Latest news with #FinancialInstitutions
Yahoo
11 hours ago
- Business
- Yahoo
Q2 Holdings Inc (QTWO) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Raised Guidance
Revenue: $195 million, a 13% year-over-year increase. Adjusted EBITDA: $46 million, with a margin of 23.5%. Free Cash Flow: $42 million generated in the quarter. Subscription Revenue: Grew 16% year-over-year, comprising 81% of total revenue. Gross Margin: 57.5%, up from 55.7% in the prior year period. Total ARR: $861 million, a 10% year-over-year increase. Operating Expenses: $75 million, 38.2% of revenue, down from 42.7% in the prior year. Cash and Investments: $532 million at the end of the quarter. Full Year Revenue Guidance: Raised to $783 million to $788 million. Full Year Adjusted EBITDA Guidance: Raised to $177 million to $181 million. Free Cash Flow Conversion Outlook: Increased to 90% for 2025 and 2026. Warning! GuruFocus has detected 3 Warning Signs with UDMY. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Q2 Holdings Inc (NYSE:QTWO) reported strong financial results for the second quarter, with revenue of $195 million and adjusted EBITDA of $46 million, both exceeding the high end of guidance. Revenue grew 13% year-over-year, driven by a 16% increase in subscription-based revenues, which now account for 81% of total revenue. The company achieved significant Tier 1 wins, expanding its footprint among large financial institutions, and also saw success in Tier 2 and Tier 3 segments. Q2 Holdings Inc (NYSE:QTWO) generated record free cash flow of $42 million, reflecting effective working capital management and improved profitability. The company raised its full-year guidance for revenue, adjusted EBITDA, and free cash flow conversion, indicating confidence in continued strong performance. Negative Points Higher than typical churn was observed in the second quarter, partly due to M&A transactions, although full-year churn expectations remain in line with original assumptions. Gross margin slightly declined sequentially due to increased costs related to cloud migration, although full-year gross margin expansion is still expected. Services and other revenues showed only modest growth, with ongoing declines in discretionary professional service offerings. The company faces challenges in the M&A environment, with a lack of alignment in value expectations and financial profiles of potential acquisition targets. Despite a strong pipeline, there has not been a significant lift in new opportunities, and the company anticipates that most enterprise and Tier 1 activity will occur in the latter half of 2025. Q & A Highlights Q: Matt or Kirk, in the prepared remarks, you mentioned a positive tone on the demand environment. Are you seeing any of that reflected in your pipeline growth or new opportunities compared to previous quarters? A: Matt Flake, CEO: The pipeline is strong, and while I haven't seen a big lift, I'm happy with where it is. The anticipated deregulatory agenda might bring quicker decisions and more confidence, potentially driving more deals for us. Q: Regarding enterprise activity, you mentioned stronger expectations for the second half. What are you seeing from that market segment, and how does it compare to 2024? A: Matt Flake, CEO: Enterprise deals take time to build and close. We had a strong finish last year, and the sales teams are working on these deals. We expect a more normal mix with more Tier 1 enterprise-level deals in the second half of 2025 compared to 2024. Q: Can you quantify the penetration of risk and fraud products within your existing base? A: Jonathan Price, CFO: We have hundreds of standalone clients for our Centrix portfolio and a significant portion of our digital banking customers also use our risk and fraud solutions. While penetration is hard to quantify, it's a top-of-mind issue for financial institutions, and we continue to see strong opportunities to sell additional fraud products. Q: There was slightly higher churn in the second quarter. What drove this, and what are your expectations for churn in the second half? A: Jonathan Price, CFO: The higher churn was concentrated in the second quarter, partly due to known M&A transactions. However, full-year churn expectations remain in line with our original assumptions, with lower churn levels anticipated in the second half. Q: On the risk and fraud side, are you winning incremental solutions for customers, or are you displacing existing vendors? A: Kirk Coleman, President: We're seeing both. Some banks are replacing outdated products with our solutions, and we're also introducing new innovations. Our Centrix product family and partnerships through Innovation Studio are helping us provide new capabilities to fight fraud. Q: Has there been any evolution in the monetization strategy for Innovation Studio, and will it contribute more to revenue growth? A: Jonathan Price, CFO: As adoption grows, we're seeing more meaningful revenue from Innovation Studio. It's a high-margin area, and while the model hasn't changed, increased adoption is driving revenue growth alongside strategic benefits like improved win rates and customer retention. Q: With a more open approach to digital assets and crypto, do you see opportunities for growth in the Helix side of the business? A: Kirk Coleman, President: We're seeing cooperation among customers and partners regarding stable coins. While it's early, we see opportunities for banks to participate