for an answer, those minutes add up into a real capacity drain for the entire team,” said VeraBank SEVP Chief Treasury and Digital Banking Officer Michael Purifoy. “Q2 Assistant gives our people the ability to solve repetitive tasks faster so they can turn their attention to the high-value work that actually grows the customer relationship. Community banks don't have the budget to scale technology and people the way the large banks can. If we can give our teams an AI tool that frees them for higher-value work, we can compete in ways we couldn't before, and that's exactly what Q2 Assistant is helping us do."
The launch reflects Q2’s platform-first AI strategy, focused on embedding intelligence across critical banking workflows while maintaining the governance, explainability, and operational trust financial institutions require. As the unified experience layer across Q2’s product portfolio, Q2 Assistant is designed to scale: additional agents, including capabilities for fraud operations and relationship pricing workflows, are in development for 2026.
Q2 Assistant will be showcased at CONNECT 26, Q2’s annual client conference, through general session keynotes, product hub demonstrations, and breakout sessions.
To learn more about Q2 Assistant, visit: https://www.q2.com/products/q2-assistant.
To see Q2 in action, visit: https://www.q2.com/blog/a-closer-look-at-q2-assistant.
For more information about Q2’s approach to AI innovation for financial services, please visit https://www.q2.com/ai-for-everyone.
About Q2 Holdings, Inc.
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE and NYSE Texas under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.
Prestigious Award Recognizes Digital Innovation, Customer Service, Community Engagement
, /PRNewswire/ -- nbkc bank today announced it has been named 2026 Bank of the Year in the annual Excellence Awards from Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services.
Q2, a leading provider of digital transformation solutions for financial services. The Q2 Excellence Awards are an annual program recognizing banks and credit unions driving significant business outcomes, delivering exceptional digital experiences and strengthening the communities they serve. The recipients were honored at CONNECT 26, Q2's conference held in Austin, Texas. nbkc bank was selected Bank of the Year from more than 60 nominated financial institutions. Q2 noted nbkc bank's ongoing digital innovation, exceptional customer service and engagement with the communities where it operates.
"This recognition reflects our team's commitment to delivering a better banking experience—one that is simple, transparent, and centered on our customers," said Melissa Eggleston, chief deposit and operations officer for nbkc bank. "It validates our product offering as we continue to innovate and grow in ways to help customers make smarter, more confident financial choices and setting a high standard for what banking can be."
"We are proud to recognize nbkc bank as the 2026 Q2 Excellence Award Bank of the Year," said Q2 Chief Business Officer Kirk Coleman. "nbkc bank exemplifies what it means to put customers first while leveraging innovative digital solutions to drive real impact in the communities they serve. This award is a reflection of their commitment to excellence and their leadership in shaping the future of financial services."
nbkc bank has four branches in the greater Kansas City region and a national online presence. Since its founding in 1999, it has focused on digital adoption supported by high-touch service. Deploying this approach, it aims to create exceptional customer experiences across its retail, commercial, mortgage and Banking as a Service businesses.
About nbkc bank
Having celebrated 25 years in 2024, nbkc bank is a Kansas City-based community bank with a nationwide online presence. Known for pairing intuitive technology with personal support, nbkc delivers digital solutions for mortgage, consumer, and business banking, plus Banking-as-a-Service (BaaS) for companies nationwide. The bank also founded Fountain City Fintech®, an accelerator for growing fintech startups. nbkc remains committed to leading the industry toward simpler, more transparent banking. Member FDIC. Equal Housing Lender.
About Q2 Holdings, Inc.
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE and NYSE Texas under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.
Annual award recognizes banks and credit unions for their commitment to leading the industry in digital innovation, community impact and customer experience transformation
AUSTIN, Texas--(BUSINESS WIRE)--Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services, today announced the 2026 Q2 Excellence Award recipients. The annual award program recognizes banks and credit unions driving significant business outcomes and strengthening the communities they serve, ranking them among the industry's best financial institutions.
This year's award recipients have achieved exceptional results and introduced innovative solutions for their organizations, customers, members, and communities. The banks and credit unions recognized will be honored today at CONNECT 26, Q2's annual conference held in Austin, Texas.
