Q2 Holdings supplies subscription-based digital banking, lending, relationship-pricing and fraud-management software to banks, credit unions and fintechs. Digital banking generates most revenue; Q2 reports one operating segment.
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A snapshot of what Q2 Holdings, Inc. owns and owes at a point in time.
Read the company’s balance sheet in the original annual reports below.
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3 reports in this collection
| Report period | Filed with SEC | Form | Source |
|---|---|---|---|
| Dec 31, 20230001410384-24-000015 | Feb 21, 2024 | 10-K | Open 10-Ksec.gov |
| Dec 31, 20240001410384-25-000010 | Feb 12, 2025 | 10-K | Open 10-Ksec.gov |
| Dec 31, 20250001410384-26-000006 | Feb 11, 2026 | 10-K | Open 10-Ksec.gov |
Dates describe the filing metadata. Figures and reporting periods should be checked against the original statement. SEC links open in a new tab.
Q2’s subscription business is growing, and profitability has improved substantially. In the six months ended June 30, 2026, revenue reached $436.3 million and GAAP net income reached $56.5 million. However, the improvement reflects more than sales growth: lower depreciation, declining acquisition-related amortization, greater cost capitalization and favorable prior-year comparisons also helped. Operating cash generation strengthened, but debt repayment and share repurchases sharply reduced cash. Outstanding financial borrowings were zero at June 30, while leases, cloud commitments and other obligations remained. Management raised its 2026 outlook in July, but the forecast remains conditional. The central balance is stronger recurring demand and earnings against implementation risk, ongoing infrastructure investment, equity compensation and a much smaller cash cushion.
Sources: 10-K · 2025-12-31 · 10-Q · 2026-06-30 · EX-99.1 · 2026-07-29
Q2’s initial digital-banking contracts average more than five years. Customers pay for selected products, users or commercial accounts, and usage beyond contractual levels. Selling additional products to existing customers complements new-customer wins. Helix, its core-processing and banking-as-a-service offering, generally has lower contractual minimums and more usage exposure. Subscription revenue normally begins when implementation makes the service available, so a signed contract is not immediately revenue or cash.
At June 30, 2026, company-defined subscription ARR was $825.5 million and remaining performance obligations were $2.76 billion. ARR includes minimum commitments for contracts not yet recognizing revenue; it annualizes recurring revenue and averages variable overages. Management expects approximately 54% of remaining obligations to become revenue within 24 months, not within one fiscal year. These measures overlap economically and must not be added together. Management reported record first-quarter bookings and eight Enterprise/Tier 1 contracts in the second quarter, including expansion and a win following a customer acquisition.
Sources: 10-K · 2025-12-31 · 10-Q · 2026-06-30 · EX-99.1 · 2026-04-29 · EX-99.1 · 2026-07-29
The July 29, 2026 filings reported unaudited first-half revenue of $436.271 million versus $384.883 million, operating income of $57.030 million versus $12.029 million, and net income of $56.497 million versus $16.517 million. Second-quarter revenue grew a reported 12.6% to $219.765 million. Subscription growth dominated; quarterly services and other revenue declined, while first-half transactional revenue was nearly flat.
First-half delivery costs benefited from $3.7 million less data-center depreciation, $2.9 million more implementation-cost capitalization and $2.3 million less acquired-technology amortization. Higher cloud/software costs and amortization of previously capitalized costs partly offset these benefits. R&D expense increased despite additional development-cost capitalization. Comparisons also benefited from the absence of a $1.750 million prior-year legal settlement; current nonoperating income included a $0.9 million fixed-asset sale gain, while lower investment balances reduced interest income. The 8.1% effective tax rate should not be treated as a normal future rate.
First-half adjusted EBITDA was $122.820 million, but this non-GAAP measure excludes substantial costs, including $40.823 million of stock compensation. It is neither profit under GAAP nor cash flow. Repurchases also do not explain all per-share changes: quarterly diluted shares fell, but first-half diluted shares increased because convertible-note equivalents entered the calculation. The supplied releases do not fully bridge some non-GAAP EPS and debt-issuance-amortization presentations to the financial statements; those limits remain unconfirmed.
