Filing Flows › Q2 Holdings (QTWO) › Q4 2025
Q2 Holdings (QTWO) Q4 2025 earnings results (fourth quarter 2025)
10-K filed Feb 11, 2026
Q2 Holdings (QTWO) reported revenue of $208M for the fourth quarter 2025 (Q4 2025), +14% from a year earlier and +3% from the quarter before. Operating margin was 8.1%, net earnings $20.4M (9.8% of revenue).
Q2 Holdings, Q4 2025: revenue $208M (+14% year over year), operating margin 8.1%, net earnings $20.4M, operating cash flow $63.7M. The chart follows the revenue to costs, profit and cash.
| Q4 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $208M | +3% | +14% |
| Gross profit | $115M | +6% | +20% |
| Operating profit | $16.9M | +53% | — |
| Net earnings | $20.4M | +36% | 125× |
| Operating cash flow | $63.7M | +40% | +48% |
| Free cash flow | $61.7M | +44% | +48% |
What changed
Revenue was $208.2M in Q4 2025, up 14% year over year and up 3% from the previous quarter. Subscription was the largest line at 82% of revenue.
Gross margin was 55.4%, up 2.7 points from a year earlier. Operating profit was $16.9M, a 8.1% margin (up 9.0 points year over year). Operating expenses grew 1% against revenue growth of 14%. The fastest-growing cost line was Research & development (+14%). Net earnings were $20.4M, up 12365% year over year. The effective tax rate was 1.6%.
Operating cash flow was $63.7M (up 48% year over year), 312% of net earnings. Non-cash charges added back $12.5M of depreciation and amortization and $20.2M of share-based compensation. Working capital and other items added $10.5M. Capital expenditures of $2.0M left free cash flow of $61.7M.
Questions
What was Q2 Holdings' revenue in the fourth quarter 2025?
Q2 Holdings (QTWO) reported revenue of $208M for the fourth quarter 2025 (Q4 2025), +14% from a year earlier and +3% from the quarter before.
Was Q2 Holdings profitable in the fourth quarter 2025?
Operating profit was $16.9M (8.1% of revenue) and net earnings $20.4M.
Source: Q2 Holdings 10-K on SEC EDGAR.