Q2 Holdings Inc

q2.com

What Do They Do?

Provides digital banking software, lending tools and risk and fraud solutions to financial institutions, financial technology companies and alternative finance providers.

How Do They Make Money?

Customers pay subscription fees for hosted software over their agreement terms; Helix arrangements with financial technology companies typically earn fees based on use.

revenue

Segment	Share	How money arrives
Subscription Recurring	82% FY2022: 73%	Recurring
Transactional	8.9% FY2022: 12%
Services and Other	9.5% FY2022: 15%

Who Are Their Customers?

Sales go through the company's direct sales organization. Financial institution customers range from regional and community institutions to global enterprise banks.

Do Revenues Turn Into Profits?

Yes. It kept 7 cents of every revenue dollar as net income in FY2025 and turned 24 cents into free cash flow.

Operating income, FY2025

5% of revenue

▲ Now profitable vs FY2024 (−$42.3M, −6%)

Net income, FY2025

7% of revenue

▲ Now profitable vs FY2024 (−$38.5M, −6%)

Free cash flow, FY2025

24% of revenue

▲ +51% vs FY2024 ($129.1M, 19%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +13%; vs $195.1M in Q2 FY2025
Net income: ▲ +154%; vs $11.8M in Q2 FY2025

Subscription share of revenue vs 81.2% in Q2 FY2025

Jul 29, 2026 Raised full-year 2026 revenue and adjusted EBITDA guidance

Growing. Revenue grew 59% in 4 years, from $498.7M in FY2021 to $794.8M in FY2025, about 12% a year.

Revenue over time

Subscription Transactional Services and Other

$1B$500M$0

FY2021 FY2022 FY2023 FY2024 FY2025

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