Filing Flows › Q2 Holdings (QTWO) › Q3 2026 › vs Q2 2026
Q2 Holdings (QTWO) Q3 2026 vs Q2 2026 (quarter over quarter)
Q2 Holdings's revenue rose $6.0M (+3%) from $220M in Q2 2026 to $226M in Q3 2026. The biggest changes: Subscription +$5.4M (+3%); Services and Other +$487K (+3%); Transactional +$136K (+0.8%). Gross margin 59.7% against 59.2% (+0.5 pts).
Q2 Holdings, Q3 2026: revenue $226M (+12% year over year), operating margin 15.0%, net earnings $33.2M, operating cash flow $64.7M. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Gross margin | 59.7% | 59.2% | +0.5 pts |
| Operating margin | 15.0% | 13.4% | +1.7 pts |
| Net margin | 14.7% | 13.6% | +1.1 pts |
| Free cash flow margin | 27.7% | 26.8% | +0.9 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Subscription | $188M | $183M | $5.4M | +3% |
| Services and Other | $19.6M | $19.1M | $487K | +3% |
| Transactional | $18.1M | $17.9M | $136K | +0.8% |
| Revenue | $226M | $220M | $6.0M | +3% |
| Gross profit | $135M | $130M | $4.6M | +4% |
| Cost of revenue | $90.9M | $89.6M | $1.4M | +2% |
| Operating profit | $34.0M | $29.3M | $4.6M | +16% |
| Operating expenses | $101M | $101M | $26K | 0% |
| Pre-tax earnings | $34.3M | $31.7M | $2.6M | +8% |
| Research & development | $41.4M | $41.1M | $241K | +0.6% |
| Sales & marketing | $24.5M | $25.9M | −$1.4M | -5% |
| General & admin | $33.6M | $33.1M | $573K | +2% |
| Other operating costs | $1.4M | $732K | $620K | +85% |
| Net earnings | $33.2M | $29.9M | $3.4M | +11% |
| Income tax | $1.1M | $1.9M | −$748K | -40% |
| Depreciation & amortization | $12.5M | $12.1M | $413K | +3% |
| Share-based compensation | $20.0M | $20.6M | −$575K | -3% |
| Working capital & other | $994K | $1.8M | −$827K | -45% |
| Operating cash flow | $64.7M | $60.7M | $4.0M | +7% |
| Free cash flow (OCF − capex) | $62.6M | $59.0M | $3.7M | +6% |
| Capital expenditures | $2.1M | $1.7M | $361K | +21% |
Questions
How much did Q2 Holdings's revenue grow quarter over quarter in Q3 2026?
Q2 Holdings's revenue rose $6.0M (+3%) from $220M in Q2 2026 to $226M in Q3 2026.
What drove Q2 Holdings's revenue change in Q3 2026?
Subscription +$5.4M (+3%); Services and Other +$487K (+3%); Transactional +$136K (+0.8%).