Q2 Holdings, Inc. (QTWO) Financial Ratios
15 years of historical data (2011–2025) · Technology · Software - Application
EV/EBITDA
↓
23.13
↓-83% vs avg
5yr avg: 137.74
30Y Low40.7·High40.7
P/FCF
↓
13.78
↓-94% vs avg
5yr avg: 238.04
30Y Low24.1·High63.9
P/B Ratio
↓
4.22
↓-41% vs avg
5yr avg: 7.19
30Y Low3.7·High14.2
ROE
↑
8.8%
↓+180% vs avg
5yr avg: -11.0%
30Y Low-312%·High9%
Debt/EBITDA
↓
3.01
↓-74% vs avg
5yr avg: 11.73
30Y Low3.0·High20.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
QTWO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Q2 Holdings, Inc. trades at 53.6x earnings, 41% below its 5-year average of 90.2x, sitting at the 0th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a premium of 85%. On a free-cash-flow basis, the stock trades at 13.8x P/FCF, 94% below the 5-year average of 238.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.7B | $4.7B | $6.0B | $2.5B | $1.5B | $4.5B | $6.6B | $3.7B | $2.1B | $1.5B | $1.1B |
| Enterprise Value | $2.7B | $4.7B | $6.2B | $2.9B | $2.1B | $4.8B | $6.8B | $4.1B | $2.2B | $1.5B | $1.1B |
| P/E Ratio → | 53.56 | 90.20 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 3.37 | 5.91 | 8.69 | 4.06 | 2.72 | 8.98 | 16.34 | 11.87 | 8.80 | 7.83 | 7.61 |
| P/B Ratio | 4.22 | 7.10 | 11.68 | 5.65 | 3.67 | 7.86 | 10.23 | 9.87 | 13.35 | 14.25 | 11.41 |
| P/FCF | 13.78 | 24.14 | 46.87 | 63.89 | 236.72 | 818.55 | — | — | — | — | — |
| P/OCF | 13.31 | 23.32 | 44.56 | 36.04 | 42.12 | 144.09 | — | 6606.23 | 461.50 | 160.36 | 337.03 |
P/E links to full P/E history page with 30-year chart
QTWO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Q2 Holdings, Inc.'s enterprise value stands at 23.1x EBITDA, 83% below its 5-year average of 137.7x. The Technology sector median is 16.7x, placing the stock at a 38% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.88 | 8.95 | 4.57 | 3.67 | 9.58 | 16.82 | 13.05 | 9.10 | 7.53 | 7.25 |
| EV / EBITDA | 23.13 | 40.65 | 234.84 | — | — | — | — | — | — | — | — |
| EV / EBIT | 58.30 | 102.49 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 24.03 | 48.30 | 71.94 | 318.79 | 873.21 | — | — | — | — | — |
QTWO Profitability
Margins and return-on-capital ratios measuring operating efficiency
Q2 Holdings, Inc. earns an operating margin of 5.7%. Operating margins have expanded from -13.8% to 5.7% over the past 3 years, signaling improving operational efficiency. ROE of 8.8% is modest. ROIC of 5.1% represents adequate returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.0% | 54.0% | 50.9% | 48.5% | 45.3% | 45.1% | 43.4% | 48.5% | 49.5% | 48.7% | 48.5% |
| Operating Margin | 5.7% | 5.7% | -6.1% | -13.8% | -18.5% | -15.6% | -24.8% | -16.1% | -13.2% | -13.9% | -23.8% |
| Net Profit Margin | 6.5% | 6.5% | -5.5% | -10.5% | -19.3% | -22.6% | -34.2% | -22.5% | -14.7% | -13.5% | -24.2% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.8% | 8.8% | -8.0% | -15.1% | -22.0% | -18.6% | -26.9% | -26.3% | -26.7% | -25.3% | -33.3% |
| ROA | 4.0% | 4.0% | -3.1% | -5.1% | -8.0% | -8.0% | -11.3% | -9.6% | -10.5% | -12.6% | -17.9% |
| ROIC | 5.1% | 5.1% | -4.3% | -7.5% | -8.6% | -6.9% | -9.4% | -7.7% | -16.9% | -42.9% | -55.6% |
| ROCE | 5.6% | 5.6% | -4.4% | -7.9% | -8.8% | -6.3% | -9.3% | -8.0% | -11.9% | -18.8% | -23.8% |
QTWO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Q2 Holdings, Inc. carries a Debt/EBITDA ratio of 3.0x, which is moderately leveraged (roughly in line with the sector average of 2.9x). The company holds a net cash position — cash of $368M exceeds total debt of $346M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 8.4x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.52 | 0.52 | 1.05 | 1.22 | 1.75 | 1.09 | 0.93 | 1.24 | 1.15 | — | — |
| Debt / EBITDA | 3.01 | 3.01 | 20.45 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.03 | 0.36 | 0.71 | 1.27 | 0.52 | 0.30 | 0.97 | 0.47 | -0.54 | -0.55 |
