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Sep 30, 2025
Q2 Q3 2025 Earnings Report
Q2 Holdings, Inc. announced its third quarter 2025 financial results, reporting increased revenue, GAAP gross margin, and net income, along with a new $150 million share repurchase authorization.
Key Takeaways
Q2 Holdings, Inc. delivered a strong third quarter in 2025, with revenue reaching $201.7 million, a 15% increase year-over-year. The company also reported a GAAP net income of $15.0 million, a significant improvement from a net loss in the prior-year quarter, and achieved a record for third-quarter bookings driven by strong sales across key product lines.
Revenue for Q3 2025 was $201.7 million, marking a 15% year-over-year increase.
GAAP net income for the quarter was $15.0 million, a substantial turnaround from a net loss of $11.8 million in the prior-year quarter.
Non-GAAP gross margin improved to 57.9%, up from 56.0% in the prior-year quarter.
Adjusted EBITDA increased to $48.8 million, compared to $32.6 million in the prior-year quarter, exceeding the high end of guidance.
Forward Guidance
Q2 Holdings, Inc. provided strong guidance for the fourth quarter and updated full-year 2025, along with a preliminary outlook for 2026, reflecting confidence in continued growth and margin expansion.
Positive Outlook
- Q4 2025 total revenue guidance of $202.4 million - $206.4 million, representing 11% to 13% year-over-year growth.
- Q4 2025 Adjusted EBITDA guidance of $47.2 million - $50.2 million, representing 23% to 24% of revenue.
- Full-year 2025 total revenue guidance raised to $789.0 million - $793.0 million, indicating 13% to 14% year-over-year growth.
- Full-year 2025 Adjusted EBITDA guidance raised to $182.5 million - $185.5 million, representing 23% of revenue.
- Preliminary 2026 outlook includes approximately 13.5% year-over-year subscription revenue growth and Adjusted EBITDA margin expansion of approximately 250 basis points.
Challenges Ahead
- The company is unable to predict with reasonable certainty the ultimate outcome of GAAP net income (loss) exclusions for forward-looking adjusted EBITDA guidance.
- Excluded items from non-GAAP measures could be material to GAAP results in future periods.
Historical Earnings Impact
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