Q2 Holdings 10-Q Details Q3 Net Income of $33.2M and $181.7M Nine-Month Operating Cash Flow
QTWO sits 68% above its 52-week low of $40.79.
Summary
Q2 Holdings' Q3 10-Q backs up the morning's earnings beat with $33.2M of net income, $181.7M of nine-month operating cash flow, zero debt after repaying its convertibles, and $336.1M still available for buybacks.
Key Events · Earnings and Guidance · QTWO
-
Q3 Profit Nearly Triples
Revenue of $225.8M produced net income of $33.2M, or $0.52 diluted EPS, versus $15.0M and $0.23 a year earlier; gross margin expanded to 59.7% from 54.0%.
-
Cash Generation Jumps
Nine-month operating cash flow was $181.7M versus $137.8M in 2025, with net income of $89.7M and non-cash adjustments of $118.9M.
-
Convertible Notes Fully Repaid
The $304.0M of 0.75% convertible senior notes due June 2026 were repaid in cash in Q2 2026 with no conversions; no debt remains and the $125.0M revolver is undrawn.
-
Buyback Keeps Running
633,019 shares were repurchased in Q3 for $38.8M at an average $61.27, leaving $336.1M available under the $500M combined authorization.
Analysis · QTWO · Technology
The full quarterly report behind this morning's earnings release confirms the beat was driven by real cash-generating business rather than accounting: nine-month operating cash flow rose to $181.7M from $137.8M, and net income nearly tripled to $89.7M from $31.6M. The balance sheet also changed shape. Q2 repaid the entire $304.0M of 0.75% convertible notes in Q2 2026, leaving no debt outstanding and $123.0M of cash and investments, while still buying back 633,019 shares for $38.8M in the quarter with $336.1M left on the authorization. The trade-off is that interest income fell with the smaller cash pile, which is why other income dropped to $0.4M from $4.2M. Nothing here contradicts the guidance raise; it substantiates it.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.7% of the 1698 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, QTWO was trading at $68.40 on NYSE in the Technology sector, with a market capitalization of approximately $4.2B. The 52-week trading range was $40.79 to $76.24. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.