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Q2 Holdings, Inc. (QTWO) 10-Year Financial Performance & Capital Metrics

QTWO • • Industrial / General
TechnologyApplication SoftwareFinancial Technology & PaymentsDigital Banking Platforms
AboutQ2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. The company offers Q2 Consumer Banking, a browser-based digital banking solution and comprehensive financial institution branded digital banking capabilities; Q2 Small Business and Commercial, a mobile and tablet digital banking solution; Q2mobile Remote Deposit Capture, a partnered solution that allows remote check deposit capture. It also provides Q2 Sentinel, a security analytics solution; Q2 Patrol, an event-driven validation product; Q2 SMART, a targeting and messaging platform; and Q2 CardSwap that allows account holders receiving newly issued cards to automatically change their payment information. In addition, the company offers Q2 Gro, a digital account opening, and digital sales and marketing platform; Q2 Biller Direct, a bill payment solution; ClickSWITCH allows financial institutions to direct deposits to the end user. Centrix Dispute Tracking System, an electronic transaction dispute management solution; Centrix Payments I.Q. System, an ACH file monitoring and risk reporting solution; Centrix Exact/Transaction Management System, a fraud prevention tool; and Q2 Caliper Software Development Kit. Futher, it provides Q2 Contextual PFM, which allows end users to add external accounts and view them together with internal accounts on digital banking home page; Q2 Goals that enables end users to establish and save towards specific savings goals; Q2 Cloud Lending, a digital lending and leasing platform; PrecisionLender platform, a cloud-based, data-driven sales enablement, pricing, and portfolio management solution; and Q2 BaaS, a portfolio of open API financial services. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.Show more
  • Revenue $696M +11.5%
  • EBITDA $27M +2894.3%
  • Net Income -$39M +41.1%
  • EPS (Diluted) -0.64 +42.9%
  • Gross Margin 50.9% +5.0%
  • EBITDA Margin 3.81% +2605.9%
  • Operating Margin -6.07% +56.0%
  • Net Margin -5.53% +47.1%
  • ROE -7.98% +47.1%
  • ROIC -4.31% +42.5%
  • Debt/Equity 1.05 -14.3%
  • Interest Coverage -8.56 +43.0%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓FCF machine: 18.5% free cash flow margin
  • ✓Strong 5Y sales CAGR of 17.2%

✗Weaknesses

  • ✗Weak momentum: RS Rating 20 (bottom 20%)
  • ✗Trading more than 30% below 52-week high

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y24.3%
5Y17.16%
3Y11.78%
TTM13.93%

Profit (Net Income) CAGR

10Y-
5Y-
3Y-
TTM155.88%

EPS CAGR

10Y-
5Y-
3Y-
TTM156.39%

ROCE

10Y Avg-11.82%
5Y Avg-7.35%
3Y Avg-7.07%
Latest-4.44%

Peer Comparison

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INTUIntuit Inc.154.33B554.5840.5715.63%21.19%21.31%3.94%0.34
CCBCoastal Financial Corporation1.72B113.6934.9830.92%7.84%10.04%14.54%0.12
SPNSSapiens International Corporation N.V.2.43B43.4533.685.4%11.4%12.2%2.97%0.13
SSNCSS&C Technologies Holdings, Inc.21B86.0528.686.89%13.86%12.2%6.32%1.09
TBBKThe Bancorp, Inc.3.09B70.3916.4116.11%30.63%29.28%7.2%0.16
CWANClearwater Analytics Holdings, Inc.6.98B24.1914.4022.72%61.25%19.6%0.99%0.07

