Management has successfully strengthened the capital structure by reducing total debt from $548.9M in 2023Q4 to $343.9M in 2026Q1, lowering the debt-to-equity ratio to 0.56.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Total Current Assets | 524.57M | 556.05M | 558.66M | 427.96M | 531.08M | 522.45M | 616.22M | 186.34M | 218.31M | 131.09M | 125.67M | 133.22M | 104.52M | 33.87M | 19.13M | 22.72M |
| Cash & Short-Term Investments | 342.33M | 367.63M | 446.63M | 324.01M | 433.35M | 427.73M | 539.05M | 132.42M | 177.32M | 99.65M | 97.12M | 110.62M | 88.94M | 18.68M | 9.11M | 15.36M |
| Cash Only | 342.33M | 367.63M | 358.56M | 229.66M | 199.6M | 322.85M | 407.7M | 100.09M | 108.34M | 57.96M | 54.87M | 67.05M | 67.98M | 18.68M | 9.11M | 15.36M |
| Short-Term Investments | 0 | 0 | 88.07M | 94.35M | 233.75M | 104.88M | 131.35M | 32.33M | 68.98M | 41.69M | 42.25M | 43.57M | 20.96M | 0 | 0 | 0 |
| Accounts Receivable | 96.69M | 74.42M | 49.97M | 52.09M | 55.64M | 48.82M | 37.52M | 23.31M | 20.27M | 13.2M | 12.24M | 9.01M | 5.01M | 9.06M | 5.86M | 3.89M |
| Days Sales Outstanding | 35.05 | 34.17 | 26.19 | 30.44 | 35.9 | 35.73 | 34 | 26.97 | 30.68 | 24.84 | 29.74 | 30.2 | 23.1 | 58.17 | 52.01 | 52.64 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16.74M | 15.12M | 13.09M | 10.53M | 7.88M | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - | 50.15 | 55.48 | 61.72 | 65.01 | 62.49 | - | - | - |
| Other Current Assets | 85.55M | 114.01M | 62.06M | 51.86M | 42.08M | 35.37M | 30.78M | 24.25M | 16.74M | 15.12M | 13.09M | 10.53M | 7.88M | 5.05M | 3.52M | 2.74M |
| Total Non-Current Assets | 721.77M | 720.23M | 736.13M | 773.46M | 818.65M | 862.6M | 800.49M | 823.1M | 245.41M | 81.73M | 75.31M | 71.25M | 32.28M | 27.24M | 12.54M | 9.01M |
| Property, Plant & Equipment | 53.7M | 54.97M | 61.93M | 76.63M | 96.53M | 118.89M | 84.27M | 74.64M | 34.99M | 34.54M | 27.48M | 24.44M | 18.52M | 14.83M | 4.21M | 3.06M |
| Fixed Asset Turnover | 15.04x | 14.46x | 11.25x | 8.15x | 5.86x | 4.19x | 4.78x | 4.23x | 6.89x | 5.62x | 5.47x | 4.45x | 4.27x | 3.83x | 9.77x | 8.83x |
| Goodwill | 512.87M | 512.87M | 512.87M | 512.87M | 512.87M | 512.87M | 462.27M | 462.02M | 107.91M | 12.88M | 12.88M | 12.88M | 0 | 0 | 0 | 0 |
| Intangible Assets | 75.78M | 78.38M | 94.63M | 121.57M | 145.68M | 162.46M | 184.86M | 223.86M | 63.3M | 12.03M | 15.21M | 17.19M | 0 | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 79.42M | 74.01M | 66.7M | 62.39M | 63.57M | 68.38M | 69.09M | 62.58M | 39.21M | 22.27M | 19.75M | 16.74M | 13.76M | 12.41M | 8.34M | 5.96M |
| Total Assets | 1.25B | 1.28B | 1.29B | 1.2B | 1.35B | 1.39B | 1.42B | 1.01B | 463.72M | 212.81M | 200.98M | 204.47M | 136.81M | 61.11M | 31.68M | 31.73M |
| Asset Turnover | 0.62x | 0.62x | 0.54x | 0.52x | 0.42x | 0.36x | 0.28x | 0.31x | 0.52x | 0.91x | 0.75x | 0.53x | 0.58x | 0.93x | 1.30x | 0.85x |
| Asset Growth % | 13.91% | -1.43% | 7.77% | -10.99% | -2.55% | -2.23% | 40.35% | 117.68% | 117.9% | 5.89% | -1.71% | 49.46% | 123.88% | 92.92% | -0.18% | - |
| Total Current Liabilities | 562.49M | 544.09M | 398.9M | 191.56M | 192.04M | 168.36M | 145.83M | 132.97M | 73.68M | 68.07M | 59.21M | 45.69M | 32.89M | 29.19M | 19.08M | 12.56M |
| Accounts Payable | 0 | 20.47M | 9.35M | 19.35M | 10.05M | 10.6M | 7.89M | 10.97M | 9.17M | 7.62M | 4.23M | 3.45M | 1.99M | 4.08M | 2.4M | 529K |
| Days Payables Outstanding | 3.57 | 20.46 | 9.98 | 21.94 | 11.86 | 14.13 | 12.62 | 24.64 | 27.46 | 27.96 | 19.94 | 21.3 | 15.74 | 41.12 | 34.76 | 13.05 |
| Short-Term Debt | 312.31M | 312.28M | 190.33M | 0 | 10.9M | 0 | 0 | 0 | 0 | 0 | 0 | 161K | 408K | 0 | 2.5M | 0 |
| Deferred Revenue (Current) | 701.49M | 155M | 137.7M | 118.72M | 117.47M | 98.69M | 81.94M | 57.85M | 42.53M | 38.38M | 30.12M | 23.05M | 17.29M | 12.73M | 8.57M | 7.45M |
| Other Current Liabilities | 53.42M | 56.33M | 32.95M | 26.58M | 23.46M | 31.73M | 26.72M | 38.67M | 7.95M | 9.14M | 7.3M | 9.83M | 8.13M | 7.29M | 3.02M | 3.24M |
| Current Ratio | 0.93x | 1.02x | 1.40x | 2.23x | 2.77x | 3.10x | 4.23x | 1.40x | 2.96x | 1.93x | 2.12x | 2.92x | 3.18x | 1.16x | 1.00x | 1.81x |
| Quick Ratio | 0.93x | 1.02x | 1.40x | 2.23x | 2.77x | 3.10x | 4.23x | 1.40x | 2.74x | 1.70x | 1.90x | 2.69x | 2.94x | 1.16x | 1.00x | 1.81x |
| Cash Conversion Cycle | 31.48 | - | - | - | - | - | - | - | 53.37 | 52.37 | 71.51 | 73.92 | 69.85 | - | - | - |
| Total Non-Current Liabilities | 72.18M | 70.38M | 378.1M | 561.38M | 738.66M | 646.39M | 627.51M | 497.06M | 231.14M | 38.12M | 41.53M | 40.8M | 24.98M | 26.18M | 31.57M | 30.42M |
| Long-Term Debt | 31.59M | 33.83M | 302.12M | 490.46M | 657.79M | 551.6M | 557.47M | 424.78M | 182.72M | 0 | 0 | 0 | 0 | 6.29M | 0 | 2.5M |
| Capital Lease Obligations | 72.59M | 0 | 38.35M | 45.59M | 52.99M | 61.37M | 36.74M | 36.08M | 0 | 0 | 0 | 0 | 167K | 575K | 475K | 79K |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.15M | 0 | 0 | 0 | 4.69M | 4.44M | 21.73M | 21.73M |
| Other Non-Current Liabilities | 40.59M | 36.55M | 10.36M | 7.98M | 6.19M | 4.25M | 4.1M | 3.24M | 25.35M | 9.83M | 9.83M | 11.61M | 5.38M | -4.34M | 101K | -21.67M |
| Total Liabilities | 634.67M | 614.47M | 777M | 752.95M | 930.7M | 814.75M | 773.34M | 630.02M | 304.82M | 106.19M | 100.75M | 86.49M | 57.87M | 55.37M | 50.66M | 42.98M |
| Total Debt | 343.9M | 346.12M | 542.99M | 548.92M | 733.34M | 621.97M | 601.05M | 470M | 182.72M | 0 | 0 | 161K | 575K | 7.58M | 3.54M | 3M |
| Net Debt | 1.57M | -21.52M | 184.43M | 319.26M | 533.74M | 299.13M | 193.35M | 369.91M | 74.38M | -57.96M | -54.87M | -66.89M | -67.4M | -11.1M | -5.58M | -12.36M |
| Debt / Equity | 0.56x | 0.52x | 1.05x | 1.22x | 1.75x | 1.09x | 0.93x | 1.24x | 1.15x | - | - | 0.00x | 0.01x | 1.32x | - | - |
| Debt / EBITDA | 2.99x | 3.01x | 20.45x | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Net Debt / EBITDA | 0.01x | -0.19x | 6.95x | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Interest Coverage | 15.31x | 8.44x | -5.25x | -9.79x | -14.89x | -2.36x | -3.75x | -3.11x | -2.86x | -212.53x | -62.36x | -86.78x | -34.12x | -33.89x | -30.71x | -20.24x |
| Total Equity | 611.68M | 661.81M | 517.8M | 448.48M | 419.02M | 570.3M | 643.36M | 379.41M | 158.9M | 106.62M | 100.23M | 117.97M | 78.94M | 5.74M | -18.98M | -11.25M |
| Equity Growth % | 87.33% | 27.81% | 15.46% | 7.03% | -26.53% | -11.36% | 69.57% | 138.77% | 49.03% | 6.37% | -15.04% | 49.45% | 1276.22% | 130.22% | -68.72% | - |
| Book Value per Share | 9.04 | 10.16 | 8.61 | 7.69 | 7.31 | 10.11 | 12.37 | 8.21 | 3.71 | 2.59 | 2.53 | 3.16 | 2.70 | 0.44 | -1.61 | -0.95 |
| Total Shareholders' Equity | 611.68M | 661.81M | 517.8M | 448.48M | 419.02M | 570.3M | 643.36M | 379.41M | 158.9M | 106.62M | 100.23M | 117.97M | 78.94M | 5.74M | -18.98M | -11.25M |
| Common Stock | 6K | 6K | 6K | 6K | 6K | 6K | 6K | 5K | 4K | 4K | 4K | 4K | 3K | 3K | 1K | 1K |
