Q2 Holdings Inc (QTWO) Financials
Key financial figures for Q2 Holdings Inc (Q3 2026).
Q2 Holdings Q3 2026 revenue rose 12% to $225.8M, GAAP net income more than doubled to $33.2M, and the 2026 revenue outlook was raised to $888M-$892M. Revenue was $225.8M, up 12% year over year and 3% from Q2 2026; revenue and adjusted EBITDA both finished above the high end of the guidance given on July 29 ($218.5M-$222.5M and $58.5M-$61.5M). Subscription revenue was $188.2M versus $165.2M a year earlier; transactional revenue was $18.1M and services and other was $19.6M. Subscription ARR reached $846.0M, up 13.5%. GAAP gross margin was 59.7% (54.0% a year earlier), GAAP net income was $33.2M versus $15.0M, and diluted EPS was $0.52 versus $0.23. Adjusted EBITDA was $67.8M, a 30.0% margin versus 24.2%. On the outlook: Q4 2026: revenue $226.0M to $230.0M (9% to 10% year-over-year growth) and adjusted EBITDA $62.4M to $65.4M (about 28% of revenue). Full-year 2026 raised: revenue $888.0M to $892.0M (about 12% growth; July range was $881.0M to $886.0M) and adjusted EBITDA $253.0M to $256.0M (28% to 29% of revenue; July range was $244.0M to $248.0M). Figures are for Q3 2026, as Q2 Holdings reported them.
- Revenue
- $226M
- Net Income
- $33M
- EPS
- $0.53
- Total Assets
- $1.0B
- Operating Cash Flow
- $65M
Recent quarters
| Period | Revenue | Net Income | EPS | Operating Margin | Free Cash Flow |
|---|---|---|---|---|---|
| Q3 FY2026 | $226M | $33M | $0.52 | 15.04% | $63M |
| Q2 FY2026 | $220M | $30M | $0.46 | 13.35% | $59M |
| Q1 FY2026 | $217M | $27M | $0.40 | 12.99% | $50M |
| Q4 FY2025 | $208M | $20M | $0.31 | 8.79% | $57M |
| Q3 FY2025 | $202M | $15M | $0.23 | 5.46% | $37M |
Recent fiscal years
| Period | Revenue | Net Income | EPS | Operating Margin | Free Cash Flow |
|---|---|---|---|---|---|
| FY2025 | $795M | $52M | $0.80 | 5.02% | $195M |
| FY2024 | $696M | -$39M | -$0.64 | -6.07% | $129M |
| FY2023 | $625M | -$65M | -$1.12 | -13.78% | $40M |
Frequently asked questions
What was Q2 Holdings's revenue last quarter?
Q2 Holdings reported revenue of $225.8 million for Q3 FY2026, up 11.9% from the same period a year earlier.
Is Q2 Holdings profitable?
Yes. Q2 Holdings reported net income of $33.2 million for Q3 FY2026, a net margin of 14.71% on revenue.
How has Q2 Holdings's margin trended?
Operating margin was 15.04% in Q3 FY2026, compared with 5.46% in the same period a year earlier. The quarter by quarter series is on the SentiSense financials page.
How much free cash flow did Q2 Holdings generate?
Q2 Holdings generated free cash flow of $62.6 million in Q3 FY2026, after capital expenditure.
Full income statement, balance sheet and cash flow for Q2 Holdings Inc on SentiSense, with up to forty quarters and twenty fiscal years of history.