(QTWO) Q2 Holdings - Overview
Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 2.964m USD | Total Return: -49.2% in 12m
Avg Turnover: 35.8M
Qual. Beats: -1
Rev. Trend: 99.7%
Qual. Beats: 0
Warnings
Altman Z'' -0.32 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Q2 Holdings (NYSE: QTWO) provides a suite of digital transformation tools for traditional financial institutions, fintechs, and alternative lenders. Its core offerings include a unified digital banking platform, risk management software, and the Helix cloud-native core processing engine. The company also facilitates third-party integrations through its Innovation Studio, which utilizes open API architecture to allow clients to deploy customized financial services.
The company operates within the Application Software sub-industry, specifically focusing on the digital banking sector. This business model relies heavily on high switching costs and recurring subscription revenue, as financial institutions rarely migrate core digital infrastructures once integrated. Q2s strategy focuses on bridging the gap between legacy banking systems and modern, mobile-first consumer expectations.
For a deeper look into the companys valuation metrics and historical performance, consider reviewing the data on ValueRay. Q2 Holdings is headquartered in Austin, Texas, and has evolved from a retail-focused provider into a comprehensive developer of commercial lending and relationship pricing solutions.
- Cloud-native Helix platform adoption accelerates recurring subscription revenue growth
- Regional bank consolidation reduces total addressable customer base and contract volume
- Innovation Studio expansion drives ecosystem stickiness and high-margin services revenue
- Financial institution digital transformation spending remains resilient despite elevated interest rates
- Commercial lending software demand increases as banks prioritize credit risk management
| Net Income: 73.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 5.45 > 1.0 |
| NWC/Revenue: -4.61% < 20% (prev 25.89%; Δ -30.51% < -1%) |
| CFO/TA 0.17 > 3% & CFO 214.3m > Net Income 73.9m |
| Net Debt (41.8m) to EBITDA (125.5m): 0.33 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (67.6m) vs 12m ago 4.36% < -2% |
| Gross Margin: 55.58% > 18% (prev 51.79%; Δ 3.79% > 0.5%) |
| Asset Turnover: 63.29% > 50% (prev 53.39%; Δ 9.90% > 0%) |
| Interest Coverage Ratio: 15.31 > 6 (EBIT TTM 77.8m / Interest Expense TTM 5.08m) |
| A: -0.03 (Total Current Assets 524.6m - Total Current Liabilities 562.5m) / Total Assets 1.25b |
| B: -0.47 (Retained Earnings -585.6m / Total Assets 1.25b) |
| C: 0.06 (EBIT TTM 77.8m / Avg Total Assets 1.30b) |
| D: 0.96 (Book Value of Equity 611.7m / Total Liabilities 634.7m) |
| Altman-Z'' = -0.32 = B |
| DSRI: 1.23 (Receivables 96.7m/69.0m, Revenue 821.6m/720.7m) |
| GMI: 0.93 (GM 51.79% / 55.58%) |
| AQI: 1.07 (AQ_t 0.54 / AQ_t-1 0.50) |
| SGI: 1.14 (Revenue 821.6m / 720.7m) |
| TATA: -0.11 (NI 73.9m - CFO 214.3m) / TA 1.25b) |
| Beneish M = -2.77 (Cap -4..+1) = A |
As of June 07, 2026, the stock is trading at USD 45.71 with a total of 818,859 shares traded.
Over the past week, the price has changed by -3.46%,
over one month by -12.68%,
over three months by -12.21% and
over the past year by -49.20%.
Q2 Holdings has received a consensus analysts rating of 3.88. Therefore, it is recommended to buy QTWO.
- StrongBuy: 6
- Buy: 3
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 74.3 | 62.6% |
P/E Trailing = 41.9027
P/E Forward = 19.084
P/S = 3.6078
P/B = 4.8459
P/EG = 8.9393
Revenue TTM = 821.6m USD
EBIT TTM = 77.8m USD
EBITDA TTM = 125.5m USD
Long Term Debt = 31.6m USD (estimated: total debt 343.9m - short term 312.3m)
Short Term Debt = 312.3m USD (from shortTermDebt, last quarter)
Debt = 384.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 40.2m
Net Debt = 41.8m USD (calculated: Debt 384.1m - CCE 342.3m)
Enterprise Value = 3.01b USD (2.96b + Debt 384.1m - CCE 342.3m)
Interest Coverage Ratio = 15.31 (Ebit TTM 77.8m / Interest Expense TTM 5.08m)
EV/FCF = 15.35x (Enterprise Value 3.01b / FCF TTM 195.8m)
FCF Yield = 6.51% (FCF TTM 195.8m / Enterprise Value 3.01b)
FCF Margin = 23.83% (FCF TTM 195.8m / Revenue TTM 821.6m)
Net Margin = 8.99% (Net Income TTM 73.9m / Revenue TTM 821.6m)
Gross Margin = 55.58% ((Revenue TTM 821.6m - Cost of Revenue TTM 365.0m) / Revenue TTM)
Gross Margin QoQ = 59.08% (prev 55.37%)
Tobins Q-Ratio = 2.41 (Enterprise Value 3.01b / Total Assets 1.25b)
Interest Expense / Debt = 1.32% (Interest Expense 5.08m / Debt 384.1m)
Taxrate = 6.74% (5.34m / 79.2m)
NOPAT = 72.5m (EBIT 77.8m * (1 - 6.74%))
Current Ratio = 0.93 (Total Current Assets 524.6m / Total Current Liabilities 562.5m)
Debt / Equity = 0.63 (Debt 384.1m / totalStockholderEquity, last quarter 611.7m)
Debt / EBITDA = 0.33 (Net Debt 41.8m / EBITDA 125.5m)
Debt / FCF = 0.21 (Net Debt 41.8m / FCF TTM 195.8m)
Total Stockholder Equity = 620.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 5.69% (Net Income 73.9m / Total Assets 1.25b)
RoE = 11.91% (Net Income TTM 73.9m / Total Stockholder Equity 620.2m)
RoCE = 11.93% (EBIT 77.8m / Capital Employed (Equity 620.2m + L.T.Debt 31.6m))
RoIC = 7.59% (NOPAT 72.5m / Invested Capital 955.1m)
WACC = 8.99% (E(2.96b)/V(3.35b) * Re(9.99%) + D(384.1m)/V(3.35b) * Rd(1.32%) * (1-Tc(0.07)))
Discount Rate = 9.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 77.78 | Cagr: 6.47%
[DCF] Terminal Value 75.94% ; FCFF base≈172.9m ; Y1≈198.2m ; Y5≈291.7m
[DCF] Fair Price = 62.40 (EV 3.95b - Net Debt 41.8m = Equity 3.91b / Shares 62.6m; r=8.99% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -2.19 | # QB: -1
Revenue Correlation: 99.67 | Revenue CAGR: 12.50% | SUE: 0.04 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.67 | Chg30d=-6.09% | Revisions=-43% | Analysts=11
EPS next Quarter (2026-09-30): EPS=0.67 | Chg30d=-10.81% | Revisions=-57% | Analysts=11
EPS current Year (2026-12-31): EPS=2.75 | Chg30d=-6.53% | Revisions=-29% | GrowthEPS=+11.3% | GrowthRev=+10.7%
EPS next Year (2027-12-31): EPS=3.23 | Chg30d=-3.15% | Revisions=-33% | GrowthEPS=+17.5% | GrowthRev=+10.2%
[Analyst] Revisions Ratio: -57%