Q2 Holdings posts revenue growth, adds $350M share buyback

Q2 Holdings, Inc. (NYSE: QTWO) reported second-quarter 2026 revenue of $219.8 million, up 13% from the prior-year quarter, and said its board approved an additional $350 million share repurchase authorization, bringing total available repurchase capacity to approximately $375 million.

GAAP net income for the quarter ended June 30, 2026, was $29.9 million, compared with $11.8 million in the same period a year earlier. GAAP gross margin was 59.2%, up from 53.6% in the prior-year quarter. Adjusted EBITDA was $62.8 million, compared with $45.8 million a year ago, representing an adjusted EBITDA margin of 28.6%.

The company also retired its convertible notes in June, ending the quarter with no debt. Subscription Annualized Recurring Revenue rose 15% year-over-year to $825.5 million. Total committed backlog reached approximately $2.8 billion, up 17% from a year earlier.

During the quarter, Q2 repurchased 0.5 million shares at an average price of approximately $45.67 per share for total consideration of $22.9 million, leaving $24.9 million remaining under the prior $150 million authorization announced in November 2025. The new $350 million authorization follows that earlier program.

For the third quarter of 2026, Q2 guided for total revenue of $218.5 million to $222.5 million, representing year-over-year growth of 8% to 10%, and adjusted EBITDA of $58.5 million to $61.5 million. For full-year 2026, the company raised its guidance to total revenue of $881.0 million to $886.0 million, representing 11% year-over-year growth, and adjusted EBITDA of $244.0 million to $248.0 million, or approximately 28% of revenue.

During the quarter, Q2 signed eight Enterprise and Tier 1 contracts, including an expansion with a top 25 U.S. bank to add relationship pricing solutions and a net new agreement with a Tier 1 bank for retail and commercial digital banking solutions. The company also held its annual CONNECT customer conference, which drew more than 1,500 attendees, where it introduced Q2 Assistant, an AI-assisted product for bankers, and demonstrated Q2 Code, an AI-assisted development tool. The above information is based on a company press release.

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