• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Dashboard
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlerts
    Company
    AboutQuantisnow PlusContactJobs
    Legal
    Terms of usePrivacy policyCookie policy

    Q2 Holdings, Inc. Announces First Quarter 2025 Financial Results

    5/7/25 4:15:00 PM ET
    $QTWO
    Computer Software: Prepackaged Software
    Technology
    Get the next $QTWO alert in real time by email

    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, 2025.

    GAAP Results for the First Quarter 2025

    • Revenue of $189.7 million, up 15 percent year-over-year and up 4 percent from fourth quarter 2024.
    • GAAP gross margin of 53.2 percent, up from 49.7 percent in the prior-year quarter and 52.6 percent in fourth quarter 2024.
    • GAAP net income of $4.8 million compared to GAAP net loss of $13.8 million for the prior-year quarter and GAAP net income of $0.2 million for fourth quarter 2024.

    Non-GAAP Results for the First Quarter 2025

    • Non-GAAP gross margin of 57.9 percent, up from 54.9 percent for the prior-year quarter and 57.4 percent from fourth quarter 2024.
    • Adjusted EBITDA of $40.7 million, up from $25.2 million for the prior-year quarter and $37.6 million from fourth quarter 2024.

    For a reconciliation of our GAAP to non-GAAP results, please see the tables below.

    "We delivered strong results to start the year with solid performance across the business," said Q2 Chairman and CEO Matt Flake. "Our first quarter bookings performance was marked by significant renewals and expansion activity, demonstrating the enduring value of our solutions to our customers. We believe the criticality of our technology, the breadth of our customer base, and our resilient business model—combined with a robust pipeline and strong renewal opportunity ahead — position us well to navigate and execute in the current market environment."

    First Quarter Highlights

    • Signed five Tier 1 and Enterprise contracts in the quarter highlighted by:
      • An expansion agreement with an existing Enterprise customer, a Top 50 US bank, utilizing our risk and fraud solutions.
      • A relationship pricing contract with a new Tier 1 customer.
    • Subscription Annualized Recurring Revenue increased to $702.4 million, up 14 percent year-over-year.
    • Remaining Performance Obligations total, or Backlog, increased by $74 million sequentially and $379 million year-over-year, resulting in a total committed Backlog of approximately $2.3 billion at quarter-end, representing 3 percent sequential growth and 20 percent year-over-year growth.

    Q2's Broad Portfolio Propels Bookings Success and Customer Renewals

    Q2 delivered broad-based bookings activity in the quarter across all lines of business, highlighted by five Enterprise and Tier 1 deals across digital banking, relationship pricing, risk & fraud and Helix solutions. The first quarter demonstrated continued strength in renewal bookings, sustaining momentum from 2024. Notably, Q2 secured renewals with three of our top 10 largest customers across digital banking, Helix and relationship pricing. Renewal opportunities available for 2025 and 2026 are anticipated to be comparable to the levels seen over the past two years.

    Q2's solutions address critical industry concerns, including deposit gathering and mitigating growing risk and fraud threats, while serving regional and community financial institutions with comprehensive offerings that enhance these institutions' competitive positions, community service capabilities, and risk management across various market conditions. We believe this focus on addressing fundamental, persistent challenges in the financial services sector positions Q2 to maintain continued demand for its solutions amidst uncertain macroeconomic conditions.

    Q2's financial model and performance remain strong, with the company's scale and progress on profitability providing considerable visibility and durability. The company's critical role in helping financial institutions grow deposits, coupled with its broad and strategic customer base, underpins Q2's financial outlook for the year.

    "We are pleased with our financial performance in the first quarter, delivering revenue and adjusted EBITDA results exceeding the high-end of our guidance," said Q2 CFO Jonathan Price. "Our strong financial foundation and track record of execution give us confidence in our ability to capitalize on market opportunities and continue delivering long-term value for our shareholders as we execute our profitable growth strategy throughout 2025 and beyond."

