Q2 Holdings, Inc. (QTWO) Earnings
Q2 Holdings, Inc. is expected to report next earnings on July 29, 2026 (in NaN days), with a consensus EPS estimate of $0.67. QTWO has beaten EPS estimates in 6 of its last 12 reported quarters (average surprise -0.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $0.71 | $0.63 | -11.3% | $217M | +1.0% |
| Feb 11, 2026 | $0.59 | $0.63 | +6.3% | $208M | -0.9% |
| Nov 5, 2025 | $0.55 | $0.57 | +3.6% | $202M | -1.5% |
| Jul 30, 2025 | $0.51 | $0.50 | -2.0% | $195M | -1.4% |
| Feb 12, 2025 | $0.48 | $0.48 | +0.0% | $183M | +1.7% |
| Jul 31, 2024 | $0.34 | $0.26 | -23.5% | $173M | +1.1% |
| May 1, 2024 | $0.29 | $0.31 | +6.9% | $166M | +1.2% |
| Feb 21, 2024 | $0.24 | $0.27 | +12.5% | $162M | +0.4% |
| Nov 1, 2023 | $0.17 | $0.21 | +23.5% | $155M | -0.3% |
| Aug 2, 2023 | $0.12 | $0.07 | -41.7% | $155M | -0.8% |
| Feb 21, 2023 | $0.13 | $0.06 | -53.8% | $147M | -1.9% |
| Aug 3, 2022 | $0.05 | $0.07 | +40.0% | $140M | +0.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 29, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Matt started by sharing first quarter results and highlights. Sales had strong bookings activity with nine tier one and enterprise wins, including a significant digital banking expansion and the largest fraud deal in company history. On AI, Q2 has differentiators in data, distribution, and incumbency/trust, with near-term product focus on improving efficiency for bankers, strengthening fraud detection, and driving deeper personalization. Jonathan discussed financial results in detail, noting revenue in line with high end of guidance, adjusted EBITDA meaningfully above, and provided updated guidance for the remainder of 2026.
Guidance
Forecasts second quarter revenue in range of $214 million to $218 million and full year 2026 revenue in range of $875 million to $882 million, representing year-over-year growth of approximately 10 to 11%. Forecasts second quarter adjusted EBITDA in range of $57.5 million to $60.5 million and full year 2026 adjusted EBITDA in range of $237 million to $242 million, representing approximately 27% of revenue. Confidence to raise full year guidance on both revenue and adjusted EBITDA for 2026.
Segment performance
In the first quarter, revenue was $216.5 million, up 14% year-over-year. Subscription-based revenues grew 17% year-over-year and 5% sequentially, making up 83% of total revenue. Total non-subscription revenues increased 3% year-over-year, driven by 12% growth in services and other revenue. Total annualized recurring revenue (ARR) grew to $945 million, up 12% year-over-year. Subscription ARR grew to $802 million, up 14% from the prior year period. Ending backlog was $2.7 billion, up $444 million year-over-year. Gross margin was 62.1% for the first quarter, up from prior periods. Adjusted EBITDA was $60 million, up 47% from prior year period.
Risks & headwinds
Forward-looking statements are subject to significant risks and uncertainties, including those related to expectations for future operating and financial performance of Q2 Holdings and the financial services industry. Actual results may differ materially from forward-looking statements. Important factors causing actual results to differ are in periodic reports filed with the SEC.
Analyst Q&A
Q: Andrew Schmidt asked about demand and AI opportunities in the funnel.
A: Matt said top of the funnel increased significantly, demand environment is strong.
Q: Andrew Schmidt asked about AI product pipeline.
A: Matt said it's early, most customers looking for AI tools to run the bank, Q2 Assistant and Q2 Code are in those areas.
Q: Ella Smith asked about benefits of using Q2 for both digital banking and fraud tech.
A: Matt said combining platforms gives more secure bank, cross-sell opportunity.
Q: Ella Smith asked about digital banking implementation speed.
A: Matt said may not speed up soon but will see more efficiencies.
Q: Terry Tillman asked about enterprise bank fraud deal vs digital banking deal.
A: Jonathan said fraud deal is sizable, similar to large digital banking deal.
Q: Matt Van Vliet asked about Innovation Studios penetration.
A: Matt said financial institutions are early in adoption cycle, seeing good penetration.
Q: Alex Sklar asked about Q2 Code vs Innovation Studio.
A: Matt said Q2 Code allows faster code writing, separate from Innovation Studio.
Q: Alex Sklar asked about gross margin beat.
A: Jonathan said cloud migration contributed, expecting gross margins to remain in ballpark for 2026.
Q: Parker Lane asked about Q2 Code reliance on services.
A: Matt said less reliance possible.
Q: Parker Lane asked about renewal cadence.
A: Jonathan said renewal volume later in year, similar to previous years.
Q: Michael Infante asked about subscription ARR churn.
A: Matt said no outsized churn in first quarter.
Q: Michael Infante asked about professional services revenue.
A: Jonathan said services trajectory remains as originally guided.
Q: Adam Hotchkiss asked about holistic relationship with customers on AI.
A: Matt said customers are partnering with them.
Q: Adam Hotchkiss asked about Q2 Code pricing.
A: Jonathan said hybrid pricing model with credit and incremental fees.
Q: Joe Ruink asked about Q2 Code widening addressable audience.
A: Matt said excited about Q2 Code, feedback positive.
Q: Joe Ruink asked about fraud deals and revenue outlook.
A: Jonathan said culmination of various factors led to revenue guide raise.
Q: Christopher Kennedy asked about new sales activity in tiers.
A: Matt said strong activity in Tier 2 and 3, upper end of Tier 1 picking up in back half.
Q: Christopher Kennedy asked about gross margin uplift.
A: Jonathan said uplift from cloud migration and revenue mix change.
Q: Dan Perlin asked about core conversions and Q2 Code go-to-market.
A: Matt said Q2 Code is introduced through product marketing, sales reps training, and client conferences.