Q2 Holdings, Inc. Altman Z-Score
QTWO / Information Technology|Modified Z-Score (book value) based on FY2025 data
Q2 Holdings, Inc.'s Altman Z-Score of 1.18 places the company in the "distress zone" (below 1.23). Companies in this range have historically shown higher rates of financial distress (FY2025). Z-Score is calculated from 5 financial ratios derived from Q2 Holdings, Inc.'s SEC 10-K filing, evaluated in the context of the Information Technology sector.
Based on SEC 10-K filings.
Key Data Points
- Altman Z-Score 1.18 (distress zone, below 1.23 threshold)
- Cash-backed earnings: Operating cash flow exceeds net income
Data sourced from SEC EDGAR filings. Not investment advice.
Distress Zone (< 1.23)
Distress zone - elevated risk of financial difficulties
The Altman Z-Score predicts bankruptcy risk using 5 financial ratios. Learn more
Profit margin ranks in the below average of Information Technology companies
Components: book value of equity, working capital, retained earnings, EBIT, and revenue-to-assets — all derived from SEC FY2025 10-K filings.
5-Factor Decomposition
| Component | Ratio | Weight | Contribution |
|---|---|---|---|
| Working Capital / Total Assets | 0.009 | 0.717 | 0.007 |
| Retained Earnings / Total Assets | - | 0.847 | - |
| EBIT / Total Assets | 0.031 | 3.107 | 0.097 |
| Book Equity / Total Liabilities | 1.077 | 0.420 | 0.452 |
| Revenue / Total Assets | 0.623 | 0.998 | 0.622 |
| Total Z-Score | 1.18 | ||
As of FY2025 · SEC 10-K · Updated Feb 28, 2026
Z-Score Zones
Safe Zone - Company is in strong financial health with low bankruptcy risk.
Grey Zone - Uncertain financial position. Requires closer monitoring.
Distress Zone - Elevated probability of financial difficulties.