    Financial Outlook

    As of May 7, 2025, Q2 Holdings is providing guidance for its second quarter of 2025 and updated guidance for its full year 2025, 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 (loss) is the most comparable GAAP measure to adjusted EBITDA. Adjusted EBITDA differs from GAAP net income (loss) 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 (loss) or a reconciliation of the forward-looking adjusted EBITDA guidance to GAAP net income (loss). 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 2025 as follows:

    • Total revenue of $191.0 million - $195.0 million, which would represent year-over-year growth of 10 to 13 percent.
    • Adjusted EBITDA of $41.0 million - $44.0 million, representing 21 to 23 percent of revenue for the quarter.

    Q2 Holdings is providing updated guidance for the full-year 2025 as follows:

    • Total revenue of $776.0 million - $783.0 million, which would represent year-over-year growth of 11 to 12 percent.
    • Adjusted EBITDA of $170.0 million - $175.0 million, representing 22 percent of revenue for the year.

    Conference Call Details

    Date:

    Wednesday, May 7, 2025

     

    Time:

    5:00 p.m. EDT

     

    Hosts:

    Matt Flake, Chairman & CEO / Jonathan Price, CFO / Kirk Coleman, President

     

    Conference Call Registration:

    https://registrations.events/direct/Q4I6081048

     

    Webcast Registration:

    https://events.q4inc.com/attendee/698975862

     

     

     

     

    All participants must register using the above links (either the webcast or conference call). A 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/. In addition, a live conference call dial-in will be available upon registration. Participants should dial in at least 10 minutes before the start of the conference call. 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 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 (loss); and free cash flow. Beginning in the year ended December 31, 2024, because there was no impact of purchase accounting on revenue, our non-GAAP total revenue is now equivalent to our GAAP total revenue, and we have therefore not reported non-GAAP total revenue. 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 (loss) 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 (loss), Q2 adjusts operating income (loss), 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. 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. There was no deferred revenue reduction from purchase accounting or transaction-related costs in either of the three months ended March 31, 2025 or 2024.

    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 (loss). 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: the enduring value of our solutions to our customers; the criticality of our technology; our diverse customer base; our resilient business model; our robust pipeline; our strong renewal opportunity ahead; our ability to navigate the current uncertain market environment and deliver on our financial expectations throughout 2025 and beyond; bookings momentum; anticipated renewal opportunities; the ability of our solutions to address critical industry concerns, while enhancing our customers' competitive positions, community service capabilities and risk management across various market conditions; our ability to maintain strong demand for our solutions amidst uncertain macroeconomic conditions; the continued strength of our financial model and performance; the ability of our scale and progress on profitability to provide a high degree of visibility and stability; our strong financial foundation; our ability to capitalize on market opportunities, navigate potential challenges and continue delivering long-term value for our shareholders as we execute our profitable growth strategy throughout 2025 and beyond; our ability to execute against our three-year target framework; and our quarterly and annual financial guidance.

