Q2 Holdings Reports Strong Q3 2026 Results Driven by Subscription Growth and AI Adoption
Q2 Holdings (QTWO) reported robust third-quarter results for 2026, characterized by record gross margins and significant growth in subscription revenue. Total revenue reached $225.8 million, a 12% year-over-year increase, while subscription revenue climbed 14% to $188.2 million, now accounting for 83% of the company's total top line. The company's shift toward high-margin recurring revenue is evident in its adjusted EBITDA, which rose 39% compared to the prior year. Growth was bolstered by significant enterprise wins, including a major contract with a $3 billion credit union and expansion deals within existing client bases. Additionally, management highlighted strong early interest in their AI-driven User Activity Monitoring (UAM) solution. Despite some expected pressure on discretionary services revenue, Q2 Holdings provided optimistic full-year guidance and maintained an aggressive share repurchase program.
Tickers: $QTWO
Topics: Adjusted EBITDA Annualized Recurring Revenue (ARR) Free Cash Flow New Contracts Revenue Growth Subscription Revenue