Q2 Holdings (QTWO) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Q2 Holdings, Inc. (NYSE:QTWO ) Q2 2025 Earnings Conference Call July 30, 2025 5:00 PM ET Company Participants a - Corporate Participant h - Corporate Participant e - Corporate Participant Jonathan A. Price - CFO and Executive VP of Strategy & Emerging Businesses Josh Yankovich - Corporate Participant Investor Contact - Corporate Participant Kirk L.
Q2 Holdings (QTWO) came out with quarterly earnings of $0.5 per share, missing the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.26 per share a year ago.
Strong subscription revenue growth, record gross margins, and durable cash generation fuel a 'Buy' rating for Q2. Key metrics to watch in Q2's upcoming earnings are subscription ARR growth, contract renewals, and traction with fraud solutions. Q2's valuation remains attractive, trading at a reasonable EV/Revenue multiple relative to its robust mid-teens growth rate.
Q2 Holdings posted strong Q1 2025 results, with $189.7 million in revenue, a 14.6% YoY growth, and their first operating profit as a public company. Gross margins hit a record 53.2%, and the company generated $43.5 million in cash from operations, signaling robust financial health and growth potential. Key growth drivers include fraud management solutions and Innovation Studio, which have resonated well with customers, enhancing revenue durability and expansion success.
Q2 Holdings, Inc. (NYSE:QTWO ) Q1 2025 Earnings Conference Call May 7, 2025 5:00 PM ET Company Participants Josh Yankovich - Investor Relations Matt Flake - Chief Executive Officer and Chairman of the Board Jonathan Price - Chief Financial Officer Kirk Coleman - President Conference Call Participants Parker Lane - Stifel Alex Sklar - Raymond James Terry Tillman - Truist Securities Adam Hotchkiss - Goldman Sachs Dan Perlin - RBC Capital Markets Joe Vruwink - Robert W. Baird Michael Infante - Morgan Stanley Cris Kennedy - William Blair Dominick Gabriele - Compass Point Operator Good afternoon.
Q2 Holdings (QTWO) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.31 per share a year ago.
Q2 Holdings posted strong 2024 financials with 11.5% revenue growth, expanding margins, and a net profit, reinforcing my 'Buy' rating. The company's successful land-and-expand strategy drives significant customer revenue growth, implying healthy net revenue retention and fueling operating leverage. Q2's valuation is justified by its superior growth compared to peers, with potential for multiple expansion as margins and cash flow improve.
Q2 Holdings: Buy This Little-Known Software Company As It Ramps Up RPOs And EBITDA
Q2 Holdings, Inc. (NYSE:QTWO ) Q4 2024 Earnings Conference Call February 12, 2025 5:00 PM ET Company Participants Josh Yankovich - IR Matt Flake - CEO Jonathan Price - CFO Kirk Coleman - President Conference Call Participants Terry Tillman - Truist Securities Alex Sklar - Raymond James Joe Vruwink - Robert W. Baird Alan Hodgkiss - Goldman and Sachs Andrew Schmidt - Citigroup Charles Nabhan - Stephens Inc. Michael Infante - Morgan Stanley Parker Lane - Stifel Dominick Gabriele - Compass Point Mark Feldman - William Blair Dan Perlin - RBC Capital Markets Operator Good afternoon.
Q2 Holdings (QTWO) came out with quarterly earnings of $0.48 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.27 per share a year ago.
Q2 Holdings stock has an aggressive upward momentum, with robust gains of +190% over the past two years. Despite being a small-cap stock, the rally has seen minimal pullbacks, indicative of the strong shareholder base. At current levels, QTWO stock trades 20% below its trend peak, which marks a 46-month high, offering an attractive re-entry opportunity.