Q2 Holdings Inc. Common Stock (QTWO)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Measured by Graham's cautious arithmetic, Q2 Holdings is not a bargain. At the close on 2026-10-13, the price was $59.28, while FairStock's Graham Number is $18.16, leaving a margin of safety of -226.43%. That tells me the market is paying for future success rather than current asset value. FairStock's P/B is 5.74 and EV/EBITDA is 23.90, so expectations are high. Still, the business is improving. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $219.8M, net income was $29.9M, and diluted EPS was $0.46, versus revenue of $195.1M, net income of $11.8M, and diluted EPS of $0.18 in fiscal Q2 2025, the quarter ended 2025-06-30. For FY2025, the year ended 2025-12-31, revenue was $794.8M and net income was $52.0M, compared with FY2024, the year ended 2024-12-31, revenue of $696.5M and a net loss of $38.5M. The computed Lynch category is turnaround, returned to profit after a loss within the last three years. Financial health looks solid: D/E 0.06, Piotroski 9/9, Altman 6.33, free cash flow $189.0M and FCF yield 5.1%. ROE is 14.98%, though ROCE is only 4.53%. Q2 sells digital banking software to financial institutions, where mission-critical systems can create switching costs, but I need evidence of durable pricing power. FairStock Score 37/100 and FairStock's P/E of 41.75 tell me the stock already discounts much of the recovery. The growth is real, but the price asks for a lot.

In plain English: Q2 Holdings sells digital banking software to financial institutions. The business looks stronger than a few years ago: it has moved from losses to profits, sales are rising, and it generates cash. At the recent share price, however, the stock looks expensive compared with the company's accounting value and profits, so much of the good news may already be priced in.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer