The earnings call presented a strong performance across key financial metrics, with significant revenue and subscription growth, improved profitability, and strong renewal and expansion activity. The only notable challenge was a decline in professional services revenue. The positive aspects significantly outweigh the lowlights, showcasing a robust financial outlook.

Company Guidance -

Q3 2025

In the recent Q2 Holdings First Quarter 2025 conference call, the company provided an optimistic outlook for the year, fueled by stronger-than-anticipated performance across key financial metrics. The company reported a revenue of $189.7 million, marking a 15% year-over-year increase. Additionally, the company achieved an adjusted EBITDA of $40.7 million, equating to 21.5% of revenue, and generated a free cash flow of $37.8 million. Subscription-based revenues were a significant growth driver, increasing by 18% year-over-year, contributing to a total annualized recurring revenue (ARR) of $847 million, a rise of 11% compared to the previous year. The company's gross margins improved to 57.9%, attributed to a shift towards higher-margin subscription revenues. The company raised its full-year 2025 revenue guidance to a range of $776 million to $783 million and increased its full-year adjusted EBITDA guidance to between $170 million and $175 million. Subscription revenue growth expectations for the full year were also raised to at least 15.5%, underscoring the company's confidence in its profitability growth strategy amid ongoing macroeconomic uncertainties.

Revenue Growth

Q2 Holdings delivered revenue of $189.7 million, up 15% year-over-year and 4% sequentially, exceeding the high end of their guidance.

Strong Subscription Revenue

Subscription-based revenues grew 18% year-over-year and represented 81% of total revenue, highlighting a shift towards higher-margin revenue streams.

Record Adjusted EBITDA

Q2 Holdings reported adjusted EBITDA of $40.7 million, representing a 61% increase from the prior year period, and 21.5% of total revenue.

Free Cash Flow Performance

The company generated free cash flow of $37.8 million, exceeding typical seasonal patterns, driven by improved profitability and favorable timing with customer invoicing.

Strong Renewal Activity

Renewals included three of the top 10 largest customers, demonstrating confidence in Q2 Holdings' solutions and partnerships.

Fraud Management Expansion

Significant expansion activity within the existing customer base, including a top 50 U.S. bank signing an expansion deal for risk and fraud solutions.

Increased Guidance for FY 2025

The company raised full-year revenue guidance to $776 million to $783 million and adjusted EBITDA guidance to $170 million to $175 million.

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.

Become an Expert with TipRanks Premium

What am I Missing?

Make informed decisions based on Top Analysts' activity

Know what industry insiders are buying

Get actionable alerts from top Wall Street Analysts

Find out before anyone else which stock is going to shoot up

Get powerful stock screeners & detailed portfolio analysis

Subscribe Now See Plans & Pricing