Q2 Holdings (QTWO)
NYSE:QTWO
Want to see QTWO full AI Analyst Report?
Earnings Data
Report Date
Aug 05, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.67Last Year’s EPS
0.5Same Quarter Last Year
Strong Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple material operating and financial positives: double-digit revenue and ARR growth, strong subscription mix (83% of revenue), record bookings including the largest fraud deal in company history, a completed cloud migration that materially increased gross margin, and sizable adjusted EBITDA expansion (47% YoY). Management also announced new AI products (Q2 Code and AI fraud capabilities) and raised full-year revenue and EBITDA guidance. Offsetting items are mostly timing and mix challenges: non-subscription/service revenue softness, uncertainty over when large deals will convert to revenue (some implementations extend beyond 2026), early-stage AI pricing/cost risk, and a lower cash balance following share repurchases. Overall, the positives—particularly revenue/margin expansion, strong bookings, and improved profitability—outweigh the near-term challenges and timing risks.Company Guidance
Revenue Growth and Mix Shift
Total revenue of $216.5M, up 14% year-over-year and 4% sequentially; subscription revenue grew 17% YoY and 5% sequentially and represented 83% of total revenue, indicating a continued shift toward higher-margin recurring revenue.
ARR and Backlog Expansion
Total ARR increased to $945M (up 12% YoY from $847M) and subscription ARR grew to $802M (up 14% YoY from $702M); ending backlog was $2.7B, up 19% YoY ($444M) and up 2% sequentially ($46M).
Profitability Expansion
Adjusted EBITDA of $60.0M, a 47% increase YoY (from $40.7M) and up 17% sequentially; adjusted EBITDA margin expanded to 27.7% (up ~630 bps YoY and ~310 bps sequentially).
Gross Margin Improvement from Cloud Migration
Gross margin improved to 62.1% (from 57.9% YoY and 58.6% sequentially), driven primarily by completion of the cloud migration and a larger mix of subscription revenue; management expects this higher gross margin level to be sustained through 2026.
Strong Cash Generation and Capital Return
Generated operating cash flow of $56M and free cash flow of $44.2M in the quarter; repurchased $97M of stock in the quarter (total $102M repurchased to date against a $150M authorization).
Record Bookings and Large Enterprise Wins
Delivered a record first-quarter bookings performance with 9 Tier 1/enterprise wins, including the largest fraud deal in company history and a significant digital banking expansion following the Synovus–Pinnacle merger, highlighting demand across Digital Banking and Risk & Fraud.
AI Product Progress and Platform Positioning
Announced two AI product sets (Q2 Code for AI-assisted development and new AI-driven account takeover fraud capabilities); management emphasized differentiators (data, distribution, incumbency/trust) and early monetization intent for Q2 Code as a discrete SKU.
Raised Full-Year Guidance
Updated guidance: FY2026 revenue now $875M–$882M (implying ~10%–11% YoY growth) and adjusted EBITDA $237M–$242M (~27% of revenue); company raised full-year revenue and adjusted EBITDA guidance after the quarter.
QTWO Earnings History
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 |
|---|---|---|---|
Apr 29, 2026 | $52.51 | $50.75 | -3.35% |
Feb 11, 2026 | $56.62 | $52.45 | -7.36% |
Nov 05, 2025 | $61.12 | $70.17 | +14.81% |
Jul 30, 2025 | $89.99 | $81.20 | -9.77% |
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 Aug 05, 2026, After Close (Confirmed).
What is Q2 Holdings (QTWO) earnings time?
Q2 Holdings (QTWO) earnings time is at Aug 05, 2026, 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 2026 (Q2) is 0.67.