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Here are 1-3 brief analogies to describe Q2 (QTWO):

• Shopify for banks and credit unions: Just as Shopify enables businesses to easily set up an online store and compete in e-commerce, Q2 enables traditional financial institutions to quickly build modern digital banking experiences (online banking, mobile apps, account opening) to compete with challenger banks and fintechs.
• Salesforce for financial institutions' digital customer experience: Similar to how Salesforce provides a comprehensive cloud-based platform for managing customer relationships across industries, Q2 offers a specialized cloud platform for financial institutions to manage and deliver their digital customer interactions and services.

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• Q2 Platform: A comprehensive digital banking platform enabling financial institutions to offer seamless online and mobile experiences for retail and business customers. (Service: Digital Banking Software as a Service)
• Q2 Lending: Solutions that streamline the entire lending lifecycle for financial institutions, from application to servicing, across various loan types. (Service: Lending Automation Software as a Service)
• Q2 Engage: Tools and services designed to enhance customer engagement and financial wellness through personalized insights and interactive features. (Service: Customer Engagement and Financial Wellness Software as a Service)
• Q2 Innovation Studio: A developer platform that allows financial institutions to integrate third-party fintech applications and services into their digital banking experience. (Service: Fintech Integration Platform as a Service)

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Q2 Holdings, Inc. (symbol: QTWO) primarily sells its secure, cloud-based digital banking solutions to other companies, specifically financial institutions. Therefore, it operates on a business-to-business (B2B) model.

Q2's customer base consists of a broad range of financial institutions, which utilize Q2's platform for digital banking, lending, and sales enablement. These include:

• Community Banks: These are typically smaller, locally focused banks that serve specific communities or regions.
• Credit Unions: Member-owned financial cooperatives that provide banking and financial services to their members.
• Regional Banks: Larger banks that operate across a broader geographical area, often spanning multiple states.

Due to the nature of its business model, which involves serving thousands of financial institutions with a recurring revenue software-as-a-service (SaaS) model, Q2 typically does not disclose specific "major" individual customer companies by name and stock symbol in its public filings or investor communications. This is a common practice for enterprise software providers where no single customer accounts for a material percentage (e.g., 10% or more) of their total revenue, indicating a diversified customer base rather than reliance on a few large clients.

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• Amazon Web Services (AWS), a subsidiary of Amazon.com, Inc. (AMZN)

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Matt Flake, Chief Executive Officer and Chairman of the Board

Matt Flake joined Q2 in 2005 as Vice President of Sales, becoming President in 2008 and Chief Executive Officer in 2011. He was instrumental in guiding Q2's expansion from a startup to a publicly traded company. With over 25 years in the financial services industry, he has dedicated 19 of those years to Q2. Prior to Q2, Mr. Flake served as a Regional Sales Manager at Q-Up Systems from 1999 to 2002 and a Regional Sales Director at S1 Corporation from 2002 to 2005. He also serves on the Board of Directors for AffiniPay, a payment solutions company.

Jonathan Price, Chief Financial Officer

Jonathan Price was appointed Chief Financial Officer in November 2024. He has nearly 20 years of experience in corporate finance, encompassing investment banking, corporate strategy, and the technology and financial services software industries. Before his current role, he held various senior leadership positions at Q2, including Executive Vice President of Strategy and Emerging Businesses from 2023 to 2024, and roles in corporate and business development since 2018.

Kirk Coleman, Chief Business Officer

As Chief Business Officer, Kirk Coleman oversees day-to-day operations, including sales, customer success, marketing, and product organizations. He also leads product, engineering, hosting, infrastructure, delivery, and support. Before joining Q2, Mr. Coleman founded Centerline Advisors in July 2020, where he provided strategic guidance to mid-sized financial institutions and fintechs. His background also includes five years as a senior executive at Texas Capital Bank, managing service, operations, technology, and strategic planning, and a 20-year career at Accenture.

Adam Blue, Chief Technology Officer

Adam Blue is responsible for developing and coordinating Q2's technology strategy. He brings extensive expertise in technology and software management, having previously served as Vice President of Product Development, Customer Support, and Professional Services at CipherTrust, a leading provider of enterprise-class email security solutions. Mr. Blue also made significant contributions at Q UP Systems and Servana.com as Vice President of Internet Operations and was the Chief Network Engineer for Harte-Hanks Response Management.

Himagiri Mukkamala, Chief Operating Officer

Himagiri Mukkamala was appointed Chief Operating Officer effective November 6, 2025, where he oversees engineering, service delivery, and customer experience. Prior to this, he served as Q2's Chief Development Officer. He has over 25 years of leadership experience in enterprise technology, including serving as general manager of Penguin Edge (part of Penguin Solutions) and CEO of Pelion, an Arm company. His career also includes senior leadership positions at Arm, GE Digital, Raaga Corp, and Sybase.

