# Q2 Holdings Inc. (QTWO) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Technology / Software. Price $71.23, market value $4.4 billion.

## Valuation
- **P/E (trailing): 42.1×** (5-yr avg 90.2×, 3-yr avg 90.2×). Q2 Holdings Inc. trades at 42.1× trailing earnings, well below its own five-year average of 90.2×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 20.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.09**. A PEG of 0.09 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 5.1×**. Each dollar of revenue is priced at 5.1×.
- **Price / book: 6.7×**. The shares trade at 6.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 25.7×**. Enterprise value is 25.7× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 5.3%** (5-yr avg 2.1%). Free cash flow equals 5.3% of the market value, above its five-year average of 2.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.4%**. The inverse of the P/E: 2.4% of the price is earned each year.

## Profitability
- **Gross margin: 58.4%**. Q2 Holdings Inc. keeps 58.4% of revenue after the direct cost of what it sells.
- **Operating margin: 12.4%**. 12.4% of revenue is left after running the business.
- **Net margin: 6.5%**. 6.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 7.9%**. 7.9% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 29.0%**. Return on all capital, debt included, is 29.0%: comfortably above what that capital costs.
- **Return on assets: 8.6%**. Each dollar of assets produces 8.6% of profit.

## Growth
- **Revenue growth (1 yr): 14.1%** (3-yr 12.0%/yr, 5-yr 14.6%/yr). Revenue grew 14.1% over the last year, against 14.6% a year compounded over five years.
- **EPS growth (1 yr): 225.0%**. Earnings per share rose 225.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 97.1%/yr**. Free cash flow has compounded at 97.1% a year over three years.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Q2 Holdings Inc. holds more cash than debt.
- **Current ratio: 1.02** (quick 1.02). Current assets cover the next year's liabilities 1.02 times.
- **Altman Z-score: 5.76**. A Z-score of 5.76 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend: none**. Q2 Holdings Inc. does not currently pay a dividend.

## Price and momentum
- **Total return (1 yr): 14.1%** (YTD -2.4%, 3-mo 12.8%). The shares are up 14.1% over twelve months including dividends.
- **From 52-week high: -6.6%** (74.6% above the low). Trading 7% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 70**. An RSI of 70 is neutral.
- **Beta (1 yr): 0.28** (volatility 45%). Beta of 0.28 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=QTWO · Page: https://foliofundamentals.com/stocks/qtwo

Not investment advice.