What is Q2 Hldgs Inc's earnings per share (EPS)?

Q2 Hldgs Inc (QTWO) reported diluted earnings per share of $0.80 for fiscal year 2025. This represents a 225.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Q2 Hldgs Inc Financials

QTWO

FY2025 annual

Revenue $794.8M +14.1% YoY

Net Income $52.0M +235.1% YoY

EPS (Diluted) $0.80 +225.0% YoY

Free Cash Flow $194.7M +50.8% YoY

Source SEC Filings (10-K/10-Q) Data as of Jun 30, 2026 Currency USD FYE December

Q2 Hldgs Inc (QTWO) reported $794.8M in revenue for fiscal year 2025, up 14.1% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI QTWO FY2025 2026-07-29

Q2’s software model finally crossed into self-funding profitability as margins widened and cash began outrunning accounting earnings.

By FY2025, free cash flow of $194.7M was almost the same as operating cash flow of $201.5M, showing that most cash from operations was not being consumed by reinvestment. Set against the move from a -13.8% operating margin in FY2023 to 5.0% in FY2025, that points to a model that has shifted from loss-making growth to cash-rich scaling, not just a temporary earnings bounce.

The balance sheet became less leveraged overall, with debt to equity improving from 1.7x in FY2023 to 0.9x in FY2025. But the current ratio fell to 1.0x, so short-term obligations now sit much closer to available current assets even as long-run solvency improved.

About $512.9M of assets is goodwill against $661.8M of equity, so a large share of reported net worth comes from past acquisitions rather than readily spendable assets. That does not weaken the recent cash performance, but it does mean book value is less tangible than the equity line alone suggests.

Financial Health Signals

Financial Health Score 49/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Q2 Hldgs Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Q2 Hldgs Inc has an operating margin of 5.0%, meaning the company retains $5 of operating profit per $100 of revenue. This results in a moderate score of 35/100, indicating healthy but not exceptional operating efficiency. This is up from -6.1% the prior year.

Growth

Q2 Hldgs Inc's revenue grew 14.1% year-over-year to $794.8M, a solid pace of expansion. This earns a growth score of 71/100.

Leverage

Q2 Hldgs Inc has a moderate D/E ratio of 0.93. This balance of debt and equity financing earns a leverage score of 47/100.

Liquidity

Q2 Hldgs Inc's current ratio of 1.02 is below the typical benchmark, resulting in a score of 20/100. However, the company holds substantial cash reserves (68% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.

Cash Flow

Q2 Hldgs Inc converts 24.5% of revenue into free cash flow ($194.7M). This strong cash generation earns a score of 86/100.

Returns

Q2 Hldgs Inc's ROE of 7.9% shows moderate profitability relative to equity, earning a score of 34/100. This is up from -7.4% the prior year.

Altman Z-Score Safe

3.96

Q2 Hldgs Inc scores 3.96, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($4.0B) relative to total liabilities ($614.5M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial

6/8

Q2 Hldgs Inc passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.

Earnings Quality Cash-Backed

3.87x

For every $1 of reported earnings, Q2 Hldgs Inc generates $3.87 in operating cash flow ($201.5M OCF vs $52.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

14.17x

Q2 Hldgs Inc earns $14.17 in operating income for every $1 of interest expense ($39.9M vs $2.8M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue

$794.8M

YoY+14.1%

5Y CAGR+14.6%

10Y CAGR+22.0%

Q2 Hldgs Inc generated $794.8M in revenue in fiscal year 2025. This represents an increase of 14.1% from the prior year.

EBITDA

$93.3M

YoY+251.5%

Q2 Hldgs Inc's EBITDA was $93.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 251.5% from the prior year.

Net Income

$52.0M

YoY+235.1%

Q2 Hldgs Inc reported $52.0M in net income in fiscal year 2025. This represents an increase of 235.1% from the prior year.

EPS (Diluted)

$0.80

YoY+225.0%

Q2 Hldgs Inc earned $0.80 per diluted share (EPS) in fiscal year 2025. This represents an increase of 225.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$194.7M

YoY+50.8%

Q2 Hldgs Inc generated $194.7M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 50.8% from the prior year.

