Q2 HOLDINGS INC (QTWO) Fundamental Analysis & Valuation

NYSE:QTWO • US74736L1098

50.52 USD
-0.74 (-1.44%)
At close: Mar 11, 2026
50.52 USD
0 (0%)
After Hours: 3/11/2026, 8:21:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This QTWO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

QTWO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. QTWO has an average financial health and profitability rating. QTWO is not priced too expensively while it is growing strongly. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

4

1. QTWO Profitability Analysis

1.1 Basic Checks

  • In the past year QTWO was profitable.
  • QTWO had a positive operating cash flow in the past year.
  • In the past 5 years QTWO reported 4 times negative net income.
  • In the past 5 years QTWO always reported a positive cash flow from operatings.
QTWO Yearly Net Income VS EBIT VS OCF VS FCFQTWO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M

1.2 Ratios

  • With a decent Return On Assets value of 4.07%, QTWO is doing good in the industry, outperforming 70.04% of the companies in the same industry.
  • QTWO has a Return On Equity of 7.86%. This is in the better half of the industry: QTWO outperforms 71.84% of its industry peers.
  • QTWO has a better Return On Invested Capital (4.74%) than 71.84% of its industry peers.
Industry RankSector Rank
ROA 4.07%
ROE 7.86%
ROIC 4.74%
ROA(3y)-1.45%
ROA(5y)-4.11%
ROE(3y)-4.72%
ROE(5y)-11.99%
ROIC(3y)N/A
ROIC(5y)N/A
QTWO Yearly ROA, ROE, ROICQTWO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -10 -20 -30

1.3 Margins

  • QTWO's Profit Margin of 6.54% is fine compared to the rest of the industry. QTWO outperforms 66.43% of its industry peers.
  • The Operating Margin of QTWO (5.52%) is better than 67.87% of its industry peers.
  • QTWO's Gross Margin of 54.06% is on the low side compared to the rest of the industry. QTWO is outperformed by 66.43% of its industry peers.
  • QTWO's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 5.52%
PM (TTM) 6.54%
GM 54.06%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.07%
GM growth 5Y4.52%
QTWO Yearly Profit, Operating, Gross MarginsQTWO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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6

2. QTWO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so QTWO is destroying value.
  • The number of shares outstanding for QTWO has been increased compared to 1 year ago.
  • QTWO has more shares outstanding than it did 5 years ago.
  • QTWO has a better debt/assets ratio than last year.
QTWO Yearly Shares OutstandingQTWO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
QTWO Yearly Total Debt VS Total AssetsQTWO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

2.2 Solvency

  • An Altman-Z score of 3.20 indicates that QTWO is not in any danger for bankruptcy at the moment.
  • QTWO's Altman-Z score of 3.20 is fine compared to the rest of the industry. QTWO outperforms 66.06% of its industry peers.
  • There is no outstanding debt for QTWO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.75
Altman-Z 3.2
ROIC/WACC0.46
WACC10.34%
QTWO Yearly LT Debt VS Equity VS FCFQTWO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

2.3 Liquidity

  • QTWO has a Current Ratio of 1.02. This is a normal value and indicates that QTWO is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of QTWO (1.02) is worse than 73.65% of its industry peers.
  • A Quick Ratio of 1.02 indicates that QTWO should not have too much problems paying its short term obligations.
  • QTWO has a worse Quick ratio (1.02) than 72.92% of its industry peers.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 1.02
QTWO Yearly Current Assets VS Current LiabilitesQTWO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. QTWO Growth Analysis

3.1 Past

  • QTWO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.17%, which is quite impressive.
  • Measured over the past years, QTWO shows a very strong growth in Earnings Per Share. The EPS has been growing by 103.28% on average per year.
  • Looking at the last year, QTWO shows a quite strong growth in Revenue. The Revenue has grown by 14.12% in the last year.
  • Measured over the past years, QTWO shows a quite strong growth in Revenue. The Revenue has been growing by 14.56% on average per year.
EPS 1Y (TTM)48.17%
EPS 3Y110.64%
EPS 5Y103.28%
EPS Q2Q%30.77%
Revenue 1Y (TTM)14.12%
Revenue growth 3Y12%
Revenue growth 5Y14.56%
Sales Q2Q%13.75%

3.2 Future

  • QTWO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.23% yearly.
  • Based on estimates for the next years, QTWO will show a quite strong growth in Revenue. The Revenue will grow by 10.49% on average per year.
EPS Next Y22.61%
EPS Next 2Y19.78%
EPS Next 3Y19.23%
EPS Next 5YN/A
Revenue Next Year10.74%
Revenue Next 2Y10.46%
Revenue Next 3Y10.49%
Revenue Next 5YN/A

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
QTWO Yearly Revenue VS EstimatesQTWO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
QTWO Yearly EPS VS EstimatesQTWO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 2 3 4

