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QTWO 
Q2 Holdings (QTWO)
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Upturn Advisory Summary
12/11/2025: QTWO (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
17 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $89.71
1 Year Target Price $89.71
| 6 | Strong Buy |
| 3 | Buy |
| 8 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 168.81% | Avg. Invested days 80 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 12/11/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.72B USD | Price to earnings Ratio 148.02 | 1Y Target Price 89.71 |
Price to earnings Ratio 148.02 | 1Y Target Price 89.71 | ||
Volume (30-day avg) 17 | Beta 1.38 | 52 Weeks Range 58.57 - 108.51 | Updated Date 12/11/2025 |
52 Weeks Range 58.57 - 108.51 | Updated Date 12/11/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.51 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 4.12% | Operating Margin (TTM) 5.46% |
Management Effectiveness
Return on Assets (TTM) 1.08% | Return on Equity (TTM) 5.68% |
Valuation
Trailing PE 148.02 | Forward PE 26.88 | Enterprise Value 4631336572 | Price to Sales(TTM) 6.13 |
Enterprise Value 4631336572 | Price to Sales(TTM) 6.13 | ||
Enterprise Value to Revenue 6.02 | Enterprise Value to EBITDA 47.21 | Shares Outstanding 62530005 | Shares Floating 60248285 |
Shares Outstanding 62530005 | Shares Floating 60248285 | ||
Percent Insiders 1.11 | Percent Institutions 111.08 |
Upturn AI SWOT
Q2 Holdings
Company Overview
History and Background
Q2 Holdings, Inc. (Q2) was founded in 2004 and is headquartered in Austin, Texas. The company specializes in providing digital banking solutions for regional and community financial institutions. Key milestones include its IPO in 2014, significant product expansions, and strategic acquisitions to enhance its platform capabilities.
Core Business Areas
- Digital Banking Solutions: Q2 provides a comprehensive suite of digital banking solutions that enable financial institutions to offer modern, intuitive online and mobile banking experiences to their customers. This includes account opening, money movement, customer service, and self-service features.
- Digital Lending Solutions: The company offers digital solutions to streamline the lending process for financial institutions, from application to closing, covering various loan types. This aims to improve efficiency and customer experience for borrowers.
- Digital Engagement and Servicing: This encompasses tools and platforms designed to enhance customer engagement and provide efficient servicing, including secure messaging, alerts, and personalized communication channels.
Leadership and Structure
Q2 Holdings is led by a management team with extensive experience in financial technology and software. The organizational structure is typically aligned with product development, sales, customer success, and operational functions.
Top Products and Market Share
Key Offerings
- Q2 Platform: Q2's flagship offering, a cloud-based digital banking platform that unifies online and mobile banking experiences. It serves as the core for many financial institutions' digital strategies. Competitors include Fiserv, Jack Henry & Associates, NCR, and numerous smaller fintech providers.
- Q2 Centurion: A digital lending platform designed to automate and optimize the loan application and origination process. It competes with specialized lending software providers and in-house solutions from larger banks.
- Q2 Engagement: Features designed to enhance customer interaction and communication, including secure messaging, personalized offers, and digital onboarding. This area has competitors ranging from general CRM providers to specialized customer engagement platforms.
Market Dynamics
Industry Overview
The digital banking and fintech industry is characterized by rapid innovation, increasing consumer demand for seamless digital experiences, and a growing focus on data security and regulatory compliance. Financial institutions are increasingly investing in digital transformation to remain competitive.
Positioning
Q2 Holdings is positioned as a leading provider of digital banking solutions for community and regional financial institutions. Its competitive advantages lie in its integrated platform, focus on user experience, and deep understanding of the needs of smaller to mid-sized banks and credit unions. The company benefits from its cloud-native architecture and ability to adapt to evolving regulatory landscapes.
Total Addressable Market (TAM)
The TAM for digital banking solutions for financial institutions is substantial and growing. Industry reports suggest the global digital banking market is valued in the hundreds of billions of dollars and is projected to continue its upward trajectory. Q2 Holdings is well-positioned to capture a significant portion of this market, particularly within the segment serving community and regional banks.
Upturn SWOT Analysis
Strengths
- Strong focus on community and regional financial institutions.
- Integrated digital banking platform offering a comprehensive solution.
- Cloud-native architecture enabling scalability and agility.
- Reputation for innovation and customer-centric solutions.
- Sticky customer base with long-term contracts.
Weaknesses
- Reliance on a specific customer segment (community banks) could limit diversification.
- Competition from larger, more established financial technology providers.
- Potential challenges in integrating acquisitions seamlessly.
