Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q2 2025 Earnings Presentation
20 slides from Q2's earnings presentation, Jul 30, 2025
Slide 1: 2nd Quarter 2025 Results
Q2 2d Quarter 2025 Results July 30, 2025
Slide 2: Safe Harbor Statement
Q2 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 p
Slide 3: 2nd Quarter 2025 Review
2nd Quarter 2025 Review $532M End of Quarter balance of cash, cash equivalents + investments? $716M $45.8M Subscription Annualized Adjusted EBITDA' Recuring Revenue! 1 $2. 4B $4] 95.1 MI 23.5% Ending backlog as of June 30, 2025 REVENUE Adjusted EBITDA margin Tier 1 Wins? ‘For the second quarter ende
Slide 4: 2nd Quarter 2025 Results
Q2 2d Quarter 2025 Results We finished the first half of the year with solid sales execution and financial results. Second quarter bookings 2025 2024 included meaningful renewals and Y/Y Change Tore expansions, underscoring the long-term value our platform delivers. Revenue $195.1 13% $172.9 We also
Slide 5: 2nd Quarter 2025 Highlights
2°4 Quarter 2025 Highlights Tier 1 Wins Signed six Tier 1 contracts in the quarter highlighted by: o Anexpansion agreement with a Top 100 U.S. bank to add retail digital banking, complementing existing commercial solutions on our platform. o Anexpansion agreement with a Top 100 U.S. bank to broaden
Slide 6: Annualized Recurring Revenue
Annualized Recurring Revenue Subscription ARR growth of 13%; Total ARR growth continues to be impacted by declines in non-Subscription ARR 13% pee} 10" |e ro YN Growth |! YN Growah a 3 = = 3 2024 2025 2024 2025 m Subscription ARR mTotal ARR Q2 Subscription Annualized Recurring Revenue and Total Annu
Slide 7: Remaining Performance Obligations (RPO, Backlog)
Remaining Performance Obligations (RPO, Backlog) Continued solid year-over-year growth driven by expansion-based bookings 9 3% $2. 4B — aan --- [| Seq.Growtn | | i) I RPO Balance as of June 30, 2025 $ in billions RPO Expected to % of Total RPO Amount the Next: 24 months 54% 25-48 months 34% 2024 202
Slide 8: Revenue Breakout
Revenue Breakout Diverse base of customers across asset size and customer type Q2 Enterprise 11% Remainin: Credit Unio! C Next 50 Customer custo Customer Type Concentration Next 10 Customers 11% Prlargest “ Customer 2% Note: Data as of frst half ended June 30, 2025. See “Customer Tiering’ in the App
Slide 9: Financial Outlook
Q2 Financial Outlook Represents 12% to 13% full year revenue growth and full year adjusted EBITDA margin of approximately 23% 3Q 2025 Full Year 2025 Revenue $196.0 $200.0 $783.0 $788.0 Adj EBITDA $44.0 $47.0 $177.0 $181.0 $ In Millions $ In Millions As of July 30, 2025, Q2 Holdings is providing guid
Slide 10: Financial Targets: 2024 - 2026
Financial Targets: 2024 - 2026 Average Annual Subscription Average Annual Adjusted Free Cash Flow Conversion Revenue Growth EBITDA Margin Expansion in Full Year 2026 Strong demand driving an increasing mix | Driven by revenue mix and scaling both Flexibility to service debt and have of subscription
Slide 11: Appendix
Appendix
Slide 12: $20B Total Addressable Market
$20B Total Addressable Market
Slide 13: Condensed Consolidated Balance Sheets
Q2 Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 414,275 $ 358,560 Restricted cash 1,742 2,233 Investments 117,797 88,066 Accounts receivable, net 60,323 42,084 Contract assets, curre
Slide 14: Condensed Consolidated Statements of Comprehensive Income (Loss)
Q2 Holdings, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues $ 195,148 $ 172,890 $ 384,883 $ 338,398 Cost of revenues(1) 90,584 86,063 179,329 16
Slide 15: Condensed Consolidated Statements of Cash Flows
Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ 16,517 $ (26,903) Adjustments to reconcile net income (loss) to net cash from operating activities: Amortization
Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 GAAP gross profit $ 104,564 $ 86,827 $ 205,554 $ 169,079 Stock-based compensation 2,062 3,400 5,280 6,565 Amortization of acquired techno
Slide 17: Reconciliation of Free Cash Flow
Q2 Holdings, Inc. Reconciliation of Free Cash Flow (in thousands) (unaudited) Six Months Ended June 30, 2025 2024 Net cash provided by operating activities $ 92,172 $ 49,466 Purchases of property and equipment (2,095) (2,856) Capitalized software development costs (10,549) (11,835) Free cash flow $
Slide 18: Definitions
Q2 Definitions Adjusted EBITDA: We define adjusted EBITDA as net income (loss) before stock-based compensation, transaction-related costs, depreciation, amortization, lease and other restructuring charges, non-recurring legal settlements, provision for income taxes and interest and other (income) ex
Slide 19: Definitions
Q2 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 infra
Slide 20: Definitions
Q2 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