Cash & Debt

$367.6M

YoY+2.5%

5Y CAGR-2.0%

10Y CAGR+18.6%

Q2 Hldgs Inc held $367.6M in cash as of fiscal year 2025; long-term debt is not reported for that period.

Shares Outstanding

62M

YoY+2.8%

5Y CAGR+2.3%

10Y CAGR+4.8%

Q2 Hldgs Inc had 62M shares outstanding in fiscal year 2025. This represents an increase of 2.8% from the prior year.

Dividends Per Share

Not reported for fiscal year 2025.

Margins & Returns

Gross Margin

54.1%

YoY+3.2pp

5Y CAGR+10.7pp

10Y CAGR+8.4pp

Q2 Hldgs Inc's gross margin was 54.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 3.2 percentage points from the prior year.

Operating Margin

5.0%

YoY+11.1pp

5Y CAGR+29.8pp

10Y CAGR+27.8pp

Q2 Hldgs Inc's operating margin was 5.0% in fiscal year 2025, reflecting core business profitability. This is up 11.1 percentage points from the prior year.

Net Margin

6.5%

YoY+12.1pp

5Y CAGR+40.7pp

10Y CAGR+29.6pp

Q2 Hldgs Inc's net profit margin was 6.5% in fiscal year 2025, showing the share of revenue converted to profit. This is up 12.1 percentage points from the prior year.

Return on Equity

7.9%

YoY+15.3pp

5Y CAGR+29.3pp

10Y CAGR+29.1pp

Q2 Hldgs Inc's ROE was 7.9% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 15.3 percentage points from the prior year.

Capital Allocation

R&D Spending

$154.3M

YoY+7.7%

5Y CAGR+9.6%

10Y CAGR+21.8%

Q2 Hldgs Inc invested $154.3M in research and development in fiscal year 2025. This represents an increase of 7.7% from the prior year.

Share Buybacks

$5.0M

Q2 Hldgs Inc spent $5.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Capital Expenditures

$6.8M

YoY+1.8%

5Y CAGR-22.1%

10Y CAGR-0.5%

Q2 Hldgs Inc invested $6.8M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 1.8% from the prior year.

