Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q1 2026 Earnings Presentation
20 slides from Q2's earnings presentation, Apr 29, 2026
Slide 1: 1st Quarter 2026 Results
Q2 1st Quarter 2026 Results April 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 pre
Slide 3: Key quarter metrics: ARR, backlog, Adjusted EBITDA, cash
$379M End of Quarter balance of cash, $802 M cash equivalents + investments® Subscription Annualized Recurring Revenue! $60.0M 1 $ 2 7 B $ Adjusted EBITDA' e Ending backlog as of March e 31, 2026 REVENUE 27.7%” e 9 Adjusted EBITDA margin! Tier 1 + Enterprise Wins? ‘For the first quarter ended March
Slide 4: 1st Quarter 2026 Results
Q2 1st Quarter 2026 Results We delivered a strong start to 2026, with performance reflecting continued execution across our key priorities and the durability of our model. 1026 Y/Y Change We saw record bookings for a first quarter, highlighted by strength at Revenue $216.5 14% $189.7 the high end of
Slide 5: 1st Quarter 2026 Highlights
1st Quarter 2026 Highlights werd $802 million $2.7 billion Enterprise Wins Subscription Annualized Total Committed Backlog rring Revenue + Signed nine Tier 1 + Enterprise contracts in the quarter 1 9% highlighted by: + ed to 1025 o Asignificant expansion agreement through the merger of Synovus and P
Slide 6: Annualized Recurring Revenue
Annualized Recurring Revenue Subscription ARR growth of 14%; Total ARR growth continues to be impacted by declines in non-Subscription ARR 14% 12% Y/Y Growth Y/Y Growth SUOI|IIIA| U! $ 1025 1026 1025 1026 m Subscription ARR m Total ARR Subscription Annualized Recurring Revenue and Total Annualized R
Slide 7: Remaining Performance Obligations (RPO, Backlog)
Remaining Performance Obligations (RPO, Backlog) Continued solid year-over-year growth driven by new & expansion bookings 19% 2% YIY Seq. Growth roccd en! Growth $2.7B RPO Balance as of March 31, 2026 RPO Expectedto % of Total RPO 2 2 be Recognizedin = Amount ne) ne) the Next: = = a a 24 months 53%
Slide 8: Revenue Breakout
Revenue Breakout Diverse base of customers across asset size and customer type Enterprise 12% Remaining Customers Customer Customer Type Concentration Next 10 Customers 13% Largest Customer 2% Note: Data as of three months ended March 31, 2026. See “Customer Tiering” in the Appendix to this presenta
Slide 9: Financial Guidance
Financial Guidance Represents 10% to 11% full-year revenue growth and full-year adjusted EBITDA margin of approximately 27% 20 2026 Full-Year 2026 Revenue $214.0 $218.0 $875.0 $882.0 Adj EBITDA $57.5 $60.5 $237.0 $242.0 $ In Millions $ In Millions As of April 29, 2026, Q2 Holdings is providing guida
Slide 10: Financial Outlook
Financial Outlook Non-GAAP Q2 FY'24A FY'25A FY'26 Financial Framework? Current Outlook! sub FY’27 FY‘30 jubscription yy yy x Revenue Growth 16.2% 17.2% 14% 19.5% 13% Gross Margin 56.0% 58.0% 60% Adj EBITDA Margin 18.0% 23.5% “27% ee - 200bps ~35% “ Eccaen Adj EBITDA Margin Free Cash Flow 85.1% 93.0%
Slide 11: Appendix
Appendix
Slide 12: $23B Total Addressable Market
$23B Total Addressable Market
Slide 13: Condensed Consolidated Balance Sheets
Q2 Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) March 31, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $ 342,332 $ 367,631 Restricted cash 2,057 1,672 Investments 36,559 65,064 Accounts receivable, net 74,196 51,716 Contract assets, curre
Slide 14: Condensed Consolidated Statements of Comprehensive Income
Q2 Holdings, Inc. Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2026 2025 (1) Revenues $ 216,506 $ 189,735 (2) Cost of revenues 88,592 88,745 Gross profit 127,914 100,990 Operating expenses: Sales and marketin
Slide 15: Condensed Consolidated Statements of Cash Flows
Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 26,639 $ 4,753 Adjustments to reconcile net income to net cash from operating activities: Amortization of deferred im
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 March 31, 2026 2025 GAAP gross profit $ 127,914 $ 100,990 Stock-based compensation 2,187 3,218 Amortization of acquired technology 4,349 5,505 Lease and other restructuring charges - 144 Non-G
Slide 17: Reconciliation of Free Cash Flow
Q2 Holdings, Inc. Reconciliation of Free Cash Flow (in thousands) (unaudited) Three Months Ended March 31, 2026 2025 Net cash provided by operating activities $ 56,321 $ 43,531 Purchases of property and equipment (6,597) (785) Capitalized software development costs (5,514) (4,914) Free cash flow $ 4
Slide 18: Definitions
Q2 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 an
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
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