Stocks · Technology · Software - Application
Q2 Holdings, Inc. QTWO
$56.38 -0.18% Close, Oct 2, 2026 · NYSE · Market cap $3.52B
High quality
Next earnings report: Nov 4, 2026
Scroll or pinch to zoom, drag to move. Daily prices adjusted for splits. Markers: E = earnings (green beat, red miss), S = split, D = dividend.
Three things to know
- Diluted EPS over the last four quarters was $1.40, up 2566.7% year over year.
- Operating margin widened to 10.3% from 0.0% a year earlier.
- Revenue over the last four quarters was $846.2M, up 13.9% from a year earlier.
PromtFinance scores
Each score is a percentile within the Technology sector (0–100). Under each score: how the stock ranks in its sector on every component. As of Oct 5, 2026.
How fast revenue, earnings and cash flow are growing.
- Revenue growth (TTM, YoY)Top 46%
- EPS growth (TTM, YoY)Top 2%
- FCF growth (TTM, YoY)Top 44%
- Revenue growth, 3-year CAGRTop 36%
- Revenue growth accelerationBottom 41%
Returns on capital, margins, earnings quality and balance-sheet strength.
- Return on invested capitalTop 21%
- Gross marginTop 43%
- Operating marginTop 36%
- Cash conversion (OCF / net income)Top 29%
- Accruals (lower is better)Top 25%
- Net debt / EBITDA (lower is better)Top 36%
- Interest coverTop 18%
How cheap the shares are relative to earnings, cash flow and their own history.
- Earnings yieldTop 33%
- Free-cash-flow yieldTop 31%
- EBITDA / enterprise valueTop 40%
- Sales / enterprise valueBottom 50%
Strength and persistence of the price trend, including versus the S&P 500.
- 12-month return excluding last monthBottom 42%
- 6-month returnBottom 44%
- 1-year return vs S&P 500Bottom 36%
- Distance from 52-week highTop 44%
- Trend checklist (0–4)Bottom 40%
Earnings surprises and analyst sentiment (estimate-revision history is being collected).
- Average EPS surprise, last 4 quartersBottom 24%
- Consecutive EPS beatsBottom 31%
- Share of analysts rating BuyTop 27%
- Upside to consensus price targetTop 47%
Low volatility, shallow drawdowns, low market sensitivity and modest leverage.
- Volatility, 60 days (lower is better)Top 9%
- Maximum drawdown, 3 yearsBottom 48%
- Beta vs S&P 500 (lower is better)Top 40%
- Net debt / EBITDA (lower is better)Top 36%
What changed
Latest four quarters versus the same period a year earlier (growth: versus one quarter earlier).
| Measure | Before | Now | |
|---|---|---|---|
| Revenue growth (YoY) | 14.0% | 13.9% | ↓ |
| Gross margin | 52.6% | 57.0% | ↑ |
| Operating margin | 0.0% | 10.3% | ↑ |
| FCF margin | 21.8% | 23.9% | ↑ |
Fundamental momentum
| Measure | Now (TTM) | Year / quarter before | Sector rank | |
|---|---|---|---|---|
| Revenue growth (TTM, YoY) | 13.9% | 14.0% | ↓ | Top 46% |
| EPS growth (TTM, YoY) | 2566.7% | — | Top 2% | |
| Gross margin | 57.0% | 52.6% | ↑ | Top 43% |
| Operating margin | 10.3% | 0.0% | ↑ | Top 36% |
| Net margin | 10.9% | 0.7% | ↑ | — |
| Free-cash-flow margin | 23.9% | 21.8% | ↑ | — |
| Return on invested capital | 12.0% | — | Top 21% | |
| Revenue growth, 3-year CAGR | 12.0% | — | Top 36% |
Quality of earnings and balance sheet
- Cash conversion (OCF / net income)Above 1× means profits are backed by cash.
- 2.46×
- Accruals (net income − OCF) / assetsLower is better; high accruals can signal weaker earnings quality.
- -13.9%
- Stock-based compensation / revenueA cost to shareholders through dilution.
- 10.0%
- Receivables growth vs revenue growthReceivables growing much faster than sales can be a warning.
- -10.7 pp
- Net debt / EBITDABelow 1× is conservative; above 3× is high leverage.
- -0.41×
- Interest cover (operating income / interest)How many times operating profit covers interest.
- 18.2×
Shareholder returns
- Dividend yield (dividends paid, TTM)
- 0.00%
- Net buyback yield (TTM)
- 3.23%
- Shareholder yield
- 3.23%
- Share count change, 1 year
- -4.3%
- Share count change, 3-year CAGR
- +4.6%
Shareholder yield = dividends + net buybacks over the last four quarters, divided by market cap.
Based on the four quarters through Jun 30, 2026 (filed Jul 29, 2026).
Earnings and expectations
Earnings momentum
- Consecutive EPS beats
- 1
- Beats in the last 8 reports
- 4 of 8
- Average EPS surprise, last 4
- -0.4%
- Average 2-day reaction, last 8
- +1.6%
- Positive 20 days after report
- 4 of 8
Analysts
- Consensus price target
- $72.14
- Target vs current price
- +28.0%
- Analysts with a rating
- 32
- Share rating Buy or Strong Buy
- 78%
- Consensus rating
- Buy
How the stock reacted to recent reports
| Report date | EPS surprise | 2 days | 5 days | 20 days | 60 days |
|---|---|---|---|---|---|
| Jul 29, 2026 | +2.5% | +2.0% | +8.0% | +7.8% | — |
| Apr 29, 2026 | -11.3% | +4.7% | +4.4% | -10.5% | +8.9% |
| Feb 11, 2026 | +3.4% | -1.2% | -8.7% | -11.9% | -11.6% |
| Nov 5, 2025 | +3.6% | +1.0% | +21.3% | +21.0% | -0.0% |
| Jul 30, 2025 | -2.0% | -0.5% | -14.9% | -15.1% | -32.0% |
| May 7, 2025 | +12.5% | +1.3% | +16.9% | +13.0% | -3.5% |
| Feb 12, 2025 | +0.0% | +0.5% | +0.4% | -17.8% | -0.9% |
| Nov 6, 2024 | -24.3% | +5.0% | +18.2% | +27.8% | +10.2% |
Returns from the close before each report. Past reactions do not determine future ones.
