Business Description

Q2 Holdings, Inc. is a provider of secure, cloud-based digital banking solutions for regional and community financial institutions, credit unions, and fintechs. Headquartered in Austin, Texas, the company offers a comprehensive software platform that enables clients to deliver online and mobile banking, account opening, and lending services. Its single-codebase architecture allows financial institutions to unify retail, small business, and commercial banking experiences.

Financial Statements

In thousands, USD
FY 2025FY 2024FY 2023FY 2022
Total Revenues794,809696,464624,624565,673
Cost of Sales365,126341,983321,973309,328
Gross Profit429,683354,481302,651256,345
Selling, General & Administrative Expenses231,371228,893219,708198,377
Depreciation & Amortization Expenses16,97920,66719,67518,248
Research & Development Expenses154,330143,244137,334130,103
Other Operating Expenses3,9927,65211,06814,378
Operating Profit39,897(42,263)(86,057)(104,761)
Interest and Investment Income20,23716,34210,0985,362
Interest Expense(5,409)(4,939)(5,732)(6,676)
Non-Operating Income19,869
Total Non-Operating Income14,82811,40324,235(1,314)
Income Before Provision for Income Taxes54,725(30,860)(61,822)(106,075)
Provision for Income Taxes2,7177,6763,562(2,908)
Consolidated Net Income52,008(38,536)(65,384)(103,167)
Net Income Attributable to Common Shareholders52,008(38,536)(65,384)(108,983)
Basic EPS0.84-0.64-1.12-1.90
Diluted EPS0.80-0.64-1.12-1.90
Basic Weighted Average Shares Outstanding62,15660,10558,35457,300
Diluted Weighted Average Shares Outstanding65,11860,10558,35457,300
Shares Outstanding62,74160,72859,03157,735
FY 2025FY 2024FY 2023FY 2022
Cash and Cash Equivalents367,631358,560229,655199,600
Total Cash and Cash Equivalents367,631358,560229,655199,600
Accounts Receivable51,71642,08442,89946,735
Other Receivables8,5967,8889,1938,909
Total Trade Receivables60,31249,97252,09255,644
Other Current Assets128,109150,128146,217275,832
Total Current Assets556,052558,660427,964531,076
Net Property, Plant & Equipment54,97161,93076,63196,532
Net Intangible Assets78,37794,633121,572145,681
Goodwill512,869512,869512,869512,869
Other Long-Term Assets74,00866,70362,38963,568
Total Assets1,276,2771,294,7951,201,4251,349,726
Accounts Payable20,4739,35419,35310,055
Accrued Expenses56,32651,18843,05144,208
Current Portion of Long-Term Debt303,36810,903
Current Portion of Leases8,915137,70010,4369,408
Unearned Revenue155,003190,331118,723117,468
Total Current Liabilities544,08510,327191,563192,042
Long-Term Debt398,900490,464657,789
Leases33,83227,28145,58852,991
Other Long-Term Liabilities36,549340,46125,33127,880
Total Long-Term Liabilities70,381766,642561,383738,660
Total Liabilities614,46610,357752,946930,702
Common Stock6666
Additional Paid-in Capital1,275,9801,183,8931,075,278982,300
Accumulated Other Comprehensive Income(1,953)(1,873)(1,111)(2,972)
Retained Earnings(612,222)(664,230)(625,694)(560,310)
Total Common Shareholders' Equity661,811517,796448,479419,024
Total Shareholders' Equity661,811517,796448,479419,024
Total Liabilities and Shareholders' Equity1,276,2771,294,7951,201,4251,349,726
FY 2025FY 2024FY 2023FY 2022
Net Income52,008(38,536)(65,384)(108,983)
Depreciation & Amortization57,12494,657125,13184,929
Share-Based Compensation Expense86,94989,21579,18865,157
Other Adjustments2,9884,071(15,378)15,947
Changes in Trade Receivables(9,936)9064,090286
Changes in Accounts Payable8,581(9,788)9,353(548)
Changes in Accrued Expenses1,8515,968(492)(9,845)
Changes in Unearned Revenue16,84028,918(3,092)10,212
Changes in Other Operating Activities(41,244)(40,850)(35,548)(20,599)
Cash from Operating Activities201,461135,75170,29236,556
Capital Expenditure(6,810)(6,692)(5,673)(11,142)
Purchases of Intangible Assets(21,283)(22,339)(24,970)(18,910)
Purchases of Investments(94,103)(95,788)(76,865)(292,984)
Proceeds from Sale of Investments118,168103,739220,776162,521
Payments for Business Acquisitions(5,040)
Cash from Investing Activities(4,028)(21,080)113,268(165,555)
Repayments of Long-Term Debt(191,000)(10,908)(149,640)
Net Issuance / (Repayments) of Long-Term Debt(191,000)(10,908)(149,640)
Issuance of Common Shares7,02814,2598,3975,882
Repurchases of Common Shares(5,000)
Net Issuance / (Repurchases) of Common Shares2,02814,2598,3975,882
Other Financing Activities(803)
Cash from Financing Activities(188,972)13,317(152,012)5,882
Effect of Exchange Rate Changes on Cash and Cash Equivalents49(827)182(802)
Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash8,510127,16131,730(123,919)

Key Metrics & Ratios

MetricValue
Market Cap$4.53B
P/E90.20x
P/S5.70x
EV/EBITDA46.44x
Return on Equity8.8%
Return on Invested Capital4.4%
Current Ratio1.02x
Free Cash Flow Margin24.5%

Margins

Gross margin
54.1%
Operating margin
5.0%
Net margin
6.5%

Quarterly Trend

QuarterRevenueYoY growthOperating marginOperating income
Q2 2026 $220M +12.6% 13.4% $29M
Q1 2026 $217M +14.1% 12.8% $28M
Q4 2025 $208M +13.8% 8.1% $17M
Q3 2025 $202M +15.2% 5.5% $11M
Q2 2025 $195M 5.0% $10M
Q1 2025 $190M 1.2% $2M
Q4 2024 $183M -0.9% $-2M
Q3 2024 $175M -7.3% $-13M

More on Q2 Holdings, Inc.

Figures compiled from public company filings.

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