Stock AnalizQ2 Holdings, Inc. QTWO
Computer Software: Prepackaged Software · IPO 2014 · data as of November 13, 2026
Q2 Holdings, Inc. (QTWO) is a technology company listed in the US with a market value of about $4.6B. In the twelve months to September 30, 2026 it had revenue of $870M and net income of $110M, a net margin of 12.7%.
Its overall Stock Analiz score is 2.2 out of 5 (weak). The strongest part is future growth (5/5); the weakest is value (0/5).
Key numbers: a P/E of 43.8, a price to free cash flow of 20.8, 5-year revenue growth of 15% a year, a 5-year average ROIC of -4%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 57% below the current price.
Score: 2.2 / 5
Checks passed
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year revenue growth above 8% a year
- More cash than debt, or low debt to equity
- Positive free cash flow
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- 5-year EPS growth above 10% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $870M | $795M | $696M | $625M | $566M | $499M | $403M | $315M | $241M | $194M | $150M |
| Net income | $110M | $52M | -$39M | -$65M | -$109M | -$113M | -$138M | -$71M | -$35M | -$26M | -$36M |
| Free cash flow | $219M | $195M | $129M | $65M | $25M | $11M | -$27M | -$13M | -$9M | -$3M | -$11M |
| EPS (diluted) | $1.69 | $0.80 | $-0.64 | $-1.12 | $-1.90 | $-2.00 | $-2.65 | $-1.53 | $-0.83 | $-0.63 | $-0.92 |
| Net margin | 12.7% | 6.5% | -5.5% | -10.5% | -19.3% | -22.6% | -34.2% | -22.5% | -14.7% | -13.5% | -24.2% |
| ROIC | — | 5.4% | -3.8% | -6.8% | -7.3% | -5.2% | -6.3% | -6.7% | -8.4% | -24.9% | -28.1% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 14 analysts is $79.57, 8% above the current price; targets range from $67.01 to $87.00; the consensus rating is “Buy”; expected EPS is $2.84 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Q2’s P/E ratio?
About 43.8, based on the last twelve months of diluted earnings per share (forward P/E about 22.9).
Is Q2 stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 57% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Q2 pay a dividend?
Not currently.
Is Q2 a good stock to buy?
We do not give buy or sell advice. Q2 scores 2.2 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.