Earnings history
| Report date | EPS | Estimate | Surprise | Revenue |
|---|---|---|---|---|
| Jul 29, 2026 | $0.70 | $0.68 | +2.5% | $219.8M |
| Apr 29, 2026 | $0.63 | $0.71 | -11.3% | $216.5M |
| Feb 11, 2026 | $0.61 | $0.59 | +3.4% | $208.2M |
| Nov 5, 2025 | $0.57 | $0.55 | +3.6% | $201.7M |
| Jul 30, 2025 | $0.50 | $0.51 | -2.0% | $195.1M |
| May 7, 2025 | $0.54 | $0.48 | +12.5% | $189.7M |
| Feb 12, 2025 | $0.48 | $0.48 | +0.0% | $183.0M |
| Nov 6, 2024 | $0.28 | $0.37 | -24.3% | $175.0M |
Valuation in context
| Multiple | Now | 5-year median | 5-year percentile | Sector rank (cheapness) |
|---|---|---|---|---|
| P/E (trailing) | 40.3× | — | — | Top 33% |
| P/E (forward) | 19.4× | — | — | — |
| EV / EBITDA | 23.8× | — | — | Top 40% |
| EV / Sales | 4.08× | — | — | Bottom 50% |
| Free-cash-flow yield | 5.76% | — | — | Top 31% |
| Earnings yield | 2.48% | — | — | Top 33% |
P/E over the past five years
Range 43.2× – 126.7× since Sep 30, 2025. Each point: price on the filing date divided by trailing-twelve-month EPS known then.
Technical state
Trend checklist
- ✗ Price above 20-day average
- ✗ Price above 50-day average
- ✓ Price above 200-day average
- ✓ 50-day average above 200-day
- ✗ MACD histogram positive
Trend quality
- Days above the 50-day average
- 0
- Days above the 200-day average
- 2
- 50-day average slope (20 days)
- +4.3%
- 200-day average slope (20 days)
- -2.5%
- Distance from 50-day average
- -7.6%
- Distance from 200-day average
- +1.6%
- RSI (14)
- 39.5
- Relative volume
- 0.68×
Risk and drawdowns
- Volatility, 60 days (annualized)
- 33.7%
- Volatility vs own 5-year history
- 5th percentile · Low for this stock
- Beta vs S&P 500 (2 years, weekly)
- 1.27
- Correlation with S&P 500
- 0.43
- Current drawdown from 1-year high
- -25.3%
- Maximum drawdown, 3 years
- -62.0%
Largest declines in the past six years
| From peak | To low | Decline | Length | Recovery |
|---|---|---|---|---|
| Feb 16, 2021 | Mar 13, 2023 | -85.8% | 521 days | Not yet recovered |
Declines of 10% or more from a closing high, measured on daily closes.
Financial statements
- Market cap
- $3.52B
- P/E (TTM)
- 40.3
- EPS, diluted (TTM)
- $1.40
- Revenue (TTM)
- $846.2M
- 52-week range
- $40.79 – $76.24
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Revenue | $498.7M | $565.7M | $624.6M | $696.5M | $794.8M |
| Gross profit | $225.0M | $256.3M | $302.7M | $354.5M | $429.6M |
| Operating income | -$78.0M | -$104.8M | -$86.1M | -$42.3M | $45.6M |
| Net income | -$112.7M | -$109.0M | -$65.4M | -$38.5M | $52.0M |
| EPS (diluted) | -$2.00 | -$1.90 | -$1.12 | -$0.64 | $0.80 |
| Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | $175.0M | $183.0M | $189.7M | $195.1M | $201.7M | $208.2M | $216.5M | $219.8M |
| Net income | -$11.8M | $164,000 | $4.8M | $11.8M | $15.0M | $20.4M | $26.6M | $29.9M |
| EPS (diluted) | -$0.20 | $0.00 | $0.07 | $0.18 | $0.23 | $0.31 | $0.40 | $0.46 |
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Operating cash flow | $31.1M | $36.6M | $70.3M | $135.8M | $201.5M |
| Capital expenditure | -$25.6M | -$30.1M | -$30.6M | -$6.7M | -$6.8M |
| Free cash flow | $5.5M | $6.5M | $39.6M | $129.1M | $194.7M |
| Dividends paid | $0 | $0 | $0 | $0 | $0 |
| Net share buybacks | $0 | $0 | $8.4M | $14.3M | $2.0M |
Cash outflows are shown as negative numbers.
- Cash and short-term investments
- $106.4M
- Total assets
- $968.4M
- Total liabilities
- $325.0M
- Total debt
- $40.9M
- Net debt
- -$59.0M
- Shareholders’ equity
- $643.5M
As of Jun 30, 2026 (filed Jul 29, 2026).
Short interest
- Shares sold short
- 5,229,570
- Days to cover
- 10.05
- Change vs previous report
- -2.4%
FINRA short interest, settlement date Sep 15, 2026.