Profit & Loss

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+108.87M150.22M193.98M241.1M315.48M402.75M498.72M565.67M624.62M696.46M
Revenue Growth %0.38%0.38%0.29%0.24%0.31%0.28%0.24%0.13%0.1%0.12%
Cost of Goods Sold+59.13M77.43M99.48M121.86M162.49M228.15M273.69M309.33M321.97M341.98M
COGS % of Revenue0.54%0.52%0.51%0.51%0.52%0.57%0.55%0.55%0.52%0.49%
Gross Profit+49.74M72.8M94.49M119.25M153M174.6M225.03M256.35M302.65M354.48M
Gross Margin %0.46%0.48%0.49%0.49%0.48%0.43%0.45%0.45%0.48%0.51%
Gross Profit Growth %0.5%0.46%0.3%0.26%0.28%0.14%0.29%0.14%0.18%0.17%
Operating Expenses+72.09M102.21M120.17M146.95M203.72M274.43M303.03M361.11M388.71M396.74M
OpEx % of Revenue0.66%0.68%0.62%0.61%0.65%0.68%0.61%0.64%0.62%0.57%
Selling, General & Admin49.98M68.28M78.35M93.77M121.11M145.44M163.48M198.38M219.71M228.89M
SG&A % of Revenue0.46%0.45%0.4%0.39%0.38%0.36%0.33%0.35%0.35%0.33%
Research & Development21.53M32.46M40.34M51.33M76.27M97.38M116.95M130.1M137.33M143.24M
R&D % of Revenue0.2%0.22%0.21%0.21%0.24%0.24%0.23%0.23%0.22%0.21%
Other Operating Expenses-3K-209K429K-7.35M6.34M31.61M22.6M32.63M31.67M24.61M
Operating Income+-24.84M-35.72M-26.91M-31.85M-50.72M-99.83M-78M-104.76M-86.06M-42.26M
Operating Margin %-0.23%-0.24%-0.14%-0.13%-0.16%-0.25%-0.16%-0.19%-0.14%-0.06%
Operating Income Growth %-0.3%-0.44%0.25%-0.18%-0.59%-0.97%0.22%-0.34%0.18%0.51%
EBITDA+-17.99M-23.52M-12.63M-11.11M-14.56M-47.99M-23.16M-43.1M-950K26.55M
EBITDA Margin %-0.17%-0.16%-0.07%-0.05%-0.05%-0.12%-0.05%-0.08%-0%0.04%
EBITDA Growth %-0.2%-0.31%0.46%0.12%-0.31%-2.3%0.52%-0.86%0.98%28.94%
D&A (Non-Cash Add-back)6.85M12.2M14.28M20.74M36.16M51.84M54.83M61.66M85.11M68.81M
EBIT-24.56M-35.36M-26.35M-29.04M-63.07M-107.56M-78.03M-99.4M-56.09M-25.92M
Net Interest Income+-3K-209K429K-7.35M-16.62M-27.44M-31.59M-1.31M4.37M11.4M
Interest Income280K358K553K2.81M3.67M1.21M1.48M5.36M10.1M16.34M
Interest Expense283K567K124K10.16M20.29M28.65M33.07M6.68M5.73M4.94M
Other Income/Expense-3K-209K429K-7.35M-32.65M-36.37M-33.11M-1.31M24.23M11.4M
Pretax Income+-24.84M-35.93M-26.48M-39.2M-83.36M-136.2M-111.1M-106.08M-61.82M-30.86M
Pretax Margin %-0.23%-0.24%-0.14%-0.16%-0.26%-0.34%-0.22%-0.19%-0.1%-0.04%
Income Tax+220K427K-314K-3.8M-12.49M1.42M1.64M2.91M3.56M7.68M
Effective Tax Rate %1.01%1.01%0.99%0.9%0.85%1.01%1.01%1.03%1.06%1.25%
Net Income+-25.06M-36.35M-26.16M-35.4M-70.88M-137.62M-112.75M-108.98M-65.38M-38.54M
Net Margin %-0.23%-0.24%-0.13%-0.15%-0.22%-0.34%-0.23%-0.19%-0.1%-0.06%
Net Income Growth %-0.28%-0.45%0.28%-0.35%-1%-0.94%0.18%0.03%0.4%0.41%
Net Income (Continuing)-25.06M-36.35M-26.16M-35.4M-70.88M-137.62M-112.75M-108.98M-65.38M-38.54M
Discontinued Operations0000000000
Minority Interest0000000000
EPS (Diluted)+-0.67-0.92-0.63-0.83-1.53-2.65-2.00-1.90-1.12-0.64
EPS Growth %0%-0.37%0.32%-0.32%-0.84%-0.73%0.25%0.05%0.41%0.43%
EPS (Basic)-0.67-0.92-0.63-0.83-1.53-2.65-2.00-1.90-1.12-0.64
Diluted Shares Outstanding37.27M39.65M41.22M42.8M46.2M52.02M56.39M57.3M58.35M60.1M
Basic Shares Outstanding37.27M39.65M41.22M42.8M46.2M52.02M56.39M57.3M58.35M60.1M
Dividend Payout Ratio----------

