Q2 Holdings, Inc. Announces Third Quarter 2025 Financial Results; Announces $150 Million Share Repurchase Authorization
GAAP Results for the Third Quarter 2025
-
Revenue of
$201.7 million - GAAP gross margin of 54.0 percent, up from 50.9 percent in the prior-year quarter and 53.6 percent in second quarter 2025.
-
GAAP net income of
$15.0 million $11.8 million $11.8 million
Non-GAAP Results for the Third Quarter 2025
- Non-GAAP gross margin of 57.9 percent, up from 56.0 percent for the prior-year quarter and 57.5 percent in second quarter 2025.
-
Adjusted EBITDA of
$48.8 million $32.6 million $45.8 million
For a reconciliation of our GAAP to non-GAAP results, please see the tables below.
“We achieved strong sales success across key product lines, executing well in both Enterprise and Tier 1 segments, which drove a record for third quarter bookings,” said Q2 Chairman and CEO Matt Flake. "I’m also excited about leadership changes we believe will better align our talent and focus with our long-term strategy, strengthening our ability to innovate through AI and deliver even greater impact for our customers. As we look to close out the year, we believe our pipeline and the continued momentum positions us for sustained growth ahead."
Third Quarter Highlights
-
Signed seven Enterprise and Tier 1 contracts in the quarter highlighted by:
- A net new agreement with a Top 50 U.S. Enterprise bank for our retail and small-to-medium sized bank digital banking solutions.
- An expansion agreement with a Top 50 U.S. Enterprise bank to add retail digital banking, complementing existing commercial solutions on our platform.
- An expansion agreement with an Enterprise bank to utilize our risk and fraud solutions.
-
Subscription Annualized Recurring Revenue increased to
$745.4 million -
Remaining Performance Obligations total, or Backlog, increased by
$161 million $485 million $2.5 billion
Share Repurchase Program
Today, Q2 is announcing its Board of Directors has authorized a share repurchase program pursuant to which Q2 may purchase up to
Customers Explore Next Frontier of Q2's Digital Software Initiatives at Q2's Second Annual Dev Days Customer Conference
Q2 hosted its second annual Dev Days customer conference in October, where it shared future architecture and technology enhancements. The event served as a showcase for advancements highlighted by AI and ways Q2 is planning to bring leading-edge AI capabilities to the platform for its customers.
Q2 demonstrated a range of AI offerings currently in development which illustrate the breadth of its strategy, including an AI copilot which utilizes natural language prompts to assist account holders and service representatives as well as an AI assisted coding tool in Q2's software development kit (SDK), which makes developer documentation available via conversational developer tools. Q2 also shared a customer-facing extension of its internal AI assistant which indexes the vast archives of institutional documentation and operational context, made available through a large language model.
Q2 also highlighted a new partner data strategy intended to combine its various integrations and partners into a unified data and capabilities ecosystem built to power agentic innovation on the platform. As part of this new strategy, Q2 will seek to leverage its network of customers, partners and integrations to add capabilities to the platform and create a structure to drive further AI innovation.
“We are pleased with our financial performance in the third quarter, highlighted by both revenue and adjusted EBITDA results above the high end of our guidance," said Q2 CFO Jonathan Price. "Our results reflect our sustained focus on subscription revenue growth and operational execution. Based on our year-to-date performance and outlook for the rest of the year, we are raising our full-year guidance for revenue and adjusted EBITDA. Our strong balance sheet and cash flow generation give us flexibility to invest in growth, retire debt, and opportunistically execute our
Financial Outlook
As of November 5, 2025, Q2 Holdings is providing guidance for its fourth 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 fourth quarter of 2025 as follows:
-
Total revenue of
$202.4 million $206.4 million -
Adjusted EBITDA of
$47.2 million $50.2 million
Q2 Holdings is providing updated guidance for the full-year 2025 as follows:
-
Total revenue of
$789.0 million $793.0 million -
Adjusted EBITDA of
$182.5 million $185.5 million
Q2 Holdings is providing a preliminary financial outlook for 2026 as follows:
-
Year-over-year subscription revenue growth of approximately
13.5% . -
Adjusted EBITDA margin expansion of approximately 250 basis points and at least a
60% gross margin for the year.
