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Q2 Holdings QTWO Effective tax rates

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Other financials

Income statement

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Revenue$219.8M+12.6%
Gross profit$130.2M+24.5%
Operating income$29.3M+198%
Net income$29.9M+154%
EPS (diluted)$0.46+156%

Balance sheet

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Cash & equivalents$99.9M-73.5%
Total debt$40.9M-92.4%
Total equity$643.5M+10.1%
Total assets$968.4M-30.1%

Cash flow

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Operating cash flow$60.7M+24.7%
CapEx$1.7M+30.1%
Free cash flow$59.0M+24.5%

Valuation

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Market cap$3.92B-14.8%
Enterprise value$3.86B-19.0%
P/E42.6×-932×
P/S4.6×-1.6×

Profitability

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Gross margin57%+4.4pp
Operating margin10%+9.7pp
Net margin10.9%+10.2pp
FCF margin25.2%+2.0pp

Returns & leverage

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Return on equity15%+14.1pp
Debt / equity0.1×-0.9×
Current ratio0.9×0.0×

Where this comes from

Reported directly by Q2 Holdings in its filing.

Tagged under the XBRL concept us-gaap:EffectiveIncomeTaxRateContinuingOperations.

The source filing: Q2 Holdings’s 10-Q, filed July 29, 2026.

Filed
Jul 29, 2026, 5:05 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001410384-26-000053

The Company's provision for income taxes reflected an effective tax rate of approximately 5.9% and 12.8% for the three months ended June 30, 2026 and 2025, respectively, and 8.1% and 11.8% for the six months ended June 30, 2026 and 2025, respectively. For the three and six months ended June 30, 2026 and 2025, the Company's effective tax rate was lower than the U.S. federal statutory rate primarily due to its valuation allowance offsetting the benefits of losses. The Company's income tax expenses and benefits consist of federal, state and foreign current and deferred income tax expense from global operations.

Item 1. Financial Statements.

FAQ

What is Q2 Holdings's effective tax rates?
Q2 Holdings (QTWO) reported effective tax rates of $0.06 in Q2 2026.
How has Q2 Holdings's effective tax rates changed year-over-year?
Q2 Holdings's effective tax rates decreased by 53.9% year-over-year, from $0.13 to $0.06.
What is the long-term trend for Q2 Holdings's effective tax rates?
Over 2 years (2021 to 2024), Q2 Holdings's effective tax rates has grown at a 321.8% compound annual growth rate (CAGR), from -$0.03 to -$0.61.

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