At a glance
Q2 Holdings is worth $4.20B, about 85 times its fiscal 2025 earnings. Revenue grew 14.1% to $794.8M in fiscal 2025, with 6.5% kept as profit; over 5 years it has grown 14.6% a year. It pays no dividend; it spent $5.0M buying back its shares over FY2021–FY2025. The stock returned +9.5% over the past year with dividends reinvested and −3.0% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 43.2% in the 2020 crash (S&P 500: 33.7%) and 62.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 23 months after the lows.
The business in plain English
Q2 Holdings makes software that banks and credit unions use to offer online and mobile banking to consumers, small businesses and commercial clients. Its cloud-based platform is built to meet strict security and regulatory demands and to connect with each bank's older back-office systems. Q2 also offers digital lending tools, risk and fraud tools, and Helix, a platform for financial technology companies (FinTechs).
Austin, Texas-based Q2 began by serving regional and community banks and credit unions, and financial firms still supply substantially all of its revenue. As of December 31, 2025, it had more than 1,200 financial institution customers, including more than half of both the 100 largest U.S. banks and the 100 largest U.S. credit unions by assets. Its 457 digital banking platform customers had about 27.3 million registered account holders, and users made more than $4.0 trillion in transactions during 2025.
Q2 uses a software-as-a-service (SaaS) model. Customers pay ongoing fees to use software that Q2 hosts, instead of paying once for a license. Of its $794.8 million in 2025 revenue, subscriptions made up 81.6%, services and other 9.5%, and transaction-based fees 8.9%. The digital banking platform supplies most revenue. Its initial contracts average more than five years, and fees rise as banks add products and users. Helix fees depend mainly on usage.
Price history
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QTWO +9.5% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Subscription | $648.6M | 81.6% |
| Services and Other | $75.6M | 9.5% |
| Transactional | $70.6M | 8.9% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $225.8M, up 11.9% from a year earlier, and net income was $33.2M (+120.8%).
- For fiscal 2025, revenue was $794.8M (+14.1% year over year; +14.6% a year from FY2020 to FY2025) with a 6.5% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +14.6% good |
|---|---|
| Operating margin | 5% watch |
| Free cash flow margin | 24.5% good |
| Return on equity (FY2025) | 7.9% weak |
| Return on assets (FY2025) | 4.1% watch |
| Net cash (cash minus debt) | $-180.4M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $402.8M | $-137.6M | $-26.7M |
| FY2021 | $498.7M | $-112.7M | $11.3M |
| FY2022 | $565.7M | $-109.0M | $25.4M |
| FY2023 | $624.6M | $-65.4M | $64.6M |
| FY2024 | $696.5M | $-38.5M | $129.1M |
| FY2025 | $794.8M | $52.0M | $194.7M |
Valuation snapshot
| Market value | $4.20B |
|---|---|
| P/E ratio | 84.9 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Q2 Holdings’s market value went from $1.16B at the end of 2016 to $4.20B on Oct 28, 2026, about 3.6 times as much; since the end of 2025 it is down 7%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.20B | -7.0% |
| 2025 | $4.51B | -25.8% |
| 2024 | $6.08B | +138.8% |
| 2023 | $2.55B | +64.7% |
| 2022 | $1.55B | -65.8% |
| 2021 | $4.51B | -33.8% |
| 2020 | $6.82B | +74.6% |
| 2019 | $3.90B | +81.7% |
| 2018 | $2.15B | +40.0% |
| 2017 | $1.54B | +32.6% |
| 2016 | $1.16B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| QTWO price data to Oct 28, 2026 | -5.9% | +9.5% | +32.2% | -3.0% | +9.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -5.9% |
| 2025 | -28.3% |
| 2024 | +131.9% |
| 2023 | +61.6% |
| 2022 | -66.2% |
| 2021 | -37.2% |
| 2020 | +56.1% |
| 2019 | +63.6% |
| 2018 | +34.5% |
| 2017 | +27.7% |
| 2016 | +9.4% |
| 2015 | +40.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 40.9% over that stretch · deepest drop along the way 43.2%, back to its old high 3.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 62.2% over that stretch · deepest drop along the way 62.2%, back to its old high 23.3 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 17 sales ($15.0M), 8 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 13, 2026 | Jonathan Price Chief Financial Officer | sell | $5.1M |
| Mar 5, 2026 | John E Breeden Chief Delivery Officer | sell (plan) | $3.6M |
| Mar 5, 2026 | Kimberly Anne Rutledge Chief People Officer | sell (plan) | $1.1M |
| Mar 9, 2026 | Matthew P Flake Chief Executive Officer, Director | sell | $1.1M |
| Jun 1, 2026 | Kirk L Coleman Chief Business Officer | sell | $1.0M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.7% | Sep 30, 2025 |
| Vanguard Portfolio Management | 7.87% | Mar 31, 2026 |
| Vanguard Capital Management | 5.08% | Mar 31, 2026 |
| WASATCH ADVISORS LP | 3.5% | Dec 31, 2024 |
| Capital Research Global Investors | 2.6% | Mar 31, 2026 |
ETFs with the most weight in QTWO
| TMFS Motley Fool Small-Cap Growth ETF | 3.4% |
| RSMC Rockefeller U.S. Small-Mid Cap ETF | 2.78% |
| IPAY Amplify Mobile Payments ETF | 2.37% |
| BUYO KraneShares Man Buyout Beta Index ETF | 1.21% |
| XITK SPDR FactSet Innovative Technology ETF | 0.87% |
| GSC Goldman Sachs Small Cap Core Equity ETF | 0.78% |
| SKYY First Trust Cloud Computing ETF | 0.69% |
| KOMP SPDR S&P Kensho New Economies Composite ETF | 0.67% |
What could go wrong
- Tied to the health of banks. Nearly all of Q2's revenue comes from financial firms, especially regional and community banks and credit unions. A downturn, a regional slump or a wave of bank mergers could shrink demand for its software.
