Q2 Holdings (QTWO) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Q2 Holdings

NYSE•Technology•Software - Application

$66.41+0.45(0.01%)Pre-market

Market Cap

$4.17B

P/E

37.8x

P/S

4.8x

P/B

6.3x

Q2 Holdings, Inc. provides digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs) in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform that supports its financial institution customers in their delivery of retail, SMB, and commercial functionalities across digital channels; and risk and fraud solutions that are designed to support financial institutions' efforts to protect end users, comply with regulatory requirements and manage fraud risk efficiently. It also provides Q2 Innovation Studio, an application program interface and software development kit based open technology platform that allows financial institution customers, FinTechs, and other partners to deploy customized experiences and financial services to end users; and Helix, a cloud-native, real-time core processing platform that combines the services and functionality for companies and financial institutions. In addition, the company offers digital lending and relationship pricing solutions that support financial institutions, FinTechs and Alt-FIs in managing lending workflows, pricing strategies and customer relationships across commercial and consumer use cases, as well as offers loans, deposits and fee-based products. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.

How this company scores

ExcellentMetricSide Score: 84/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability23/25

Growth21/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowHigh ROERising earningsInterest easily covered

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 37.8x5y range 32.0x – 1194.8x

Currently below its 6-quarter median.

P/S · 4.8x5y range 2.4x – 9.1x

Currently near its 20-quarter median.

P/B · 6.3x5y range 3.1x – 11.8x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Share Dilution

Watch

Shares outstanding rose 2.7% — mild dilution. Compare to earnings growth to assess the net per-share impact.

Price & Volume

Market Cap $4.17B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $870.26M
Q. Revenue: $225.77M
TTM EBITDA: $183.83M
TTM Op. Income: $107.85M
Q. Op. Income: $33.96M
TTM Net Income: $110.16M
Q. Net Income: $33.22M
EPS: N/A
Shares Out.: $62.15M

$870.26M in TTM revenue grew 13.1% YoY, reaching $225.77M last quarter. TTM EBITDA of $183.83M and TTM operating income of $107.85M show growth is flowing through to the bottom line. TTM net income of $110.16M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 59.7%
EBITDA Margin: 20.6%
Op. Margin: 15.0%
Net Margin: 14.7%

Op. margin of 15.0% is up 9.6% YoY — cost efficiency is improving. Net margin at 14.7% and gross margin of 59.7% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 7 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 37.8x
P/S Ratio: 4.8x
P/B Ratio: 6.3x

At 37.8x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 4.8x and P/B of 6.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 74% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.00B
Cash: $116.31M
Long-Term Debt: N/A
Book Value: $657.78M
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $64.68M
TTM Free Cash Flow: $232.99M
FCF Margin: 26.8%
FCF / Net Income: 2.1

TTM FCF of $232.99M on $64.68M in operating cash flow. The FCF / Net Income ratio of 2.1x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 7 consecutive quarters — an improving trend.