    The forward-looking statements contained in this press release are based upon our 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 recent U.S. tariffs and trade measures and resulting 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 retaliatory tariffs and the impact on the valuation of marketable securities; (b) 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 costs and liabilities and harm to our business and reputation and our ability to sell our solutions; (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, elevated and fluctuating interest rates, instability in the financial services industry and any changes to or new financial regulations and their potential impacts on our prospects' and customers' operations, 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 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; (e) the risks associated with the development of our solutions, including artificial intelligence, or AI, based solutions and changes to the market for our solutions compared to our expectations; (f) quarterly fluctuations in our operating results relative to our expectations and guidance and the accuracy of our forecasts; (g) the risks and increased costs associated with managing growth and global operations, including hiring, training, retaining and motivating employees to support such growth; (h) 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; (i) 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; (j) the risks associated with geopolitical uncertainties or discord, including the heightened risk of state-sponsored cyberattacks or cyber fraud on financial services and other critical infrastructure; (k) 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 FinTechs, or alternative finance companies, or Alt-FIs, and our arrangements with them, which may provide more complex revenue arrangements for us and which may be more vulnerable to an economic downturn than our financial institution customers; (l) 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 may have on our revenue and financial performance in a period; (m) the risk that errors, interruptions or delays in our solutions or Web hosting negatively impacts our business and sales; (n) the risks associated with the migration of a significant portion 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; (o) 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; (p) the risks associated with operating within and selling into a regulated industry, including risks related to evolving regulation of 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; (q) the risks associated with our sales and marketing capabilities, including partner relationships and the length, cost and unpredictability of our sales cycle; (r) the risks inherent in third-party technology and implementation partnerships including defects, failures or interruptions in third-party services or solutions, that could cause harm to our business; (s) the risk that we will not be able to maintain historical contract terms such as pricing and duration; (t) the general risks associated with the complexity of our customer arrangements and our solutions; (u) the risks associated with integrating acquired companies and successfully selling and maintaining their solutions; (v) litigation related to intellectual property and other matters and any related claims, negotiations and settlements; (w) the risks associated with further consolidation in the financial services industry; (x) the risks associated with selling our solutions internationally and with the continued expansion of our international operations; and (y) 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, including our quarterly report on Form 10-Q for the first quarter of 2025. 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 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, 2025

     

    December 31, 2024

    Assets

     

     

     

     

    Current assets:

     

     

     

     

    Cash and cash equivalents

     

    $

    383,902

     

     

    $

    358,560

     

    Restricted cash

     

     

    1,575

     

     

     

    2,233

     

    Investments

     

     

    102,147

     

     

     

    88,066

     

    Accounts receivable, net

     

     

    62,597

     

     

     

    42,084

     

    Contract assets, current portion, net

     

     

    6,370

     

     

     

    7,888

     

    Prepaid expenses and other current assets

     

     

    21,729

     

     

     

    23,512

     

    Deferred solution and other costs, current portion

     

     

    30,254

     

     

     

    26,611

     

    Deferred implementation costs, current portion

     

     

    10,201

     

     

     

    9,706

     

    Total current assets

     

     

    618,775

     

     

     

    558,660

     

    Property and equipment, net

     

     

    28,025

     

     

     

    31,528

     

    Right of use assets

     

     

    28,920

     

     

     

    30,402

     

    Deferred solution and other costs, net of current portion

     

     

    28,300

     

     

     

    28,116

     

    Deferred implementation costs, net of current portion

     

     

    27,403

     

     

     

    26,408

     

    Intangible assets, net

     

     

    90,529

     

     

     

    94,633

     

    Goodwill

     

     

    512,869

     

     

     

    512,869

     

    Contract assets, net of current portion and allowance

     

     

    12,463

     

     

     

    9,483

     

    Other long-term assets

     

     

    2,572

     

     

     

    2,696

     

    Total assets

     

    $

    1,349,856

     

     

    $

    1,294,795

     

     

     

     

     

     

    Liabilities and stockholders' equity

     

     

     

     

    Current liabilities:

     

     

     

     

    Accounts payable and accrued liabilities

     

    $

    57,468

     

     

    $

    60,542

     

    Convertible notes, current portion

     

     

    190,514

     

     

     

    190,331

     

    Deferred revenues, current portion

     

     

    174,094

     

     

     

    137,700

     

    Lease liabilities, current portion

     

     

    10,084

     

     

     

    10,327

     

    Total current liabilities

     

     

    432,160

     

     

     

    398,900

     

    Convertible notes, net of current portion

     

     

    302,429

     

     

     

    302,115

     

    Deferred revenues, net of current portion

     

     

    26,981

     

     

     

    27,281

     

    Lease liabilities, net of current portion

     

     

    36,019

     

     

     

    38,346

     

    Other long-term liabilities

     

     

    6,809

     

     

     

    10,357

     

    Total liabilities

     

     

    804,398

     

     

     

    776,999

     

     

     

     

     

     

    Stockholders' equity:

     

     

     

     

    Common stock

     

     

    6

     

     

     

    6

     

    Additional paid-in capital

     

     

    1,206,649

     

     

     

    1,183,893

     

    Accumulated other comprehensive loss

     

     

    (1,720

    )

     

     

    (1,873

    )

    Accumulated deficit

     

     

    (659,477

    )

     

     

    (664,230

    )

    Total stockholders' equity

     

     

    545,458

     

     

     

    517,796

     

    Total liabilities and stockholders' equity

     

    $

    1,349,856

     

     

    $

    1,294,795

     

    Q2 Holdings, Inc.