Sources: 10-Q · 2026-06-30 · EX-99.1 · 2026-04-29 · EX-99.1 · 2026-07-29
First-half operating cash flow increased to $116.975 million from $92.172 million despite a larger $19.323 million working-capital outflow. Advance customer payments and noncash compensation and amortization affect conversion from earnings to cash. Equipment purchases of $8.301 million and capitalized software-development spending of $13.479 million were separate investing outflows, leaving company-defined free cash flow of $95.195 million.
Q2 paid $303.995 million of convertible-note principal and spent $120.081 million on first-half repurchases. At June 30, cash and equivalents were $99.917 million, down from $367.631 million at year-end; investments were $6.508 million, including a private fund investment, and restricted cash was separately $2.218 million. Financial borrowings were zero, but operating lease liabilities were $40.933 million and minimum purchase commitments were $193.405 million. Usage-dependent spending is excluded from those commitments, so they are not a spending ceiling.
The $125 million secured revolver was undrawn, and Q2 reported covenant compliance at June 30. It is conditional borrowing capacity, not cash or verified covenant headroom. Management’s twelve-month funding assessment is not a guarantee. On July 29, the board authorized another $350 million of repurchases, bringing available authorization to approximately $375 million. This discretionary authorization is not completed spending or evidence that full execution can be financed; it may be suspended, modified or terminated.
Sources: 10-Q · 2026-06-30 · EX-99.1 · 2026-07-29 · 8-K · 2026-07-29
On July 29, management raised full-year 2026 guidance to $881–886 million of revenue and $244–248 million of adjusted EBITDA, following an April increase. These are forecasts, not achieved results. Third-quarter adjusted EBITDA guidance of $58.5–61.5 million was below the second quarter’s $62.788 million actual. No forward GAAP earnings reconciliation was supplied because potentially material exclusions could not reasonably be forecast.
Bank mergers can produce expansion wins or customer losses and pricing pressure. Annual revenue churn worsened to 5.2% in 2025 from 4.4% in 2024; these are not new 2026 measurements. Complex implementations and fintech usage remain demand sensitivities. Public-cloud migration is complete, but vendor costs, outages and concentrated AI-provider dependence remain. New AI products are not separately quantified revenue, and more capable AI can also enable fraud and cyberattacks. Financial-services regulation adds compliance demands. Goodwill of $512.869 million against $968.418 million of total assets remains a significant impairment exposure, although no goodwill impairment was reported.
Sources: EX-99.1 · 2026-02-11 · EX-99.1 · 2026-04-29 · EX-99.1 · 2026-07-29 · 10-K · 2025-12-31 · 10-Q · 2026-06-30
USD 794.809 m
FY2025 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2025 | USD 794.809 m | 14.1% |
| 2024 | USD 696.464 m | — |
Consolidated GAAP revenue, including subscription, transactional, and services/other revenue.
Sources: 10-K · 2025-12-31
USD 624.624 m
FY2023 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2023 | USD 624.624 m | — |
Consolidated GAAP revenue; excludes the company's non-GAAP purchase-accounting adjustment.
Sources: 10-K · 2025-12-31
USD 52.008 m
FY2025 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2025 | USD 52.008 m | Turned profitable |
| 2024 | USD -38.536 m | — |
Consolidated GAAP net income or loss after income taxes.
Sources: 10-K · 2025-12-31
USD -65.384 m
FY2023 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2023 | USD -65.384 m | — |
Consolidated GAAP net income or loss after income taxes; includes the 2023 debt-extinguishment gain.
Sources: 10-K · 2025-12-31
USD 201.461 m
FY2025 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2025 | USD 201.461 m | 48.4% |
| 2024 | USD 135.751 m | 93.1% |
| 2023 | USD 70.292 m | — |
GAAP net cash provided by operating activities; excludes investing-classified software development and PP&E purchases.
Sources: 10-K · 2025-12-31
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