QTWO$71.72
$71.0
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AI QTWO Summary
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Powered by LiveAIOverall Analysis
BuyQ2 Holdings Inc. presents a mixed but largely positive investment profile. Strong fundamental performance in revenue growth and profitability, coupled with a solid balance sheet, supports a 'Buy' rating. However, recent price performance and a few technical indicators suggest caution regarding short-term volatility. The thematic alignment with digital transformation in financial services is a significant long-term positive.
Thematic
Q2 Holdings is well-positioned within the ongoing digital transformation of the financial services industry, providing critical technology solutions for financial institutions.
Fundamental
Q2 Holdings demonstrates solid revenue growth and improving profitability metrics, supported by a manageable debt level and adequate cash reserves. The company is transitioning towards profitability from a historical loss-making position, indicated by recent EPS estimates and reported figures.
Technical
The stock exhibits a mixed technical picture. While it has experienced significant year-over-year growth (29.58%), recent performance shows a downward trend (1M: -5.62%, 6M: -4.34%). Technical indicators suggest that the stock is currently oversold, potentially presenting a buying opportunity for short-term traders, but the longer-term trend is weakening.
| Factor | Score |
|---|---|
| Digital Banking Transformation | 90 |
| FinTech Ecosystem Integration | 85 |
| Cloud-Native Solutions | 88 |
| Regulatory Compliance & Security | 75 |
| Growth in Commercial & Lending Solutions | 70 |
| Factor | Score |
|---|---|
| Valuation | 50 |
| Profitability | 60 |
| Growth | 80 |
| Balance Sheet Health | 65 |
| Cash Flow | 75 |
| Earnings Per Share (EPS) | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 70 |
| Momentum | 45 |
| Moving Averages | 40 |
| Volume | 60 |
| Support and Resistance | 50 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Positive Earnings Surprises
The company has consistently beaten earnings estimates in recent quarters, with EPS surprises ranging from 11.15% to 15.23% in the last four reported quarters, indicating strong operational execution.
Attractive Price-to-Sales (PS) Ratio
The trailing Price-to-Sales (PS) ratio is 10.2, which, while seemingly high, should be considered in context with the company's revenue growth and industry peers. The PS ratio for the last reported quarter is 34.3, indicating substantial investor confidence in future revenue.
Bearish Points (8)
Negative Earnings and High PS Ratio
The company has reported net losses for the trailing twelve months (TTM) and for fiscal years 2022, 2023, and 2024. The Price-to-Sales (PS) ratio of 10.2 (TTM) is high for a company with negative earnings.
Slowing Revenue Growth and Net Losses
While revenue grew from $498.72M in 2021 to $696.46M in 2024, the company has consistently incurred net losses during this period, with net losses widening from -22.6% in 2021 to -5.5% in 2024 (net margin).
Calendar
July 2025
31
Next Earnings Date
H: $0.59
A: $0.53
L: $0.45
H: 195.00M
A: 193.71M
L: 192.96M
Profile
Q2 Holdings, Inc. provides digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs) in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform that supports its financial institution customers in their delivery of retail, SMB, and commercial functionalities across digital channels; and risk and fraud solutions that are designed to enhance the security and integrity of digital banking operations, including real-time security analytics and behavioral analysis, event-driven validation for non-transactional fraud management, electronic transaction dispute management, ACH file monitoring and risk reporting, and check and ACH positive pay systems for commercial users. It also provides Q2 Innovation Studio, an application program interface and software development kit based open technology platform that allows financial institution customers and other partners to deploy customized experiences and the financial services to end users; and Helix, a cloud-native, real-time core processing platform that combines the services and functionality for companies and financial institutions. In addition, the company offers digital lending and relationship pricing solutions that provide tools for managing commercial lending deposits and fee-based transactions comprising loan pricing and negotiation tools, treasury pricing and fee-based service structuring, AI assistance for relationship managers, end-to-end loan origination and servicing, automation of lending activities, and support services to diverse loan types and asset classes, as well as portfolio management services, such as analysis, performance, reporting, and trend identification. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.
Seasonals
Price Target
101.34 USD
The 39 analysts offering 1 year price forecasts for QTWO have a max estimate of 115.00 and a min estimate of 71.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
Powered by LiveAIWeight: 95
Direct Competitor: Provides a broad suite of digital banking, core processing, and payment solutions to financial institutions, directly competing with Q2's offerings.
Weight: 95
Direct Competitor: A leading provider of financial services technology, including core banking systems, digital banking platforms, and payment solutions, making it a direct rival to Q2.
Weight: 92
Direct Competitor: Specializes in core processing and digital banking solutions for community banks and credit unions, which is a key market for Q2.
Weight: 88
Direct Competitor: Offers digital banking platforms, ATM services, and point-of-sale solutions, competing with Q2 in the digital enablement space for FIs.