    Condensed Consolidated Statements Of Comprehensive Income (Loss)

    (in thousands, except per share data)

    (unaudited)

     

     

     

    Three Months Ended March 31,

     

     

     

    2025

     

     

     

    2024

     

     

     

     

     

     

    Revenues

     

    $

    189,735

     

     

    $

    165,508

     

    Cost of revenues (1)

     

     

    88,745

     

     

     

    83,256

     

    Gross profit

     

     

    100,990

     

     

     

    82,252

     

     

     

     

     

     

    Operating expenses:

     

     

     

     

    Sales and marketing

     

     

    26,527

     

     

     

    25,445

     

    Research and development

     

     

    37,853

     

     

     

    34,862

     

    General and administrative

     

     

    32,322

     

     

     

    30,176

     

    Amortization of acquired intangibles

     

     

    93

     

     

     

    4,828

     

    Lease and other restructuring charges

     

     

    2,006

     

     

     

    1,126

     

    Total operating expenses

     

     

    98,801

     

     

     

    96,437

     

    Income (loss) from operations

     

     

    2,189

     

     

     

    (14,185

    )

    Total other income, net

     

     

    3,051

     

     

     

    1,897

     

    Income (loss) before income taxes

     

     

    5,240

     

     

     

    (12,288

    )

    Provision for income taxes

     

     

    (487

    )

     

     

    (1,555

    )

    Net income (loss)

     

    $

    4,753

     

     

    $

    (13,843

    )

    Other comprehensive income (loss):

     

     

     

     

    Unrealized gain (loss) on available-for-sale investments

     

     

    (24

    )

     

     

    126

     

    Foreign currency translation adjustment

     

     

    177

     

     

     

    (321

    )

    Comprehensive income (loss)

     

    $

    4,906

     

     

    $

    (14,038

    )

     

     

     

     

     

    Net income (loss) per common share

     

     

     

     

    Basic

     

    $

    0.08

     

     

    $

    (0.23

    )

    Diluted

     

    $

    0.07

     

     

    $

    (0.23

    )

    Weighted average common shares outstanding

     

     

     

     

    Basic

     

     

    61,222

     

     

     

    59,446

     

    Diluted

     

     

    64,820

     

     

     

    59,446

     

    (1) Includes amortization of acquired technology of $5.5 million for each of the three months ended March 31, 2025 and 2024.

    Q2 Holdings, Inc.

    Condensed Consolidated Statements of Cash Flows

    (in thousands)

    (unaudited)

     

     

    Three Months Ended March 31,

     

     

     

    2025

     

     

     

    2024

     

    Cash flows from operating activities:

     

     

     

     

    Net income (loss)

     

    $

    4,753

     

     

    $

    (13,843

    )

    Adjustments to reconcile net income (loss) to net cash from operating activities:

     

     

     

     

    Amortization of deferred implementation, solution and other costs

     

     

    6,961

     

     

     

    6,411

     

    Depreciation and amortization

     

     

    13,720

     

     

     

    17,523

     

    Amortization of debt issuance costs

     

     

    543

     

     

     

    496

     

    Amortization of premiums and discounts on investments

     

     

    (301

    )

     

     

    (371

    )

    Stock-based compensation expense

     

     

    21,010

     

     

     

    20,801

     

    Deferred income taxes

     

     

    (2,042

    )

     

     

    (269

    )

    Other non-cash items

     

     

    465

     

     

     

    405

     

    Changes in operating assets and liabilities:

     

     

    (1,578

    )

     

     

    (17,717

    )