“The Q2 Excellence Award winners demonstrate the many ways banks and credit unions are redefining innovation across financial services,” said Q2 Chief Business Officer Kirk Coleman. “From advancing responsible AI and strengthening fraud prevention strategies to accelerating digital transformation and deepening community impact, these institutions are setting a powerful example for the industry. We are proud to recognize organizations that are delivering meaningful results for their businesses, account holders, and communities.”
The 2026 Q2 Excellence Award recipients include the following financial institutions:
Mid-Hudson Valley FCU: AI Excellence Award
The Q2 Excellence Award for AI Excellence recognizes Mid-Hudson Valley FCU for responsibly applying AI to accelerate digital innovation and improve developer productivity. By leveraging agentic AI workflows with Q2 SDK resources, Mid-Hudson Valley FCU moved from specification to implementation for a new member-facing stock tracking extension in approximately five hours, significantly reducing development time for new digital banking experiences.
American Savings Bank: Community Impact Award
The Q2 Excellence Award for Community Impact recognizes American Savings Bank for elevating community financial well-being by delivering modern digital banking and driving measurable local economic impact. American Savings Bank’s efforts include more than $221 million in first-time homebuyer loans, nearly $2.7 million donated to housing nonprofits with the Federal Home Loan Bank of Des Moines Member Impact Fund, and the Buy Local Hawaii℠ program, which has helped residents save more than $1.5 million while supporting local merchants.
Blaze Credit Union: Digital Transformation Award
The Q2 Excellence Award for Digital Transformation recognizes Blaze Credit Union for modernizing its digital ecosystem to deliver measurable improvements in adoption, performance, efficiency, and member experiences. Following its merger and Q2 migration, Blaze increased enrollment of digital banking users by 163%, grew digital transactions by 195%, reduced average transaction time by 81.5%, and eliminated an estimated 1,000 hours of annual manual work.
A+ Federal Credit Union: Fintech Collaboration Award
The Q2 Excellence Award for Fintech Collaboration recognizes A+ Federal Credit Union for leveraging the Q2 Innovation Studio fintech partner ecosystem to deliver new experiences, expand capabilities, and drive measurable member impact. Through strategic fintech collaborations, A+FCU increased digital account opening by 202%, expanded digital funding by 3,450%, reached 74.8% digital adoption, and generated a reported 373% ROI.
United Community: Fraud Innovation Award
The Q2 Excellence Award for Fraud Innovation recognizes United Community for demonstrating leadership in fraud prevention and risk mitigation through a layered technological approach and proactive education strategies. United Community has shown measurable impact in reducing losses, protecting account holders, and strengthening trust through innovative tools, data-driven defenses, and a culture of fraud awareness.
Chartway Credit Union: Credit Union of the Year
The Q2 Excellence Award for Credit Union of the Year recognizes Chartway Credit Union for exemplifying outstanding organizational excellence, innovation, and member impact. Chartway has demonstrated remarkable outcomes and leadership in its digital and operational efforts, including reducing manual fraud review volume by 30–40% and lowering inbound fraud-related call volume by 15–25%.
nbkc bank: Bank of the Year
The Q2 Excellence Award for Bank of the Year recognizes nbkc bank for demonstrating exceptional overall performance, leadership, and impact through its digital strategy, innovation, and service to account holders and communities. nbkc bank's achievements reflect meaningful results, including digital and AI initiatives that helped increase Net Promoter Scores by 43% for business accounts and 26% for personal accounts, while AI-enabled workflows delivered $158,000 in annual savings and automated more than 400 business account approvals.
To learn more about the digital banking solutions Q2 provides to leading financial institutions, visit: https://www.q2.com/products/digital-banking.
About Q2 Holdings, Inc.
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE and NYSE Texas under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.
Central Texas Credit Union Honored for Digital Banking Innovation
, /PRNewswire/ -- A+ Federal Credit Union (A+FCU) today announced it has been named a recipient of the 2026 Q2 Excellence Award for Fintech Collaboration by Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services.