in stable coin services, and we're focusing on high-quality operators in the fintech space. Q: As you move upmarket, what core offerings or competencies help secure Tier 1 and enterprise digital banking customers? A: Matt Flake, CEO: Our precision lender and relationship pricing tools, along with our best-in-class retail, small business, and corporate banking platform, are key differentiators. The single platform provides a better user experience and operational efficiency, resonating with both large and small banks. Q: Beyond retiring convertible debt, what are the most attractive uses of capital? A: Jonathan Price, CFO: We're exploring M&A opportunities, but remain disciplined on value and financial profile. We also consider reinvesting in the business for growth and potential return of capital, although we haven't done so historically. Q: Can you update us on your cross-selling initiatives and how they're progressing? A: Matt Flake, CEO: We've had a solid year, and our client event in May typically drives cross-sell opportunities. We expect a strong second half in risk products, Innovation Studio, and commercial banking cross-sell, supported by a focused renewal strategy. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
SBS Australia
2 days ago
- Business
- SBS Australia
Working two or more jobs? Here's how to prepare your tax return
Registered tax agent Jocelyn David recommends waiting for your employers and financial institutions to upload pre-filled income information before lodging. Whether you're working two part-time jobs, doing freelance work under an ABN, or earning a bit on the side, all income must be included in your tax return. Choose your main job to claim the $18,200 tax-free threshold. Your second or third employer should withhold tax at a higher rate. PAKINGGAN ANG PODCAST SBS Filipino 11:55 Filipino The information and explanations in this podcast are for general guidance. For personalised advice and details specific to your situation, please consult a registered tax agent in Australia or refer to the ATO website. 📢 Where to Catch SBS Filipino
Yahoo
3 days ago
- Business
- Yahoo
Best money market account rates today, July 28, 2025 (Earn up to 4.41% APY)
Find out which banks are offering the top rates. Money market accounts (MMAs) can be a great place to store your cash if you're looking for a relatively high interest rate along with liquidity and flexibility. Unlike traditional savings accounts, MMAs typically offer better returns, and they may also provide check-writing privileges and debit card access. This makes these accounts ideal for holding long-term savings that you want to grow over time, but can still access when needed for certain purchases or bills. Where are the best money market interest rates today? Even though rates have been falling over the past several months, it's still possible to find money market accounts that pay more than 4% APY. Here is a look at some of today's best money market account rates: Interested in earning the best possible interest rate on your savings balance? Here is a look at some of the best savings and money market account rates available today from our verified partners. This embedded content is not available in your region. Historical money market account rates Money market account rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve's target interest rate. In the wake of the 2008 financial crisis, for example, interest rates were kept extremely low to stimulate the economy. The Fed slashed the federal funds rate to near zero, which led to very low MMA rates. During this time, money market account rates were typically around 0.10% to 0.50%, with many accounts offering rates on the lower end of that range. Eventually, the Fed began raising interest rates gradually as the economy improved. This led to higher yields on savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a brief but sharp recession, and the Fed once again cut its benchmark rate to near zero to combat the economic fallout. This resulted in a sharp decline in MMA rates. But starting in 2022, the Fed embarked on a series of aggressive interest rate hikes to combat inflation. This led to historically high deposit rates across the board. By late 2023, money market account rates had risen substantially, with many accounts offering 4% or higher. However, the Fed finally began cutting rates in late 2024. As of 2025, MMA rates remain high by historical standards, though they've begun a downward trajectory following the Fed's most recent rate cuts. Today, online banks and credit unions tend to offer the highest rates. What to consider when choosing a money market account When comparing money market accounts, it's important to look beyond just the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, can impact the total value you get from the account. For example, it's common for money market accounts to require a large minimum balance in order to earn the highest advertised rate — as much as $5,000 or more in some cases. Other accounts may charge monthly maintenance fees that can eat into your interest earnings. However, there are several MMAs available that offer competitive rates without any balance requirements, fees, or other restrictions. That's why it's important to shop around and compare accounts before making a decision. Additionally, ensure that the account you choose is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which guarantees