    Net cash provided by operating activities

     

     

    43,531

     

     

     

    13,436

     

    Cash flows from investing activities:

     

     

     

     

    Net maturities (purchases) of investments

     

     

    (13,805

    )

     

     

    30,911

     

    Purchases of property and equipment

     

     

    (785

    )

     

     

    (1,405

    )

    Capitalized software development costs

     

     

    (4,914

    )

     

     

    (6,010

    )

    Net cash provided by (used in) investing activities

     

     

    (19,504

    )

     

     

    23,496

     

    Cash flows from financing activities:

     

     

     

     

    Proceeds from exercise of stock options

     

     

    547

     

     

     

    8,404

     

    Net cash provided by financing activities

     

     

    547

     

     

     

    8,404

     

    Effect of exchange rate changes on cash, cash equivalents and restricted cash

     

     

    110

     

     

     

    (189

    )

    Net increase in cash, cash equivalents and restricted cash

     

     

    24,684

     

     

     

    45,147

     

    Cash, cash equivalents and restricted cash, beginning of period

     

     

    360,793

     

     

     

    233,632

     

    Cash, cash equivalents and restricted cash, end of period

     

    $

    385,477

     

     

    $

    278,779

     

    Q2 Holdings, Inc.

    Reconciliation of GAAP to Non-GAAP Measures

    (in thousands)

    (unaudited)

     

     

     

    Three Months Ended March 31,

     

     

     

    2025

     

     

     

    2024

     

    GAAP gross profit

     

    $

    100,990

     

     

    $

    82,252

     

    Stock-based compensation

     

     

    3,218

     

     

     

    3,165

     

    Amortization of acquired technology

     

     

    5,505

     

     

     

    5,504

     

    Lease and other restructuring charges

     

     

    144

     

     

     

    7

     

    Non-GAAP gross profit

     

    $

    109,857

     

     

    $

    90,928

     

     

     

     

     

     

    Non-GAAP gross margin:

     

     

     

     

    Non-GAAP gross profit

     

    $

    109,857

     

     

    $

    90,928

     

    Revenues

     

     

    189,735

     

     

     

    165,508

     

    Non-GAAP gross margin

     

     

    57.9

    %

     

     

    54.9

    %

     

     

     

     

     

    GAAP sales and marketing expense

     

    $

    26,527

     

     

    $

    25,445

     

    Stock-based compensation

     

     

    (3,452

    )

     

     

    (3,871

    )

    Non-GAAP sales and marketing expense

     

    $

    23,075

     

     

    $

    21,574

     

     

     

     

     

     

    GAAP research and development expense

     

    $

    37,853

     

     

    $

    34,862

     

    Stock-based compensation

     

     

    (4,042

    )

     

     

    (3,843

    )

    Non-GAAP research and development expense

     

    $

    33,811

     

     

    $

    31,019

     

     

     

     

     

     

    GAAP general and administrative expense

     

    $

    32,322

     

     

    $

    30,176

     

    Stock-based compensation

     

     

    (10,298

    )

     

     

    (9,922

    )

    Non-recurring legal settlements

     

     

    (1,750

    )

     

     

    —

     

    Non-GAAP general and administrative expense

     

    $

    20,274

     

     

    $

    20,254

     

     

     

     

     

     

    GAAP operating income (loss)

     

    $

    2,189

     

     

    $

    (14,185

    )

    Stock-based compensation

     

     

    21,010

     

     

     

    20,801

     

    Amortization of acquired technology

     

     

    5,505

     

     

     

    5,504

     

    Amortization of acquired intangibles

     

     

    93

     

     

     

    4,828

     

    Lease and other restructuring charges

     

     

    2,150

     

     

     

    1,133

     

    Non-recurring legal settlements

     

     

    1,750

     

     

     

    —

     

    Non-GAAP operating income

     

    $

    32,697

     

     

    $

    18,081

     

     

     

     

     

     

    Reconciliation of GAAP net income (loss) to adjusted EBITDA:

     

     

     

     

    GAAP net income (loss)

