Description

Q2 Holdings Is Unlocking “Found Money” From System Conversions—But How Big Can This Hidden Opportunity Become?

Q2 Holdings reported its fourth quarter and full year 2025 financial results highlighting continued execution in bookings, revenue growth, profitability, and free cash flow generation. The company achieved 16% year-over-year growth in subscription revenue in Q4 and expanded adjusted EBITDA margins by over 400 basis points year-over-year, generating $56.6 million in free cash flow for the quarter. The fourth quarter marked the company’s second-largest bookings quarter, following a record third quarter, with eight Tier 1 and enterprise deals that included comprehensive product purchases and expansions with large financial institutions such as a $40 billion digital banking customer and a top 5 credit union. For the full year 2025, total revenue increased 14% to $794.8 million, marking the highest annual growth rate since 2021. Subscription revenue, representing 82% of total revenue, grew 17%, driven by new customer wins and expansions.