deposits up to $250,000 per institution, per depositor. Most money market accounts are federally insured, but it's important to double-check in the rare case the financial insitution fails. Read more: Money market account vs. high-yield savings account: Which is best for you? Frequently asked questions: Money market account rates What is the interest rate in a money market account? The national average interest rate for money market accounts is just 0.64%, according to the FDIC. However, the best money market account rates often pay around 4% to 4.50% APY — similar to the rates offered on high-yield savings accounts. How much will $50,000 make in a money market account? The amount you will earn on $50,000 in a money market account depends on the annual percentage rate (APY) and the time period you leave the money in the account. For example, if you deposit $50,000 into a money market account that pays 4.5% APY and left it in your account for one year, you'd earn $2,303 in interest. Where can I get 5% interest on my money? There are currently no money market accounts that pay 5% APY. However, some high-yield savings accounts from online banks do. You can also check with your local bank or credit union to find out if they offer a 5% APY account that fits your needs. This embedded content is not available in your region.
Yahoo
23-07-2025
- Business
- Yahoo
SBTi unveils final net-zero standard for financial institutions
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. Dive Brief: The Science Based Targets initiative released the final version of its Financial Institutions Net-Zero standard Tuesday, which it said gives the finance sector a framework 'to align [its] lending, investing, insurance underwriting and capital market activities with net-zero.' SBTi, which validates whether global corporations' net-zero targets are aligned with leading climate science, said in a release that FINZ is the first framework to allow banks, asset owners and managers, private equity firms and other financial institutions to set science-based net-zero targets for 2050. The standard was piloted last year by 30 financial institutions and built off the organization's previous near-term target setting criteria for the sector, as well as stakeholder input SBTi received. The final standard includes an option for institutions to either focus on their financed emissions or their customers' net-zero alignment, according to the release. Dive Insight: SBTi said in a brief explainer the standard is designed to be used by entities that generate 5% or more of their revenue from lending, asset owner investing, asset management investing, insurance underwriting or capital market activities. The framework aims to guide companies through an 'expected net-zero journey' that first entails a public commitment to reach net-zero emissions by midcentury, followed by a base year portfolio assessment. The journey would also involve establishing policies and near- and long-term portfolio targets; conducting assessments and reporting progress; and assessing progress at the end of target cycles and setting new targets, according to a one-pager from SBTi. The standard notes that financial institutions 'play an enabling role' in the global climate transition and 'have the power to influence the direction of the economy and accelerate progress' on achieving global net-zero emissions. SBTi Chief Technical Officer Alberto Carrillo Pineda said in the release that the financial sector's economic influence and ability to engage portfolios is 'unparalleled' when it comes to the broader transition. 'Financial Institutions have the ability to play a transformative role in the transition to net-zero,' Carrillo Pineda said. 'With its broad applicability and flexibility, this robust, science-based standard will help financial institutions drive the net-zero transformation all over the world.' FINZ is aligned and designed to be interoperable with SBTi's broader Corporate Net-Zero Standard, with entities also being required to set non-portfolio targets using the flagship framework and/or sector standards. The standard will require financial institutions to phase out new 'general purpose financing or insuring of companies involved in oil and gas expansion immediately or by 2030 at the latest.' Financial institutions would also be required to adopt policies to immediately stop explicit project financing of fossil fuel expansion and general purpose financing of coal expansion. Global banks increased investments in fossil fuels and fossil fuel expansion year-over-year in 2024, after both numbers had fallen in the prior two years, according to the Rainforest Alliance Network's annual Banking on Climate Chaos report. FINZ requires companies to create a net-zero transition plan for any portfolio energy activities by midcentury. SBTi said the standard is also designed to allow financial institutions to engage with oil and gas companies as part of that transition. 'Today marks a key point of progress in setting a clear standard all financial institutions should meet to align their financing with climate goals,' Xavier Lerin, senior research manager at U.K. based climate nonprofit ShareAction, told ESG Dive. 'Importantly, the standard sends a clear signal that financial support for fossil fuel expansion must come to an end.' FINZ requires entities to address deforestation risks across their portfolio and commit to assess and publicly disclose their deforestation disclosure by 2030. If the assessment finds 'significant' exposure, institutions would also be required to develop an engagement plan to address its deforestation risk at the next target cycle at the latest, which SBTi said is usually five years after target validation. The standard also recommends that entities commit to increase financing for retrofitting existing buildings for decarbonization and cease new financial activities 'for buildings that are not zero-carbon ready.' SBTi is also in the process of piloting a draft update of its broader Corporate Net-Zero Standard, with a company survey portion of the pilot open until Aug. 15. Recommended Reading SBTi calls on financial institutions to pilot net-zero standard Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
