Fintech firm Q2 Holdings Q3 revenue up 15% on record bookings

Q2 Holdings

05/11/2025 21:45

Overview

Q2 Holdings Q3 revenue grows 15% yr/yr to $201.7 mln

Adjusted EBITDA for Q3 beats analyst expectations

Company announces $150 mln share repurchase program

Outlook

Q2 Holdings sees Q4 2025 revenue of $202.4 mln to $206.4 mln

Company expects Q4 2025 adjusted EBITDA of $47.2 mln to $50.2 mln

Q2 Holdings raises full-year 2025 revenue guidance to $789 mln - $793 mln

Company forecasts 2026 subscription revenue growth of approximately 13.5%

Result Drivers

STRONG SALES - Co attributes revenue growth to strong sales across Enterprise and Tier 1 segments, driving record bookings

CONTRACT SIGNINGS - Signed contracts with top U.S. banks for digital banking solutions, contributing to growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$201.70 mln
Q3 EPS
$0.23
Q3 Adjusted EBITDA
Beat
$48.80 mln
$45.76 mln (14 Analysts)
Q3 Adjusted Gross Margin
57.90%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Q2 Holdings Inc is $100.43, about 39.7% above its November 4 closing price of $60.53

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release: ID:nBw11D2Z6a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)