QTWO
Q2 Holdings, Inc.72.87
-0.07-0.1%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Cross-sell upside quantified
Q&A quantified cross-sell upside, noting only 10% of Tier 1 customers have all retail, commercial, relationship pricing, and fraud solutions, with 25-30% fraud penetration potential in digital banking base. Management detailed capital allocation flexibility, continuing buybacks while eyeing M&A and R&D reinvestment for elongated growth. Non-subscription revenues face mid-single-digit declines, dilutive but shrinking. Cloud migration drives 2026 gross margins above 60%. Fraud implementations often faster than digital banking. Pipeline healthy, back-half weighted. Cross-sell room yawns wide. Confident tone; watch expansion traction.
Key Stats
Market Cap
4.56BP/E (TTM)
145.74Basic EPS (TTM)
0.50Dividend Yield
0%Recent Filings
10-K
FY2025 results
Q2 Holdings swung to net income of $52.0 million for FY2025 ended December 31, 2025, from losses in prior years, as revenues climbed 14.1% to $794.8 million on 17% subscription growth from new digital banking wins and expansions, with Subscription ARR hitting $780.1 million (up from $681.9 million). Gross margins expanded to 54.1% amid cloud efficiencies, while operating income turned positive at $39.9 million after $4.5 million in restructuring cuts; Q4 momentum showed in 113% net revenue retention and Registered Users reaching 27.3 million. Cash from operations surged to $201.5 million, funding $191 million 2025 Notes repayment and $5 million buybacks under a fresh $150 million program, with $433 million liquidity and a $125 million undrawn revolver. No annual guidance disclosed in the 10-K. Cybersecurity threats loom large, risking service disruptions in this regulated space.
8-K
Q2 crushes Q4, guides 2026
Q2 Holdings reported Q4 revenue of $208.2 million, up 14% year-over-year, with full-year 2025 revenue hitting $794.8 million and adjusted EBITDA surging to $186.5 million. Backlog swelled 21% to $2.7 billion amid strong bookings, including Tier 1 wins. Debt retired. Q1 2026 revenue guided $212.5-$216.5 million. Profitability leaped.
8-K
Q2 exec leadership reshuffle
Q2 Holdings reshuffles executive ranks effective November 6, 2025: Himagiri Mukkamala moves from Chief Development Officer to COO leading engineering, service delivery, and customer experience, with base salary bumped to $450,000 and target bonus to 75%. Kirk Coleman shifts to Chief Business Officer; CEO Matthew Flake adds President role; CRO Michael Volanoski exits December 12 after transition. Leadership realigns operations and sales.
10-Q
Q3 FY2025 results
Q2 Holdings posted Q3 revenue of $201.7M, up 15.2% y/y from $175.0M, with subscription revenue jumping 17.5% y/y to $165.2M on new sales and expansions; gross margin expanded to 54.0% from 50.9%. Operating income flipped to $11.0M from a $12.8M loss, while diluted EPS hit $0.23 versus -$0.20 y/y (diluted shares 69.9M reflecting convertible notes). Cash swelled to $472.4M, with YTD operating cash flow $137.8M; revolver fully available despite $495M notes due 2025-26. Profitability turned on lower restructuring. Tariffs risk cost pressures via partners.
8-K
Q3 beat, $150M buyback
Q2 Holdings posted Q3 revenue of $201.7M, up 15% year-over-year, with GAAP net income of $15.0M versus prior-year loss and Adjusted EBITDA of $48.8M. Board authorized $150M open-market share repurchases from cash balances, no expiration. Leadership shuffled: Hima Mukkamala to COO, Kirk Coleman to Chief Business Officer effective November 6; CRO departs December 12. Raised FY25 revenue guide to $789-793M.
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