     

    $

    4,753

     

     

    $

    (13,843

    )

    Stock-based compensation

     

     

    21,010

     

     

     

    20,801

     

    Depreciation and amortization

     

     

    13,720

     

     

     

    17,523

     

    Lease and other restructuring charges

     

     

    2,150

     

     

     

    1,133

     

    Non-recurring legal settlements

     

     

    1,750

     

     

     

    —

     

    Provision for income taxes

     

     

    487

     

     

     

    1,555

     

    Interest and other (income) expense, net

     

     

    (3,160

    )

     

     

    (1,936

    )

    Adjusted EBITDA

     

    $

    40,710

     

     

    $

    25,233

     

     

     

     

     

     

    Adjusted EBITDA margin

     

     

    21.5

    %

     

     

    15.2

    %

    Q2 Holdings, Inc.

    Reconciliation of Free Cash Flow

    (in thousands)

    (unaudited)

     

     

    Three Months Ended March 31,

     

     

     

    2025

     

     

     

    2024

     

    Net cash provided by operating activities

     

    $

    43,531

     

     

    $

    13,436

     

    Purchases of property and equipment

     

     

    (785

    )

     

     

    (1,405

    )

    Capitalized software development costs

     

     

    (4,914

    )

     

     

    (6,010

    )

    Free cash flow

     

    $

    37,832

     

     

    $

    6,021

     

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250507361500/en/

    MEDIA CONTACT:

    Jack McBee

    Q2 Holdings, Inc.

    M: +1-210-854-7974

    [email protected]

    INVESTOR CONTACT:

    Josh Yankovich

    Q2 Holdings, Inc.

    O: +1-512-682-4463

    [email protected]

    Get the next $QTWO alert in real time by email

    Chat with this insight

    Save time and jump to the most important pieces.

    Recent Analyst Ratings for
    $QTWO

    DatePrice TargetRatingAnalyst
    4/7/2025$60.00Buy → Neutral
    Compass Point
    1/10/2025$89.00 → $99.00Outperform → Neutral
    Robert W. Baird
    12/18/2024$126.00Sector Weight → Overweight
    KeyBanc Capital Markets
    10/18/2024$72.00 → $90.00Buy → Neutral
    Citigroup
    9/4/2024$91.00Buy
    Compass Point
    7/24/2024$65.00 → $76.00Buy → Neutral
    DA Davidson
    12/13/2023$30.00 → $41.00Underweight → Neutral
    Piper Sandler
    12/7/2023$36.00 → $46.00Equal-Weight → Overweight
    Stephens
    More analyst ratings

    $QTWO
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • Chief Executive Officer Flake Matthew P sold $2,894,448 worth of shares (36,023 units at $80.35), decreasing direct ownership by 7% to 485,666 units (SEC Form 4)

      4 - Q2 Holdings, Inc. (0001410384) (Issuer)

      4/2/25 4:46:40 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • General Counsel Kerr Michael S sold $1,020,911 worth of shares (13,733 units at $74.34), decreasing direct ownership by 19% to 58,838 units (SEC Form 4)

      4 - Q2 Holdings, Inc. (0001410384) (Issuer)

      3/17/25 4:17:24 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • Chief Revenue Officer Volanoski Michael A. was granted 14,465 shares and sold $2,538,095 worth of shares (34,565 units at $73.43), decreasing direct ownership by 10% to 178,406 units (SEC Form 4)

      4 - Q2 Holdings, Inc. (0001410384) (Issuer)

      3/13/25 5:40:46 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology

    $QTWO
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    See more
    • SEC Form SC 13G/A filed by Q2 Holdings Inc. (Amendment)

      SC 13G/A - Q2 Holdings, Inc. (0001410384) (Subject)

      2/14/24 3:36:24 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • SEC Form SC 13G/A filed by Q2 Holdings Inc. (Amendment)

      SC 13G/A - Q2 Holdings, Inc. (0001410384) (Subject)

      2/13/24 5:12:20 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • SEC Form SC 13G filed by Q2 Holdings Inc.

