The earnings call reflected a strong performance with significant revenue and profit growth, driven by successful expansions and renewals. Despite some challenges in professional services revenue and macroeconomic uncertainties, the company's positive outlook and raised guidance indicate confidence in sustained growth.

Company Guidance -

Q3 2025

In the Q2 Holdings' first quarter 2025 financial results conference call, the company reported revenue of $189.7 million, a 15% increase year-over-year, surpassing the high end of their guidance. Adjusted EBITDA was $40.7 million, making up 21.5% of revenue, and free cash flow totaled $37.8 million. The quarter was marked by strong sales, including five significant Enterprise and Tier 1 deals, and notable expansion within their existing customer base. The company highlighted a Tier 1 relationship pricing deal with a bank to enhance commercial relationship profitability and a notable expansion deal with a top 50 U.S. bank for risk and fraud solutions. Subscription-based revenues grew by 18% year-over-year, constituting 81% of total revenue, while services and other revenues saw a 7% decline. Total annualized recurring revenue (ARR) increased to $847 million, up 11% from the previous year. Gross margins improved to 57.9%, with operating expenses at 40.7% of revenue. The company raised its full-year 2025 guidance, forecasting revenue between $776 million and $783 million and adjusted EBITDA of $170 million to $175 million, anticipating continued strong performance in subscription revenue growth and free cash flow conversion.

Revenue Growth Exceeds Expectations

Q2 Holdings reported a first-quarter revenue of $189.7 million, up 15% year-over-year, exceeding the high end of previous guidance.

Record Adjusted EBITDA

The company achieved a record adjusted EBITDA of $40.7 million, representing 21.5% of revenue, up 61% from the prior year.

Strong Free Cash Flow

Free cash flow was $37.8 million, indicating strong cash conversion and operational efficiency.

Significant Expansion and Renewals

The company signed major expansion deals with existing customers, including a top 50 U.S. bank, and achieved strong renewal activity with three of its top 10 largest customers.

Growth in Subscription Revenue

Subscription revenue increased by 18% year-over-year, making up 81% of total revenue, highlighting a shift towards higher-margin revenue streams.

Positive Outlook and Raised Guidance

The guidance for full-year 2025 revenue was raised to $776 million to $783 million, with subscription revenue growth expected to exceed 15.5%.

Q2 Holdings (QTWO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

QTWO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 29, 2025	2025 (Q3)	0.56 / -	0.262	―	―	―
Jul 30, 2025	2025 (Q2)	0.53 / 0.50	0.381	31.76% (+0.12)
May 07, 2025	2025 (Q1)	0.47 / 0.54	0.313	72.84% (+0.23)
Feb 12, 2025	2024 (Q4)	0.48 / 0.48	0.27	78.52% (+0.21)
Nov 06, 2024	2024 (Q3)	0.36 / 0.26	0.211	24.17% (+0.05)
Jul 31, 2024	2024 (Q2)	0.31 / 0.38	0.183	108.20% (+0.20)
May 01, 2024	2024 (Q1)	0.27 / 0.31	0.188	66.49% (+0.13)
Feb 21, 2024	2023 (Q4)	0.24 / 0.27	0.06	350.00% (+0.21)
Nov 01, 2023	2023 (Q3)	0.18 / 0.21	0.1	111.00% (+0.11)
Aug 02, 2023	2023 (Q2)	0.13 / 0.18	0.07	161.43% (+0.11)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

QTWO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 30, 2025	$89.99	$81.20	-9.77%
May 07, 2025	$80.31	$90.79	+13.05%
Feb 12, 2025	$92.02	$92.86	+0.91%
Nov 06, 2024	$90.50	$102.25	+12.98%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Q2 Holdings (QTWO) report earnings?

Q2 Holdings (QTWO) is schdueled to report earning on Oct 29, 2025, After Close (Confirmed).

What is Q2 Holdings (QTWO) earnings time?

Q2 Holdings (QTWO) earnings time is at Oct 29, 2025, After Close (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

You can see a list of the companies which are reporting today on TipRanks earnings calendar.

What is QTWO EPS forecast?

QTWO EPS forecast for the fiscal quarter 2025 (Q3) is 0.56.

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