--- title: "Q2 | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 219.77 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/294257883.md" datetime: "2026-07-29T20:38:26.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294257883.md) - [en](https://longbridge.com/en/news/294257883.md) - [zh-HK](https://longbridge.com/zh-HK/news/294257883.md) generator: "portal-rs" --- # Q2 | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 219.77 M Revenue: As of FY2026 Q2, the actual value is USD 219.77 M, beating the estimate of USD 216.97 M. EPS: As of FY2026 Q2, the actual value is USD 0.46, beating the estimate of USD 0.3833. #### Stock Repurchase Authorization Q2 Holdings, Inc.’s Board of Directors authorized up to $350 million in additional repurchases of its common stock. This authorization has no expiration date and can be suspended, modified, or terminated by the Board of Directors at any time without prior notice. #### GAAP Financial Performance (Three Months Ended June 30, 2026) - GAAP gross margin reached 59.2%, an increase from 53.6% in the prior-year quarter and 59.1% in the first quarter of 2026. - GAAP net income was $29.9 million, up from $11.8 million in the prior-year quarter and $26.6 million in the first quarter of 2026. #### Non-GAAP Financial Performance (Three Months Ended June 30, 2026) - The non-GAAP gross margin was 62.3%, an increase from 57.5% in the prior-year quarter and 62.1% in the first quarter of 2026. - Adjusted EBITDA stood at $62.8 million, up from $45.8 million in the prior-year quarter and $60.0 million in the first quarter of 2026. #### Revenue by Major Source (Three Months Ended June 30, 2026 vs. 2025) - Subscription Revenue: $182,773 thousand in 2026, compared to $158,422 thousand in 2025. - Transactional Revenue: $17,924 thousand in 2026, compared to $16,734 thousand in 2025. - Services and Other Revenue: $19,068 thousand in 2026, compared to $19,992 thousand in 2025. #### Operational Metrics and Highlights - Q2 Holdings, Inc. signed eight Enterprise and Tier 1 contracts during the quarter, including an expansion agreement with a Top 25 U.S. Enterprise bank and a new agreement with a Tier 1 bank. - Subscription Annualized Recurring Revenue (ARR) increased to $825.5 million, representing a 15% year-over-year growth. - Remaining Performance Obligations (Backlog) totaled approximately $2.8 billion at quarter-end, increasing by $21.6 million sequentially (1% growth) and $404.3 million year-over-year (17% growth). - The company repurchased 0.5 million shares of its common stock for $22.9 million at an average price of approximately $45.67 during the quarter. - An additional $350 million share repurchase authorization was approved by the Board of Directors, bringing the total available repurchase capacity to approximately $375 million. - Q2 Holdings, Inc. retired its convertible notes in June, ending the quarter debt-free. - The company introduced Q2 Assistant, an embedded AI capability for bankers, and demonstrated Q2 Code, its AI-assisted development capability. New account takeover capabilities were also showcased through User Activity Monitoring, which uses AI for real-time fraud detection. #### Cash Flow (Six Months Ended June 30, 2026 vs. 2025) - Net Cash Provided by Operating Activities: $116,975 thousand in 2026, compared to $92,172 thousand in 2025. - Purchases of Property and Equipment: - $8,301 thousand in 2026, compared to - $2,095 thousand in 2025. - Capitalized Software Development Costs: - $13,479 thousand in 2026, compared to - $10,549 thousand in 2025. - Free Cash Flow: $95,195 thousand in 2026, compared to $79,528 thousand in 2025. #### Financial Outlook (as of July 29, 2026) Q2 Holdings, Inc. expects total revenue for the third quarter of 2026 to be between $218.5 million and $222.5 million, with adjusted EBITDA projected at $58.5 million to $61.5 million. For the full-year 2026, the company updated its guidance to anticipate total revenue of $881.0 million to $886.0 million, reflecting 11% year-over-year growth. Full-year adjusted EBITDA is forecast to be $244.0 million to $248.0 million, representing 28% of revenue. ### Related Stocks - [QTWO.US](https://longbridge.com/en/quote/QTWO.US.md) ## Related News & Research - [Q2 CFO Jonathan Price sells 77,180 shares for $5.07 million](https://longbridge.com/en/news/295986891.md) - [U: Q2 delivered record growth and margins, with AI-driven momentum and strong Q3 outlook](https://longbridge.com/en/news/295121021.md) - [This Is What Hedge Funds Bought And Sold In Q2 '26: Full 13F Summary](https://longbridge.com/en/news/296137969.md) - [What Berkshire Hathaway’s Latest 13F Says About Who’s Swimming Naked](https://longbridge.com/en/news/296496169.md) - [Warren Buffett's Successor, Greg Abel, Has 34.7% of Berkshire Hathaway's Portfolio Invested in These 2 Artificial Intelligence (AI) Stocks](https://longbridge.com/en/news/296274565.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**