Filing Flows › Q2 Holdings (QTWO) › How it makes money
How Q2 Holdings (QTWO) makes money
Q2 Holdings (QTWO) made $226M of revenue in the third quarter 2026 (Q3 2026), +12% from a year earlier. Subscription brought in $188M (83%); Services and Other brought in $19.6M (9%); Transactional brought in $18.1M (8%). Of every dollar of revenue, 60¢ was left as gross profit, 15¢ was left as operating profit, 15¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Subscription | $188M | 83.3% | +3% | +14% |
| Services and Other | $19.6M | 8.7% | +3% | +5% |
| Transactional | $18.1M | 8.0% | +0.8% | +1% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $226M | 100.0% |
| Cost of revenue | $90.9M | 40.3% |
| Gross profit | $135M | 59.7% |
| Operating expenses | $101M | 44.7% |
| Operating profit | $34.0M | 15.0% |
| Income tax | $1.1M | 0.5% |
| Net earnings | $33.2M | 14.7% |
| Operating cash flow | $64.7M | 28.6% |
| Free cash flow | $62.6M | 27.7% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $226M | +12% |
| Q2 2026 | $220M | +13% |
| Q1 2026 | $217M | +14% |
| Q4 2025 | $208M | +14% |
| Q3 2025 | $202M | +15% |
| Q2 2025 | $195M | +13% |
| Q1 2025 | $190M | +15% |
From Q2 Holdings' 10-Q filed Oct 28, 2026 (on EDGAR).
Questions
How does Q2 Holdings make money?
Q2 Holdings (QTWO) made $226M of revenue in the third quarter 2026 (Q3 2026), +12% from a year earlier. Subscription brought in $188M (83%); Services and Other brought in $19.6M (9%); Transactional brought in $18.1M (8%). Of every dollar of revenue, 60¢ was left as gross profit, 15¢ was left as operating profit, 15¢ was left as net earnings.
What is Q2 Holdings' biggest business?
Subscription: $188M in the third quarter 2026, 83% of revenue, +14% from a year earlier.
What is Q2 Holdings' profit margin?
Net earnings were $33.2M, 14.7% of revenue, in the third quarter 2026; the operating margin was 15.0%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.