Q2 (US:QTWO) Businesswire·2026-02-11 21:15Core Insights - Q2 Holdings, Inc. reported strong financial results for Q4 and full-year 2025, achieving a GAAP net income of $20.4 million for Q4 and $52.0 million for the full year, a significant improvement from a net loss of $38.5 million in 2024 [1][2] - The company experienced a 14% year-over-year revenue growth, reaching $208.2 million in Q4 and $794.8 million for the full year [1][2] - Q2 Holdings emphasized its focus on AI-driven innovation and strong execution across its business, which contributed to improved profitability and cash flow [1][2] Financial Performance - GAAP gross margin for Q4 was 55.4%, up from 52.6% in the prior year, and for the full year, it was 54.1%, compared to 50.9% in 2024 [1][2] - Non-GAAP adjusted EBITDA for Q4 was $51.2 million, an increase from $37.6 million in the prior year, and for the full year, it was $186.5 million, up from $125.3 million in 2024 [1][2] - The company signed eight significant contracts in Q4, including agreements with a top five credit union and a $40 billion bank, indicating strong demand for its digital banking solutions [1][2] Growth and Strategy - Q2 Holdings aims to leverage AI as a core element of its long-term strategy, enhancing its platform to deliver faster innovation and improve productivity [1][2] - The company anticipates subscription revenue growth of approximately 12.5% to 13% for 2027, with a long-term goal of achieving a non-GAAP gross margin of around 65% by 2030 [2] - Q2 Holdings is raising its full-year 2026 subscription revenue growth outlook, reflecting confidence in its operational execution and market demand [1][2] Shareholder Actions - In Q4 2025, Q2 retired $191 million in convertible debt and repurchased approximately 69,000 shares at an average price of $72.52, demonstrating a commitment to returning value to shareholders [1][2] - The company has $145 million remaining on its share repurchase authorization, indicating ongoing plans to manage its capital structure effectively [1][2]