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    Q2 Holdings (QTWO) Is Down 6.6% After Profit Turnaround And Raised 2026 Outlook Has The Bull Case Changed?

    Simply Wall St·02/16/2026 03:27:19
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    • Q2 Holdings, Inc. reported past fourth-quarter 2025 revenue of US$208.22 million and net income of US$20.44 million, alongside full-year 2025 revenue of US$794.81 million and net income of US$52.01 million, and issued 2026 guidance calling for total revenue between US$871.0 million and US$878.0 million.
    • The company paired this profit turnaround and double-digit guided revenue growth with record bookings, increasing subscription mix, and a completed US$5 million share repurchase, underscoring management’s confidence in the business model.
    • We’ll now examine how Q2’s stronger profitability and raised 2026 revenue outlook may reshape its existing investment narrative.

    Find 53 companies with promising cash flow potential yet trading below their fair value.

    Q2 Holdings Investment Narrative Recap

    To own Q2 Holdings, you need to believe in its subscription led digital banking and fraud platform, and in management’s ability to translate strong bookings into sustained, profitable revenue. The latest results show higher profitability and a 2026 revenue outlook around US$871.0 million to US$878.0 million, which supports that thesis in the near term. The key short term catalyst remains execution on its backlog, while customer churn from bank consolidation still looks like the biggest risk and is not directly altered by this update.

    The most relevant recent announcement here is Q2’s updated three year framework that targets higher subscription revenue growth, improved EBITDA margins, and better free cash flow conversion. Together with record bookings and raised 2026 guidance, this frames a clearer path for investors who are focused on the mix shift toward recurring revenue. It also sharpens the contrast between Q2’s profitability progress and ongoing competitive threats in fraud and point solutions.

    Yet investors should also be aware that consolidation driven customer churn remains a live issue that could...

    Read the full narrative on Q2 Holdings (it's free!)

    Q2 Holdings' narrative projects $1.0 billion revenue and $132.9 million earnings by 2028. This requires 11.0% yearly revenue growth and about a $128 million earnings increase from $4.9 million today.

    Uncover how Q2 Holdings' forecasts yield a $89.29 fair value, a 68% upside to its current price.

    Exploring Other Perspectives

    QTWO 1-Year Stock Price Chart
    QTWO 1-Year Stock Price Chart

    Four fair value estimates from the Simply Wall St Community span about US$48.51 to US$102.65 per share, showing a wide spread of expectations. You should weigh this against Q2’s reliance on converting record bookings into profitable subscription growth in a market where consolidation can still pressure its core customer base.

    Explore 4 other fair value estimates on Q2 Holdings - why the stock might be worth 9% less than the current price!

    Build Your Own Q2 Holdings Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.