(QTWO) Q2 Holdings - Overview
Stock: Digital Banking, Fraud Management, Core Processing, Lending Tools
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 49.7% |
| Relative Tail Risk | -7.47% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.07 |
| Alpha | -57.86 |
| Character TTM | |
|---|---|
| Beta | 1.285 |
| Beta Downside | 1.292 |
| Drawdowns 3y | |
|---|---|
| Max DD | 50.23% |
| CAGR/Max DD | 0.37 |
Description: QTWO Q2 Holdings January 09, 2026
Q2 Holdings (NYSE:QTWO) delivers a cloud-native digital banking platform and a suite of risk-management tools to U.S. banks, fintechs, and alternative finance firms. Its flagship offerings include a full-stack digital banking solution, the Q2 Innovation Studio API/SDK for custom experiences, the Helix real-time core processing engine, and end-to-end digital lending and pricing modules that automate loan origination, servicing, and portfolio analytics.
Key metrics that analysts watch: Q2 reported FY 2023 revenue of $332 million, representing a 19% YoY increase, and its annual recurring revenue (ARR) grew at ~24% CAGR over the past three years, with net-revenue retention above 115%, indicating strong upsell potential. The digital-banking SaaS market is expanding at roughly 15% annually, driven by continued consumer migration to online channels and regulatory pressure for banks to modernize legacy cores. Q2’s exposure to SMB and commercial banking segments positions it to benefit from higher-margin loan-origination volumes as small-business credit demand rebounds in a low-rate environment.
For a deeper quantitative view, you might explore ValueRay’s analyst dashboard for QTWO to see the latest consensus estimates and valuation models.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 31.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 3.67 > 1.0 |
| NWC/Revenue: -3.17% < 20% (prev 46.71%; Δ -49.88% < -1%) |
| CFO/TA 0.13 > 3% & CFO 180.8m > Net Income 31.7m |
| Net Debt (66.7m) to EBITDA (92.6m): 0.72 < 3 |
| Current Ratio: 0.97 > 1.5 & < 3 |
| Outstanding Shares: last quarter (69.9m) vs 12m ago 15.83% < -2% |
| Gross Margin: 53.37% > 18% (prev 0.50%; Δ 5287 % > 0.5%) |
| Asset Turnover: 57.02% > 50% (prev 53.07%; Δ 3.95% > 0%) |
| Interest Coverage Ratio: 7.72 > 6 (EBITDA TTM 92.6m / Interest Expense TTM 5.34m) |
Altman Z'' -2.18
| A: -0.02 (Total Current Assets 707.3m - Total Current Liabilities 731.6m) / Total Assets 1.43b |
| B: -0.44 (Retained Earnings -632.7m / Total Assets 1.43b) |
| C: 0.03 (EBIT TTM 41.2m / Avg Total Assets 1.35b) |
| D: -0.79 (Book Value of Equity -634.5m / Total Liabilities 803.8m) |
| Altman-Z'' Score: -2.18 = D |
Beneish M -3.14
| DSRI: 1.03 (Receivables 76.1m/65.2m, Revenue 769.6m/675.5m) |
| GMI: 0.94 (GM 53.37% / 50.26%) |
| AQI: 0.87 (AQ_t 0.47 / AQ_t-1 0.54) |
| SGI: 1.14 (Revenue 769.6m / 675.5m) |
| TATA: -0.10 (NI 31.7m - CFO 180.8m) / TA 1.43b) |
| Beneish M-Score: -3.14 (Cap -4..+1) = AA |
What is the price of QTWO shares?
Over the past week, the price has changed by -5.75%, over one month by -18.41%, over three months by -22.09% and over the past year by -39.50%.
Is QTWO a buy, sell or hold?
- StrongBuy: 6
- Buy: 3
- Hold: 8
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the QTWO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 89.3 | 56.6% |
| Analysts Target Price | 89.3 | 56.6% |
| ValueRay Target Price | 54.1 | -5.2% |
QTWO Fundamental Data Overview February 03, 2026
P/E Forward = 21.4592
P/S = 4.9764
P/B = 6.1648
P/EG = 8.9393
Revenue TTM = 769.6m USD
EBIT TTM = 41.2m USD
EBITDA TTM = 92.6m USD
Long Term Debt = 302.1m USD (from longTermDebt, last fiscal year)
Short Term Debt = 503.0m USD (from shortTermDebt, last quarter)
Debt = 539.1m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 66.7m USD (from netDebt column, last quarter)
Enterprise Value = 3.80b USD (3.83b + Debt 539.1m - CCE 568.7m)
Interest Coverage Ratio = 7.72 (Ebit TTM 41.2m / Interest Expense TTM 5.34m)
EV/FCF = 23.15x (Enterprise Value 3.80b / FCF TTM 164.2m)
FCF Yield = 4.32% (FCF TTM 164.2m / Enterprise Value 3.80b)
FCF Margin = 21.33% (FCF TTM 164.2m / Revenue TTM 769.6m)
Net Margin = 4.12% (Net Income TTM 31.7m / Revenue TTM 769.6m)
Gross Margin = 53.37% ((Revenue TTM 769.6m - Cost of Revenue TTM 358.9m) / Revenue TTM)
Gross Margin QoQ = 53.96% (prev 53.58%)
Tobins Q-Ratio = 2.66 (Enterprise Value 3.80b / Total Assets 1.43b)
Interest Expense / Debt = 0.24% (Interest Expense 1.28m / Debt 539.1m)
Taxrate = 1.05% (160.0k / 15.2m)
NOPAT = 40.8m (EBIT 41.2m * (1 - 1.05%))
Current Ratio = 0.97 (Total Current Assets 707.3m / Total Current Liabilities 731.6m)
Debt / Equity = 0.87 (Debt 539.1m / totalStockholderEquity, last quarter 622.9m)
Debt / EBITDA = 0.72 (Net Debt 66.7m / EBITDA 92.6m)
Debt / FCF = 0.41 (Net Debt 66.7m / FCF TTM 164.2m)
Total Stockholder Equity = 567.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.35% (Net Income 31.7m / Total Assets 1.43b)
RoE = 5.59% (Net Income TTM 31.7m / Total Stockholder Equity 567.6m)
RoCE = 4.74% (EBIT 41.2m / Capital Employed (Equity 567.6m + L.T.Debt 302.1m))
RoIC = 3.84% (NOPAT 40.8m / Invested Capital 1.06b)
WACC = 9.36% (E(3.83b)/V(4.37b) * Re(10.65%) + D(539.1m)/V(4.37b) * Rd(0.24%) * (1-Tc(0.01)))
Discount Rate = 10.65% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 9.05%
[DCF Debug] Terminal Value 76.96% ; FCFF base≈138.4m ; Y1≈170.7m ; Y5≈290.7m
Fair Price DCF = 60.39 (EV 3.84b - Net Debt 66.7m = Equity 3.78b / Shares 62.5m; r=9.36% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 75.94 | EPS CAGR: 35.82% | SUE: -4.0 | # QB: 0
Revenue Correlation: 99.58 | Revenue CAGR: 12.00% | SUE: 0.07 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.62 | Chg30d=-0.002 | Revisions Net=+1 | Analysts=10
EPS next Year (2026-12-31): EPS=2.80 | Chg30d=+0.005 | Revisions Net=+2 | Growth EPS=+17.4% | Growth Revenue=+10.3%