Q2 Holdings Inc

Latest Results (18.11.2025):

Q2 Holdings Inc reported its financial results for the third quarter of 2025, showing robust performance with significant improvements in both GAAP and non-GAAP measures. The company delivered solid revenue growth driven by strong digital transformation solutions for financial services, improved margins, and a turnaround to profitability on a GAAP basis. In addition, Q2 demonstrated progress in customer acquisition and contract expansions while raising its financial guidance for the full year and announcing an authorized share repurchase program and executive leadership adjustments.

GAAP Financial Performance

For Q3 2025, Q2 Holdings Inc reported GAAP revenue of $201.7 million, up 15% year-over-year, a GAAP gross margin of 54.0%, and a notable turnaround with GAAP net income of $15.0 million compared to a loss in the prior-year quarter, reflecting strong operational execution and margin improvement.

Non-GAAP Metrics and EBITDA

The company’s non-GAAP performance also highlighted significant gains with a non-GAAP gross margin of 57.9% and an adjusted EBITDA of $48.8 million, demonstrating a robust improvement compared to both the previous quarter and the same quarter last year.

Contract Wins and Backlog Growth

Q2 secured seven new Enterprise and Tier 1 contracts, including new agreements and expansions with major U.S. banks. Subscription Annualized Recurring Revenue increased to $745.4 million, and total committed backlog reached approximately $2.5 billion at quarter-end, indicating strong future revenue potential.

Guidance, Share Repurchase, and Strategic Initiatives

Looking ahead, Q2 Holdings Inc raised its full-year guidance for revenue and adjusted EBITDA, while providing clear Q4 targets. The company also announced a $150 million share repurchase program and outlined strategic initiatives centered on AI innovation and leadership restructuring to further drive growth and operational excellence.