Q2 Holdings, Inc. provides a comprehensive array of cloud-based digital banking platforms, primarily serving regional and community financial institutions (RCFIs) across the ...
Q2 Holdings, Inc. (QTWO) is a financial experience company that empowers financial institutions to build stronger communities and businesses through digital innovation. Founded in 2004 by R.H. 'Hank' Seale III in Austin, Texas, the company originally operated as CBG Holdings, Inc. before rebranding to Q2 Holdings in March 2013. Under ...Q2 Holdings, Inc. (QTWO) is a financial experience company that empowers financial institutions to build stronger communities and businesses through digital innovation. Founded in 2004 by R.H. 'Hank' Seale III in Austin, Texas, the company originally operated as CBG Holdings, Inc. before rebranding to Q2 Holdings in March 2013. Under the leadership of CEO Matthew Flake, who took the helm in 2013, Q2 has grown from a startup to a publicly traded company on the New York Stock Exchange since its IPO in March 2014. With a global workforce of approximately 2,548 employees, Q2 serves more than a thousand financial institutions across the globe, including banks, credit unions, alternative finance companies, and fintechs. The company's comprehensive product portfolio addresses various facets of digital finance: Q2 Consumer Banking and Q2 Small Business and Commercial platforms provide branded digital banking experiences; Q2mobile Remote Deposit Capture simplifies check deposits; Q2 Sentinel and Q2 Patrol offer security analytics and event-driven validation; SMART enables targeted messaging; Q2 CardSwap automatically updates payment information; Q2 Gro supports digital account opening and sales; Q2 Biller Direct facilitates bill payments; and ClickSWITCH manages direct deposit redirection. The Centrix brand includes tools for dispute tracking, ACH payment risk monitoring, and fraud prevention. Developers benefit from the Q2 Caliper SDK, while users can leverage Q2 Contextual PFM and Q2 Goals for personal financial management. Lending and leasing are supported through Q2 Cloud Lending and PrecisionLender, and Q2 BaaS offers open API financial services. Financially, Q2 has demonstrated robust performance with a market capitalization of approximately $3.9 billion as of the latest data. Its revenue per share stands at $13.56, with a gross profit margin of 57%, operating margin of 10.3%, and net profit margin of 10.9%. The company's return on equity is 14.5%, and it has a price-to-earnings ratio of 42.44. Q2's enterprise value is $3.86 billion with an EV/EBITDA of 26.6. Despite not paying dividends, the company reinvests in R&D (19.2% of revenue) and sales & marketing (27.3% of revenue). The firm maintains a debt-to-equity ratio of 0.064, indicating conservative leverage. Key leadership includes founder R.H. 'Hank' Seale, who transitioned to Chairman Emeritus in 2024, with Matt Flake serving as both CEO and Chairman. Q2's mission is to build stronger communities and businesses by enabling financial institutions to onboard, grow, and serve their customers effectively, fostering a globally connected workforce dedicated to digital transformation in the banking industry.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$794.8M
+14.1%
+1.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$52.0M
+235.0%
+12.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+54.0%
+6.2%
+0.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+5.7%
+194.6%
+2.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+6.5%
+218.3%
+10.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$194.7M
+50.8%
+18.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+24.5%
+32.2%
+16.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
52.4%
-50.0%
-88.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.02x
-27.0%
+1.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon. My name is Kevin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q2 Holdings Second Quarter 2026 Financial Results Conference Call. I will now hand the conference over to Josh Yankovich, Investor Relations. Sir, please begin.
Josh Yankovich: Thank you, operator. Good afternoon, everyone, and thank you for joining us today. With me on the call are Matt Flake, our CEO; and Jonathan Price, our CFO. This call contains forward-looking statements that are subject to significant risks and uncertainties, including, among other things, with respect to our expectations for the future operating and financial performance of Q2 Holdings and for the financial services industry. Actual results may differ materially from those contemplated by these forward-looking statements, and we can give no assurance that such expectations or any of our forward-looking statements will prove to be correct. Important factors that could cause actual results to differ materially from those reflected in the forward-looking statements are included in our periodic reports filed with the SEC, copies of which may be found on the Investor Relations section of our website, including our quarterly report on Form 10-Q for the second quarter of 2026, and the press release distributed this afternoon and filed in our Form 8-K with the SEC regarding the financial results we will discuss today. Forward-looking statements that we make on this call are based on assumptions only as of the date discussed. Investors should not assume that these statements will remain operative at a later time, and we undertake no obligation to update any such forward-looking statements discussed in this call. Also, unless otherwise stated, all financial measures discussed on this call other than revenue will be on a non-GAAP basis. A discussion of why we use non-GAAP financial measures and a reconciliation of the non-GAAP measures to the most comparable GAAP measures is included in our press release, which is available on the Investor Relations section of our website and in our Form 8-K filed today with the SEC. We have also published additional materials related to today's results on our Investor Relations website. Let me now turn the call over to Matt.
Matthew Flake: Thanks, Josh, and good afternoon, everyone. Thank you for joining us today. I'll start by sharing our second quarter results and highlights from across the business. I'll then hand the call over to Jonathan to discuss our financial results in more detail and provide our updated outlook for the remainder of the year. We delivered another strong quarter of execution with financial results that reflect the continued strength of our subscription model, healthy demand for our mission-critical solutions and the operating leverage we continue to build into the business. In the second quarter, we generated revenue of $219.8 million, representing 13% year-over-year growth. We …