QTWO Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

QTWO annual income statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12
Revenue	$846.2M	$794.8M+14.1%	$696.5M+11.5%	$624.6M+10.4%	$565.7M+13.4%	$498.7M+23.8%	$402.8M+27.7%	$315.5M+30.9%	$241.1M+24.3%	$194.0M+29.1%	$150.2M+38.0%	$108.9M+37.6%	$79.1M+39.1%	$56.9M+38.4%	$41.1M
Cost of Revenue	$364.0M	$365.1M+6.8%	$342.0M+6.2%	$322.0M+4.1%	$309.3M+13.0%	$273.7M+20.0%	$228.2M+40.4%	$162.5M+33.3%	$121.9M+22.5%	$99.5M+28.5%	$77.4M+31.0%	$59.1M+28.4%	$46.1M+27.0%	$36.3M+44.1%	$25.2M
Gross Profit	$482.2M	$429.7M+21.2%	$354.5M+17.1%	$302.7M+18.1%	$256.3M+13.9%	$225.0M+28.9%	$174.6M+14.1%	$153.0M+28.3%	$119.2M+26.2%	$94.5M+29.8%	$72.8M+46.4%	$49.7M+50.4%	$33.1M+60.5%	$20.6M+29.4%	$15.9M
R&D Expenses	$162.6M	$154.3M+7.7%	$143.2M+4.3%	$137.3M+5.6%	$130.1M+11.2%	$117.0M+20.1%	$97.4M+27.7%	$76.3M+48.6%	$51.3M+27.3%	$40.3M+24.3%	$32.5M+50.7%	$21.5M+78.2%	$12.1M+33.9%	$9.0M+69.8%	$5.3M
SG&A Expenses	$127.4M	$125.5M+2.1%	$122.9M+11.6%	$110.2M+22.2%	$90.2M+15.7%	$77.9M+9.8%	$70.9M+25.0%	$56.7M+26.1%	$45.0M+21.0%	$37.2M+16.3%	$32.0M+39.1%	$23.0M+35.2%	$17.0M+44.7%	$11.7M+33.7%	$8.8M
Operating Income	$84.9M	$39.9M+194.4%	-$42.3M+50.9%	-$86.1M+17.9%	-$104.8M-34.3%	-$78.0M+21.9%	-$99.8M-49.6%	-$66.7M-109.6%	-$31.9M-18.4%	-$26.9M+24.7%	-$35.7M-43.8%	-$24.8M-30.3%	-$19.1M-11.4%	-$17.1M-140.2%	-$7.1M
Interest Expense	N/A	$2.8M+5.0%	$2.7M+5.9%	$2.5M	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$5.5M	$2.7M-64.6%	$7.7M+115.5%	$3.6M+22.5%	$2.9M+77.0%	$1.6M+16.0%	$1.4M+111.3%	-$12.5M-228.3%	-$3.8M-1111.1%	-$314K-173.5%	$427K+94.1%	$220K+209.9%	$71K+29.1%	$55K-66.5%	$164K
Net Income	$92.0M	$52.0M+235.1%	-$38.5M+41.1%	-$65.4M+40.0%	-$109.0M+3.3%	-$112.7M+18.1%	-$137.6M-94.2%	-$70.9M-100.2%	-$35.4M-35.3%	-$26.2M+28.0%	-$36.4M-45.1%	-$25.1M-27.7%	-$19.6M-9.8%	-$17.9M-103.6%	-$8.8M
EPS (Diluted)	—	$0.80+225.0%	-$0.64+42.9%	-$1.12+41.1%	-$1.90+5.0%	-$2.00+24.5%	-$2.65-73.2%	-$1.53	N/A	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Revenue	$219.8M+1.5%	$216.5M+4.0%	$208.2M+3.2%	$201.7M+3.4%	$195.1M+2.9%	$189.7M+3.7%	$183.0M+4.6%	$175.0M
Cost of Revenue	$89.6M+1.1%	$88.6M-4.7%	$92.9M+0.1%	$92.9M+2.5%	$90.6M+2.1%	$88.7M+2.4%	$86.7M+0.9%	$86.0M
Gross Profit	$130.2M+1.8%	$127.9M+11.0%	$115.3M+5.9%	$108.8M+4.1%	$104.6M+3.5%	$101.0M+4.8%	$96.3M+8.2%	$89.1M
R&D Expenses	$41.1M-1.8%	$41.9M+3.1%	$40.6M+4.4%	$38.9M+5.5%	$36.9M-2.5%	$37.9M+6.0%	$35.7M-3.2%	$36.9M
SG&A Expenses	$33.1M+2.7%	$32.2M+5.7%	$30.5M-4.0%	$31.7M+2.2%	$31.0M-4.0%	$32.3M+7.8%	$30.0M-4.8%	$31.5M
Operating Income	$29.3M+6.0%	$27.7M+64.2%	$16.9M+53.3%	$11.0M+11.8%	$9.8M+349.5%	$2.2M+239.0%	-$1.6M+87.7%	-$12.8M
Interest Expense	$427K-32.9%	$636K	N/A	N/A	$708K-1.4%	$718K	N/A	N/A
Income Tax	$1.9M-40.3%	$3.1M+824.0%	$337K+110.6%	$160K-90.8%	$1.7M+255.9%	$487K-72.5%	$1.8M-21.6%	$2.3M
Net Income	$29.9M+12.1%	$26.6M+30.4%	$20.4M+35.8%	$15.0M+27.9%	$11.8M+147.5%	$4.8M+2276.5%	$200K+101.7%	-$11.8M
EPS (Diluted)	$0.46+15.0%	$0.40	N/A	$0.23+27.8%	$0.18+157.1%	$0.07	N/A	-$0.20

TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.

