Digital banking software provider Q2 Holdings (NYSE: QTWO) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
Q2 Holdings beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $201.7 million, up 15.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Is Q2 Holdings a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Q2 Holdings’s revenue to grow 12% year on year to $205 million, in line with the 12.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.61 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Q2 Holdings has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.2% on average.
Looking at Q2 Holdings’s peers in the vertical software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dolby Laboratories’s revenues decreased 2.9% year on year, beating analysts’ expectations by 4.4%, and PTC reported revenues up 21.4%, topping estimates by 8.2%. Dolby Laboratories traded up 1.8% following the results while PTC was also up 1.7%.
Read our full analysis of Dolby Laboratories’s results here and PTC’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. Unfortunately, vertical software stocks have struggled in this environment as share prices are down 17.9% on average over the last month. Q2 Holdings is down 18.4% during the same time and is heading into earnings with an average analyst price target of $89.29 (compared to the current share price of $56.45).
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