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Jun 30
Q2 Q2 2025 Earnings Report
Q2 Holdings, Inc. announced its second quarter 2025 financial results, reporting significant year-over-year growth in revenue and a return to GAAP net income.
Key Takeaways
Q2 Holdings delivered a strong second quarter in 2025, with revenue increasing by 13% year-over-year to $195.1 million and achieving a GAAP net income of $11.8 million, a substantial improvement from a net loss in the prior-year quarter. The company also saw robust growth in Adjusted EBITDA and subscription annualized recurring revenue, driven by solid sales execution and continued demand for its solutions.
Revenue for Q2 2025 reached $195.1 million, marking a 13% increase year-over-year.
The company reported a GAAP net income of $11.8 million, a significant turnaround from a GAAP net loss of $13.1 million in the same period last year.
Non-GAAP gross margin improved to 57.5%, up from 55.7% in the prior-year quarter, indicating enhanced profitability.
Adjusted EBITDA grew to $45.8 million, a substantial increase from $29.9 million in the second quarter of 2024, reflecting efficient scaling of the business.
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Forward Guidance
Q2 Holdings provided guidance for the third quarter of 2025 and updated its full-year 2025 guidance, anticipating continued revenue growth and strong Adjusted EBITDA performance.
Positive Outlook
- Third quarter 2025 total revenue is projected to be between $196.0 million and $200.0 million, representing 12% to 14% year-over-year growth.
- Adjusted EBITDA for Q3 2025 is expected to be between $44.0 million and $47.0 million, accounting for 22% to 24% of revenue.
- Full-year 2025 total revenue guidance was raised to $783.0 million - $788.0 million, indicating 12% to 13% year-over-year growth.
- Full-year 2025 Adjusted EBITDA guidance was also raised to $177.0 million - $181.0 million, representing 23% of revenue.
- The company is confident in delivering on its profitable growth strategy for the remainder of the year, supported by strong execution and a healthy pipeline.
Challenges Ahead
- The company did not provide GAAP net income (loss) guidance for future periods due to the inability to predict certain exclusions with reasonable certainty.
- Excluded items from non-GAAP measures, such as stock-based compensation and amortization, could materially impact GAAP results.
- The forward-looking statements are subject to various risks, including global economic uncertainties, increased competition, and challenges in managing growth.
- Risks associated with cyberattacks, data breaches, and the impact of financial services industry changes could affect future performance.
- The company's transactional business is influenced by End User behavior and external drivers outside of its control, which could lead to fluctuations.