Q2 Holdings, Inc. (NYSE: QTWO) is a leading provider of cloud-based digital banking platforms. Its solutions serve more than 1,300 banks, credit unions, and fintech/alternative finance companies, supporting over 27 million registered end-users worldwide. The Q2 platform delivers a comprehensive suite of services, including mobile banking, payment processing, lending and loan management, fraud detection and prevention, and personalized customer experiences. This integrated solution enables financial institutions to efficiently onboard, engage, grow, and retain consumer, small-business, and corporate clients. More than 80% of Q2’s annual revenue is recurring, supported by an average customer contract length of five years.
Let us explain.
Banks and credit unions choose Q2 as their preferred IT service provider for several reasons, such as speed to market, lower operational costs and the prospect of improved business results are important metrics. For example, Q2 Innovation Studio (APIs, SDK, and pre-built marketplace) lets institutions add hundreds of third-party solutions like payments, lending (e.g., Rocket Mortgage), ERP integrations, chatbots, credit scoring, and fraud tools in weeks instead of months. True plug-and-play innovation with minimal custom work. Other tools like Q2 Engage and Q2 SMART use data analytics to deliver tailored experiences, targeted offers, and in-the-moment recommendations that boost engagement, deposits, and account primacy. Embedded solutions (Q2 Sentinel, Centrix Positive Pay, advanced payee matching) stop fraud far better than legacy systems. Customers routinely report millions in saved losses and much higher adoption of security features. Q2 Catalyst (direct ERP integration, treasury pricing, payables) lets clients bank inside their own accounting systems, helping community and regional institutions win and grow high-value commercial relationships faster.
Show me the money.
Q2 signed seven Tier 1 and Enterprise-level contracts in 3Q25, including the following highlights: A net-new agreement with a Top 50 U.S. enterprise banks to implement Q2’s full retail and small-to-medium-sized bank digital banking solutions; An expansion agreement with an existing Top 50 U.S. enterprise bank to add retail digital banking capabilities, complementing the commercial solutions the bank already uses on Q2’s platform; An expansion agreement with another enterprise bank to adopt Q2’s risk and fraud prevention solutions. Point to point the average selling price has increased 15% over the last five years and Tier 1 and enterprise sales as mentioned above are major drivers.
Financial Performance
On November 5, 2025, Q2 reported its third quarter 2025 financial results of $201 million in revenue, up 15% year-over-year, adjusted EBITDA of $48.8, up 50% Y/Y, and a healthy backlog of $2.5 billion. The company also announced a $150 million share repurchase authorization, which is a sign of management’s confidence particularly in the face of servicing nearly $500 million in convertible notes.
Conclusion
According to industry data, financial institutions using Q2’s solutions from 2018 to 2023 experienced 25% higher deposit and loan growth, 10% improvement in revenue per employee, and increased return on assets compared to non-users. We believe Q2 is positioned for continued expansion, emphasizing premium solutions and operational efficiency. For those interested in a true fintech research project, Q2 touches on a broad range of topics like payments, digital banking and more.
