Filing Flows › Q2 Holdings (QTWO) › Q3 2026 › vs Q3 2025
Q2 Holdings (QTWO) Q3 2026 vs Q3 2025 (year over year)
Q2 Holdings's revenue rose $24.1M (+12%) from $202M in Q3 2025 to $226M in Q3 2026. The biggest changes: Subscription +$22.9M (+14%); Services and Other +$955K (+5%); Transactional +$174K (+1%). Gross margin 59.7% against 54.0% (+5.8 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 Q3 2025, the increases inside each band.
Margins
| Q3 2026 | Q3 2025 | Change | |
|---|---|---|---|
| Gross margin | 59.7% | 54.0% | +5.8 pts |
| Operating margin | 15.0% | 5.5% | +9.6 pts |
| Net margin | 14.7% | 7.5% | +7.3 pts |
| Free cash flow margin | 27.7% | 21.3% | +6.5 pts |
Every line
| Line | Q3 2026 | Q3 2025 | Change | % |
|---|---|---|---|---|
| Subscription | $188M | $165M | $22.9M | +14% |
| Services and Other | $19.6M | $18.6M | $955K | +5% |
| Transactional | $18.1M | $17.9M | $174K | +1% |
| Revenue | $226M | $202M | $24.1M | +12% |
| Gross profit | $135M | $109M | $26.0M | +24% |
| Cost of revenue | $90.9M | $92.9M | −$1.9M | -2% |
| Operating profit | $34.0M | $11.0M | $23.0M | +209% |
| Operating expenses | $101M | $97.8M | $3.0M | +3% |
| Pre-tax earnings | $34.3M | $15.2M | $19.1M | +126% |
| Research & development | $41.4M | $38.9M | $2.4M | +6% |
| Sales & marketing | $24.5M | $26.4M | −$1.9M | -7% |
| General & admin | $33.6M | $31.7M | $1.9M | +6% |
| Other operating costs | $1.4M | $803K | $549K | +68% |
| Net earnings | $33.2M | $15.0M | $18.2M | +121% |
| Income tax | $1.1M | $160K | $951K | +594% |
| Depreciation & amortization | $12.5M | $13.6M | −$1.1M | -8% |
| Share-based compensation | $20.0M | $23.3M | −$3.3M | -14% |
| Working capital & other | $994K | $6.3M | −$5.3M | -84% |
| Operating cash flow | $64.7M | $45.6M | $19.1M | +42% |
| Free cash flow (OCF − capex) | $62.6M | $42.9M | $19.7M | +46% |
| Capital expenditures | $2.1M | $2.7M | −$652K | -24% |
Questions
How much did Q2 Holdings's revenue grow year over year in Q3 2026?
Q2 Holdings's revenue rose $24.1M (+12%) from $202M in Q3 2025 to $226M in Q3 2026.
What drove Q2 Holdings's revenue change in Q3 2026?
Subscription +$22.9M (+14%); Services and Other +$955K (+5%); Transactional +$174K (+1%).