Filing Flows › Q2 Holdings (QTWO) › Q3 2026
Q2 Holdings (QTWO) Q3 2026 earnings results (third quarter 2026)
10-Q filed Oct 28, 2026
Q2 Holdings (QTWO) reported revenue of $226M for the third quarter 2026 (Q3 2026), +12% from a year earlier and +3% from the quarter before. Operating margin was 15.0%, net earnings $33.2M (14.7% of revenue).
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 follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $226M | +3% | +12% |
| Gross profit | $135M | +4% | +24% |
| Operating profit | $34.0M | +16% | +209% |
| Net earnings | $33.2M | +11% | +121% |
| Operating cash flow | $64.7M | +7% | +42% |
| Free cash flow | $62.6M | +6% | +46% |
What changed
Revenue was $225.8M in Q3 2026, up 12% year over year and up 3% from the previous quarter. Subscription was the largest line at 83% of revenue. Subscription added $22.9M year over year (up 14%), 95% of the total change.
Gross margin was 59.7%, up 5.8 points from Q3 2025. Operating profit was $34.0M, a 15.0% margin (up 9.6 points year over year). Of the extra revenue versus Q3 2025, 95% reached operating profit, above the 5% margin then. Operating expenses grew 3% against revenue growth of 12%. The fastest-growing cost line was Other operating costs (+68%). Net earnings were $33.2M, up 121% year over year. The effective tax rate was 3.2%.
Operating cash flow was $64.7M (up 42% year over year), 195% of net earnings. Non-cash charges added back $12.5M of depreciation and amortization and $20.0M of share-based compensation. Capital expenditures of $2.1M left free cash flow of $62.6M.
Questions
What was Q2 Holdings' revenue in the third quarter 2026?
Q2 Holdings (QTWO) reported revenue of $226M for the third quarter 2026 (Q3 2026), +12% from a year earlier and +3% from the quarter before.
Was Q2 Holdings profitable in the third quarter 2026?
Operating profit was $34.0M (15.0% of revenue) and net earnings $33.2M.
Source: Q2 Holdings 10-Q on SEC EDGAR.