QTWO Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

QTWO annual balance sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12
Total Assets	$1.3B-1.4%	$1.3B+7.8%	$1.2B-11.0%	$1.3B-2.6%	$1.4B-2.2%	$1.4B+40.3%	$1.0B+117.7%	$463.7M+117.9%	$212.8M+5.9%	$201.0M-1.7%	$204.5M+49.5%	$136.8M+123.9%	$61.1M	N/A
Current Assets	$556.1M-0.5%	$558.7M+30.5%	$428.0M-19.4%	$531.1M+1.7%	$522.5M-15.2%	$616.2M+230.7%	$186.3M-14.6%	$218.3M+66.5%	$131.1M+4.3%	$125.7M-5.7%	$133.2M+27.5%	$104.5M+208.6%	$33.9M	N/A
Cash & Equivalents	$367.6M+2.5%	$358.6M+56.1%	$229.7M+15.1%	$199.6M-38.2%	$322.8M-20.8%	$407.7M+307.3%	$100.1M-7.6%	$108.3M+86.9%	$58.0M+5.6%	$54.9M-18.2%	$67.0M-1.4%	$68.0M+264.0%	$18.7M+105.0%	$9.1M
Accounts Receivable	$51.7M+22.9%	$42.1M-1.9%	$42.9M-8.2%	$46.7M-0.5%	$47.0M+29.0%	$36.4M+62.3%	$22.4M+14.1%	$19.7M+49.0%	$13.2M+7.9%	$12.2M+35.9%	$9.0M+79.9%	$5.0M-44.8%	$9.1M	N/A
Goodwill	$512.9M0.0%	$512.9M0.0%	$512.9M0.0%	$512.9M0.0%	$512.9M+10.9%	$462.3M+0.1%	$462.0M+328.2%	$107.9M+738.0%	$12.9M0.0%	$12.9M0.0%	$12.9M	$0	N/A	N/A
Total Liabilities	$614.5M-20.9%	$777.0M+3.2%	$752.9M-19.1%	$930.7M+14.2%	$814.7M+5.4%	$773.3M+22.7%	$630.0M+106.7%	$304.8M+187.0%	$106.2M+5.4%	$100.7M+16.5%	$86.5M+49.5%	$57.9M-40.6%	$97.4M	N/A
Current Liabilities	$544.1M+36.4%	$398.9M+108.2%	$191.6M-0.2%	$192.0M+14.1%	$168.4M+15.5%	$145.8M+9.7%	$133.0M+80.5%	$73.7M+8.2%	$68.1M+15.0%	$59.2M+29.6%	$45.7M+41.0%	$32.4M+11.0%	$29.2M	N/A
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$0-100.0%	$6.3M	N/A
Total Equity	$661.8M+27.8%	$517.8M+15.5%	$448.5M+7.0%	$419.0M-26.5%	$570.3M-11.4%	$643.4M+69.6%	$379.4M+138.8%	$158.9M+49.0%	$106.6M+6.4%	$100.2M-15.0%	$118.0M+49.4%	$78.9M+317.4%	-$36.3M-91.3%	-$19.0M
Retained Earnings	-$612.2M+7.8%	-$664.2M-6.2%	-$625.7M-11.7%	-$560.3M-13.4%	-$493.9M-29.6%	-$381.2M-56.7%	-$243.3M-41.1%	-$172.4M-13.4%	-$152.1M-20.9%	-$125.8M-40.7%	-$89.4M-38.9%	-$64.4M-43.9%	-$44.7M	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Total Assets	$968.4M-22.3%	$1.2B-2.3%	$1.3B-10.5%	$1.4B+3.0%	$1.4B+2.6%	$1.3B+4.3%	$1.3B+1.7%	$1.3B
Current Assets	$244.5M-53.4%	$524.6M-5.7%	$556.1M-21.4%	$707.3M+7.2%	$659.7M+6.6%	$618.8M+10.8%	$558.7M+6.1%	$526.3M
Cash & Equivalents	$99.9M-70.8%	$342.3M-6.9%	$367.6M-22.2%	$472.4M+14.0%	$414.3M+7.9%	$383.9M+7.1%	$358.6M+11.9%	$320.3M
Accounts Receivable	$70.5M-5.0%	$74.2M+43.5%	$51.7M-26.0%	$69.9M+15.8%	$60.3M-3.6%	$62.6M+48.7%	$42.1M-27.3%	$57.9M
Goodwill	$512.9M0.0%	$512.9M0.0%	$512.9M0.0%	$512.9M0.0%	$512.9M0.0%	$512.9M0.0%	$512.9M0.0%	$512.9M
Total Liabilities	$325.0M-48.8%	$634.7M+3.3%	$614.5M-23.6%	$803.8M+0.3%	$801.1M-0.4%	$804.4M+3.5%	$777.0M-0.1%	$777.7M
Current Liabilities	$258.8M-54.0%	$562.5M+3.4%	$544.1M-25.6%	$731.6M-0.1%	$732.3M+69.4%	$432.2M+8.3%	$398.9M+89.2%	$210.8M
Total Equity	$643.5M+5.2%	$611.7M-7.6%	$661.8M+6.2%	$622.9M+6.6%	$584.3M+7.1%	$545.5M+5.3%	$517.8M+4.6%	$495.1M
Retained Earnings	-$555.7M+5.1%	-$585.6M+4.4%	-$612.2M+3.2%	-$632.7M+2.3%	-$647.7M+1.8%	-$659.5M+0.7%	-$664.2M0.0%	-$664.4M

