Q2 Holdings Q2 adjusted EPS misses estimates

Q2 Holdings

30/07/2025 21:51

Overview

Q2 Holdings Q2 2025 rev grows 13% yr/yr

Adjusted EBITDA for Q2 beats consensus, reflecting solid operational performance

Adjusted EPS for Q2 missed analyst expectations, per LSEG data

Outlook

Q2 Holdings, a digital transformation solutions provider for for financial services, sees Q3 revenue of $196 mln to $200 mln

Company expects Q3 adjusted EBITDA of $44 mln to $47 mln

Q2 Holdings forecasts full-year revenue of $783 mln to $788 mln

Company anticipates full-year adjusted EBITDA of $177 mln to $181 mln

Result Drivers

CONTRACT EXPANSIONS - Q2 signed multiple Tier 1 contracts, including expansions with top U.S. banks, driving revenue growth

RISK AND FRAUD SOLUTIONS - Increased demand for risk and fraud solutions contributed to Q2's positive quarterly results

BACKLOG GROWTH - Backlog increased by $403 mln year-over-year, indicating strong future commitments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Miss
$0.18
$0.52 (12 Analysts)
Q2 Adjusted EBITDA
Beat
$45.80 mln
$42.70 mln (13 Analysts)
Q2 Adjusted Gross Margin
57.5%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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 $103.50, about 12.7% above its July 29 closing price of $90.40

The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 37 three months ago

Press Release: ID:nBw2DBqvna

(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.)