| Retained Earnings | -585.58M | -612.22M | -664.23M | -625.69M | -560.31M | -493.93M | -381.19M | -243.3M | -172.42M | -152.11M | -125.78M | -89.43M | -64.37M | -44.73M | -26.86M | -18.08M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -855K | -417K | -41K | -20K | 0 | 0 | 0 |
| Accumulated OCI | -2.63M | -1.95M | -1.87M | -1.11M | -2.97M | -135K | -32K | 14K | -37K | -139K | -54K | -101K | -14K | -4.62M | -2.62M | -1.56M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regional bank consolidation risk
According to recent financial statements, Q2 Holdings has successfully improved its equity position from $448.5M in 2023Q4 to $611.7M by 2026Q1, signaling a strengthening balance sheet trajectory driven by consistent operational improvements and a disciplined approach to managing the company's capital structure over the last ten quarters.
The steady accumulation of equity suggests that the company is successfully transitioning toward a more self-sustaining financial model. Investors should monitor whether this trend continues as the firm balances its growth initiatives with the need to maintain a robust capital base.
Based on reported figures, Q2 Holdings has actively reduced its total debt from $548.9M in 2023Q4 to $343.9M in 2026Q1, which has effectively lowered the debt-to-equity ratio from 1.22 to 0.56, indicating a strategic shift toward a more conservative and sustainable capital structure for the business.
This reduction in leverage appears to mitigate refinancing risks and provides the company with greater flexibility to navigate potential sector-specific downturns. The lower debt burden may also improve the company's ability to fund future strategic initiatives without relying heavily on external financing.
As reported in quarterly filings, Q2 Holdings maintains a cash position of $342.3M as of 2026Q1, which, when viewed alongside a current ratio of 0.93, suggests that the company has sufficient liquidity to cover its near-term obligations while continuing to invest in its core digital banking platform.
While the current ratio has fluctuated over the past ten quarters, the overall liquidity profile appears adequate for a software-as-a-service provider with recurring revenue streams. Investors should continue to watch the cash runway as the company balances its ongoing R&D requirements with its recent shift toward GAAP profitability.
Data from recent balance sheets reveals that goodwill remains a significant component of total assets at $512.9M, representing a substantial portion of the $1.2B total asset base, which warrants further investigation into the potential for future impairment risks should the acquired business units underperform expectations.
The high concentration of intangible assets suggests that the company's valuation is heavily dependent on the long-term success of past acquisitions. If the integration of these assets fails to yield the anticipated synergies, the company may face non-cash charges that could negatively impact its reported equity position.
Quick answers to the most common questions about buying QTWO stock.
As of 2025, Q2 Holdings, Inc. (QTWO) had total assets of $1.28B including $556.1M in current assets.
Q2 Holdings, Inc. (QTWO) carries total debt of $346.1M, offset by $367.6M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Q2 Holdings, Inc. (QTWO) has total shareholders' equity (book value) of $661.8M ($10.16 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Q2 Holdings, Inc. (QTWO) reported a current ratio of 1.02x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.