Leadership Team Updates
Q2 today also announced updates to its executive leadership structure to better align its talent, efforts and leadership expertise with the Company’s long-term strategy.
Hima Mukkamala, Q2’s current Chief Development Officer, has been appointed to serve as Chief Operating Officer, effective November 6, 2025. As Chief Operating Officer, Hima will lead our technology & operations organization consisting of Q2’s engineering, service delivery and customer experience organizations.
Kirk Coleman, Q2’s current President, has been appointed to serve as Chief Business Officer, effective November 6, 2025. As Chief Business Officer, Kirk will lead a newly formed Go-To-Market organization consisting of Q2’s sales, customer success, marketing and product organizations.
Mike Volanoski, Q2’s current Chief Revenue Officer, will be departing Q2 and will remain with the Company to ensure a smooth transition until December 12, 2025.
Conference Call Details
Date: |
Wednesday, November 5, 2025 |
Time: |
5:00 p.m. EDT |
Hosts: |
Matt Flake, Chairman & CEO / Jonathan Price, CFO / Kirk Coleman, President |
Webcast Registration: |
All participants must register using the above link. The 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/. 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
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 or nine months ended September 30, 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 innovation services, opportunities and expansion; demand and expansion of our AI capabilities, solutions, strategy and offerings; the success of our partner data strategy, platforms and innovation; our diverse customer base; our resilient business model; our robust pipeline; strong momentum and demand for our risk and fraud services; our ability to navigate the current market environment and deliver on our financial expectations throughout 2025 and beyond; bookings renewals and expansion; anticipated renewal opportunities ahead; 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; 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; the success of our share repurchase program; 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; leadership changes and the anticipated effects and benefits therefrom; and our quarterly and annual financial guidance.
The forward-looking statements contained in this press release are based upon our historical performance and our 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 continued uncertainty regarding
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 third quarter of 2025 and our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 12, 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) |
||||||||
|
|
September 30,
|
|
December 31,
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
472,393 |
|
|
$ |
358,560 |
|
Restricted cash |
|
|
2,139 |
|
|
|
2,233 |
|
Investments |
|
|
96,341 |
|
|
|
88,066 |
|
Accounts receivable, net |
|
|
69,877 |
|
|
|
42,084 |
|
Contract assets, current portion, net |
|
|
6,236 |
|
|
|
7,888 |
|
Prepaid expenses and other current assets |
|
|
20,407 |
|
|
|
23,512 |
|
Deferred solution and other costs, current portion |
|
|
29,514 |
|
|
|
26,611 |
|
Deferred implementation costs, current portion |
|
|
10,359 |
|
|
|
9,706 |
|
Total current assets |
|
|
707,266 |
|
|
|
558,660 |
|
Property and equipment, net |
|
|
24,572 |
