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Dec 31, 2025
Q2 Q4 2025 Earnings Report
Q2 Holdings, Inc. announced its fourth quarter and full-year 2025 financial results, reporting strong revenue growth and significant improvements in profitability and free cash flow.
Key Takeaways
Q2 Holdings, Inc. concluded 2025 with a strong fourth quarter, achieving $208.2 million in revenue, a 14% year-over-year increase. The company reported GAAP net income of $20.4 million for the quarter and $52.0 million for the full year, a significant turnaround from a net loss in the previous year. Adjusted EBITDA also saw substantial growth, reaching $51.2 million for the quarter.
Fourth quarter revenue increased by 14% year-over-year to $208.2 million, and 3% sequentially from Q3 2025.
GAAP net income for Q4 2025 was $20.4 million, a significant improvement from $0.2 million in the prior-year quarter.
Non-GAAP gross margin for Q4 2025 improved to 58.6%, up from 57.4% in the prior-year quarter.
Adjusted EBITDA for Q4 2025 grew to $51.2 million, up from $37.6 million in the prior-year quarter.
Revenue by Segment
Forward Guidance
Q2 Holdings provided guidance for the first quarter and full-year 2026, anticipating continued revenue growth and adjusted EBITDA expansion, and introduced a new financial framework through 2030 with targets for non-GAAP gross margin and adjusted EBITDA margin.
Positive Outlook
- Q1 2026 total revenue expected to be $212.5 million to $216.5 million, representing 12% to 14% year-over-year growth.
- Q1 2026 adjusted EBITDA expected to be $52.5 million to $55.5 million, representing 25% to 26% of revenue.
- Full-year 2026 total revenue expected to be $871.0 million to $878.0 million, representing 10% year-over-year growth.
- Full-year 2026 adjusted EBITDA expected to be $225.0 million to $230.0 million, representing 26% of revenue.
- Initial expectations for 2027 include subscription revenue year-over-year growth of approximately 12.5% to 13% and adjusted EBITDA margin expansion of approximately 150 to 200 basis points.
Challenges Ahead
- The company did not provide GAAP net income (loss) guidance or a reconciliation of forward-looking adjusted EBITDA to GAAP net income (loss).
- Excluded items from non-GAAP measures could be material to GAAP results in future periods.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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