Q2 Holdings Inc

Latest Results (02.04.2026):

Q2 Holdings, Inc. reported results for its third quarter of 2025: revenue of $201.7 million (up 15% year‑over‑year and 3% sequentially), GAAP net income of $15.0 million (compared to a GAAP net loss in Q3 2024), and strong non‑GAAP performance with adjusted EBITDA of $48.8 million and non‑GAAP gross margin of 57.9%. The company also grew Subscription ARR to $745.4 million, increased backlog to about $2.5 billion, raised full‑year guidance, and authorized a $150 million share repurchase program.

Revenue and top‑line

Q2 reported Q3 2025 revenue of $201.7M, +15% YoY and +3% sequentially. Subscription Annualized Recurring Revenue rose to $745.4M, +14% YoY.

GAAP profitability

GAAP gross margin was 54.0% (vs. 50.9% in prior‑year quarter). GAAP net income was $15.0M in Q3 2025 (basic EPS $0.24; diluted $0.23), vs. a GAAP net loss of $11.8M in Q3 2024.

Non‑GAAP results

Non‑GAAP gross margin: 57.9%. Adjusted EBITDA for the quarter was $48.8M, giving an adjusted EBITDA margin of 24.2% (up from 18.6% in Q3 2024).

Bookings, backlog and customer wins

Q2 signed seven Enterprise/Tier‑1 contracts in the quarter (including net‑new and expansion deals with Top‑50 U.S. banks). Remaining Performance Obligations (backlog) totaled ≈$2.5B, rising $161M sequentially and $485M YoY (≈+7% seq, +24% YoY).

Guidance and outlook

Q4 2025 guidance: revenue $202.4M–$206.4M (+11–13% YoY) and adjusted EBITDA $47.2M–$50.2M (≈23–24% of revenue). Updated full‑year 2025: revenue $789.0M–$793.0M (+13–14% YoY) and adjusted EBITDA $182.5M–$185.5M. Preliminary 2026: ~13.5% subscription revenue growth, ~250 bps adjusted EBITDA margin expansion, and at least 60% gross margin.

Cash flow and balance sheet

Cash, cash equivalents and restricted cash at 9/30/2025 were $474.5M. Net cash provided by operating activities for the nine months was $137.8M; free cash flow was $116.8M. Convertible notes current portion increased to $493.9M; total stockholders' equity was $622.9M.

Capital return and corporate actions

The Board authorized a share repurchase program of up to $150M (open market or negotiated transactions). Q2 also raised full‑year guidance and highlighted continued investment priorities (growth, debt repayment, opportunistic buybacks).

Product, AI and leadership updates

Q2 showcased AI initiatives at its Dev Days event (AI copilot, AI‑assisted coding tools, internal/external AI assistants) and announced leadership changes (Hima Mukkamala to COO; Kirk Coleman to Chief Business Officer; Chief Revenue Officer Mike Volanoski departing with transitional support through Dec 12, 2025).