November 5, 2025 3 rd Quarter 2025 Results Safe Harbor Statement This presentation and the accompanying oral presentation contain forward -looking statements and information that are based on our management's beliefs and assumptions and on information currently available to our management . The statements and information contained in this presentation that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the S ...

Customer Metrics - As of December 31, 2024, the company had 460 Installed Customers on its digital banking platform, up from 450 in 2023 and 444 in 2022[110]. - The average number of Registered Users per Installed Customer increased, with approximately 24.7 million Registered Users as of December 31, 2024, compared to 22.0 million in 2023 and 21.1 million in 2022[111]. - The company's net revenue retention rate was 109%, 108%, and 110% for the years ended December 31, 2024, 2023, and 2022, respectively[113]. - The subscription net revenue retention rate was 114%, 112%, and 115% for the same years[113]. Financial Performance - Subscription Annual Recurring Revenue (ARR) was $681.9 million, $593.9 million, and $500.9 million for the years ended December 31, 2024, 2023, and 2022, respectively[115]. - Total ARR was $824.2 million, $734.8 million, and $655.2 million for the years ended December 31, 2024, 2023, and 2022, respectively[115]. - The annual revenue churn was 4.4%, 6.1%, and 6.3% for the years ended December 31, 2024, 2023, and 2022, respectively[116]. - For the three months ended September 30, 2025, the company reported revenues of $201.7 million, a 15.3% increase from $175.0 million in the same period of 2024[139]. - For the nine months ended September 30, 2025, revenues rose by $73.2 million, or 14.3%, to $586.6 million, primarily due to a $70.9 million increase in subscription revenue[144]. - Revenues for the three months ended September 30, 2025, increased by $26.7 million, or 15.2%, to $201.7 million, driven by a $24.6 million increase in subscription revenue[143]. Operating Expenses and Profitability - Non-GAAP operating income for the three months ended September 30, 2025, was $40.7 million compared to $25.3 million for the same period in 2024[120]. - Adjusted EBITDA for the three months ended September 30, 2025, was $48.8 million, compared to $32.6 million for the same period in 2024, reflecting a 49.5% increase[123]. - The cost of revenues as a percentage of revenues decreased to 46.0% for the three months ended September 30, 2025, down from 49.1% in 2024, indicating improved cost efficiency[141]. - Operating expenses totaled $97.8 million for the three months ended September 30, 2025, compared to $101.9 million in 2024, showing a reduction in expenses[139]. - Research and development expenses for the three months ended September 30, 2025, were $38.9 million, representing 19.3% of revenues, down from 21.1% in 2024[141]. - The company recognized a gross profit of $108.8 million for the three months ended September 30, 2025, which is 54.0% of revenues, up from 50.9% in 2024[141]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025 was $137.8 million, compared to $92.7 million for the same period in 2024[167]. - As of September 30, 2025, the company had cash, cash equivalents, and investments totaling $568.7 million[166]. - The company experienced a net increase in cash, cash equivalents, and restricted cash of $113.7 million for the nine months ended September 30, 2025[167]. - The company anticipates that cash flow from operations and available borrowings will be adequate to meet cash requirements for the next twelve months[166]. Strategic Initiatives - The company continues to invest in expanding its digital banking platform and intends to pursue strategic acquisitions to enhance its offerings[101]. - The company aims to enhance customer engagement and retention through its comprehensive suite of digital solutions tailored to the needs of financial institutions[102]. - The company plans to continue investing in its sales organization to capture opportunities in the financial institution, FinTech, and Alt-FI markets[100]. - The company plans to continue investing in technology infrastructure and customer support to enhance efficiency and support growth[148]. Market and Economic Conditions - The financial services industry is undergoing significant transformation, with increasing demand for digital solutions from financial institutions and the rise of FinTechs and Alt-FIs[97]. - Recent geopolitical tensions and regulatory changes may introduce uncertainty but have not yet materially impacted the company's operations or financial performance[106][105]. - Inflation has not had a direct material effect on the company's business, but significant inflationary pressures could harm financial condition and results of operations[187]. Legal and Regulatory Matters - The company paid $1.8 million in March 2025 to settle a legal dispute, which is excluded from non-GAAP financial measures[120]. - General and administrative expenses for the nine months ended September 30, 2025, rose by $2.1 million, or 2.3%, to $95.1 million, primarily due to a non-recurring legal settlement charge[156]. Risk Management - The company does not believe it has significant exposure to foreign currency exchange risks due to low volume of payments through foreign subsidiaries[185]. - The most significant currency exposures as of September 30, 2025, included the Indian rupee, Mexican peso, Canadian dollar, Australian dollar, and British pound[185]. - The company does not currently use derivative financial instruments to mitigate foreign currency exchange risks but may consider this in the future[186].

