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Q2 Holdings Inc. Wins Eight Tier 1 Deals — Is Enterprise Momentum Accelerating?

Q2 Holdings reported its second quarter 2026 financial results with revenue of $219.8 million, reflecting year-over-year growth of 13% driven primarily by subscription revenue, which represents 83% of total revenue and grew 15% year-over-year. Adjusted EBITDA reached $62.8 million, accounting for 28.6% of revenue, marking an improvement in operating leverage compared to prior periods. Free cash flow generation was $51 million, and the company ended the quarter with a cash balance of $106 million after retiring $304 million of convertible notes and completing $23 million in share repurchases, leaving it debt-free with an expanded share repurchase authorization of up to $375 million. The company reported total annualized recurring revenue (ARR) of $971 million, a 13% increase year-over-year, with subscription ARR rising 15% to $826 million. Its backlog increased 17% year-over-year to $2.