The co-CEO appointment and raised guidance signal confidence in sustained execution. Watch Q4 for the pace of AI-driven fraud solution adoption (User Activity Monitoring early adopters doubled expectations) and whether subscription ARR growth accelerates from the current 13.5% rate.
Price Chart
Executive Summary
Q2 Holdings reported Q3 2026 revenue of $225.8M (up 12% YoY) and GAAP diluted EPS of $0.52, exceeding consensus estimates of $221.3M and $0.70 respectively on a GAAP basis. The company raised full-year 2026 revenue guidance to $888M-$892M and adjusted EBITDA guidance to $253M-$256M, while also appointing CFO Jonathan Price as co-CEO effective October 29, 2026.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $225.8M, up 12% YoY and above the high end of guidance
- GAAP diluted EPS of $0.52 vs consensus estimate of $0.70 (GAAP basis)
- Adjusted EBITDA of $67.8M, a record 30.0% margin, up from 24.2% a year ago
- Full-year 2026 revenue guidance raised to $888M-$892M (12% YoY growth)
- Full-year 2026 adjusted EBITDA guidance raised to $253M-$256M (28-29% margin)
- Subscription ARR reached $846.0M, up 13.5% YoY
- Backlog of approximately $2.8B, up 10% YoY
- Generated $55.0M in free cash flow during Q3
- Repurchased 0.6M shares for $38.8M in Q3; $336.1M remaining on authorization
- CFO Jonathan Price appointed co-CEO effective October 29, 2026, will continue as CFO during successor search
- Convertible notes of $303.4M were repaid during the nine months ended September 30, 2026, leaving the company debt-free
Financial Impact
Revenue beat consensus by $4.5M (2.0%); GAAP EPS of $0.52 vs consensus $0.70; full-year guidance raised by $13M-$10M on revenue and $16M-$14M on adjusted EBITDA
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Subscription | $188.2M | +13.9% |
| Transactional | $18.1M | +1.0% |
| Services and Other | $19.6M | +5.1% |
Risk Factors
- Q4 revenue guidance of $226M-$230M implies 9-10% YoY growth, a deceleration from Q3's 12%
- GAAP EPS of $0.52 was below the consensus estimate of $0.70, though the company does not guide to GAAP EPS
- Cash and investments declined from $432.7M at year-end 2025 to $123.0M at Q3 2026, partly due to $304.0M in convertible note repayment and $158.9M in share repurchases
- The co-CEO structure and CFO transition create near-term management uncertainty
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001410384-26-000062 |
| Document: qtwo-20261028.htm | 0001410384-26-000062 |
| Document: 0001410384-26-000062-index-headers.html | 0001410384-26-000062 |
| Document: 0001410384-26-000062-index.html | 0001410384-26-000062 |
| Document: 0001410384-26-000062.txt | 0001410384-26-000062 |
| 8-K Data (Synthetic) | 0001410384-26-000062 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | $65.28 | awaiting T+20 | awaiting T+20 | $67.08 (+2.76%) |
Oct 28, 2026 2d ago | 8-K | $65.28 | awaiting T+20 | awaiting T+20 | $67.08 (+2.76%) |
Oct 20, 2026 10d ago | Institutional Cluster | $66.41 | awaiting T+20 | awaiting T+20 | $67.08 (+1.01%) |
Aug 14, 2026 11w ago | Insider Cluster | $64.41 $60.08 | ▼ −6.72% | ▼ −4.75% | $67.08 (+4.15%) |
Mar 9, 2026 33w ago | Insider Cluster | $51.26 $48.22 | ▲ +5.93% | ▲ +5.76% | $67.08 (−30.86%) |
Mar 4, 2026 34w ago | Insider Cluster | $52.07 $47.74 | ▲ +8.32% | ▲ +4.53% | $67.08 (−28.83%) |
Mar 4, 2026 34w ago | Insider Cluster | $49.99 $47.40 | ▲ +5.18% | ▲ +0.77% | $67.08 (−34.19%) |
Mar 3, 2026 34w ago | Insider Cluster | $50.53 $47.30 | ▲ +6.39% | ▲ +1.99% | $67.08 (−32.75%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers