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Q2 Holdings QTWO Return on invested capital

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11.4%+3.4pp

Other financials

Income statement

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Revenue$216.5M+14.1%
Gross profit$127.9M+26.7%
Operating income$27.7M+1,165%
Net income$26.6M+460%
EPS (diluted)$0.40+471%

Balance sheet

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Cash & equivalents$218.3M-34.3%
Total debt$343.9M+45.3%
Total equity$611.7M+12.1%
Total assets$1.2B-7.7%

Cash flow

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Operating cash flow$56.3M+29.4%
CapEx$6.6M+740%
Free cash flow$49.7M+16.3%

Valuation

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Market cap$2.71B-39.3%
Enterprise value$2.83B-35.4%
P/E36.7×
P/S3.3×-2.9×

Profitability

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Gross margin55.6%+3.8pp
Operating margin8%+6.1pp
Net margin9%+7.3pp
FCF margin24.5%+2.4pp

Returns & leverage

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Return on equity12.8%+10.3pp
Debt / equity0.6×+0.1×
Current ratio0.9×-0.5×

Where this comes from

Calculated from Q2 Holdings’s reported figures.

Based on trailing twelve months.

The official record: Q2 Holdings’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Q2 Holdings's return on invested capital?
Q2 Holdings (QTWO) reported return on invested capital of 10.3% in Q1 2026.
How has Q2 Holdings's return on invested capital changed year-over-year?
Q2 Holdings's return on invested capital increased by 237.2% year-over-year, from -7.5% to 10.3%.
What is the long-term trend for Q2 Holdings's return on invested capital?
Over 5 years (2020 to 2025), Q2 Holdings's return on invested capital has grown at a -28.3% compound annual growth rate (CAGR), from -33.5% to 6.3%.
What does return on invested capital mean?
Net operating profit after tax (operating income taxed at the effective rate) divided by average invested capital (debt plus equity minus cash). Measures the after-tax return on all capital put to work in the business, independent of capital structure.