Filing Flows › Q2 Holdings (QTWO) › Q2 2026 › vs Q1 2026
Q2 Holdings (QTWO) Q2 2026 vs Q1 2026 (quarter over quarter)
Q2 Holdings's revenue rose $3.3M (+2%) from $217M in Q1 2026 to $220M in Q2 2026. The biggest changes: Subscription +$2.9M (+2%); Services and Other +$256K (+1%); Transactional +$116K (+0.7%). Gross margin 59.2% against 59.1% (+0.2 pts).
Q2 Holdings, Q2 2026: revenue $220M (+13% year over year), operating margin 13.4%, net earnings $29.9M, operating cash flow $60.7M. The chart draws each line against Q1 2026, the increases inside each band.
Margins
| Q2 2026 | Q1 2026 | Change | |
|---|---|---|---|
| Gross margin | 59.2% | 59.1% | +0.2 pts |
| Operating margin | 13.4% | 12.8% | +0.6 pts |
| Net margin | 13.6% | 12.3% | +1.3 pts |
| Free cash flow margin | 26.8% | 23.0% | +3.9 pts |
Every line
| Line | Q2 2026 | Q1 2026 | Change | % |
|---|---|---|---|---|
| Subscription | $183M | $180M | $2.9M | +2% |
| Services and Other | $19.1M | $18.8M | $256K | +1% |
| Transactional | $17.9M | $17.8M | $116K | +0.7% |
| Revenue | $220M | $217M | $3.3M | +2% |
| Gross profit | $130M | $128M | $2.3M | +2% |
| Cost of revenue | $89.6M | $88.6M | $973K | +1% |
| Other income, net | $2.4M | $2.1M | $312K | +15% |
| Operating profit | $29.3M | $27.7M | $1.7M | +6% |
| Operating expenses | $101M | $100M | $634K | +0.6% |
| Pre-tax earnings | $31.7M | $29.8M | $2.0M | +7% |
| Research & development | $41.1M | $41.9M | −$765K | -2% |
| Sales & marketing | $25.9M | $25.7M | $224K | +0.9% |
| General & admin | $33.1M | $32.2M | $881K | +3% |
| Other operating costs | $732K | $438K | $294K | +67% |
| Net earnings | $29.9M | $26.6M | $3.2M | +12% |
| Income tax | $1.9M | $3.1M | −$1.3M | -40% |
| Depreciation & amortization | $12.1M | $11.7M | $316K | +3% |
| Share-based compensation | $20.6M | $20.3M | $293K | +1% |
| Working capital & other | $1.8M | $2.3M | −$505K | -22% |
| Operating cash flow | $60.7M | $56.3M | $4.3M | +8% |
| Free cash flow (OCF − capex) | $59.0M | $49.7M | $9.2M | +19% |
| Capital expenditures | $1.7M | $6.6M | −$4.9M | -74% |
Questions
How much did Q2 Holdings's revenue grow quarter over quarter in Q2 2026?
Q2 Holdings's revenue rose $3.3M (+2%) from $217M in Q1 2026 to $220M in Q2 2026.
What drove Q2 Holdings's revenue change in Q2 2026?
Subscription +$2.9M (+2%); Services and Other +$256K (+1%); Transactional +$116K (+0.7%).