Filing Flows › Technology › Q2 Holdings (QTWO)
Q2 Holdings (QTWO) earnings and revenue breakdown
Latest: Q3 2026 · 10-Q filed Oct 28, 2026 · Q2 Holdings (QTWO) Q3 2026 earnings results →
Q3 2026 Revenue up 12% year over year to $226M · 15¢ of every $1 of revenue kept as net profit · operating margin 15.0%
Q2 Holdings made $226M in Q3 2026 (+12% Y/Y): Subscription $188M, Services and Other $19.6M, Transactional $18.1M. Operating margin 15.0%, net earnings $33.2M. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Oct 28, 2026.
Drawing the Sankey…
Open the interactive Sankey → click any line for what the company wrote about it, compare Y/Y and Q/Q, export as PNG or PDF
What changed this quarter
Revenue was $225.8M in Q3 2026, up 12% year over year and up 3% from the previous quarter. Subscription was the largest line at 83% of revenue. Subscription added $22.9M year over year (up 14%), 95% of the total change.
Gross margin was 59.7%, up 5.8 points from Q3 2025. Operating profit was $34.0M, a 15.0% margin (up 9.6 points year over year). Of the extra revenue versus Q3 2025, 95% reached operating profit, above the 5% margin then. Operating expenses grew 3% against revenue growth of 12%. The fastest-growing cost line was Other operating costs (+68%). Net earnings were $33.2M, up 121% year over year. The effective tax rate was 3.2%.
Operating cash flow was $64.7M (up 42% year over year), 195% of net earnings. Non-cash charges added back $12.5M of depreciation and amortization and $20.0M of share-based compensation. Capital expenditures of $2.1M left free cash flow of $62.6M.
Quarterly history
| Quarter | Form | Filed | Revenue | Y/Y | Op. margin | Net earnings | Op. cash flow |
|---|---|---|---|---|---|---|---|
| Q3 2026 | 10-Q | Oct 28, 2026 | $226M | +12% | 15.0% | $33.2M | $64.7M |
| Q2 2026 | 10-Q | Jul 29, 2026 | $220M | +13% | 13.4% | $29.9M | $60.7M |
| Q1 2026 | 10-Q | Apr 29, 2026 | $217M | +14% | 12.8% | $26.6M | $56.3M |
| Q4 2025 | 10-K | Feb 11, 2026 | $208M | +14% | 8.1% | $20.4M | $63.7M |
| Q3 2025 | 10-Q | Nov 5, 2025 | $202M | +15% | 5.5% | $15.0M | $45.6M |
| Q2 2025 | 10-Q | Jul 30, 2025 | $195M | +13% | 5.0% | $11.8M | $48.6M |
| Q1 2025 | 10-Q | May 7, 2025 | $190M | +15% | 1.2% | $4.8M | $43.5M |
Charts
Interactive views
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💵Where each $1 goesinteractive
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🌏Named in Asian annual reportsinteractive
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🔄Rotation against the market and its industry (RRG)interactive
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🔍Earnings qualityinteractive
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⚖️Fair value by methodinteractive
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🔭Outlook & guidanceinteractive
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📈Investments: gains and what it boughtinteractive
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🏭Its industry’s money flow (input-output)interactive
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About Q2 Holdings
Q2 is a leading provider of digital solutions to financial institutions, financial technology companies, or FinTechs, and alternative finance companies, or Alt-FIs, seeking to incorporate banking into their customer engagement and servicing strategies. Our solutions transform the ways in which financial institutions and other financial services providers engage with account holders and retail and commercial End Users. Digital financial services are highly regulated, subject to extensive and evolving supervisory, consumer protection, privacy and third‑party risk management requirements, and security is paramount, as providers must protect sensitive financial data and funds and defend against continually evolving cyber threats and fraud.
In its own words, from its 10-K, filed Feb 11, 2026.
Q2 Holdings against its Services-Prepackaged Software peers
The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: +12% against the peers' median +14%. Operating margin: 15.0% against the peers' median 15.2%.
| Company | Quarter | Revenue | Y/Y | Op. margin |
|---|---|---|---|---|
| QTWO Q2 Holdings | Q3 2026 | $226M | +12% | 15.0% |
| MSFT Microsoft | Q1 FY27 | $92.3B | +19% | 49.8% |
| ORCL Oracle | Q1 FY27 | $19.3B | +30% | 34.8% |
| CRM Salesforce | Q2 FY27 | $11.3B | +11% | 20.5% |
| ADBE Adobe | Q3 FY26 | $6.8B | +13% | 34.8% |
| XYZ Block | Q3 2026 | $6.7B | +10% | 6.4% |
| INTU Intuit | Q4 FY26 | $4.4B | +14% | 10.9% |
| NOW ServiceNow | Q3 2026 | $4.1B | +20% | 9.4% |
| SHOP Shopify | Q3 2026 | $3.7B | +32% | 15.2% |
Source: Q2 Holdings 10-Q on SEC EDGAR · CIK 1410384 · Services-Prepackaged Software
Guidance and outlook
13F: who owns QTWO and who is buying
More on QTWO
History
Every quarter: Q3 2026 results · Q2 2026 results · Q1 2026 results · Q4 2025 results · Q3 2025 results · Q2 2025 results · Q1 2025 results
- Q2 Holdings guidance history: guided vs reported
- Q2 Holdings gross margin by quarter
- Q2 Holdings operating margin by quarter
- Q2 Holdings net income by quarter
- Q2 Holdings free cash flow by quarter
- Q2 Holdings R&D spending by quarter
- Q2 Holdings capital expenditures by quarter
- Q2 Holdings Subscription revenue by quarter
- Q2 Holdings Services and Other revenue by quarter
- Q2 Holdings Transactional revenue by quarter