Filing Flows › Q2 Holdings (QTWO) › Q3 2025
Q2 Holdings (QTWO) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 5, 2025
Q2 Holdings (QTWO) reported revenue of $202M for the third quarter 2025 (Q3 2025), +15% from a year earlier and +3% from the quarter before. Operating margin was 5.5%, net earnings $15.0M (7.5% of revenue).
Q2 Holdings, Q3 2025: revenue $202M (+15% year over year), operating margin 5.5%, net earnings $15.0M, operating cash flow $45.6M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $202M | +3% | +15% |
| Gross profit | $109M | +4% | +22% |
| Operating profit | $11.0M | +12% | — |
| Net earnings | $15.0M | +28% | — |
| Operating cash flow | $45.6M | -6% | +5% |
| Free cash flow | $42.9M | -9% | +5% |
What changed
Revenue was $201.7M in Q3 2025, up 15% year over year and up 3% from the previous quarter. Subscription was the largest line at 82% of revenue. Subscription added $24.6M year over year (up 18%), 92% of the total change.
Gross margin was 54.0%, up 3.1 points from a year earlier. Operating profit was $11.0M, a 5.5% margin (up 12.8 points year over year). Operating expenses fell 4% while revenue rose 15%. Net earnings were $15.0M. The effective tax rate was 1.1%. Non-operating items added $4.2M, 28% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $45.6M (up 5% year over year), 303% of net earnings. Non-cash charges added back $13.6M of depreciation and amortization and $23.3M of share-based compensation. Working capital and other items used $6.3M. Capital expenditures of $2.7M left free cash flow of $42.9M.
Questions
What was Q2 Holdings' revenue in the third quarter 2025?
Q2 Holdings (QTWO) reported revenue of $202M for the third quarter 2025 (Q3 2025), +15% from a year earlier and +3% from the quarter before.
Was Q2 Holdings profitable in the third quarter 2025?
Operating profit was $11.0M (5.5% of revenue) and net earnings $15.0M.
Source: Q2 Holdings 10-Q on SEC EDGAR.