|
|
|
31,528 |
|
Right of use assets |
|
|
28,687 |
|
|
|
30,402 |
|
Deferred solution and other costs, net of current portion |
|
|
26,818 |
|
|
|
28,116 |
|
Deferred implementation costs, net of current portion |
|
|
29,319 |
|
|
|
26,408 |
|
Intangible assets, net |
|
|
82,317 |
|
|
|
94,633 |
|
Goodwill |
|
|
512,869 |
|
|
|
512,869 |
|
Contract assets, net of current portion and allowance |
|
|
12,361 |
|
|
|
9,483 |
|
Other long-term assets |
|
|
2,492 |
|
|
|
2,696 |
|
Total assets |
|
$ |
1,426,701 |
|
|
$ |
1,294,795 |
|
|
|
|
|
|
||||
Liabilities and stockholders' equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and accrued liabilities |
|
$ |
58,340 |
|
|
$ |
60,542 |
|
Convertible notes, current portion |
|
|
493,933 |
|
|
|
190,331 |
|
Deferred revenues, current portion |
|
|
170,289 |
|
|
|
137,700 |
|
Lease liabilities, current portion |
|
|
9,088 |
|
|
|
10,327 |
|
Total current liabilities |
|
|
731,650 |
|
|
|
398,900 |
|
Convertible notes, net of current portion |
|
|
— |
|
|
|
302,115 |
|
Deferred revenues, net of current portion |
|
|
28,645 |
|
|
|
27,281 |
|
Lease liabilities, net of current portion |
|
|
36,063 |
|
|
|
38,346 |
|
Other long-term liabilities |
|
|
7,458 |
|
|
|
10,357 |
|
Total liabilities |
|
|
803,816 |
|
|
|
776,999 |
|
|
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Common stock |
|
|
6 |
|
|
|
6 |
|
Additional paid-in capital |
|
|
1,257,400 |
|
|
|
1,183,893 |
|
Accumulated other comprehensive loss |
|
|
(1,856 |
) |
|
|
(1,873 |
) |
Accumulated deficit |
|
|
(632,665 |
) |
|
|
(664,230 |
) |
Total stockholders' equity |
|
|
622,885 |
|
|
|
517,796 |
|
Total liabilities and stockholders' equity |
|
$ |
1,426,701 |
|
|
$ |
1,294,795 |
|
Q2 Holdings, Inc. Condensed Consolidated Statements Of Comprehensive Income (Loss) (in thousands, except per share data) (unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
$ |
201,704 |
|
|
$ |
175,021 |
|
|
$ |
586,587 |
|
|
$ |
513,419 |
|
Cost of revenues (1) |
|
|
92,859 |
|
|
|
85,962 |
|
|
|
272,188 |
|
|
|
255,281 |
|
Gross profit |
|
|
108,845 |
|
|
|
89,059 |
|
|
|
314,399 |
|
|
|
258,138 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
|
26,401 |
|
|
|
25,558 |
|
|
|
79,965 |
|
|
|
78,736 |
|
Research and development |
|
|
38,932 |
|
|
|
36,901 |
|
|
|
113,699 |
|
|
|
107,522 |
|
General and administrative |
|
|
31,705 |
|
|
|
31,495 |
|
|
|
95,061 |
|
|
|
92,954 |
|
Amortization of acquired intangibles |
|
|
— |
|
|
|
4,776 |
|
|
|
93 |
|
|
|
14,392 |
|
Lease and other restructuring charges |
|
|
803 |
|
|
|
3,129 |
|
|
|
2,548 |
|
|
|
5,222 |
|
Total operating expenses |
|
|
97,841 |
|
|
|
101,859 |
|
|
|
291,366 |
|
|
|
298,826 |
|
Income (loss) from operations |
|
|
11,004 |
|
|
|
(12,800 |
) |
|
|
23,033 |
|
|
|
(40,688 |
) |
Total other income, net |
|
|
4,204 |
|
|
|
3,263 |
|
|
|
10,912 |
|
|
|
7,892 |
|
Income (loss) before income taxes |
|
|
15,208 |
|
|
|
(9,537 |
) |
|
|
33,945 |
|
|
|
(32,796 |
) |
Provision for income taxes |
|
|
(160 |
) |
|
|
(2,260 |
) |
|
|
(2,380 |
) |
|
|
(5,904 |
) |
Net income (loss) |
|
$ |
15,048 |
|
|
$ |
(11,797 |
) |
|
$ |
31,565 |
|
|
$ |
(38,700 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on available-for-sale investments |
|
|
65 |
|
|
|
383 |
|
|
|
(12 |
) |
|
|
560 |
|
Foreign currency translation adjustment |
|
|
(483 |
) |
|
|
230 |
|
|
|
29 |
|
|
|
(42 |
) |
