QTWO
Q2 Holdings, Inc.
QTWO's fundamentals are strong: its operating margin rose 10 points to 12% and it turned 27% of its revenue into free cash flow. At 43x earnings, it's trading below its usual 60x. Analysts expect strong earnings growth, though they disagree widely on how much.
QTWO Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Healthy |
QTWO's revenue, profitability, cash flow and balance sheet are all currently healthy.
QTWO PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 22x | $72.95 | — |
| Cheap | 42x | $72.13 | -1.1% |
| Current | 43x | $72.95 | — |
| Fair | 60x | $102 | +40% |
| Expensive | 1,034x | $1,758 | +2310% |
Historical ranges are pointers, not guarantees.
QTWO's PE is in its cheap range at 43x. If earnings grow as analysts expect, today's price would be 22x next year's earnings.
QTWO Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Growth | |
| Strongly improving | |
| Limited | |
| Low |
Analysts expect earnings and revenue growth for QTWO, with profitability improving. However, they disagree widely on these estimates.
QTWO Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $3.28 | +93% |
| Q3 2026 | $1.70 | +247% |
| Q2 2026 | $1.41 | +2250% |
| Q1 2026 | $1.13 | +$1.47 |
| Q4 2025 | $0.80 | +$1.44 |
| Q3 2025 | $0.49 | +$1.44 |
| Q2 2025 | $0.06 | +$1.21 |
| Q1 2025 | -$0.34 | +$1.00 |
| Q4 2024 | -$0.64 | +$0.48 |
QTWO's earnings per share have climbed steadily: $1.70 over the past year, about three times what it earned the year before, and higher year over year for 21 quarters in a row.
QTWO Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $225.8M | +12% |
| Q2 2026 | $219.8M | +13% |
| Q1 2026 | $216.5M | +14% |
| Q4 2025 | $208.2M | +14% |
| Q3 2025 | $201.7M | +15% |
| Q2 2025 | $195.1M | +13% |
| Q1 2025 | $189.7M | +15% |
| Q4 2024 | $183M | +13% |
QTWO's revenue has grown year over year every quarter since late 2020: $226M last quarter, up 12% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 15% | +9.6 points |
| Q2 2026 | 13% | +8.3 points |
| Q1 2026 | 13% | +12 points |
| Q4 2025 | 8.1% | +9 points |
| Q3 2025 | 5.5% | +13 points |
| Q2 2025 | 5% | +13 points |
| Q1 2025 | 1.1% | +9.7 points |
| Q4 2024 | -0.9% | +10 points |
QTWO's operating margin was 15% last quarter, up 9.6 points from the same quarter a year ago, near the top of its range since 2019.
QTWO Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $62.6M | +46% |
| Q2 2026 | $59M | +25% |
| Q1 2026 | $49.7M | +16% |
| Q4 2025 | $61.7M | +48% |
| Q3 2025 | $42.9M | +5% |
| Q2 2025 | $47.3M | +37% |
| Q1 2025 | $42.7M | +255% |
| Q4 2024 | $41.6M | +17% |
QTWO generated $233M in free cash flow over the past year, up 33% from the year before.
QTWO Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -2.9% | -1.9M shares |
| 1 year | -9.1% | -6.3M shares |
| 3 years | +8.6% | +5M shares |
| 5 years | +12% | +7M shares |
| Available history | +38% | +17.3M shares |
QTWO has 64M diluted shares, down 9.1% from a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $38.8M |
| Q2 2026 | $22.9M |
| Q1 2026 | $97.2M |
QTWO Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -0.7x | Net Cash |
| Q2 2026 | -0.7x | Net Cash |
| Q1 2026 | -2.9x | Net Cash |
| Q4 2025 | -3.9x | Net Cash |
| Q3 2025 | -6.0x | Net Cash |
| Q2 2025 | -7.1x | Net Cash |
| Q1 2025 | -9.8x | Net Cash |
| Q4 2024 | -13.5x | Net Cash |
QTWO has more cash than debt.
QTWO Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 66.3 | Neutral |
| Stochastic | 84.4 | Overbought |
QTWO's weekly RSI is 66 (neutral) and its Stochastic is 84 (overbought).
QTWO PE vs Technology Sector
| Metric | QTWO | Sector median | Relative |
|---|---|---|---|
| PE | 43x | 28x | 54% above |
| PE % | 18 | 35 | 17 pts below |
QTWO is trading at 43x earnings, a 54% premium to the Technology sector's median of 28x.
QTWO Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $64.6 | 13% above |
| 20 week MA | $61.5 | 19% above |
| 50 week MA | $57.6 | 27% above |
| 100 week MA | $69.9 | 4.3% above |
| 200 week MA | $59.4 | 23% above |
QTWO is in an uptrend: it's above all five of its weekly moving averages, and 23% above its 200-week average.
QTWO Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $82.4 | $128.1 | +55% |
| 2021 | $128.1 | $81.9 | -36% |
| 2022 | $81.9 | $25.2 | -69% |
| 2023 | $25.2 | $43.4 | +72% |
| 2024 | $43.4 | $103.4 | +138% |
| 2025 | $103.4 | $74.5 | -28% |
| 2026 YTD | $74.5 | $73.0 | -2.1% |
QTWO's yearly returns have swung widely, from +138% in 2024 to −69% in 2022. It's down 2.1% so far in 2026.