Financial Performance - Revenue for Q3 2025 was $201.7 million, representing a 15% year-over-year increase and a 3% increase from Q2 2025[7] - GAAP net income for Q3 2025 was $15.0 million, compared to a net loss of $11.8 million in the prior-year quarter[7] - Adjusted EBITDA for Q3 2025 was $48.8 million, up from $32.6 million in the prior-year quarter[7] - Subscription Annualized Recurring Revenue increased to $745.4 million, a 14% year-over-year growth[8] - Remaining Performance Obligations (Backlog) totaled approximately $2.5 billion, reflecting a 24% year-over-year growth[8] - Q2 Holdings raised its full-year 2025 revenue guidance to between $789.0 million and $793.0 million, indicating a year-over-year growth of 13% to 14%[14] - Adjusted EBITDA for the full year 2025 is projected to be between $182.5 million and $185.5 million, representing 23% of revenue[14] - Q2 Holdings reported revenues of $201.7 million for the three months ended September 30, 2025, representing a 15.3% increase from $175.0 million in the same period of 2024[31] - The company achieved a net income of $15.0 million for Q3 2025, compared to a net loss of $11.8 million in Q3 2024, marking a significant turnaround[31] - GAAP gross profit for Q3 2025 was $108,845, compared to $89,059 in Q3 2024, representing a 22.2% increase[35] - Revenues for Q3 2025 were $201,704, an increase of 15.3% from $175,021 in Q3 2024[35] - Non-GAAP gross margin improved to 57.9% in Q3 2025, compared to 56.0% in Q3 2024[35] Assets and Liabilities - Total current assets increased to $707.3 million as of September 30, 2025, up from $558.7 million at the end of 2024, reflecting a growth of 26.6%[29] - Cash and cash equivalents rose to $472.4 million, compared to $358.6 million at the end of 2024, indicating a 31.7% increase[29] - Q2 Holdings' total assets reached $1.43 billion as of September 30, 2025, up from $1.29 billion at the end of 2024, representing an increase of 10.2%[29] - The company’s total liabilities increased to $803.8 million as of September 30, 2025, compared to $777.0 million at the end of 2024, reflecting a rise of 3.4%[29] Operating Expenses - Operating expenses for Q3 2025 totaled $97.8 million, a decrease from $101.9 million in Q3 2024, showing a reduction of 4.0%[31] - Non-GAAP general and administrative expense for the nine months ended September 30, 2025, was $58,085, slightly down from $59,059 in 2024[35] Shareholder Actions - The company announced a share repurchase program of up to $150 million[6] - The weighted average common shares outstanding for Q3 2025 were 62.5 million, compared to 60.3 million in Q3 2024, indicating a growth in shares[31] Strategic Initiatives - The company signed seven Enterprise and Tier 1 contracts in Q3 2025, including agreements with Top 50 U.S. Enterprise banks[8] - Leadership changes were announced to align talent with the company's long-term strategy, including the appointment of a new Chief Operating Officer[15] - Q2 Holdings provided guidance for future revenues, expecting continued growth driven by new product developments and market expansion strategies[27] Cash Flow - Free cash flow for the nine months ended September 30, 2025, was $116,778, up from $69,874 in 2024, indicating a 67.1% increase[37] Non-GAAP Metrics - Non-GAAP gross profit for the nine months ended September 30, 2025, reached $338,974, up from $285,211 in the same period of 2024, a growth of 18.9%[35] - GAAP operating income for the nine months ended September 30, 2025, was $23,033, a significant recovery from a loss of $40,688 in the same period of 2024[35] - Adjusted EBITDA for the nine months ended September 30, 2025, was $135,326, compared to $87,714 in 2024, reflecting a 54.3% increase[35] - Non-GAAP operating income for Q3 2025 was $40,710, up from $25,324 in Q3 2024, marking a 60.8% increase[35]

Core Insights - Q2 Holdings, Inc. reported third quarter 2025 results with revenue of $201.7 million, reflecting a 15 percent increase year-over-year and a 3 percent increase from the second quarter of 2025 [1] - The company's GAAP gross margin improved to 54.0 percent, up from 50.9 percent in the same quarter last year and 53.6 percent in the previous quarter [1] - GAAP net income for the third quarter was reported at $15.0 million [1]