Comprehensive income (loss) |
|
$ |
14,630 |
|
|
$ |
(11,184 |
) |
|
$ |
31,582 |
|
|
$ |
(38,182 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.24 |
|
|
$ |
(0.20 |
) |
|
$ |
0.51 |
|
|
$ |
(0.65 |
) |
Diluted |
|
$ |
0.23 |
|
|
$ |
(0.20 |
) |
|
$ |
0.49 |
|
|
$ |
(0.65 |
) |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
62,458 |
|
|
|
60,310 |
|
|
|
62,015 |
|
|
|
59,974 |
|
Diluted |
|
|
69,858 |
|
|
|
60,310 |
|
|
|
65,076 |
|
|
|
59,974 |
|
(1) |
Includes amortization of acquired technology of |
Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
||||||||
|
|
Nine Months Ended
|
||||||
|
|
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
31,565 |
|
|
$ |
(38,700 |
) |
Adjustments to reconcile net income (loss) to net cash from operating activities: |
|
|
|
|
||||
Amortization of deferred implementation, solution and other costs |
|
|
21,983 |
|
|
|
19,851 |
|
Depreciation and amortization |
|
|
40,888 |
|
|
|
52,819 |
|
Amortization of debt issuance costs |
|
|
1,628 |
|
|
|
1,517 |
|
Amortization of premiums and discounts on investments |
|
|
(934 |
) |
|
|
(852 |
) |
Stock-based compensation expense |
|
|
66,767 |
|
|
|
69,456 |
|
Deferred income taxes |
|
|
(897 |
) |
|
|
2,074 |
|
Other non-cash items |
|
|
639 |
|
|
|
1,231 |
|
Changes in operating assets and liabilities: |
|
|
(23,874 |
) |
|
|
(14,680 |
) |
Net cash provided by operating activities |
|
|
137,765 |
|
|
|
92,716 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Net maturities (purchases) of investments |
|
|
(7,353 |
) |
|
|
8,208 |
|
Purchases of property and equipment |
|
|
(4,812 |
) |
|
|
(5,253 |
) |
Capitalized software development costs |
|
|
(16,175 |
) |
|
|
(17,589 |
) |
Net cash used in investing activities |
|
|
(28,340 |
) |
|
|
(14,634 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Debt issuance costs related to revolving credit agreement |
|
|
— |
|
|
|
(942 |
) |
Proceeds from exercise of stock options and ESPP |
|
|
4,218 |
|
|
|
11,448 |
|
Net cash provided by financing activities |
|
|
4,218 |
|
|
|
10,506 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
96 |
|
|
|
(72 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
|
113,739 |
|
|
|
88,516 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
|
360,793 |
|
|
|
233,632 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
474,532 |
|
|
$ |
322,148 |
|
Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures (in thousands) (unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
GAAP gross profit |
|
$ |
108,845 |
|
|
$ |
89,059 |
|
|
$ |
314,399 |
|
|
$ |
258,138 |
|
Stock-based compensation |
|
|
2,323 |
|
|
|
3,010 |
|
|
|
7,603 |
|
|
|
9,575 |
|
Amortization of acquired technology |
|
|
5,503 |
|
|
|
5,504 |
|
|
|
16,512 |
|
|
|
16,512 |
|
Lease and other restructuring charges |
|
|
143 |
|
|
|
391 |
|
|
|
460 |
|
|
|
986 |
|
Non-GAAP gross profit |
|
$ |
116,814 |
|
|
$ |
97,964 |
|
|
$ |
338,974 |
|
|
$ |
285,211 |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP gross margin: |
|
|
|
|
|
|
|
|
||||||||
Non-GAAP gross profit |
|
$ |
116,814 |
|
|
$ |
97,964 |
|
|
$ |
338,974 |
|
|
$ |
285,211 |
|
Revenues |
|
|
201,704 |
|
|
|
175,021 |
|
|
|
586,587 |
|
|
|
513,419 |
|
Non-GAAP gross margin |
|
|
57.9 |
% |
|
|
56.0 |
% |
|
|
57.8 |
% |
|
|
55.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing expense |
|
$ |
26,401 |
|
|
$ |
