Q2 Holdings Q3 adjusted EBITDA beats analyst expectations on margin expansion
Q2 Holdings Q3 adjusted EBITDA beats analyst expectations on margin expansion
Overview
Digital banking solutions provider's Q3 revenue rose 12% yr/yr
Q3 adjusted EBITDA beat analyst expectations
Company repurchased $38.8 mln of shares in Q3
Outlook
Q2 Holdings 2026 revenue guidance of $888 mln-$892 mln
Company sees 2026 adjusted EBITDA at $253 mln-$256 mln
Q2 Holdings expects Q4 revenue of $226 mln-$230 mln and adjusted EBITDA of $62.4 mln-$65.4 mln
Result Drivers
DIGITAL BANKING BOOKINGS - Co said solid bookings in digital banking, including multiple Tier 1 contracts with credit unions and banks, contributed to Q3 results
AI-DRIVEN FRAUD SOLUTIONS - Early demand for new AI-driven fraud solution was strong, with early-adopter sign-ups about double initial expectations
MARGIN EXPANSION - Record gross margin and adjusted EBITDA margin reflected continued scalability of business model, per CFO Jonathan Price
Company press release: ID:nBwb2p6Dza
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| $225.80 mln |
|
Q3 Net Income |
| $33.20 mln |
|
Q3 Adjusted EBITDA | Beat | $67.76 mln | $60.78 mln (13 Analysts) |
Q3 Gross Margin |
| 59.70% |
|
Q3 Adjusted Gross Margin |
| 62.60% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "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 $75.00, about 10.1% above its October 27 closing price of $68.13
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)