Slides
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21% Y/Y Growth 3% Seq. Growth
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Appendix
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$20B Total Addressable Market
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Q2 Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, December 31, Headers manually updated 2025 2024 Assets Current assets: Cash and cash equivalents 414,275$ 358,560$ Restricted cash 1,742 2,233 Investments 117,797 88,066 Accounts receivable, net 60,323 42,084 Contract assets, current portion, net 8,033 7,888 Prepaid expenses and other current assets 20,321 23,512 Deferred solution and other costs, current portion 27,025 26,611 Deferred implementation costs, current portion 10,230 9,706 Total current assets 659,746 558,660 Property and equipment, net 27,070 31,528 Right of use assets 29,535 30,402 Deferred solution and other costs, net of current portion 27,492 28,116 Deferred implementation costs, net of current portion 28,342 26,408 Intangible assets, net 86,769 94,633 Goodwill 512,869 512,869 Contract assets, net of current portion and allowance 11,296 9,483 Other long-term assets 2,294 2,696 Total assets 1,385,413$ 1,294,795$ Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued liabilities 50,043$ 60,542$ Convertible notes, current portion 493,438 190,331 Deferred revenues, current portion 179,438 137,700 Lease liabilities, current portion 9,362 10,327 Total current liabilities 732,281 398,900 Convertible notes, net of current portion - 302,115 Deferred revenues, net of current portion 25,285 27,281 Lease liabilities, net of current portion 36,524 38,346 Other long-term liabilities 6,988 10,357 Total liabilities 801,078 776,999 Stockholders' equity: Common stock 6 6 Additional paid-in capital 1,233,480 1,183,893 Accumulated other comprehensive loss (1,438) (1,873) Accumulated deficit (647,713) (664,230) Total stockholders' equity 584,335 517,796 Total liabilities and stockholders' equity 1,385,413$ 1,294,795$
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Q2 Holdings, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) Headers manually updated (in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, Headers manually updated 2025 2024 2025 2024 Revenues 195,148$ 172,890$ 384,883$ 338,398$ Cost of revenues(1) 90,584 86,063 179,329 169,319 Gross profit 104,564 86,827 205,554 169,079 Operating expenses: Sales and marketing 27,037 27,733 53,564 53,178 Research and development 36,914 35,759 74,767 70,621 General and administrative 31,034 31,283 63,356 61,459 Amortization of acquired intangibles - 4,788 93 9,616 Lease and other restructuring charges (261) 967 1,745 2,093 Total operating expenses 94,724 100,530 193,525 196,967 Income (loss) from operations 9,840 (13,703) 12,029 (27,888) Total other income, net 3,657 2,732 6,708 4,629 Income (loss) before income taxes 13,497 (10,971) 18,737 (23,259) Provision for income taxes (1,733) (2,089) (2,220) (3,644) Net income (loss) 11,764$ (13,060)$ 16,517$ (26,903)$ Other comprehensive income (loss): Unrealized gain (loss) on available-for-sale investments (53) 51 (77) 177 Foreign currency translation adjustment 335 49 512 (272) Comprehensive income (loss) 12,046$ (12,960)$ 16,952$ (26,998)$ Net income (loss) per common share Basic $ 0.19 $ (0.22) $ 0.27 $ (0.45) Diluted $ 0.18 $ (0.22) $ 0.25 $ (0.45) Weighted average common shares outstanding Basic 62,353 60,162 61,790 59,804 Diluted 69,642 60,162 64,963 59,804 (1) Includes deferred revenue reduction from purchase accounting of zero and $0.1 million for the three months ended September 30, 2024 and 2023, respectively, Includes amortization of acquired technology of $5.5 million for each of the three months ended June 30, 2025 and 2024, and $11.0 million for each of the six months ended June 30, 2025 and 2024.
