Filing Flows

Filing Flows › Q2 Holdings (QTWO) › Q2 2025

Q2 Holdings (QTWO) Q2 2025 earnings results (second quarter 2025)

10-Q filed Jul 30, 2025

Q2 Holdings (QTWO) reported revenue of $195M for the second quarter 2025 (Q2 2025), +13% from a year earlier and +3% from the quarter before. Operating margin was 5.0%, net earnings $11.8M (6.0% of revenue).

Revenue$195M
Year over year+13%
Quarter over quarter+3%
Operating margin5.0%
Net earnings$11.8M

Q2 Holdings, Q2 2025: revenue $195M (+13% year over year), operating margin 5.0%, net earnings $11.8M, operating cash flow $48.6M. The chart follows the revenue to costs, profit and cash.

Q2 2025AmountQ/QY/Y
Revenue$195M+3%+13%
Gross profit$105M+4%+20%
Operating profit$9.8M+350%—
Net earnings$11.8M+148%—
Operating cash flow$48.6M+12%+35%
Free cash flow$47.3M+11%+37%

What changed

Revenue was $195.1M in Q2 2025, up 13% year over year and up 3% from the previous quarter. Subscription was the largest line at 81% of revenue. Subscription added $22.4M year over year (up 16%), 100% of the total change. Transactional declined 2%.

Gross margin was 53.6%, up 3.4 points from a year earlier. Operating profit was $9.8M, a 5.0% margin (up 13.0 points year over year). Operating expenses fell 6% while revenue rose 13%. Net earnings were $11.8M. The effective tax rate was 12.8%. Non-operating items added $3.7M, 27% of pre-tax earnings, so the bottom line overstates operating performance.

Operating cash flow was $48.6M (up 35% year over year), 413% of net earnings. Non-cash charges added back $13.6M of depreciation and amortization and $22.5M of share-based compensation. Capital expenditures of $1.3M left free cash flow of $47.3M.

Questions

What was Q2 Holdings' revenue in the second quarter 2025?

Q2 Holdings (QTWO) reported revenue of $195M for the second quarter 2025 (Q2 2025), +13% from a year earlier and +3% from the quarter before.

Was Q2 Holdings profitable in the second quarter 2025?

Operating profit was $9.8M (5.0% of revenue) and net earnings $11.8M.

Open the interactive Sankey →

Source: Q2 Holdings 10-Q on SEC EDGAR.