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Company Analysis

Q2 Holdings, Inc. QTWO

A comprehensive view of key metrics, scores, and financial health for Q2 Holdings, Inc.

Overview of Q2 Holdings, Inc.

QTWO NYQ
Technology Software - Application Framework: Software & SaaS Mid Cap
Q2 Holdings, Inc. (QTWO), is a Mid Cap company, in the Software - Application industry, last closed at $70.44, about 24.2% overvalued vs fair value, +0.4% 1Y return, placing in the top 25% of its sector.
Metrics P/E 90.3× Rev Growth 14.1% ROE 8.8% Gross Margin 54.1%
USD 70.44
5.01%
(Delayed)
• Vol 90d: 38.6%
52-Week Range
Market Cap
$4.35B
Enterprise Value
$4.25B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Good
Valuation
Fair
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Good
Valuation
Fair
Completeness: 82%
Confidence: 91%
Updated: Oct 31
Top Beats

Quick Facts

Website https://www.q2.com
HQ Austin, TX
Employees 2,548
Fiscal year Dec 31

Next Events

No upcoming events available.

Fair Value Snapshot

Bear Base Bull
$49
$53
$59
Current: $70.44 -24% vs base

Engine Room Money Flow™

Mid Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$794.8M
14.1%%
Gross Profit
$429.7M
21.2%%
Operating Income (GAAP)
$39.9M
194.4%%
Operating Cash Flow
$201.5M
48.4%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
54.1%
Good

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$5.0M
2.9% of FCF

Where It Leaks

Cash Flow Health critical
Significant cash flow inefficiencies identified. Multiple high-impact leaks require attention.
2
Active Leaks
2/2
Improving
0
High Impact
1
Critical
Locked Leak
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Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating Q2 Holdings, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
63
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Revenue Converts Cleanly to Cash Cash conversion is strong (score 0.78), showing scalable economics.
  • Consistent Subscription Growth Revenue consistency is strong (score 0.90), pointing to a sticky customer base.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Recurring Revenue Stickiness

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Signals, strengths and risks for Innovation Engine

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Signals, strengths and risks for Cash Scalability

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Balance Sheet Resilience

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 96% Coverage
Trade-Off Triangle Visualization A ternary plot showing QTWO's balance between Growth (32.9%), Profitability (36.1%), and Safety (31.0%). Growth 33% Safety 31% Profitability 36%

Click axes to expand details. Marker shows current allocation.

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Growth

60th percentile vs peers
60
Key Signals
Rev Growth YoY 14.1% 60p Revenue CAGR 3Y 12.0% 57p Def Rev Growth 10.2% 54p EPS Growth YoY 2.25 90p Buyback % 3.3% 41p
Strengths
  • FCF Margin in top 20% of peers (21.8%, 81th percentile)
  • Growth above peer median with strong metric coverage (88%)
  • EPS Growth YoY in top 20% of peers (2.25, 90th percentile)
  • Consistently strong margins across 3 metrics
Risks

No significant risks identified for this axis.

Profitability

65th percentile vs peers
66
Key Signals
Strengths
Risks
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Safety

56th percentile vs peers
57
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for Q2 Holdings, Inc..

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$53.41
- - -
-24.2% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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