- A security breach could be costly. Q2's software holds sensitive financial data and moves money for about 27.3 million registered account holders. A breach, or fraud that slips through undetected, could bring liability and drive customers away.
- Software errors in money calculations. Bugs in transaction processing or in interest, principal or balance calculations could damage Q2's reputation, bring large costs and legal liability, and make banks wary of choosing its software.
- Dependence on outside cloud providers. Q2 runs its digital banking platform on third-party public cloud providers and its Symphonix lending platform on Salesforce's Force.com. Outages at cloud and internet providers have disrupted its business before and could again.
- Slow sales and complex rollouts. Winning bank customers is slow, costly and hard to predict. Large, complex installations can also run into problems and force Q2 to delay booking revenue, which can make quarterly results uneven.
- Short profit record and convertible debt. Q2 lost money every year from 2020 through 2024 before earning $52.0 million in 2025. Its 10-K also flags convertible notes, debt issued in 2019 that could turn into shares and dilute existing owners.
Recent events
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Quarterly results released; Other company announcement
- Shareholder vote results
- Quarterly results released
- Quarterly results released
- Executive or board change
- Quarterly results released; Other company announcement
For income and retirement investors
Q2 Holdings pays no dividend, and its 10-K says it does not intend to, so returns depend entirely on the share price. An income investor would get no cash payouts from it. Buybacks have been small: $5 million in 2025 and none in 2023 or 2024. Meanwhile, the share count grew 8.7% between October 31, 2021 and October 28, 2026.
The stock has also fallen hard in downturns. It dropped 43.2% in the 2020 COVID crash, between February 20 and March 16, 2020, but regained its high by July 6, 2020. In the 2022 bear market it lost 62.2% from January 3 to October 12, 2022, and needed about 23 months to recover, by September 20, 2024. Its price history does not cover the 2008 financial crisis. A single stock carries more risk than a diversified fund that spreads money across many companies.
Questions investors ask
How does Q2 Holdings make money?
Mostly through subscriptions. Banks and credit unions pay Q2 recurring fees to run their online and mobile banking on its cloud platform, and those fees rise as they add products and users. In 2025, subscriptions made up 81.6% of Q2's $794.8 million in revenue, services and other 9.5%, and transaction-based revenue 8.9%. Initial digital banking contracts average more than five years. Helix, its platform for FinTechs, earns mainly usage-based fees.
Does Q2 Holdings pay a dividend?
No. Q2 Holdings paid no dividends from 2021 through 2025. Its annual report for 2025 says it does not intend to pay any, so investors earn a return only if the share price rises. It has returned little cash in other ways: buybacks totaled $5 million in 2025 and nothing in 2023 or 2024. Meanwhile, the share count rose 8.7% between October 31, 2021 and October 28, 2026, which spreads ownership more thinly.
Is Q2 Holdings profitable?
Yes, but its record of profits is short. Q2 lost money every year from 2020 through 2024, including $137.6 million in 2020, before earning $52.0 million, or $0.80 per diluted share, in 2025. Free cash flow, the cash left after running and investing in the business, reached $194.7 million that year. In the quarter ended September 30, 2026, revenue was $225.8 million, up 11.9% from a year earlier, and net income was $33.2 million.
Who uses Q2 Holdings' software?
Mainly banks and credit unions, especially regional and community institutions. As of December 31, 2025, Q2 had more than 1,200 financial institution customers, including more than half of both the 100 largest U.S. banks and the 100 largest U.S. credit unions by assets. It also serves financial technology companies (FinTechs) and alternative finance companies. Its 457 digital banking platform customers had about 27.3 million registered account holders.
How volatile is Q2 Holdings stock?
Quite volatile. As of October 28, 2026, its one-year volatility, a measure of how widely the price swings, was 44.1%. Its worst drop from a peak over its price history was 85.8%. Calendar-year price returns have run from a 66.2% loss in 2022 to a 131.9% gain in 2024, and 2025 brought a 28.3% loss. Over the 10 years to that date it returned about 9.2% a year, but over five years it lost about 3% a year.