25,558 |
|
|
$ |
79,965 |
|
|
$ |
78,736 |
|
Stock-based compensation |
|
|
(3,945 |
) |
|
|
(4,443 |
) |
|
|
(11,386 |
) |
|
|
(12,783 |
) |
Non-GAAP sales and marketing expense |
|
$ |
22,456 |
|
|
$ |
21,115 |
|
|
$ |
68,579 |
|
|
$ |
65,953 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP research and development expense |
|
$ |
38,932 |
|
|
$ |
36,901 |
|
|
$ |
113,699 |
|
|
$ |
107,522 |
|
Stock-based compensation |
|
|
(4,349 |
) |
|
|
(4,735 |
) |
|
|
(12,552 |
) |
|
|
(13,203 |
) |
Non-GAAP research and development expense |
|
$ |
34,583 |
|
|
$ |
32,166 |
|
|
$ |
101,147 |
|
|
$ |
94,319 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative expense |
|
$ |
31,705 |
|
|
$ |
31,495 |
|
|
$ |
95,061 |
|
|
$ |
92,954 |
|
Stock-based compensation |
|
|
(12,640 |
) |
|
|
(12,136 |
) |
|
|
(35,226 |
) |
|
|
(33,895 |
) |
Non-recurring legal settlements |
|
|
— |
|
|
|
— |
|
|
|
(1,750 |
) |
|
|
— |
|
Non-GAAP general and administrative expense |
|
$ |
19,065 |
|
|
$ |
19,359 |
|
|
$ |
58,085 |
|
|
$ |
59,059 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP operating income (loss) |
|
$ |
11,004 |
|
|
$ |
(12,800 |
) |
|
$ |
23,033 |
|
|
$ |
(40,688 |
) |
Stock-based compensation |
|
|
23,257 |
|
|
|
24,324 |
|
|
|
66,767 |
|
|
|
69,456 |
|
Amortization of acquired technology |
|
|
5,503 |
|
|
|
5,504 |
|
|
|
16,512 |
|
|
|
16,512 |
|
Amortization of acquired intangibles |
|
|
— |
|
|
|
4,776 |
|
|
|
93 |
|
|
|
14,392 |
|
Lease and other restructuring charges |
|
|
946 |
|
|
|
3,520 |
|
|
|
3,008 |
|
|
|
6,208 |
|
Non-recurring legal settlements |
|
|
— |
|
|
|
— |
|
|
|
1,750 |
|
|
|
— |
|
Non-GAAP operating income |
|
$ |
40,710 |
|
|
$ |
25,324 |
|
|
$ |
111,163 |
|
|
$ |
65,880 |
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of GAAP net income (loss) to adjusted EBITDA: |
|
|
|
|
|
|
|
|
||||||||
GAAP net income (loss) |
|
$ |
15,048 |
|
|
$ |
(11,797 |
) |
|
$ |
31,565 |
|
|
$ |
(38,700 |
) |
Stock-based compensation |
|
|
23,257 |
|
|
|
24,324 |
|
|
|
66,767 |
|
|
|
69,456 |
|
Depreciation and amortization |
|
|
13,613 |
|
|
|
17,651 |
|
|
|
40,888 |
|
|
|
52,819 |
|
Lease and other restructuring charges |
|
|
946 |
|
|
|
3,520 |
|
|
|
3,008 |
|
|
|
6,208 |
|
Non-recurring legal settlements |
|
|
— |
|
|
|
— |
|
|
|
1,750 |
|
|
|
— |
|
Provision for income taxes |
|
|
160 |
|
|
|
2,260 |
|
|
|
2,380 |
|
|
|
5,904 |
|
Interest and other income, net |
|
|
(4,206 |
) |
|
|
(3,348 |
) |
|
|
(11,032 |
) |
|
|
(7,973 |
) |
Adjusted EBITDA |
|
$ |
48,818 |
|
|
$ |
32,610 |
|
|
$ |
135,326 |
|
|
$ |
87,714 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA margin |
|
|
24.2 |
% |
|
|
18.6 |
% |
|
|
23.1 |
% |
|
|
17.1 |
% |
Q2 Holdings, Inc. Reconciliation of Free Cash Flow (in thousands) (unaudited) |
||||||||
|
|
Nine Months Ended
|
||||||
|
|
|
2025 |
|
|
|
2024 |
|
Net cash provided by operating activities |
|
$ |
137,765 |
|
|
$ |
92,716 |
|
Purchases of property and equipment |
|
|
(4,812 |
) |
|
|
(5,253 |
) |
Capitalized software development costs |
|
|
(16,175 |
) |
|
|
(17,589 |
) |
Free cash flow |
|
$ |
116,778 |
|
|
$ |
69,874 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20251105168366/en/
MEDIA CONTACT:
Jack McBee
Q2 Holdings, Inc.
M: +1-210-854-7974
jack.mcbee@Q2.com
INVESTOR CONTACT:
Josh Yankovich
Q2 Holdings, Inc.
O: +1-512-682-4463
josh.yankovich@Q2.com
Source: Q2 Holdings, Inc.
