Q2 Holdings (QTWO) financial statements

Technology · Software - Application · Market cap $3.9B

Q2 Holdings reported revenue of $795M in fiscal 2025, up 20.3% a year over 9 years.

Net income was $52M and the operating margin 5.0%, against -23.8% in 2016.

Free cash flow was $173M, and the company returned $5M in net buybacks.

The diluted share count rose 64% over the period (dilution).

Revenue and free cash flow

Fiscal years, $ billions.

-0.200.20.50.812016201720182019202020212022202320242025RevenueFree cash flow
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Income statement

Fiscal years, from Q2 Holdings's 10-K filings with the SEC.

Fiscal year2016201720182019202020212022202320242025
Revenue$150M$194M$241M$315M$403M$499M$566M$625M$696M$795M
Cost of revenue$77M$99M$122M$162M$228M$274M$309M$322M$342M$365M
Gross profit$73M$94M$119M$153M$175M$225M$256M$303M$354M$430M
Research and development$32M$40M$51M$76M$97M$117M$130M$137M$143M$154M
Selling, general and admin$68M$78M$93M$121M$143M$163M$198M$220M$229M$231M
Operating income-$36M-$27M-$32M-$67M-$100M-$78M-$105M-$86M-$42M$40M
Interest expense———————$5M$5M$5M
Pre-tax income-$36M-$26M-$39M-$83M-$136M-$111M-$106M-$62M-$31M$55M
Income tax$427,000-$314,000-$4M-$12M$1M$2M$3M$4M$8M$3M
Net income-$36M-$26M-$35M-$71M-$138M-$113M-$109M-$65M-$39M$52M
EPS (diluted)-$0.92-$0.63-$0.83-$1.53-$2.65-$2.00-$1.90-$1.12-$0.64$0.80
Diluted shares40M41M43M46M52M56M57M58M60M65M
Gross margin48.5%48.7%49.5%48.5%43.4%45.1%45.3%48.5%50.9%54.1%
Operating margin-23.8%-13.9%-13.2%-21.2%-24.8%-15.6%-18.5%-13.8%-6.1%5.0%
Net margin-24.2%-13.5%-14.7%-22.5%-34.2%-22.6%-19.3%-10.5%-5.5%6.5%

Balance sheet

Fiscal years, from Q2 Holdings's 10-K filings with the SEC.

Fiscal year2016201720182019202020212022202320242025
Cash and short-term investments$97M$100M$177M$132M$539M$428M$433M$324M$447M$433M
Receivables$12M$13M$20M$22M$36M$47M$47M$43M$42M$52M
Total current assets$126M$131M$218M$186M$616M$522M$531M$428M$559M$556M
Property, plant and equipment$27M$35M$35M$39M$50M$67M$57M$41M$32M$28M
Goodwill$13M$13M$108M$462M$462M$513M$513M$513M$513M$513M
Total assets$201M$213M$464M$1.0B$1.4B$1.4B$1.3B$1.2B$1.3B$1.3B
Total current liabilities$59M$68M$74M$133M$146M$168M$192M$192M$399M$544M
Total liabilities$101M$106M$305M$630M$773M$815M$931M$753M$777M$614M
Shareholders' equity$100M$107M$159M$379M$643M$570M$419M$448M$518M$662M
Net debt-$55M-$58M-$108M-$100M-$408M-$323M-$200M-$230M-$359M-$368M

Cash flow

Fiscal years, from Q2 Holdings's 10-K filings with the SEC.

Fiscal year2016201720182019202020212022202320242025
Operating cash flow$3M$9M$5M$567,000-$3M$31M$37M$70M$136M$201M
Capital spending$14M$12M$13M$14M$24M$26M$30M$31M$29M$28M
Free cash flow-$11M-$3M-$9M-$13M-$27M$5M$7M$40M$107M$173M
Stock-based compensation$13M$21M$30M$41M$51M$56M$65M$79M$89M$87M
Share buybacks (net)———————$0$0-$5M
Free cash flow margin-7.3%-1.5%-3.6%-4.2%-6.6%1.1%1.1%6.3%15.3%21.8%
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Questions

What was Q2 Holdings's revenue in 2025?

$795M in fiscal 2025, from its 10-K filing.

How much free cash flow does Q2 Holdings generate?

$173M in fiscal 2025 (operating cash flow minus capital spending).

From Q2 Holdings's annual reports filed with the SEC (XBRL data), standardised by Investingly. Information only, not investment advice.