Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q2 2026 Earnings Presentation
20 slides from Q2's earnings presentation, Jul 29, 2026
Slide 1: 2nd Quarter 2026 Results
2nd Quarter 2026 Results July 29, 2026
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and the accompanying oral presentation contain forward -looking statements and information that are based on our management's beliefs and assumptions and on information currently available to our management . The statements and information contained in this pr
Slide 3: 2nd Quarter 2026 Review
2 nd Quarter 2026 Review $ 106M End of Quarter balance of cash, cash equivalents + investments 3 $ 826M Subscription Annualized Recurring Revenue 1 1 $ 62.8M $ 2.8B Ending backlog as of $ 219.8M Adjusted EBITDA 1 June 30, 2026 REVENUE 28.6 % Adjusted EBITDA margin 1 8 Tier 1 + Enterprise Wins 2 1For
Slide 4: 2nd Quarter 2026 Results
2 nd Quarter 2026 Results We delivered another strong quarter of consistent execution, with solid bookings across our solution portfolio, while also delivering more than 500 basis points of adjusted 2Q26 2Q25 EBITDA margin expansion from the prior year quarter. Totals Y/Y Change Totals Customers inc
Slide 5: 2nd Quarter 2026 Highlights
2 nd Quarter 2026 Highlights New Customer Wins & Expansion Opportunities Subscription ARR Backlog 826 million $ 2.8 billion 8 Tier 1 + Enterprise Wins $ Subscription Annualized Recurring Revenue Total Committed Backlog • Signed eight Tier 1 + Enterprise contracts in the quarter highlighted by: o An
Slide 6: Annualized Recurring Revenue
Annualized Recurring Revenue Subscription ARR growth of 15%; Total ARR growth continues to be impacted by declines in non -Subscription ARR 15 % Y/Y Growth 13 % Y/Y Growth $ in Millions $ in Millions $826 $716 $971 $861 2Q25 2Q26 2Q25 2Q26 Subscription ARR Total ARR Subscription Annualized Recurring
Slide 7: Remaining Performance Obligations (RPO, Backlog)
Remaining Performance Obligations (RPO, Backlog) Continued solid year -over-year growth driven by new, expansion & renewal bookings 17% 1% Y/Y Seq. Growth Growth $ 2.8B $ in billions RPO Balance as of June 30, 2026 $ in billions RPO Expected to % of Total RPO be Recognized in Amount the Next: 24 mon
Slide 8: Revenue Breakout
Revenue Breakout Diverse base of customers across asset size and customer type Enterprise 13% Remaining Customers Non -FI's Tier 1 61% 9% 37% Bank Credit Asset 67% Customer Union Customer Tier 3 8% Size Type 24% Next 50 Concentration Customers 25% Other Next 10 Tier 2 9% Customers 34% 12% Largest Cu
Slide 9: Financial Guidance
Financial Guidance Represents 11% full -year revenue growth and full -year adjusted EBITDA margin of approximately 28% 3Q 2026 Full -Year 2026 Low High Low High Revenue $218.5 $222.5 $881.0 $886.0 Adj EBITDA $58.5 $61.5 $244.0 $248.0 $ In Millions $ In Millions As of July 29, 2026, Q2 Holdings is pr
Slide 10: Financial Outlook
Financial Outlook FY’24A FY’25A FY’26 Financial Framework 2 Current Outlook 1 FY’27 FY’30 Subscription ~ 14.5% Revenue Growth 16.2% 17.2% 12.5% - 13% ~ 65% Subscription Non -GAAP Non -GAAP Gross Margin 56.0% 58.0% ~ 62% Revenue Growth Gross Margin Adj EBITDA Margin 18.0% 23.5% ~ 28% 150 - 200bps ~ 3
Slide 11: Appendix
Appendix
Slide 12: Total Addressable Market
Strong Visibility, Increasing Profitability, Expanding Opportunity Long Runway to Sustain High Growth and Margin Expansion > 1,200 15 % > 5 Years 83 % Total Customers 1 YoY Growth in Subscription Avg. Contract Length 3 Subscription Revenue ARR 2 as a % of Total 4 5% > 22 % ~ 28M 61 % Recurring Reven
Slide 13: Consolidated Balance Sheets
Q2 Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) Consolidated (unaudited) June 30, December 31, 2026 2025 Balance Sheets Assets Current assets: Cash and cash equivalents $ 99,917 $ 367,631 Restricted cash 2,218 1,672 Investments 6,508 65,064 Accounts receivable, net 70,514 51,7
Slide 14: Consolidated Statements of Comprehensive Income
Q2 Holdings, Inc. Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share data) Consolidated (unaudited) Three Months Ended June 30, Six Months Ended June 30, Statements of 2026 2025 2026 2025 Revenues(1) Comprehensive Cost of revenues(2) Gross profit $ 219,765 89,5
Slide 15: Consolidated Statements of Cash Flows
Consolidated Statements of Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows Cash Flows (in thousands) (unaudited) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net income $ 56,497 $ 16,517 Adjustments to reconcile net income to net cash from operating act
Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures (in thousands) (unaudited) Reconciliation of GAAP gross profit $ Three Months Ended June 30, 2026 130,200 $ 2025 104,564 $ Six Months Ended June 30, 2026 258,114 $ 2025 205,554 GAAP to Non - Stock-based compensation Amortization of acquir
Slide 17: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Q2 Holdings, Inc. Reconciliation of Free Cash Flow (in thousands) (unaudited) Six Months Ended June 30, 2026 2025 Net cash provided by operating activities $ 116,975 $ 92,172 Purchases of property and equipment (8,301) (2,095) Capitalized software development costs (
Slide 18: Definitions
Definitions Adjusted EBITDA: We define adjusted EBITDA as net income before stock -based compensation, transaction -related costs, depreciation, amortization, lease and other restructuring charges, non -recurring legal settlements not in our ordinary course of business , provision for income taxes a
Slide 19: Definitions
Definitions Digital Banking Platform : Our digital banking platform allows financial institutions to offer a comprehensive and unified suite of digital banking services to their End Users. Our open platform architecture, deep integration with other systems and the multi -tenant aspects of our infras
Slide 20: Definitions
Definitions Subscription Annualized Recurring Revenue: We calculate Subscription ARR as the annualized value of all recurring subscription revenue recognized in the last month of the reporting period, with the exception of variable revenue in excess of contracted amounts for which we instead take th