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Q2 Holdings's (NYSE:QTWO) Q1: Beats On Revenue, Stock Soars

Q2 Holdings's (NYSE:QTWO) Q1: Beats On Revenue, Stock Soars

Yahoo08-05-2025

Banking software provider Q2 (NYSE:QTWO) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 14.6% year on year to $189.7 million. Guidance for next quarter's revenue was better than expected at $193 million at the midpoint, 0.8% above analysts' estimates. Its GAAP profit of $0.07 per share was significantly above analysts' consensus estimates.
Is now the time to buy Q2 Holdings? Find out in our full research report.
Q2 Holdings (QTWO) Q1 CY2025 Highlights:
Revenue: $189.7 million vs analyst estimates of $186.6 million (14.6% year-on-year growth, 1.7% beat)
EPS (GAAP): $0.07 vs analyst estimates of -$0.01 (significant beat)
Adjusted Operating Income: $32.7 million vs analyst estimates of $29.96 million (17.2% margin, 9.1% beat)
The company slightly lifted its revenue guidance for the full year to $779.5 million at the midpoint from $775.5 million
EBITDA guidance for the full year is $172.5 million at the midpoint, above analyst estimates of $168.1 million
Operating Margin: 1.2%, up from -8.6% in the same quarter last year
Free Cash Flow Margin: 19.9%, similar to the previous quarter
Market Capitalization: $4.94 billion
Company Overview
Founded in 2004 by Hank Seale, Q2 (NYSE:QTWO) offers software-as-a-service that enables small banks to provide online banking and consumer lending services to their clients.
Sales Growth
Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Q2 Holdings grew its sales at a 11.7% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds.
Q2 Holdings Quarterly Revenue
This quarter, Q2 Holdings reported year-on-year revenue growth of 14.6%, and its $189.7 million of revenue exceeded Wall Street's estimates by 1.7%. Company management is currently guiding for a 11.6% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 10.4% over the next 12 months, similar to its three-year rate. Despite the slowdown, this projection is above the sector average and implies the market is forecasting some success for its newer products and services.
Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.

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87% of Fortune 500 Fall Short in Applying AI and Automation for Job Seekers — Yet Nearly Half of 18 – 34-Year-Olds Want a Personalized TikTok-Like Experience
87% of Fortune 500 Fall Short in Applying AI and Automation for Job Seekers — Yet Nearly Half of 18 – 34-Year-Olds Want a Personalized TikTok-Like Experience

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87% of Fortune 500 Fall Short in Applying AI and Automation for Job Seekers — Yet Nearly Half of 18 – 34-Year-Olds Want a Personalized TikTok-Like Experience

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Leading organizations that recognize this evolution are delivering personalized experiences through segmented candidate journeys across all roles and levels by implementing omnichannel approaches to job discovery, strategically investing in automation and intelligence solutions to scale personalization efficiently, and developing a compelling employer brand narrative that creates sustainable competitive advantages. 1 This survey was conducted online within the United States by The Harris Poll on behalf of Phenom from May 20 - 22, 2025 among 2,055 adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Phenom. 2 Based on Phenom's data. 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"In today's economy, AI-powered recruitment isn't just an advantage — it's survival. Organizations can automate up to 90% of hiring workflows while improving candidate experience. Those who resist this evolution won't just fall behind; they'll become irrelevant in a market where efficiency and speed directly determine viability." Phenom's AI, Generative AI and AI agents empower organizations to hire and onboard faster, develop better and retain longer through augmented work — while ensuring responsible AI adoption and utilization. Phenom's award-winning AI technology innovations fuel productivity and efficiency for recruiters, talent marketers, talent leaders, hiring managers, HR and HRIT. To read the full 2025 report and Fortune 500 company rankings, and industry breakdowns across 14 industries including Healthcare & Pharmaceutical, Manufacturing & Materials, Retail, Restaurant & Hospitality, and Transportation & Distribution, download here. 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