Q2 Holdings quarterly adjusted EBITDA beats, revenue up 13%; raises FY outlook

Overview

• Digital banking solutions provider's Q2 revenue rose 13% yr/yr

• Adjusted EBITDA for Q2 beat analyst expectations

• Company authorized additional $350 mln share repurchase, raising total capacity to $375 mln

Outlook

• Q2 Holdings sees Q3 2026 revenue between $218.5 mln and $222.5 mln

• Company expects Q3 2026 adjusted EBITDA of $58.5 mln to $61.5 mln

• Q2 Holdings raises full-year 2026 revenue guidance to $881 mln-$886 mln

• Company expects full-year 2026 adjusted EBITDA of $244 mln to $248 mln

Result Drivers

• NEW AND EXPANDED BANK CONTRACTS - Co said Q2 results benefited from signing eight Enterprise and Tier 1 contracts, including expansion agreements with top U.S. banks for relationship pricing and digital banking solutions

• AI AND FRAUD SOLUTIONS ADOPTION - Co said customers are moving from AI curiosity to adoption, with new AI-powered products and fraud prevention capabilities seeing strong engagement at its CONNECT conference

• RECURRING REVENUE AND BACKLOG GROWTH - Co said subscription annualized recurring revenue rose 15% yr/yr and backlog grew 17% yr/yr, supporting continued growth outlook

Company press release: ID:nBw4bdsCba

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Q2 Holdings Inc is $74.00, about 24.9% above its July 28 closing price of $59.24

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• July 29 - SoFi's unchanged profit forecast tempers record quarter, revenue outlook lift

• July 29 - PSQ Holdings Q2 revenue jumps on Fintech growth

• July 28 - TransUnion beats Q2 revenue estimates, raises 2026 revenue growth outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)