      SC 13G - Q2 Holdings, Inc. (0001410384) (Subject)

      2/9/24 1:00:52 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology

    $QTWO
    Leadership Updates

    Live Leadership Updates

    See more
    • ZenBusiness Appoints Financial Expert Lynn Atchison to Board to Drive Strategic Growth

      Former CFO of HomeAway, Hoover's, and Spredfast Joins ZenBusiness Board, Bringing Expertise from Bumble and Q2 Holdings ZenBusiness®, the all-in-one platform providing trusted guidance for small business owners, today announced the appointment of Lynn Atchison to its Board of Directors. Atchison, a seasoned corporate board director and financial expert, brings extensive experience in scaling high-growth technology companies, navigating public markets, and leading organizations through transformative business strategies. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250313562620/en/ZenBusiness appoints financial expert Lynn Atch

      3/13/25 9:00:00 AM ET
      $BMBL
      $QTWO
      Computer Software: Programming Data Processing
      Technology
      Computer Software: Prepackaged Software
    • Q2 Announces Appointment of Andre Mintz to its Board of Directors

      Q2 board strengthened by an industry veteran with extensive experience in cybersecurity, privacy and risk management Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for financial services, announced today the appointment of Andre Mintz to its board of directors, effective March 1, 2025, and as a member of the Audit Committee and the Risk and Compliance Committee of Q2's Board of Directors. Mintz brings over three decades of global experience in technology, cybersecurity and privacy, serving in senior-level positions at Meta, Newport Group, Microsoft, Reuters and other leading companies. This press release features multimedia. View the full release he

      2/12/25 4:30:00 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • Q2 Appoints Jonathan Price as Chief Financial Officer

      Price to help Q2 advance its profitable growth strategy Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for financial services, today announced the appointment of Jonathan A. Price as its Chief Financial Officer to be effective November 2024. Price brings nearly 20 years of experience in corporate finance and operating leadership roles across investment banking, corporate strategy and the technology and financial services software industries. Price has significant leadership experience at Q2, currently serving as Executive Vice President, Strategy & Emerging Businesses, where he has been instrumental in guiding and shaping Q2's strategic initiatives w

      9/23/24 8:55:00 AM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology

    $QTWO
    Financials

    Live finance-specific insights

    See more
    • Q2 Holdings, Inc. Announces First Quarter 2025 Financial Results

      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, 2025. GAAP Results for the First Quarter 2025 Revenue of $189.7 million, up 15 percent year-over-year and up 4 percent from fourth quarter 2024. GAAP gross margin of 53.2 percent, up from 49.7 percent in the prior-year quarter and 52.6 percent in fourth quarter 2024. GAAP net income of $4.8 million compared to GAAP net loss of $13.8 million for the prior-year quarter and GAAP net income of $0.2 million for fourth quarter 2024. Non-GAAP Results for the First Quarter 2025 Non-GAAP gross margin of 57.9 percent, u

      5/7/25 4:15:00 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • Q2 Holdings, Inc. Announces Investor Conference Call to Review First Quarter 2025 Financial Results

      Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for financial services, will release its financial results for the first quarter 2025 after market close on Wednesday, May 7, 2025. Q2 will host a corresponding conference call at 5:00 p.m. EDT on Wednesday, May 7, 2025. Conference Call Details Date:   Wednesday, May 7, 2025 Time:   5:00 p.m. EDT Hosts:   Matt Flake, Chairman & CEO / Jonathan Price, CFO / Kirk Coleman, President Conference Call Registration:   https://registrations.events/direct/Q4I6081048 Webcast Registration:   https://events.q4inc.com/attendee/698975862       All parti

      4/23/25 4:30:00 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • Q2 Holdings, Inc. Announces Fourth Quarter and Full-Year 2024 Financial Results

      Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for financial services, today announced results for its fourth quarter and full year ending December 31, 2024. GAAP Results for the Fourth Quarter and Full-Year 2024 Revenue for the fourth quarter of $183.0 million, up 13 percent year-over-year and up 5 percent from the third quarter of 2024. Full-year 2024 revenue of $696.5 million, up 12 percent year-over-year. GAAP gross margin for the fourth quarter of 52.6 percent, up from 50.2 percent for the prior-year quarter and up from 50.9 percent for the third quarter of 2024. GAAP gross margin for full-year 2024 of 50.9 percent, up from 48.5 percent fo

      2/12/25 4:15:00 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology

    $QTWO
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    See more
    • Q2 Holdings downgraded by Compass Point with a new price target

      Compass Point downgraded Q2 Holdings from Buy to Neutral and set a new price target of $60.00

      4/7/25 11:57:52 AM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • Q2 Holdings downgraded by Robert W. Baird with a new price target

      Robert W. Baird downgraded Q2 Holdings from Outperform to Neutral and set a new price target of $99.00 from $89.00 previously

      1/10/25 8:39:00 AM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • Q2 Holdings upgraded by KeyBanc Capital Markets with a new price target

      KeyBanc Capital Markets upgraded Q2 Holdings from Sector Weight to Overweight and set a new price target of $126.00

      12/18/24 7:43:30 AM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology

    $QTWO
    Press Releases

    Fastest customizable press release news feed in the world

    See more
    • Q2 Holdings, Inc. Announces First Quarter 2025 Financial Results

      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, 2025. GAAP Results for the First Quarter 2025 Revenue of $189.7 million, up 15 percent year-over-year and up 4 percent from fourth quarter 2024. GAAP gross margin of 53.2 percent, up from 49.7 percent in the prior-year quarter and 52.6 percent in fourth quarter 2024. GAAP net income of $4.8 million compared to GAAP net loss of $13.8 million for the prior-year quarter and GAAP net income of $0.2 million for fourth quarter 2024. Non-GAAP Results for the First Quarter 2025 Non-GAAP gross margin of 57.9 percent, u

      5/7/25 4:15:00 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • Pinwheel Announces Integration With Q2's Digital Banking Platform

      Financial Institutions can now provide Pinwheel's embedded 1-click deposit switching to customers through Q2's Digital Banking Platform NEW YORK, April 24, 2025 /PRNewswire/ -- Pinwheel, the fintech helping financial institutions win primacy with frictionless account activation and engagement products, today announced an integration with Q2's Digital Banking Platform, via the Q2 Partner Accelerator Program. Q2 Holdings, Inc. (NYSE:QTWO) is a leading provider of digital transformation solutions for banking and lending. Pinwheel allows banks and credit unions to offer instant di

      4/24/25 9:00:00 AM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • Q2 Holdings, Inc. Announces Investor Conference Call to Review First Quarter 2025 Financial Results

      Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for financial services, will release its financial results for the first quarter 2025 after market close on Wednesday, May 7, 2025. Q2 will host a corresponding conference call at 5:00 p.m. EDT on Wednesday, May 7, 2025. Conference Call Details Date:   Wednesday, May 7, 2025 Time:   5:00 p.m. EDT Hosts:   Matt Flake, Chairman & CEO / Jonathan Price, CFO / Kirk Coleman, President Conference Call Registration:   https://registrations.events/direct/Q4I6081048 Webcast Registration:   https://events.q4inc.com/attendee/698975862       All parti

      4/23/25 4:30:00 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology

    $QTWO
    SEC Filings

    See more
    • SEC Form 10-Q filed by Q2 Holdings Inc.

      10-Q - Q2 Holdings, Inc. (0001410384) (Filer)

      5/7/25 5:02:30 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • Q2 Holdings Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

      8-K - Q2 Holdings, Inc. (0001410384) (Filer)

      5/7/25 4:25:24 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology
    • SEC Form DEF 14A filed by Q2 Holdings Inc.

      DEF 14A - Q2 Holdings, Inc. (0001410384) (Filer)

      4/23/25 4:25:18 PM ET
      $QTWO
      Computer Software: Prepackaged Software
      Technology