- Sales cycles can be long in the financial services industry.
Opportunities
- Growing demand for digital transformation in the financial sector.
- Expansion into new product areas or adjacent markets.
- Leveraging data analytics and AI to enhance platform offerings.
- Potential for strategic partnerships and further acquisitions.
- Increasing adoption of digital payments and new financial services.
Threats
- Intensifying competition from fintech startups and established players.
- Cybersecurity threats and data breaches.
- Changing regulatory landscape affecting financial technology.
- Economic downturns impacting financial institutions' IT spending.
- Rapid technological advancements requiring continuous investment.
Competitors and Market Share
Key Competitors
- Fiserv (FISV)
- Jack Henry & Associates (JKHY)
- NCR Corporation (NCR)
- Fidelity National Information Services (FIS)
Competitive Landscape
Q2's advantage lies in its focused approach to community and regional banks, offering a more tailored and agile solution compared to the broader offerings of larger competitors. However, it faces challenges from the scale, established client relationships, and extensive product portfolios of larger players like Fiserv and Jack Henry.
Major Acquisitions
Centurion
- Year: 2017
- Acquisition Price (USD millions):
- Strategic Rationale: To expand its digital lending capabilities and offer a more comprehensive loan origination and servicing solution.
Tax1
- Year: 2019
- Acquisition Price (USD millions):
- Strategic Rationale: To enhance its digital tax payment and compliance solutions for financial institutions.
Groove
- Year: 2021
- Acquisition Price (USD millions): 110
- Strategic Rationale: To bolster its digital engagement capabilities, focusing on proactive client communications and personalized experiences.
Growth Trajectory and Initiatives
Historical Growth: Q2 Holdings has experienced significant historical growth, expanding its customer base and revenue significantly since its inception. This growth has been fueled by its commitment to innovation and its ability to serve the evolving digital needs of financial institutions.
Future Projections: Future projections for Q2 Holdings are generally positive, with analysts anticipating continued revenue growth driven by the ongoing digital transformation of the financial industry. Expansion of its platform and potential new service offerings are also expected to contribute to future growth.
Recent Initiatives: Recent initiatives likely include enhancements to its core platform, expansion of its AI and data analytics capabilities, and strategic partnerships to broaden its market reach. The company may also be focusing on improving operational efficiency and accelerating its path to profitability.
Summary
Q2 Holdings is a strong player in the digital banking solutions market, particularly for community and regional financial institutions. Its integrated platform, focus on user experience, and recurring revenue model provide a solid foundation for growth. The company needs to continuously innovate to stay ahead of evolving fintech trends and competitive pressures from larger players. Expanding its market reach and maintaining strong customer relationships will be crucial for continued success.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Investor Relations Filings (e.g., 10-K, 10-Q)
- Financial News Outlets (e.g., Wall Street Journal, Bloomberg)
- Industry Analysis Reports
- Company Website
Disclaimers:
This analysis is based on publicly available information as of the last update and is for informational purposes only. It does not constitute financial advice. Market share data is estimated and subject to variation based on reporting methodology. Financial performance figures and acquisition prices may require verification from official company filings.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Q2 Holdings
Exchange NYSE | Headquaters Austin, TX, United States | ||
IPO Launch date 2014-03-20 | President, CEO & Chairman of the Board Mr. Matthew P. Flake | ||
Sector Technology | Industry Software - Application | Full time employees 2476 | Website https://www.q2.com |
Full time employees 2476 | Website https://www.q2.com | ||
Q2 Holdings, Inc. provides digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs) in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform that supports its financial institution customers in their delivery of retail, SMB, and commercial functionalities across digital channels; and risk and fraud solutions that are designed to enhance the security and integrity of digital banking operations, including real-time security analytics and behavioral analysis, event-driven validation for non-transactional fraud management, electronic transaction dispute management, ACH file monitoring and risk reporting, and check and ACH positive pay systems for commercial users. It also provides Q2 Innovation Studio, an application program interface and software development kit based open technology platform that allows financial institution customers and other partners to deploy customized experiences and the financial services to end users; and Helix, a cloud-native, real-time core processing platform that combines the services and functionality for companies and financial institutions. In addition, the company offers digital lending and relationship pricing solutions that provide tools for managing commercial lending deposits and fee-based transactions comprising loan pricing and negotiation tools, treasury pricing and fee-based service structuring, AI assistance for relationship managers, end-to-end loan origination and servicing, automation of lending activities, and support services to diverse loan types and asset classes, as well as portfolio management services, such as analysis, performance, reporting, and trend identification. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.
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