Not reported in any period shown, so not listed: Inventory.

QTWO Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

QTWO annual cash flow statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12
Operating Cash Flow	$226.3M	$201.5M+48.4%	$135.8M+93.1%	$70.3M+92.3%	$36.6M+17.6%	$31.1M+1158.3%	-$2.9M-618.2%	$567K-87.7%	$4.6M-51.5%	$9.5M+179.1%	$3.4M-37.1%	$5.4M+202.1%	-$5.3M-250.8%	-$1.5M+49.9%	-$3.0M
Capital Expenditures	$13.0M	$6.8M+1.8%	$6.7M+18.0%	$5.7M-49.1%	$11.1M-43.6%	$19.8M-16.7%	$23.7M+71.1%	$13.9M+4.3%	$13.3M+7.9%	$12.3M-14.2%	$14.3M+101.3%	$7.1M+41.5%	$5.0M-54.8%	$11.1M+517.4%	$1.8M
Free Cash Flow	$213.2M	$194.7M+50.8%	$129.1M+99.7%	$64.6M+154.3%	$25.4M+124.1%	$11.3M+142.5%	-$26.7M-100.5%	-$13.3M-53.0%	-$8.7M-205.7%	-$2.8M+74.0%	-$11.0M-533.6%	-$1.7M+83.2%	-$10.3M+18.4%	-$12.6M-162.7%	-$4.8M
Investing Cash Flow	$74.4M	-$4.0M+80.9%	-$21.1M-118.6%	$113.3M+168.4%	-$165.6M-154.2%	-$65.1M+47.5%	-$124.2M+74.3%	-$483.3M-182.1%	-$171.3M-911.0%	-$16.9M-2.6%	-$16.5M+71.7%	-$58.4M-118.5%	-$26.7M-136.4%	-$11.3M-334.0%	-$2.6M
Financing Cash Flow	-$613.6M	-$189.0M-1519.0%	$13.3M+108.8%	-$152.0M-2684.4%	$5.9M+111.5%	-$51.2M-111.8%	$434.7M-8.7%	$476.1M+119.8%	$216.6M+1773.7%	$11.6M+1124.5%	$944K-98.2%	$52.1M-36.0%	$81.3M+263.4%	$22.4M+3613.3%	-$637K
Share Buybacks	N/A	$5.0M	$0	$0	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Operating Cash Flow	$60.7M+7.7%	$56.3M-11.6%	$63.7M+39.7%	$45.6M-6.3%	$48.6M+11.7%	$43.5M+1.2%	$43.0M-0.5%	$43.3M
Capital Expenditures	$1.7M-74.2%	$6.6M+230.2%	$2.0M-26.5%	$2.7M+107.4%	$1.3M+66.9%	$785K-45.4%	$1.4M-40.0%	$2.4M
Free Cash Flow	$59.0M+18.6%	$49.7M-19.4%	$61.7M+43.9%	$42.9M-9.4%	$47.3M+10.7%	$42.7M+2.8%	$41.6M+1.8%	$40.9M
Investing Cash Flow	$20.5M+25.0%	$16.4M-32.6%	$24.3M+83.1%	$13.3M+160.0%	-$22.1M-13.4%	-$19.5M-202.6%	-$6.4M+75.8%	-$26.7M
Financing Cash Flow	-$323.3M-232.8%	-$97.2M+49.7%	-$193.2M	$0-100.0%	$3.7M+571.1%	$547K-80.5%	$2.8M+398.4%	-$942K
Share Buybacks	$22.9M-76.4%	$97.2M	N/A	N/A	$0	$0	N/A	N/A

Not reported in any period shown, so not listed: Dividends Paid.

