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Mar 31
Q2 Q1 2025 Earnings Report
Estimated Revenue:$189M
+14.0% YoY
Estimated EPS:$19.2M
+6737563182.3% YoY
Key Takeaways
Q2 Holdings, Inc. reported strong first quarter 2025 financial results with revenue of $189.7 million, a 15% increase year-over-year, and GAAP net income of $4.8 million, compared to a net loss in the prior year. Non-GAAP gross margin improved to 57.9% and adjusted EBITDA reached $40.7 million. The company signed five Tier 1 and Enterprise contracts and saw subscription annualized recurring revenue increase by 14% year-over-year.
First quarter 2025 revenue was $189.7 million, a 15% increase year-over-year.
GAAP net income for Q1 2025 was $4.8 million, a significant improvement from a net loss of $13.8 million in the prior-year quarter.
Non-GAAP gross margin for Q1 2025 was 57.9%, up from 54.9% in the prior-year quarter.
Adjusted EBITDA for Q1 2025 was $40.7 million, an increase from $25.2 million in the prior-year quarter.
Q2
Q2
Forward Guidance
Q2 Holdings is providing guidance for the second quarter and updated guidance for the full year 2025, expecting continued revenue growth and strong adjusted EBITDA.
Positive Outlook
- Second quarter 2025 total revenue guidance of $191.0 million - $195.0 million, representing 10% to 13% year-over-year growth.
- Second quarter 2025 adjusted EBITDA guidance of $41.0 million - $44.0 million, representing 21% to 23% of revenue.
- Full-year 2025 total revenue guidance updated to $776.0 million - $783.0 million, representing 11% to 12% year-over-year growth.
- Full-year 2025 adjusted EBITDA guidance of $170.0 million - $175.0 million, representing 22% of revenue.
- Confidence in ability to capitalize on market opportunities and deliver long-term value.
Challenges Ahead
- Guidance for GAAP net income (loss) and a reconciliation to adjusted EBITDA were not provided due to the inability to predict certain exclusions with reasonable certainty.
- Excluded items from non-GAAP measures could be material to GAAP results in future periods.
- Risks associated with global economic uncertainties and challenges remain.
- Potential impact of mergers and acquisitions within the banking sector on customer operations and purchasing decisions.
- Challenges and costs associated with selling, implementing, and supporting solutions, particularly for larger customers.
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Key Statistics
Market Cap
$4.92B
P/E Ratio
330.48
Sector
Technology Services
Industry
Information Technology Services
52-Week High
$110
52-Week Low
$68.6
GAAP Gross Margin
53.2%
Adjusted EBITDA
$40.7M
Non-GAAP Gross Margin
57.9%
Subscription ARR
$702M
Remaining Performance Obligations
$2.3B