Core Viewpoint - Q2 Holdings, Inc. (NYSE:QTWO) is identified as a stock with exponential growth potential heading into 2026, despite a recent price target reduction by Stifel from $110 to $90 while maintaining a "Buy" rating [1][2]. Group 1: Stock Performance and Analyst Insights - The stock has underperformed compared to the broader software group since the US Federal Reserve announced a rate cut in September [2]. - Historically, management has indicated that a reduced rate environment could catalyze technology investments, as banks focus on efficiency and deposit gathering when net interest margins decline [2]. Group 2: Company Management and Growth Strategy - Q2 Holdings' management remains confident in its profitable growth strategy for the remainder of the year, supported by strong execution and a robust pipeline [3]. - The company provides cloud-based digital banking and lending solutions to financial institutions both in the U.S. and internationally [3]. - Despite facing elevated customer churn in Q2 2025 due to a mix of M&A and non-renewing point solution customers, the company maintains a target of sub 5% overall churn for 2025 [3]. - Q2 Holdings is positioned to achieve a 13% subscription revenue target for 2025, with expectations of improved profitability and cash flow [3].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Q2 Holdings (QTWO) due to higher revenues, with actual results being crucial for stock price movement [1][2] Earnings Expectations - Q2 Holdings is expected to report earnings of $0.55 per share, reflecting a year-over-year increase of +96.4% [3] - Revenues are projected to be $197.46 million, up 12.8% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 1.05% lower in the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +2.75% suggests recent bullish sentiment among analysts, despite a Zacks Rank of 4 indicating a sell [12] Earnings Surprise History - In the last reported quarter, Q2 Holdings had an expected EPS of $0.51 but delivered $0.50, resulting in a surprise of -1.96% [13] - The company has only beaten consensus EPS estimates once in the last four quarters [14] Industry Context - In the Zacks Internet - Software industry, Spotify (SPOT) is expected to report earnings of $1.87 per share, a year-over-year change of +17.6% [18] - Spotify's revenue is anticipated to be $4.92 billion, up 12.3% from the previous year, but the consensus EPS estimate has been revised down by 5% [19]

Core Insights - Q2 Metals Corp. has appointed Mr. Keith Phillips to its Board of Directors, enhancing the board's expertise in the lithium sector and investment banking [1][6] - Mr. Phillips previously served as CEO of Piedmont Lithium, leading it to a peak market capitalization of over $1.0 billion and establishing it as a global lithium producer [3][4] - The Cisco Lithium Project, a key focus for Q2 Metals, is positioned as one of the most promising undeveloped hard-rock lithium projects globally, with an initial exploration target estimating 215 to 329 million tonnes of lithium mineralization [9][10] Company Overview - Q2 Metals Corp. is a Canadian mineral exploration company focused on the Cisco Lithium Project located in Quebec, Canada [8] - The Cisco Project has district-scale potential, with ongoing exploration programs aimed at an initial mineral resource estimate expected in Q1 2026 [10] Leadership Background - Mr. Phillips has a 30-year career in investment banking, managing transactions worth over $100 billion and leading mining investment banking teams at major firms [4] - He holds an MBA in Finance from The University of Chicago and a Bachelor of Commerce from Laurentian University [5] Strategic Goals - The appointment of Mr. Phillips aligns with Q2 Metals' strategic goals, particularly in advancing the Cisco Lithium Project and enhancing its role in the North American and global lithium supply chain [6][9] Equity Incentive Awards - Q2 Metals has granted 1,300,000 stock options to directors, officers, and consultants at an exercise price of $0.95 per share for five years, subject to a hold period [7] Upcoming Events - Q2 Metals will participate in several upcoming industry events, including XPLOR in Montreal and the 121 Mining Event in London [8]

Core Insights - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, but their Smid Cap Composite underperformed the Russell 2500 Growth Index, returning -1.1% net-of-fees compared to the index's +10.7% [1] - The stock market rally that began in April continued with a narrow and "low quality" leadership [1] Company Overview: Q2 Holdings, Inc. (NYSE:QTWO) - Q2 Holdings, Inc. is a digital solutions provider for financial institutions, FinTechs, and alternative finance companies [2][3] - The stock experienced a one-month return of -23.43% and a 52-week loss of 27.27%, closing at $59.86 with a market capitalization of $3.738 billion on October 17, 2025 [2] Performance and Challenges - Q2 Holdings faced pressure on its shares due to concerns about IT spending by regional banks and credit unions, along with company-specific issues such as elevated customer churn in Q2 2025 [3] - The elevated churn was attributed to a mix of M&A and some point solution customers not renewing contracts, although the company maintains a target of sub 5% overall churn for 2025 [3] - Q2 Holdings aims to achieve a 13% subscription revenue growth target for 2025 and is seeing improved profitability and cash flow [3] Market Sentiment - Q2 Holdings was not among the 30 most popular stocks among hedge funds, with 29 hedge fund portfolios holding the stock at the end of Q2 2025, down from 31 in the previous quarter [4] - While the potential of Q2 Holdings is acknowledged, certain AI stocks are viewed as offering greater upside potential with less downside risk [4]

Core Viewpoint - Q2 Holdings, Inc. is actively participating in the financial services sector by providing digital transformation solutions and will attend Citi's 14th Annual FinTech Conference in November 2025 [1] Company Overview - Q2 Holdings, Inc. is recognized as a leading provider of digital transformation solutions specifically tailored for financial services [1] - The company serves a diverse clientele including banks, credit unions, alternative finance companies, and fintechs both in the U.S. and internationally [1]

Core Insights - Q2 Holdings Inc. (NYSE: QTWO) is approaching a potential inflection point in profitability after a decade since its IPO, with scale and improving unit economics indicating positive trends [1] Company Performance - The company has not yet achieved consistent profitability, but there are signs that it is catching up [1] - The timing of this potential profitability remains a concern for investors [1]