Balance Sheet

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+133.22M125.67M131.09M218.31M186.34M616.22M522.45M531.08M427.96M558.66M
Cash & Short-Term Investments110.62M97.12M99.65M177.32M132.42M539.05M427.73M433.35M324.01M446.63M
Cash Only67.05M54.87M57.96M108.34M100.09M407.7M322.85M199.6M229.66M358.56M
Short-Term Investments43.57M42.25M41.69M68.98M32.33M131.35M104.88M233.75M94.35M88.07M
Accounts Receivable9.01M12.24M13.2M20.27M23.31M37.52M48.82M55.64M52.09M49.97M
Days Sales Outstanding30.229.7424.8430.6826.973435.7335.930.4426.19
Inventory10.53M13.09M15.12M16.74M000000
Days Inventory Outstanding65.0161.7255.4850.15------
Other Current Assets10.53M13.09M15.12M16.74M24.25M30.78M35.37M42.08M51.86M62.06M
Total Non-Current Assets+71.25M75.31M81.73M245.41M823.1M800.49M862.6M818.65M773.46M736.13M
Property, Plant & Equipment24.44M27.48M34.54M34.99M74.64M84.27M118.89M96.53M76.63M61.93M
Fixed Asset Turnover4.45x5.47x5.62x6.89x4.23x4.78x4.19x5.86x8.15x11.25x
Goodwill12.88M12.88M12.88M107.91M462.02M462.27M512.87M512.87M512.87M512.87M
Intangible Assets17.19M15.21M12.03M63.3M223.86M184.86M162.46M145.68M121.57M94.63M
Long-Term Investments00010.27M000000
Other Non-Current Assets16.74M19.75M22.27M39.21M62.58M69.09M68.38M63.57M62.39M66.7M
Total Assets+204.47M200.98M212.81M463.72M1.01B1.42B1.39B1.35B1.2B1.29B
Asset Turnover0.53x0.75x0.91x0.52x0.31x0.28x0.36x0.42x0.52x0.54x
Asset Growth %0.49%-0.02%0.06%1.18%1.18%0.4%-0.02%-0.03%-0.11%0.08%
Total Current Liabilities+45.69M59.21M68.07M73.68M132.97M145.83M168.36M192.04M191.56M398.9M
Accounts Payable3.45M4.23M7.62M9.17M10.97M7.89M10.6M10.05M19.35M9.35M
Days Payables Outstanding21.319.9427.9627.4624.6412.6214.1311.8621.949.98
Short-Term Debt161K00000010.9M0190.33M
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities9.83M7.3M9.14M7.95M38.67M26.72M31.73M23.46M26.58M32.95M
Current Ratio2.92x2.12x1.93x2.96x1.40x4.23x3.10x2.77x2.23x1.40x
Quick Ratio2.69x1.90x1.70x2.74x1.40x4.23x3.10x2.77x2.23x1.40x
Cash Conversion Cycle73.9271.5152.3753.37------
Total Non-Current Liabilities+40.8M41.53M38.12M231.14M497.06M627.51M646.39M738.66M561.38M378.1M
Long-Term Debt000182.72M424.78M557.47M551.6M657.79M490.46M302.12M
Capital Lease Obligations000036.08M36.74M61.37M52.99M45.59M38.35M
Deferred Tax Liabilities0008.15M000000
Other Non-Current Liabilities11.61M9.83M9.83M25.35M3.24M4.1M4.25M6.19M7.98M10.36M
Total Liabilities86.49M100.75M106.19M304.82M630.02M773.34M814.75M930.7M752.95M777M
Total Debt+161K00182.72M470M601.05M621.97M733.34M548.92M542.99M
Net Debt-66.89M-54.87M-57.96M74.38M369.91M193.35M299.13M533.74M319.26M184.43M
Debt / Equity0.00x--1.15x1.24x0.93x1.09x1.75x1.22x1.05x
Debt / EBITDA---------20.45x
Net Debt / EBITDA---------6.95x
Interest Coverage-87.77x-62.99x-216.99x-3.13x-2.50x-3.49x-2.36x-15.69x-15.01x-8.56x
Total Equity+117.97M100.23M106.62M158.9M379.41M643.36M570.3M419.02M448.48M517.8M
Equity Growth %0.49%-0.15%0.06%0.49%1.39%0.7%-0.11%-0.27%0.07%0.15%
Book Value per Share3.162.532.593.718.2112.3710.117.317.698.61
Total Shareholders' Equity117.97M100.23M106.62M158.9M379.41M643.36M570.3M419.02M448.48M517.8M
Common Stock4K4K4K4K5K6K6K6K6K6K
Retained Earnings-89.43M-125.78M-152.11M-172.42M-243.3M-381.19M-493.93M-560.31M-625.69M-664.23M
Treasury Stock-41K-417K-855K0000000
Accumulated OCI-101K-54K-139K-37K14K-32K-135K-2.97M-1.11M-1.87M
Minority Interest0000000000

