Q2 (US:QTWO)2025-11-05 21:20Financial 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]