Best money market account rates today, July 21, 2025 (Earn up to 4.41% APY)
Find out which banks are offering the top rates. Money market accounts (MMAs) can be a great place to store your cash if you're looking for a relatively high interest rate along with liquidity and flexibility. Unlike traditional savings accounts, MMAs typically offer better returns, and they may also provide check-writing privileges and debit card access. This makes these accounts ideal for holding long-term savings that you want to grow over time, but can still access when needed for certain purchases or bills. Where are the best money market interest rates today? Even though rates have been falling over the past several months, it's still possible to find money market accounts that pay more than 4% APY. Here is a look at some of today's best money market account rates: Interested in earning the best possible interest rate on your savings balance? Here is a look at some of the best savings and money market account rates available today from our verified partners. This embedded content is not available in your region. Historical money market account rates Money market account rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve's target interest rate. In the wake of the 2008 financial crisis, for example, interest rates were kept extremely low to stimulate the economy. The Fed slashed the federal funds rate to near zero, which led to very low MMA rates. During this time, money market account rates were typically around 0.10% to 0.50%, with many accounts offering rates on the lower end of that range. Eventually, the Fed began raising interest rates gradually as the economy improved. This led to higher yields on savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a brief but sharp recession, and the Fed once again cut its benchmark rate to near zero to combat the economic fallout. This resulted in a sharp decline in MMA rates. But starting in 2022, the Fed embarked on a series of aggressive interest rate hikes to combat inflation. This led to historically high deposit rates across the board. By late 2023, money market account rates had risen substantially, with many accounts offering 4% or higher. However, the Fed finally began cutting rates in late 2024. As of 2025, MMA rates remain high by historical standards, though they've begun a downward trajectory following the Fed's most recent rate cuts. Today, online banks and credit unions tend to offer the highest rates. What to consider when choosing a money market account When comparing money market accounts, it's important to look beyond just the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, can impact the total value you get from the account. For example, it's common for money market accounts to require a large minimum balance in order to earn the highest advertised rate — as much as $5,000 or more in some cases. Other accounts may charge monthly maintenance fees that can eat into your interest earnings. However, there are several MMAs available that offer competitive rates without any balance requirements, fees, or other restrictions. That's why it's important to shop around and compare accounts before making a decision. Additionally, ensure that the account you choose is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which guarantees deposits up to $250,000 per institution, per depositor. Most money market accounts are federally insured, but it's important to double-check in the rare case the financial insitution fails. Read more: Money market account vs. high-yield savings account: Which is best for you? Frequently asked questions: Money market account rates What is the interest rate in a money market account? The national average interest rate for money market accounts is just 0.64%, according to the FDIC. However, the best money market account rates often pay around 4% to 4.50% APY — similar to the rates offered on high-yield savings accounts. How much will $50,000 make in a money market account? The amount you will earn on $50,000 in a money market account depends on the annual percentage rate (APY) and the time period you leave the money in the account. For example, if you deposit $50,000 into a money market account that pays 4.5% APY and left it in your account for one year, you'd earn $2,303 in interest. Where can I get 5% interest on my money? There are currently no money market accounts that pay 5% APY. However, some high-yield savings accounts from online banks do. You can also check with your local bank or credit union to find out if they offer a 5% APY account that fits your needs. This embedded content is not available in your region.