Cash Flow

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+5.4M3.39M9.47M4.59M567K-2.89M31.09M36.56M70.29M135.75M
Operating CF Margin %0.05%0.02%0.05%0.02%0%-0.01%0.06%0.06%0.11%0.19%
Operating CF Growth %2.02%-0.37%1.79%-0.51%-0.88%-6.1%11.76%0.18%0.92%0.93%
Net Income-25.06M-36.35M-26.16M-35.4M-70.88M-137.62M-112.75M-108.98M-65.38M-38.54M
Depreciation & Amortization6.85M12.2M14.95M16.8M28.46M51.84M54.83M61.66M71.71M68.81M
Stock-Based Compensation7.36M12.64M20.94M29.55M40.51M50.68M55.9M65.16M79.19M89.22M
Deferred Taxes85K281K-350K-2.05M-12.77M946K180K1.61M636K2.11M
Other Non-Cash Items5.46M7.55M7.83M17.47M31.37M58.15M57.4M37.61M9.83M29M
Working Capital Changes10.71M7.08M-7.73M-21.78M-16.11M-26.89M-24.48M-20.49M-25.69M-14.85M
Change in Receivables-3.32M-3.25M-961K-4.68M-4.82M-18.28M-14.24M-815K7.78M4.94M
Change in Inventory3.9M10.45M-4.37M-4.38M000000
Change in Payables1.34M426K3.37M-263K1.13M-2.3M1.76M-548K9.35M-9.79M
Cash from Investing+-58.42M-16.51M-17.94M-171.29M-483.25M-124.16M-65.13M-165.56M113.27M-21.08M
Capital Expenditures-7.44M-17.36M-13.29M-13.33M-13.86M-23.71M-19.75M-11.14M-5.67M-6.69M
CapEx % of Revenue0.07%0.12%0.07%0.06%0.04%0.06%0.04%0.02%0.01%0.01%
Acquisitions----------
Investments----------
Other Investing-21.39M-2.07M-1M-27.31M-465K-952K-5.87M-18.91M-24.97M-22.34M
Cash from Financing+52.09M944K11.56M216.58M476.09M434.68M-51.16M5.88M-152.01M13.32M
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid0000000000
Share Repurchases----------
Other Financing4.17M6M11.56M-6.59M-221.5M-320.56M12.53M5.88M139K-942K
Net Change in Cash----------
Free Cash Flow+-2.04M-13.97M-3.81M-8.74M-13.76M-27.56M5.47M6.5M39.65M129.06M
FCF Margin %-0.02%-0.09%-0.02%-0.04%-0.04%-0.07%0.01%0.01%0.06%0.19%
FCF Growth %0.8%-5.84%0.73%-1.29%-0.57%-1%1.2%0.19%5.1%2.26%
FCF per Share-0.05-0.35-0.09-0.20-0.30-0.530.100.110.682.15
FCF Conversion (FCF/Net Income)-0.22x-0.09x-0.36x-0.13x-0.01x0.02x-0.28x-0.34x-1.08x-3.52x
Interest Paid212K217K68K810K2.85M4.1M3.1M2.89M02.68M
Taxes Paid60K120K128K250K322K566K1.03M875K2.62M5.88M

Key Ratios

Metric2015201620172018201920202021202220232024
Return on Equity (ROE)-25.46%-33.32%-25.3%-26.66%-26.33%-26.91%-18.58%-22.03%-15.07%-7.98%
Return on Invested Capital (ROIC)-59.5%-55.55%-42.93%-16.94%-7.74%-9.44%-6.86%-8.62%-7.5%-4.31%
Gross Margin45.69%48.46%48.71%49.46%48.5%43.35%45.12%45.32%48.45%50.9%
Net Margin-23.02%-24.2%-13.49%-14.68%-22.47%-34.17%-22.61%-19.27%-10.47%-5.53%
Debt / Equity0.00x--1.15x1.24x0.93x1.09x1.75x1.22x1.05x
Interest Coverage-87.77x-62.99x-216.99x-3.13x-2.50x-3.49x-2.36x-15.69x-15.01x-8.56x
FCF Conversion-0.22x-0.09x-0.36x-0.13x-0.01x0.02x-0.28x-0.34x-1.08x-3.52x
Revenue Growth37.58%37.99%29.13%24.29%30.85%27.66%23.83%13.43%10.42%11.5%

Revenue by Segment

2018201920202021202220232024
Subscriptions168.23M221.98M286.96M361.09M412.04M475.94M553.61M
Subscriptions Growth-31.96%29.27%25.83%14.11%15.51%16.32%
Product and Service, Other33.64M45.1M60.21M68.8M86.26M83.26M74.36M
Product and Service, Other Growth-34.07%33.49%14.26%25.38%-3.47%-10.69%
Transactional Services39.23M48.4M55.58M68.83M67.37M65.42M68.49M
Transactional Services Growth-23.36%14.84%23.84%-2.12%-2.90%4.70%

Frequently Asked Questions

Growth & Financials

Q2 Holdings, Inc. (QTWO) reported $769.6M in revenue for fiscal year 2024. This represents a 2752% increase from $27.0M in 2011.

Q2 Holdings, Inc. (QTWO) grew revenue by 11.5% over the past year. This is steady growth.

Yes, Q2 Holdings, Inc. (QTWO) is profitable, generating $31.7M in net income for fiscal year 2024 (-5.5% net margin).

Dividend & Returns

Q2 Holdings, Inc. (QTWO) has a return on equity (ROE) of -8.0%. Negative ROE indicates the company is unprofitable.

Q2 Holdings, Inc. (QTWO) generated $164.2M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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