Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q3 2025 Earnings Presentation
20 slides from Q2's earnings presentation, Nov 5, 2025
Slide 1: 3rd Quarter 2025 Results
3rd Quarter 2025 Results November 5, 2025
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: 3rd Quarter 2025 Review
3 rd Quarter 2025 Review $ 150 M Share repurchase $ 569M End of Quarter balance of authorization cash, cash equivalents + investments 3 $ 745 M $ 48.8 M 1 Subscription Annualized Adjusted EBITDA 1 201.7 M Recurring Revenue 1 $ $ 2.5B 24.2 % Ending backlog as of September 30, 2025 REVENUE Adjusted EB
Slide 4: 3rd Quarter 2025 Results
3 rd Quarter 2025 Results We achieved strong sales success across our product lines which drove a record for third quarter bookings. 3Q25 3Q24 Totals Y/Y Change Totals We executed well in both Enterprise and Tier 1 segments, with growth coming from expanding existing relationships Revenue $201.7 15%
Slide 5: 3rd Quarter 2025 Highlights
3 rd Quarter 2025 Highlights New Customer Wins & Expansion Opportunities Subscription ARR Backlog 7 Tier 1 + Enterprise Wins $ 745 million Subscription Annualized $ 2.5 billion Total Committed Backlog Recurring Revenue • Signed seven Tier 1 + Enterprise contracts in the quarter highlighted by: +14 %
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 $ in Millions $ in Millions $745 $888 $655 $796 3Q24 3Q25 3Q24 3Q25 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 expansion -based bookings $ 2.5B 24% Y/Y Growth 7% Seq. Growth RPO Balance as of September 30, 2025 $ in billions RPO Expected to % of Total RPO $ in billions be Recognized in Amount $2.5 $2.5 the Next:
Slide 8: Revenue Breakout
Revenue Breakout Diverse base of customers across asset size and customer type Enterprise 12% Remaining Tier 1 Customers 61% Non -FI's 36% 10% Credit Bank Union Asset 65% Customer 25% Customer Tier 3 9% Size Type Next 50 Customers Concentration 26% Other Next 10 10% Tier 2 Customers 34% 11% Largest
Slide 9: Financial Outlook
Financial Outlook Represents 13% to 14% full year revenue growth and full year adjusted EBITDA margin of approximately 23% 4Q 2025 Full Year 2025 Preliminary Outlook: Full Year 2026 Low High Low High • Year-over-year subscription revenue growth of approximately 13.5%. Revenue $202.4 $206.4 $789.0 $7
Slide 10: Financial Targets: 2024 - 2026
Financial Targets: 2024 - 2026 Average Annual Subscription Average Annual Adjusted Free Cash Flow Conversion in Revenue Growth EBITDA Margin Expansion Full Year 2026 ~15% ~450 bps > 90% Strong demand driving an increasing mix Increased from prior target Flexibility to service debt, repurchase of sub
Slide 11: Appendix
Appendix
Slide 12: Strong Visibility, Increasing Profitability, Expanding Opportunity
Strong Visibility, Increasing Profitability, Expanding Opportunity Long Runway to Sustain High Growth and Margin Expansion + 1,300 14 % + 5 Years 82 % Subscription revenue Total Customers 1 YoY Growth in Subscription Avg. Contract Length 3 as a % of Total 4 ARR 2 + 15 % + 27M 460 57 % Avg. Customer
Slide 13: Consolidated Balance Sheets
Q2 Holdings, Inc. Consolidated Condensed Consolidated Balance Sheets (in thousands) (unaudited) September 30, December 31, Balance Sheets 2025 2024 Assets Current assets: Cash and cash equivalents $ 472,393 $ 358,560 Restricted cash 2,139 2,233 Investments 96,341 88,066 Accounts receivable, net 69,8
Slide 14: Consolidated Statements of Comprehensive Income (Loss)
Q2 Holdings, Inc. Consolidated Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands, except per share data) (unaudited) Statements of Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Comprehensive Revenues $ 201,704 $ 175,021 $ 586,587 $
Slide 15: Consolidated Statements of Cash Flows
Consolidated Statements of Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Cash Flows Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ 31,565 $ (38,700) Adjustments to reconcile net income (loss) to net c
Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures Reconciliation of (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, GAAP to Non - GAAP gross profit Stock-based compensation $ 2025 108,845 2,323 $ 2024 89,059 3,010 $ 2025 314,399 7,603 $ 2024 25
Slide 17: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Q2 Holdings, Inc. Reconciliation of Free Cash Flow (in thousands) (unaudited) Nine Months Ended September 30, 2025 2024 Net cash provided by operating activities $ 137,765 $ 92,716 Purchases of property and equipment (4,812) (5,253) Capitalized software development c
Slide 18: Definitions
Definitions Adjusted EBITDA: We define adjusted EBITDA as net income (loss) before stock -based compensation, transaction -related costs, depreciation, amortiz ation, lease and other restructuring charges, non -recurring legal settlements, provision for income taxes and interest and other (income) e
Slide 19: Definitions
Definitions Digital Banking Platform : Our digital banking platform allows financial institutions to offer a comprehensive and unified suite of digital banking serv ices 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 ta ke t