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1. Intense Competitive Pressures, Slower Growth, and Customer Churn: Q2 operates in a highly competitive financial technology sector, leading to challenges in Annual Recurring Revenue (ARR) growth and elevated customer churn. This is exacerbated by bank consolidation and competition from point solutions in the market.
2. Macroeconomic Uncertainties and Evolving Regulatory Environment: Q2's performance is susceptible to global economic conditions and geopolitical events, which can lead to reduced spending by financial institutions on digital banking solutions. Furthermore, operating in a heavily regulated industry, the company faces ongoing challenges in adapting to evolving regulations, including those related to AI and machine learning, with non-compliance potentially resulting in penalties and reputational damage.
3. Dependence on Third-Party Services and Structurally High Infrastructure Costs: Q2 relies on third-party service providers and cloud infrastructure partners, introducing risks of service disruptions, defects, or failures that could negatively impact its service delivery and reputation. Additionally, the company's gross margin is notably lower than many software peers, indicating higher underlying infrastructure costs that contribute to ongoing profitability pressures.

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The increasing penetration of large technology companies (e.g., Apple, Google, Amazon) into financial services through branded offerings (e.g., Apple Card, Google Wallet with banking features) and the broader trend of embedded finance. These developments could diminish the role and importance of traditional bank-branded digital experiences, which Q2 provides solutions for, by shifting consumer interaction points for financial services away from traditional financial institutions and towards non-bank interfaces or integrated third-party applications.

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• Digital Banking: Q2 estimates a $13 billion addressable market for its Digital Banking platform in 2025. This platform encompasses retail, small and medium business (SMB), and commercial experiences, along with risk and fraud solutions and the Q2 Innovation Studio ecosystem. The global digital banking platform market was valued at approximately $12.94 billion in 2024 and is projected to reach $39.6 billion by 2033.
• Relationship Pricing & Digital Lending: The addressable market for Relationship Pricing & Digital Lending is estimated by Q2 to be $5 billion. This segment focuses on optimizing relationship pricing across lending and deposits, automating underwriting, and enhancing borrower experiences. The global digital lending platform market was valued at $12.07 billion in 2024 and is projected to grow to $48.26 billion by 2032.
• Embedded Finance (Helix): Q2 estimates a $3 billion addressable market for Embedded Finance through its Helix platform. Helix enables FinTech companies and financial institutions to launch personalized financial and digital banking experiences.

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Q2 Holdings (QTWO) is poised for future revenue growth over the next 2-3 years, driven by several key factors:

1. Continued Growth in Subscription Revenue: Q2 is strategically shifting towards a higher-margin subscription-based business model, which is expected to be a primary driver of growth. The company projects full-year subscription revenue growth of approximately 13.5% for 2026, reflecting strong bookings momentum and the durability of its subscription model. Subscription-based revenues have shown consistent year-over-year growth, with subscription revenue as a percentage of total revenue increasing.
2. Expansion with Existing Customers: A significant contributor to Q2's performance is the expansion within its existing customer base through cross-selling and up-selling. The company has demonstrated strong customer contracted revenue growth over time, with customers contributing significantly more revenue after several years. This "land-and-expand" strategy leverages the existing customer relationships to drive further revenue.
3. New Customer Acquisition: Q2 continues to drive revenue growth through the acquisition of new customers, including securing significant deals with large financial institutions. The strength in subscription-based bookings is fueled by both new and existing customers.
4. Accelerated Digital Transformation and AI Integration: Financial institutions' increasing focus on digital transformation, including investments in mission-critical digital banking, fraud prevention, and AI solutions, is a significant driver for Q2. Q2's strategic focus includes accelerating AI integration to support robust subscription revenue growth and improve customer retention. Expansion in fraud and risk solutions, driven by increased fraud activity, is also expected to enhance revenue through greater customer adoption.
5. Enhancement and Adoption of Platform Capabilities (Q2 Innovation Studio): The ongoing expansion of Q2's platform capabilities and the increasing adoption of the Q2 Innovation Studio are expected to contribute to future revenue growth. This platform is instrumental in driving new customer acquisition, deepening relationships with current clients, enabling incremental cross-sell opportunities, and increasing customer stickiness.

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Share Repurchases

• On November 5, 2025, Q2's Board of Directors authorized a new share repurchase program of up to $150 million of its common stock.
• The repurchases under this program are expected to be funded from existing cash balances.
• This program has no expiration date and offers flexibility, as it does not obligate the company to acquire a specific number of shares and can be suspended or terminated at any time.

Share Issuance

• Between December 31, 2024, and September 30, 2025, Q2's common shares issued and outstanding increased from 60,728,000 to 62,510,000, respectively.

Outbound Investments

• Q2 has engaged in acquisitions as part of its growth strategy, with the most recent being Sensibill in October 2022.
• Other recent acquisitions include ClickSWITCH in April 2021.
• Between 2015 and 2024, the company incurred $734 million on cash acquisitions, indicating an ongoing focus on external growth through M&A.

Capital Expenditures

• In 2024, Q2 spent $6.7 million on capital expenditures.
• Capital expenditures, alongside capitalized software development costs, are factors in calculating the company's free cash flow.
• The company emphasizes strategic investments in technology and innovation, including AI-based solutions, which likely form a primary focus for capital expenditures.