Short answer
Q2 Holdings, Inc. (QTWO) filed its fiscal 2025 10-K annual report with the SEC on Feb 11, 2026. It reported revenue of $795M (+14.1% year over year) and net income of $52M.
- Top risk flagged: Cybersecurity risks from third-party providers critical to operations, overseen quarterly by RACC with updates from CISO and CRO
FY2025 key financial metrics · XBRL
- Revenue
- $795M
- +14.1% YoY
- Net income
- $52M
- +235.0% YoY
- Operating margin
- 5.0%
- +11.1 pp YoY
- Gross margin
- 54.1%
- +3.2 pp YoY
- EPS (diluted)
- $0.80
- +225.0% YoY
- ROE
- 7.9%
- +15.3 pp YoY
- Operating cash flow
- $201M
- +48.4% YoY
Source: XBRL data from the Q2 Holdings, Inc. (QTWO) FY2025 10-K on SEC EDGAR. USD.
Q2 Holdings, Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Cloud-based, unified SaaS platform providing digital banking, lending, risk/fraud, and embedded finance solutions to financial institutions and FinTechs
- Emphasized new segments: Expanded portfolio to include Q2 Innovation Studio for API/SDK customization and Helix, a cloud-native core/BaaS platform for FinTechs and banks
- Strategic shift: Broader market focus beyond regional banks to include large banks, FinTechs, Alt-FIs; platform extensibility and integration prioritized to support ecosystem partnerships
- Quantitative highlight: 1,200+ financial institution customers, 27.3 million digital platform account holders, $4.0 trillion in transactions in 2025; $23.0 billion estimated total addressable market
- Noteworthy fact: Customers’ contracted revenue on digital banking platform grows approximately 61% within 48 months post-implementation, illustrating strong platform monetization and adoption
Management Discussion & Analysis
- Revenue $794.8M, up 14.1% YoY (+$98.3M) driven by $95.0M increase in subscription revenue
- Operating margins improved; cost of revenues 45.9% of sales vs 49.1% in 2024, sales & marketing 13.3% vs 15.2%
- Best segment: subscription revenue growth 17% in 2025 vs 16% prior year; worst: amortization of acquired intangibles down 99.5% (-$16.9M)
- Operating cash flow $201.5M up from $135.8M; capex and capitalized software $28.1M; share repurchases $5.0M; 2025 Notes repaid $191.0M
- Management expects continuing revenue growth and margin improvement long-term despite increased investments; risks include market conditions and timing of implementations
Risk Factors
- Cybersecurity risks from third-party providers critical to operations, overseen quarterly by RACC with updates from CISO and CRO
- Dependency on Chief Risk Officer with 10+ years risk management and Chief Information Security Officer with 20+ years experience for risk oversight
- Incident response escalation procedures essential for mitigating cybersecurity breaches requiring senior management and RACC involvement
- Extensive reliance on external consultants and auditors to evaluate and strengthen information security program continuously
- No specific regulatory, geopolitical, competitive, or financial risks detailed in this section
Generated from the filing text; verify against the original. How to read a 10-K
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