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Q2 Holdings, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Six Months Ended June 30, Headers manually updated 2025 2024 Cash flows from operating activities: Net income (loss) 16,517$ (26,903)$ Adjustments to reconcile net income (loss) to net cash from operating activities: Amortization of deferred implementation, solution and other costs 14,566 13,115 Depreciation and amortization 27,275 35,168 Amortization of debt issuance costs 1,086 991 Amortization of premiums and discounts on investments (835) (443) Stock-based compensation expense 43,510 45,132 Deferred income taxes (1,303) 944 Other non-cash items 146 496 Changes in operating assets and liabilities: (8,790) (19,034) Net cash provided by operating activities 92,172 49,466 Cash flows from investing activities: Net maturities (purchases) of investments (28,973) 26,745 Purchases of property and equipment (2,095) (2,856) Capitalized software development costs (10,549) (11,835) Net cash provided by (used in) investing activities (41,617) 12,054 Cash flows from financing activities: Proceeds from exercise of stock options and ESPP 4,218 11,448 Net cash provided by financing activities 4,218 11,448 Effect of exchange rate changes on cash, cash equivalents and restricted cash 451 (260) Net increase in cash, cash equivalents and restricted cash 55,224 72,708 Cash, cash equivalents and restricted cash, beginning of period 360,793 233,632 Cash, cash equivalents and restricted cash, end of period 416,017$ 306,340$
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Q2 Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, Headers manually updated 2025 2024 2025 2024 GAAP gross profit 104,564$ 86,827$ 205,554$ 169,079$ Stock-based compensation 2,062 3,400 5,280 6,565 Amortization of acquired technology 5,504 5,504 11,009 11,008 Lease and other restructuring charges 173 588 317 595 Non-GAAP gross profit 112,303$ 96,319$ 222,160$ 187,247$ Non-GAAP gross margin: Non-GAAP gross profit 112,303$ 96,319$ 222,160$ 187,247$ Revenues 195,148 172,890 384,883 338,398 Non-GAAP gross margin 57.5% 55.7% 57.7% 55.3% GAAP sales and marketing expense 27,037$ 27,733$ 53,564$ 53,178$ Stock-based compensation (3,989) (4,469) (7,441) (8,340) Non-GAAP sales and marketing expense 23,048$ 23,264$ 46,123$ 44,838$ GAAP research and development expense 36,914$ 35,759$ 74,767$ 70,621$ Stock-based compensation (4,161) (4,625) (8,203) (8,468) Non-GAAP research and development expense 32,753$ 31,134$ 66,564$ 62,153$ GAAP general and administrative expense 31,034$ 31,283$ 63,356$ 61,459$ Stock-based compensation (12,288) (11,837) (22,586) (21,759) Non-recurring legal settlements - - (1,750) - Non-GAAP general and administrative expense 18,746$ 19,446$ 39,020$ 39,700$ GAAP operating income (loss) 9,840$ (13,703)$ 12,029$ (27,888)$ Stock-based compensation 22,500 24,331 43,510 45,132 Amortization of acquired technology 5,504 5,504 11,009 11,008 Amortization of acquired intangibles - 4,788 93 9,616 Lease and other restructuring charges (88) 1,555 2,062 2,688 Non-recurring legal settlements - - 1,750 - Non-GAAP operating income 37,756$ 22,475$ 70,453$ 40,556$ Reconciliation of GAAP net income (loss) to adjusted EBITDA: GAAP net income (loss) 11,764$ (13,060)$ 16,517$ (26,903)$ Stock-based compensation 22,500 24,331 43,510 45,132 Depreciation and amortization 13,555 17,645 27,275 35,168 Lease and other restructuring charges (88) 1,555 2,062 2,688 Non-recurring legal settlements - - 1,750 - Provision for income taxes 1,733 2,089 2,220 3,644 Interest and other income, net (3,666) (2,689) (6,826) (4,625) Adjusted EBITDA 45,798$ 29,871$ 86,508$ 55,104$ Adjusted EBITDA margin 23.5% 17.3% 22.5% 16.3%
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Q2 Holdings, Inc. Reconciliation of Free Cash Flow (in thousands) (unaudited) Six Months Ended June 30, Headers manually updated 2025 2024 Net cash provided by operating activities 92,172$ 49,466$ Purchases of property and equipment (2,095) (2,856) Capitalized software development costs (10,549) (11,835) Free cash flow 79,528$ 34,775$
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