More info and screens

Find the best growth stocksShow best growing peers

5

4. QTWO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.79, the valuation of QTWO can be described as rather expensive.
  • Based on the Price/Earnings ratio, QTWO is valued a bit cheaper than the industry average as 70.40% of the companies are valued more expensively.
  • QTWO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
  • A Price/Forward Earnings ratio of 16.96 indicates a correct valuation of QTWO.
  • QTWO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QTWO is cheaper than 70.76% of the companies in the same industry.
  • QTWO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.27.
Industry RankSector Rank
PE 20.79
Fwd PE 16.96
QTWO Price Earnings VS Forward Price EarningsQTWO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, QTWO is valued a bit cheaper than the industry average as 66.06% of the companies are valued more expensively.
  • 76.53% of the companies in the same industry are more expensive than QTWO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.18
EV/EBITDA 30.87
QTWO Per share dataQTWO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • QTWO's earnings are expected to grow with 19.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)0.2
EPS Next 2Y19.78%
EPS Next 3Y19.23%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. QTWO Dividend Analysis

5.1 Amount

  • No dividends for QTWO!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

QTWO Fundamentals: All Metrics, Ratios and Statistics

Q2 HOLDINGS INC

NYSE:QTWO (3/11/2026, 8:21:01 PM)

After market: 50.52 0 (0%)

50.52

-0.74 (-1.44%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners112%
Inst Owner Change1.34%
Ins Owners0.49%
Ins Owner Change0.23%
Market Cap3.15B
Revenue(TTM)794.81M
Net Income(TTM)52.01M
Analysts80
Price Target79.33 (57.03%)
Short Float %4.88%
Short Ratio3.16
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.94%
Min EPS beat(2)11.11%
Max EPS beat(2)14.78%
EPS beat(4)4
Avg EPS beat(4)11.54%
Min EPS beat(4)7.29%
Max EPS beat(4)14.78%
EPS beat(8)8
Avg EPS beat(8)13.5%
EPS beat(12)11
Avg EPS beat(12)24.69%
EPS beat(16)13
Avg EPS beat(16)24.98%
Revenue beat(2)0
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.33%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-0.62%
Revenue beat(12)0
Avg Revenue beat(12)-0.88%
Revenue beat(16)0
Avg Revenue beat(16)-1.27%
PT rev (1m)-12.46%
PT rev (3m)-12.53%
EPS NQ rev (1m)11.53%
EPS NQ rev (3m)11.53%
EPS NY rev (1m)5.02%
EPS NY rev (3m)5.07%
Revenue NQ rev (1m)2.34%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.42%
Valuation
Industry RankSector Rank
PE 20.79
Fwd PE 16.96
P/S 3.97
P/FCF 18.18
P/OCF 15.65
P/B 4.76
P/tB 44.67
EV/EBITDA 30.87
EPS(TTM)2.43
EY4.81%
EPS(NY)2.98
Fwd EY5.9%
FCF(TTM)2.78
FCFY5.5%
OCF(TTM)3.23
OCFY6.39%
SpS12.74
BVpS10.61
TBVpS1.13
PEG (NY)0.92
PEG (5Y)0.2
Graham Number24.08
Profitability
Industry RankSector Rank
ROA 4.07%
ROE 7.86%
ROCE 5.99%
ROIC 4.74%
ROICexc 11.58%
ROICexgc N/A
OM 5.52%
PM (TTM) 6.54%
GM 54.06%
FCFM 21.81%
ROA(3y)-1.45%
ROA(5y)-4.11%
ROE(3y)-4.72%
ROE(5y)-11.99%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.07%
GM growth 5Y4.52%
F-Score7
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.75
Debt/EBITDA 0
Cap/Depr 52.59%
Cap/Sales 3.53%
Interest Coverage 15.43
Cash Conversion 207.02%
Profit Quality 333.35%
Current Ratio 1.02
Quick Ratio 1.02
Altman-Z 3.2
F-Score7
WACC10.34%
ROIC/WACC0.46
Cap/Depr(3y)45.84%
Cap/Depr(5y)46.59%
Cap/Sales(3y)4.2%
Cap/Sales(5y)4.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.17%
EPS 3Y110.64%
EPS 5Y103.28%
EPS Q2Q%30.77%
EPS Next Y22.61%
EPS Next 2Y19.78%
EPS Next 3Y19.23%
EPS Next 5YN/A
Revenue 1Y (TTM)14.12%
Revenue growth 3Y12%
Revenue growth 5Y14.56%
Sales Q2Q%13.75%
Revenue Next Year10.74%
Revenue Next 2Y10.46%
Revenue Next 3Y10.49%
Revenue Next 5YN/A
EBIT growth 1Y226.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year50.94%
EBIT Next 3Y28.18%
EBIT Next 5YN/A
FCF growth 1Y62.45%
FCF growth 3Y198.63%
FCF growth 5YN/A
OCF growth 1Y48.4%
OCF growth 3Y76.63%
OCF growth 5YN/A

Q2 HOLDINGS INC / QTWO FAQ

What is the fundamental rating for QTWO stock?

ChartMill assigns a fundamental rating of 5 / 10 to QTWO.


Can you provide the valuation status for Q2 HOLDINGS INC?

ChartMill assigns a valuation rating of 5 / 10 to Q2 HOLDINGS INC (QTWO). This can be considered as Fairly Valued.


Can you provide the profitability details for Q2 HOLDINGS INC?

Q2 HOLDINGS INC (QTWO) has a profitability rating of 4 / 10.


What is the expected EPS growth for Q2 HOLDINGS INC (QTWO) stock?

The Earnings per Share (EPS) of Q2 HOLDINGS INC (QTWO) is expected to grow by 22.61% in the next year.