QTWO Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples.

QTWO annual financial ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12
Gross Margin	54.1%+3.2pp	50.9%+2.5pp	48.4%+3.1pp	45.3%+0.2pp	45.1%+1.8pp	43.4%-5.1pp	48.5%-1.0pp	49.5%+0.8pp	48.7%+0.3pp	48.5%+2.8pp	45.7%+3.9pp	41.8%+5.6pp	36.2%-2.5pp	38.8%
Operating Margin	5.0%+11.1pp	-6.1%+7.7pp	-13.8%+4.7pp	-18.5%-2.9pp	-15.6%+9.2pp	-24.8%-3.6pp	-21.2%-8.0pp	-13.2%+0.7pp	-13.9%+9.9pp	-23.8%-1.0pp	-22.8%+1.3pp	-24.1%+6.0pp	-30.1%-12.8pp	-17.3%
Net Margin	6.5%+12.1pp	-5.5%+4.9pp	-10.5%+8.8pp	-19.3%+3.3pp	-22.6%+11.6pp	-34.2%-11.7pp	-22.5%-7.8pp	-14.7%-1.2pp	-13.5%+10.7pp	-24.2%-1.2pp	-23.0%+1.8pp	-24.8%+6.6pp	-31.4%-10.1pp	-21.4%
Return on Equity	7.9%+15.3pp	-7.4%+7.1pp	-14.6%+11.4pp	-26.0%-6.3pp	-19.8%+1.6pp	-21.4%-2.7pp	-18.7%+3.6pp	-22.3%+2.3pp	-24.5%+11.7pp	-36.3%-15.0pp	-21.2%+3.6pp	-24.9%	N/A	N/A
Return on Assets	4.1%+7.0pp	-3.0%+2.5pp	-5.4%+2.6pp	-8.1%+0.1pp	-8.1%+1.6pp	-9.7%-2.7pp	-7.0%+0.6pp	-7.6%+4.7pp	-12.3%+5.8pp	-18.1%-5.8pp	-12.3%+2.1pp	-14.3%+14.9pp	-29.3%	N/A
Current Ratio	1.02-0.4x	1.40-0.8x	2.23-0.5x	2.77-0.3x	3.10-1.1x	4.23+2.8x	1.40-1.6x	2.96+1.0x	1.93-0.2x	2.12-0.8x	2.92-0.3x	3.23+2.1x	1.16	N/A
Debt-to-Equity	0.93-0.6x	1.50-0.2x	1.68-0.5x	2.22+0.8x	1.43+0.2x	1.20-0.5x	1.66-0.3x	1.92+0.9x	1.000.0x	1.01+0.3x	0.73+0.7x	0.00	N/A	N/A
FCF Margin	24.5%+6.0pp	18.5%+8.2pp	10.3%+5.9pp	4.5%+2.2pp	2.3%+8.9pp	-6.6%-2.4pp	-4.2%-0.6pp	-3.6%-2.1pp	-1.5%+5.8pp	-7.3%-5.7pp	-1.6%+11.4pp	-13.0%+9.2pp	-22.2%-10.5pp	-11.7%

