Overview

* Q2 Holdings Q2 2025 rev grows 13% yr/yr

* Adjusted EBITDA for Q2 beats consensus, reflecting solid operational performance

* Adjusted EPS for Q2 missed analyst expectations, per LSEG data

Outlook

* Q2 Holdings ( QTWO ), a digital transformation solutions provider for for financial services, sees Q3 revenue of $196 mln to $200 mln

* Company expects Q3 adjusted EBITDA of $44 mln to $47 mln

* Q2 Holdings ( QTWO ) forecasts full-year revenue of $783 mln to $788 mln

* Company anticipates full-year adjusted EBITDA of $177 mln to $181 mln

Result Drivers

* CONTRACT EXPANSIONS - Q2 signed multiple Tier 1 contracts, including expansions with top U.S. banks, driving revenue growth

* RISK AND FRAUD SOLUTIONS - Increased demand for risk and fraud solutions contributed to Q2's positive quarterly results

* BACKLOG GROWTH - Backlog increased by $403 mln year-over-year, indicating strong future commitments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $0.18 $0.52

Adjusted (12

EPS Analysts

)

Q2 Beat $45.80 $42.70

Adjusted mln mln (13

EBITDA Analysts

)

Q2 57.5%

Adjusted

Gross

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Q2 Holdings Inc ( QTWO ) is $103.50, about 12.7% above its July 29 closing price of $90.40

* The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 37 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)