The Q2 Excellence Awards are an annual program recognizing banks and credit unions driving significant business outcomes, delivering exceptional digital experiences, and strengthening the communities they serve. This year's recipients were honored at CONNECT 26, Q2's annual conference held in Austin, Texas. A+FCU was selected from over 60 nominated financial institutions across the country for leveraging strategic fintech collaborations to enhance their members' online banking experiences, resulting in an increase of digital account opening by 202%, expanding digital funding by 3,450%, and reaching 74.8% digital adoption for its award-winning A+ Online Banking and A+ Mobile App.
"We've been intentionally evolving the A+FCU digital experience to better meet our members' needs, so this recognition is especially meaningful to our team," said A+FCU Chief Digital Strategy Officer Brandon McGee. "By leveraging strategic fintech partnerships, we're delivering seamless, intuitive online banking experiences that make managing finances easier and more accessible. It reflects our continued focus on building practical, scalable solutions that create real value for our A+ members."
"We are proud to recognize A+ Federal Credit Union as a 2026 Q2 Excellence Award recipient," said Q2 Chief Business Officer Kirk Coleman. "A+FCU exemplifies what it means to put members first while leveraging innovative digital solutions to drive real impact in the communities they serve. This award is a reflection of their commitment to excellence and their leadership in shaping the future of financial services."
A+FCU members can download the A+ Mobile App from the App Store or Google Play to experience award-winning digital banking firsthand.
About A+ Federal Credit Union
A+ Federal Credit Union was founded in 1949 by 50 Austin, Texas teachers. Over seventy-seven years later, A+FCU is an award-winning institution with more than 194,000 members throughout the community, $2.58 billion in assets, over 520 employees, and 22 branches. A+FCU supports members with a full range of financial products including home, auto, and business loans, checking and savings accounts, as well as digital banking solutions for banking on the go. Learn more at aplusfcu.org.
About Q2 Holdings, Inc.
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE and NYSE Texas under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.
Central Texas Credit Union Honored for Digital Banking Innovation
, /PRNewswire/ -- A+ Federal Credit Union (A+FCU) today announced it has been named a recipient of the 2026 Q2 Excellence Award for Fintech Collaboration by Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services.
The Q2 Excellence Awards are an annual program recognizing banks and credit unions driving significant business outcomes, delivering exceptional digital experiences, and strengthening the communities they serve. This year's recipients were honored at CONNECT 26, Q2's annual conference held in Austin, Texas. A+FCU was selected from over 60 nominated financial institutions across the country for leveraging strategic fintech collaborations to enhance their members' online banking experiences, resulting in an increase of digital account opening by 202%, expanding digital funding by 3,450%, and reaching 74.8% digital adoption for its award-winning A+ Online Banking and A+ Mobile App.
"We've been intentionally evolving the A+FCU digital experience to better meet our members' needs, so this recognition is especially meaningful to our team," said A+FCU Chief Digital Strategy Officer Brandon McGee. "By leveraging strategic fintech partnerships, we're delivering seamless, intuitive online banking experiences that make managing finances easier and more accessible. It reflects our continued focus on building practical, scalable solutions that create real value for our A+ members."
"We are proud to recognize A+ Federal Credit Union as a 2026 Q2 Excellence Award recipient," said Q2 Chief Business Officer Kirk Coleman. "A+FCU exemplifies what it means to put members first while leveraging innovative digital solutions to drive real impact in the communities they serve. This award is a reflection of their commitment to excellence and their leadership in shaping the future of financial services."
A+FCU members can download the A+ Mobile App from the App Store or Google Play to experience award-winning digital banking firsthand.
About A+ Federal Credit Union
A+ Federal Credit Union was founded in 1949 by 50 Austin, Texas teachers. Over seventy-seven years later, A+FCU is an award-winning institution with more than 194,000 members throughout the community, $2.58 billion in assets, over 520 employees, and 22 branches. A+FCU supports members with a full range of financial products including home, auto, and business loans, checking and savings accounts, as well as digital banking solutions for banking on the go. Learn more at aplusfcu.org.
About Q2 Holdings, Inc.
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for consumers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE and NYSE Texas under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.
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