Q2 Holdings, Inc. · NYSE:QTWO
Q2 — Q3 2026 Earnings Presentation
20 slides from Q2's earnings presentation, Oct 28, 2026
Slide 1: 3rd Quarter 2026 Results
3rd Quarter 2026 Results October 28, 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 pr
Slide 3: 3rd Quarter 2026 Review
3rd Quarter 2026 Review $ 123M End of Quarter balance of cash, cash equivalents + investments3 $ 846M Subscription Annualized Recurring Revenue 1 $ 67.8M 1 $ 2.8B Ending backlog as of $ 225.8M Adjusted EBITDA 1 September 30, 2026 REVENUE 30.0 % Adjusted EBITDA margin 1 7 Tier 1 + Enterprise Wins 2 1
Slide 4: 3rd Quarter 2026 Results
3rd Quarter 2026 Results We delivered another strong quarter, with solid bookings led by digital banking and continued momentum across the business. 3Q26 3Q25 Credit unions were a key contributor Totals Y/Y Change Totals again this quarter, including multiple Tier 1 wins and some of our largest cont
Slide 5: 3rd Quarter 2026 Highlights
3rd Quarter 2026 Highlights New Customer Wins & Expansion Opportunities Subscription ARR Backlog 7 Tier 1 + Enterprise Wins $ 846 million Subscription Annualized Recurring Revenue $ 2.8 billion Total Committed Backlog • Signed seven Tier 1 + Enterprise contracts in the quarter highlighted by: +13 %
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% 11% Y/Y Growth Y/Y Growth Subscription Annualized Recurring Revenue and Total Annualized Recurring Revenue (ARR) are defined in the appendix of this pr ese
Slide 7: Remaining Performance Obligations (RPO, Backlog)
Remaining Performance Obligations (RPO, Backlog) Continued solid year -over-year growth driven by new, expansion & renewal bookings 10% 0% Y/Y Seq. Growth Growth $ 2.8B RPO Balance as of September 30, 2026 RPO Expected to % of Total RPO be Recognized in Amount the Next: 24 months 54% 25 -48 months 3
Slide 8: Revenue Breakout
Revenue Breakout Diverse base of customers across asset size and customer type Asset Customer Customer Size Type Concentration Note: Data as of three months ended September 30, 2026. See “Customer Tiering” in the Appendix to this presentation for further information on how we define the various Tier
Slide 9: Financial Guidance
Financial Guidance Represents 12% full-year revenue growth and full -year adjusted EBITDA margin of 28% to 29% 4Q 2026 Full -Year 2026 Low High Low High Revenue $226.0 $230.0 $888.0 $892.0 Adj EBITDA $62.4 $65.4 $253.0 $256.0 $ In Millions $ In Millions As of October 28, 2026, Q2 Holdings is providi
Slide 10: Financial Outlook
Financial Outlook FY’24A FY’25A FY’26 Financial Framework 2 Current Outlook 1 FY’27 FY’30 Subscription Revenue ~ 14.5% Growth 16.2% 17.2% 12.5% - 13% ~ 65% Subscription Non -GAAP Non -GAAP Gross Margin 56.0% 58.0% ~ 62% Revenue Growth Gross Margin Adj EBITDA Margin 18.0% 23.5% ~ 28.6% 150 - 200bps ~
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 ~ 1,200 13 % > 5 Years 83 % Total Customers 1 YoY Growth in Subscription ARR 2 Avg. Contract Length 3 Subscription Revenue as a % of Total 4 5% > 22 % ~ 28M 61 % Recurring Reven
Slide 13: Consolidated Balance Sheets
Consolidated Q2 Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) Balance Sheets unaudited September 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 116,312 $ 367,631 Restricted cash 1,746 1,672 Investments 6,679 65,064 Accounts receivable, net 94,041
Slide 14: Consolidated Statements of Comprehensive Income
Q2 Holdings, Inc. Condensed Consolidated Statements of Comprehensive Income Consolidated (in thousands, except per share data) (unaudited) Statements of Three Months Ended September 30, Nine Months Ended September 30, Comprehensive Revenues (1) $ 2026 225,771 $ 2025 201,704 $ 2026 662,042 $ 2025 586
Slide 15: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Nine Months Ended September 30, 2026 2025 Cash flows from operating activities: Net income $ 89,717 $ 31,565 Adjustments to reconcile net income to net cash from operati
Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Q2 Holdings, Inc. Reconciliation of GAAP to Non -GAAP Measures (in thousands) Reconciliation (unaudited) Three Months Ended September 30, Nine Months Ended September 30, of GAAP to GAAP gross profit Stock -based compensation Amortization of acquired technology $ 2026 134,843 2,140 4,347 $ 2025 108,8
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, 2026 2025 Net cash provided by operating activities $ 181,656 $ 137,765 Purchases of property and equipment (10,366) (4,812) Capitalized software development
Slide 18: Definitions
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, pro vision for income taxes a
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 inste ad take t