Q2 Holdings, Inc. (QTWO) Form 10-Q — Oct 28, 2026
Q2 Holdings delivered a strong Q3 2026, with revenue up 11.9% YoY to $225.8 million and GAAP net income more than doubling to $33.2 million ($0.52 diluted EPS vs $0.23 a year ago). Operating leverage is improving sharply: gross margin expanded to 59.7% from 54.0%, driven by the completed migration to third-party public cloud, while subscription ARR grew to $846.0 million and registered users reached 28.5 million.
Key figures
- Eps
- 0.52
- Revenue
- 225771000
- Net Income
- 33220000
- Revenue Yoy
- 11.9%
- Total Assets
- 1004054000
- Cash Position
- 116312000
- Shares Outstanding
- 61781542
- Revolver
- $125.0 million Wells Fargo-led facility, undrawn
- Total ARR
- $988.6 million (vs $888.4 million year-ago)
- Q3 Buyback
- 633,000 shares for $38.8 million
- Gross Margin Q3
- 59.7%
- Registered Users
- 28.5 million vs 27.0 million year-ago
- Subscription ARR
- $846.0 million (vs $745.4 million year-ago)
- Buyback Remaining
- $336.1 million
- Nine Month Buyback
- 2.9 million shares for $158.9 million
- Nine Month Revenue
- 662042000
- Adjusted EBITDA q3
- 67763000
- Nine Month Net Income
- 89717000
- Nine Month Revenue Yoy
- 12.9%
- Nine Month EPS diluted
- 1.38
- Convertible Notes Repaid
- $304.0 million (0.75% notes due June 2026, settled cash)
- Non GAAPOperating Income q3
- 59640000
- Buyback authorization total
- $500.0 million ($150M Oct 2025 + $350M July 2026)
- Operating Cash Flow nine Month
- 181656000
- Net Revenue Retention Rate FY2025
- 113% (subscription 115%)
- Remaining Performance Obligations
- $2.77 billion
AI analysis
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