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Gross Margin	59.3%+0.2pp	59.1%+3.7pp	55.4%+1.4pp	54.0%+0.4pp	53.6%+0.4pp	53.2%+0.6pp	52.6%+1.7pp	50.9%
Operating Margin	13.4%+0.6pp	12.8%+4.7pp	8.1%+2.6pp	5.5%+0.4pp	5.0%+3.9pp	1.1%+2.0pp	-0.9%+6.5pp	-7.3%
Net Margin	13.6%+1.3pp	12.3%+2.5pp	9.8%+2.4pp	7.5%+1.4pp	6.0%+3.5pp	2.5%+2.4pp	0.1%+6.9pp	-6.7%
Return on Equity	4.6%+0.3pp	4.4%+1.3pp	3.1%+0.7pp	2.4%+0.4pp	2.0%+1.1pp	0.9%+0.8pp	0.0%+2.4pp	-2.4%
Return on Assets	3.1%+0.9pp	2.1%+0.5pp	1.6%+0.5pp	1.1%+0.2pp	0.9%+0.5pp	0.4%+0.3pp	0.0%+0.9pp	-0.9%
Current Ratio	0.940.0x	0.93-0.1x	1.02+0.1x	0.97+0.1x	0.90-0.5x	1.430.0x	1.40-1.1x	2.50
Debt-to-Equity	0.51-0.5x	1.04+0.1x	0.93-0.4x	1.29-0.1x	1.37-0.1x	1.470.0x	1.50-0.1x	1.57
FCF Margin	26.8%+3.9pp	23.0%-6.7pp	29.6%+8.4pp	21.3%-3.0pp	24.3%+1.7pp	22.5%-0.2pp	22.7%-0.6pp	23.3%

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Where Q2 Hldgs Inc Ranks

Frequently Asked Questions

What is Q2 Hldgs Inc's annual revenue?

Q2 Hldgs Inc (QTWO) reported $794.8M in total revenue for fiscal year 2025. This represents a 14.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Q2 Hldgs Inc's revenue growing?

Q2 Hldgs Inc (QTWO) revenue grew by 14.1% year-over-year, from $696.5M to $794.8M in fiscal year 2025.

Is Q2 Hldgs Inc profitable?

Yes, Q2 Hldgs Inc (QTWO) reported a net income of $52.0M in fiscal year 2025, with a net profit margin of 6.5%.

What is Q2 Hldgs Inc's EBITDA?

Q2 Hldgs Inc (QTWO) had EBITDA of $93.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is Q2 Hldgs Inc's gross margin?

Q2 Hldgs Inc (QTWO) had a gross margin of 54.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Q2 Hldgs Inc's operating margin?

Q2 Hldgs Inc (QTWO) had an operating margin of 5.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Q2 Hldgs Inc's net profit margin?

Q2 Hldgs Inc (QTWO) had a net profit margin of 6.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Q2 Hldgs Inc's return on equity (ROE)?

Q2 Hldgs Inc (QTWO) has a return on equity of 7.9% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Q2 Hldgs Inc's free cash flow?

Q2 Hldgs Inc (QTWO) generated $194.7M in free cash flow during fiscal year 2025. This represents a 50.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Q2 Hldgs Inc's operating cash flow?

Q2 Hldgs Inc (QTWO) generated $201.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Q2 Hldgs Inc's total assets?

Q2 Hldgs Inc (QTWO) had $1.3B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Q2 Hldgs Inc's capital expenditures?

Q2 Hldgs Inc (QTWO) invested $6.8M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Q2 Hldgs Inc spend on research and development?

Q2 Hldgs Inc (QTWO) invested $154.3M in research and development during fiscal year 2025.

Does Q2 Hldgs Inc buy back shares?

Yes, Q2 Hldgs Inc (QTWO) spent $5.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does Q2 Hldgs Inc have outstanding?

Q2 Hldgs Inc (QTWO) had 62M shares outstanding as of fiscal year 2025.

What is Q2 Hldgs Inc's current ratio?

Q2 Hldgs Inc (QTWO) had a current ratio of 1.02 as of fiscal year 2025, which is considered adequate.

What is Q2 Hldgs Inc's debt-to-equity ratio?

Q2 Hldgs Inc (QTWO) had a debt-to-equity ratio of 0.93 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Q2 Hldgs Inc's return on assets (ROA)?

Q2 Hldgs Inc (QTWO) had a return on assets of 4.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Q2 Hldgs Inc's Altman Z-Score?

Q2 Hldgs Inc (QTWO) has an Altman Z-Score of 3.96, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Q2 Hldgs Inc's Piotroski F-Score?

Q2 Hldgs Inc (QTWO) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Q2 Hldgs Inc's earnings high quality?

Q2 Hldgs Inc (QTWO) has an earnings quality ratio of 3.87x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Q2 Hldgs Inc cover its interest payments?

Q2 Hldgs Inc (QTWO) has an interest coverage ratio of 14.17x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Q2 Hldgs Inc?

Q2 Hldgs Inc (QTWO) scores 49 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.