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Upturn AI SWOT - About
QTWO 
Q2 Holdings (QTWO)
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Upturn Advisory Summary
06/27/2025: QTWO (4-star) is a STRONG-BUY. BUY since 35 days. Profits (3.52%). Updated daily EoD!
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Number of Analysts
17 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Year Target Price $99
Year Target Price $99
| 6 | Strong Buy |
| 3 | Buy |
| 8 | Hold |
| 0 | Under performing |
| 0 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit 196.77% | Avg. Invested days 92 | Today’s Advisory Strong Buy |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 06/27/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.86B USD | Price to earnings Ratio - | 1Y Target Price 100.24 |
Price to earnings Ratio - | 1Y Target Price 100.24 | ||
Volume (30-day avg) - | Beta 1.49 | 52 Weeks Range 59.51 - 112.82 | Updated Date 06/29/2025 |
52 Weeks Range 59.51 - 112.82 | Updated Date 06/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.34 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -2.77% | Operating Margin (TTM) 2.08% |
Management Effectiveness
Return on Assets (TTM) -1.17% | Return on Equity (TTM) -3.95% |
Valuation
Trailing PE - | Forward PE 41.67 | Enterprise Value 5908935203 | Price to Sales(TTM) 8.13 |
Enterprise Value 5908935203 | Price to Sales(TTM) 8.13 | ||
Enterprise Value to Revenue 8.2 | Enterprise Value to EBITDA 103.93 | Shares Outstanding 62303800 | Shares Floating 60145638 |
Shares Outstanding 62303800 | Shares Floating 60145638 | ||
Percent Insiders 1.11 | Percent Institutions 106.94 |
Analyst Ratings
Rating 3.88 | Target Price 99 | Buy 3 | Strong Buy 6 |
Buy 3 | Strong Buy 6 | ||
Hold 8 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Q2 Holdings
Company Overview
History and Background
Q2 Holdings, Inc. was founded in 2004. It provides cloud-based digital banking solutions to regional and community financial institutions. Initially focused on secure online banking, Q2 has expanded its platform to include mobile banking, lending, and security solutions.
Core Business Areas
- Digital Banking Platform: Provides a unified platform for retail and commercial banking, including account management, payments, and security features.
- Lending Solutions: Offers solutions for loan origination, processing, and management, catering to various lending needs.
- Security and Risk Management: Provides tools for fraud detection, risk assessment, and regulatory compliance within digital banking environments.
Leadership and Structure
The leadership team consists of Kirk Coleman (CEO), David Hufford (CFO). The organizational structure is functional, with departments for product development, sales, marketing, and customer support.
Top Products and Market Share
Key Offerings
- Q2 Digital Banking Platform: A comprehensive suite of digital banking tools used by regional and community financial institutions. While precise market share data is not publicly available, Q2 is a significant player in the community banking digital solutions market, serving approximately 450 clients. Competitors include Fiserv (FISV), Jack Henry & Associates (JKHY), and nCino (NCNO). Revenue is a major contributor to the companyu2019s revenue as a whole.
- Q2 Lending: Solutions for streamlining lending processes, covering loan origination, processing, and servicing. Competitors include Blend Labs (BLND), Ellie Mae (ICE) and defi SOLUTIONS. Revenue is a significant portion of company revenue.
Market Dynamics
Industry Overview
The digital banking solutions market is experiencing rapid growth, driven by increasing demand for online and mobile banking services, regulatory changes, and advancements in technology. The shift toward cloud-based solutions is a prominent trend.
Positioning
Q2 Holdings is positioned as a provider of innovative and customizable digital banking solutions focused on community and regional financial institutions. Its competitive advantage lies in its platform's flexibility and integration capabilities.
Total Addressable Market (TAM)
The total addressable market for digital banking solutions is estimated to be in the tens of billions of dollars. Q2 is well-positioned to capture a significant share of this market through its focus on community and regional financial institutions, which are increasingly seeking advanced digital solutions.
Upturn SWOT Analysis
Strengths
- Strong focus on community and regional financial institutions
- Comprehensive and customizable digital banking platform
- Positive brand reputation and customer relationships
- Cloud-based architecture offering scalability and cost efficiency
Weaknesses
- Reliance on a specific market segment (community banks)
- Competition from larger, more diversified players
- Potential integration challenges with existing bank systems
- Relatively higher cost compared to some competitors
Opportunities
- Expanding into adjacent markets, such as commercial banking
- Acquiring smaller, complementary technology providers
- Developing new innovative products and services
- Capitalizing on the increasing adoption of digital banking
Threats
- Intense competition from established players and new entrants
- Rapid technological changes requiring constant innovation
- Economic downturns impacting bank budgets
- Cybersecurity threats and data privacy concerns
Competitors and Market Share
Key Competitors
- FISV
- JKHY
- NCNO
Competitive Landscape
Q2 Holdings competes with larger, more diversified players like Fiserv and Jack Henry, as well as specialized fintech companies like nCino. Q2's advantage lies in its focus on community and regional financial institutions and its flexible, customizable platform. However, it faces challenges in competing on price and scale.
Major Acquisitions
Cloud Lending Solutions
- Year: 2018
- Acquisition Price (USD millions): 115
- Strategic Rationale: Enhanced Q2's lending capabilities and expanded its reach in the lending solutions market.
Growth Trajectory and Initiatives
Historical Growth: Q2 Holdings has experienced strong revenue growth over the past several years, driven by increasing adoption of its digital banking platform.
Future Projections: Analysts project continued revenue growth in the coming years, driven by increasing demand for digital banking solutions and expansion into new markets. Earnings are expected to improve as the company achieves scale and improves efficiency.
Recent Initiatives: Recent initiatives include expanding its lending solutions, investing in AI and machine learning technologies, and expanding its partnerships with fintech companies.
Summary
Q2 Holdings is a solid company with a strong position in the digital banking solutions market for community and regional financial institutions. While the company experiences a net loss, its revenue growth and focus on innovation are positive signs. However, the company needs to manage competition and ensure its solutions remain competitive. Continued growth is anticipated as more companies embrace digitalization.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings (10-K, 10-Q), Company Investor Relations, Market Research Reports, Analyst Reports
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market conditions and company performance can change rapidly, impacting the accuracy of this information. Consult with a financial advisor before making any investment decisions.
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 | 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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