| Net Debt / EBITDA | -0.19 | -0.19 | 6.95 | — | — | — | — | — | — | — | — |
| Debt / FCF | — | -0.11 | 1.43 | 8.05 | 82.06 | 54.65 | — | — | — | — | — |
| Interest Coverage | 8.44 | 8.44 | -5.25 | -9.79 | -14.89 | -2.36 | -3.75 | -3.11 | -2.86 | -212.53 | -62.36 |
Net cash position: cash ($368M) exceeds total debt ($346M)
QTWO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.02x means Q2 Holdings, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 2.23x to 1.02x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.02 | 1.02 | 1.40 | 2.23 | 2.77 | 3.10 | 4.23 | 1.40 | 2.96 | 1.93 | 2.12 |
| Quick Ratio | 1.02 | 1.02 | 1.40 | 2.23 | 2.77 | 3.10 | 4.23 | 1.40 | 2.74 | 1.70 | 1.90 |
| Cash Ratio | 0.68 | 0.68 | 1.12 | 1.69 | 2.26 | 2.54 | 3.70 | 1.00 | 2.41 | 1.46 | 1.64 |
| Asset Turnover | — | 0.62 | 0.54 | 0.52 | 0.42 | 0.36 | 0.28 | 0.31 | 0.52 | 0.91 | 0.75 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 7.28 | 6.58 | 5.91 |
| Days Sales Outstanding | — | 34.17 | 26.19 | 30.44 | 35.90 | 35.73 | 34.00 | 26.97 | 30.68 | 24.84 | 29.74 |
QTWO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Q2 Holdings, Inc. returns 0.2% to shareholders annually primarily through share buybacks. The earnings yield of 1.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 1.1% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 7.3% | 4.1% | 2.1% | 1.6% | 0.4% | 0.1% | — | — | — | — | — |
| Buyback Yield | 0.2% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.2% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $65M | $60M | $58M | $57M | $56M | $52M | $46M | $43M | $41M | $40M |
Peer Comparison
Compare QTWO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 QTWOYou | $3B | 53.6 | 23.1 | 13.8 | 54.0% | 5.7% | 8.8% | 5.1% | 3.0 |
 NCNO | $2B | 296.0 | 486.1 | 19.6 | 60.6% | 0.6% | 0.5% | 0.2% | 74.8 |
 IBCP | $706M | 10.5 | 9.5 | 10.1 | 69.6% | 25.8% | 14.3% | 10.2% | 1.4 |
 ALKT | $2B | -31.9 | — | 38.0 | 57.8% | -12.1% | -13.3% | -8.6% | — |
 JKHY | $9B | 20.2 | 11.7 | 15.5 | 42.7% | 23.9% | 21.4% | 21.0% | — |
 FIS | $20B | 50.9 | 6.4 | 7.0 | 36.9% | 16.5% | 2.6% | 6.0% | 1.1 |
 FISV | $26B | 7.5 | 6.1 | 5.9 | 59.4% | 26.9% | 13.0% | 8.1% | 3.3 |
 EVTC | $2B | 11.7 | 7.8 | 11.7 | 49.7% | 20.0% | 23.0% | 10.2% | 3.7 |
 AMSF | $589M | 12.7 | 8.8 | 66.0 | 46.4% | 18.6% | 18.5% | 21.9% | 0.0 |
 OPEN | $3B | -2.6 | — | 3.3 | 7.0% | -6.2% | -151.3% | -15.8% | — |
 MSFT | $2.8T | 27.8 | 17.8 | 39.4 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 15 years · Updated daily
Consensus-Based Analysis Tools
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Check Valuation
Historical Returns
10-year return with dividends reinvested.
Calculate
DCA Calculator
See how regular investing compounds over time.
Run Numbers
Peer Comparison
Compare growth, multiples, and margins vs sector.
Compare
QTWO — Frequently Asked Questions
Quick answers to the most common questions about buying QTWO stock.
What is Q2 Holdings, Inc.'s P/E ratio?
Q2 Holdings, Inc.'s current P/E ratio is 53.6x. The historical average is 90.2x.
What is Q2 Holdings, Inc.'s EV/EBITDA?
Q2 Holdings, Inc.'s current EV/EBITDA is 23.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 40.7x.
What is Q2 Holdings, Inc.'s ROE?
Q2 Holdings, Inc.'s return on equity (ROE) is 8.8%. The historical average is -44.4%.
Is QTWO stock overvalued?
Based on historical data, Q2 Holdings, Inc. is trading at a P/E of 53.6x. Compare with industry peers and growth rates for a complete picture.
What are Q2 Holdings, Inc.'s profit margins?
Q2 Holdings, Inc. has 54.0% gross margin and 5.7% operating margin.
How much debt does Q2 Holdings, Inc. have?
Q2 Holdings, Inc.'s Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.