Q2 Highlights Strong 2025 Finish with Robust Bookings and Profitability

Company sees continued growth in subscription revenue, fraud solutions, and AI-powered capabilities

Published on Feb. 12, 2026

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Q2 (NYSE:QTWO) executives highlighted a strong finish to 2025, pointing to robust fourth-quarter bookings, double-digit subscription revenue growth, expanding profitability, and higher free cash flow generation. Management also issued 2026 guidance and introduced longer-term margin targets that extend through 2030.

Why it matters

Q2's performance in 2025 demonstrates the company's ability to drive growth across its digital banking and fraud prevention solutions, as well as its progress in leveraging AI and cloud technologies to improve operational efficiency. This positions Q2 well to continue expanding its footprint among banks and credit unions seeking to enhance customer experiences and mitigate fraud risks.

The details

CEO Matt Flake said the company closed the year with 'solid execution across bookings, revenue, and profitability.' In the fourth quarter, Q2 posted 16% year-over-year subscription revenue growth, expanded adjusted EBITDA margins by more than 400 basis points year-over-year, and generated $56.6 million in free cash flow. Management emphasized that bookings reflected a mix of net new wins and expansions with existing customers, with 2025 described as Q2's strongest year across bookings, revenue, and profitability.

  • Q2 closed the year with strong fourth-quarter performance.
  • For the full year 2025, Q2 reported 14% year-over-year revenue growth, its highest annual growth rate since 2021.

The players

Q2 Holdings, Inc.

A developer and provider of cloud-based digital banking solutions that enable banks and credit unions to enhance customer and member experiences.

Matt Flake

CEO of Q2 Holdings, Inc.

Jonathan Price

CFO of Q2 Holdings, Inc.

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What they’re saying

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— Gordon Edgar, grocery employee (Instagram)

What’s next

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The takeaway

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