Q2 Holdings, Inc. (QTWO) Stock

Q2 Holdings, Inc. (QTWO) is a Technology stock trading at $63.75 (as of 2026-08-20), with a market capitalization of $3.98B and a trailing P/E of 43.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Q2 Holdings, Inc. provides cloud-based digital banking and related financial technology solutions for regional and community financial institutions in the United States. Its offerings include branded consumer and small business/commercial digital banking platforms, security and validation tools, marketing and targeting capabilities, payments and account-opening functions, and dispute/risk management services.

Understand Q2 Holdings, Inc.: how it makes money

Q2 Holdings provides cloud-based digital banking solutions for regional and community financial institutions in the United States, selling branded banking capabilities (consumer banking, small business and commercial banking, and remote deposit capture) along with security analytics, event-driven validation, and other digital banking software.

The profit model is driven by subscription-style recurring revenue (tracked via Subscription Annualized Recurring Revenue and Annual Recurring Revenue) from selling digital banking and security software to financial institutions.

Business quality (Solid): Subscription recurring-revenue metrics exist, but the provided data does not include a clean, official segment revenue breakdown for this period.

Valuation: Trades at 42× trailing earnings · $3B market cap.

Bull case

  • Subscription-based recurring revenue: Investors can track Subscription Annualized Recurring Revenue and Annual Recurring Revenue, consistent with a repeatable software revenue profile.
  • Profitability in the latest quarter: For the period ended 2026-03-31, gross margin was 59.1% and operating margin was 12.8%.

Bear case

  • Limited visibility on how revenue is split: No official reportable segment revenue breakdown is available in the provided facts, which makes it harder to assess what specifically is driving results.
  • Relative scale of non-core revenue: Services and Other Revenue is shown as 0.02B versus Total Revenue of about 0.2B for the provided period, so diversification beyond the core software offer may be limited based on these data.
Valuation — source: SEC EDGAR (first-party)
Price$63.75
Market Cap$3.98B
P/E Ratio43.2
EV / EBITDA28.7
Price / Book6.18
Price / Sales4.70
FCF Yield5.4%
DCF Value (model)$66.35
DCF Upside vs Price4.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$794.81M
Net Margin6.5%
Revenue Growth (YoY)12.6%
EPS Growth (YoY)152.6%
FCF Growth (YoY)24.5%
Financial Health — source: SEC EDGAR
Altman Z-Score3.95 (safe)
Valuation vs Sector & Industry
Stock P/E43.2
Sector P/E (Technology)33.9
Industry P/E (Business Services)30.0
vs Sector27.4%
vs Industry44.3%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($576.93M)
Institutional Holders Tracked10
Congressional Trades (recent)1
Company
SectorTechnology
IndustryBusiness Services
CEOMatthew Flake
Employees2,476
CountryUS
IPO Date2014-03-20

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QTWO earnings history · QTWO institutional & insider holders · QTWO KPIs & operating metrics · QTWO financials · QTWO investor presentations & press releases · QTWO SEC filings · QTWO peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.